KUALA LUMPUR — Strengthening economic fundamentals and policy buffers remains crucial for Malaysia to sustain growth and safeguard public well-being amid global trade uncertainties, said Abdul Rasheed Ghaffour, Governor of Bank Negara Malaysia.
Speaking in conjunction with the release of the BNM 2025 Annual Report, he highlighted that ongoing improvements in fiscal sustainability and the country’s ability to attract high-quality investments have created room for essential reforms, particularly in social protection and the labor market.
He noted that while such reforms may involve short-term adjustments, they are necessary to achieve more inclusive growth and ensure long-term benefits for both current and future generations.
Looking ahead, BNM projects Malaysia’s Gross Domestic Product (GDP) to expand between four and five percent in 2026. This outlook is supported by the country’s strong domestic resilience and diversified export base, which provide a solid buffer against external challenges.
Abdul Rasheed emphasized that Malaysia’s ambition to become a high-income developed nation must be anchored in shared prosperity. He stressed the importance of building an economy that generates higher-paying jobs, supports households and businesses, and remains resilient over the long term.
He also underscored the strength of the financial sector, noting that it continues to effectively channel funds between savers and borrowers. Financial institutions, he said, remain well-capitalized and operationally resilient, backed by ample liquidity and strong asset quality. This stability ensures continued access to financing, supporting consumption, investment, and income generation.
On the regional front, Abdul Rasheed pointed to ASEAN as a key pillar of strength in an increasingly fragmented global environment. He said the region’s collective and measured response to global trade tensions reflects a commitment to cooperation and stability.
Malaysia, he added, benefits from being part of a region that prioritizes collaboration, which is vital in navigating a more complex global landscape. In this regard, BNM is spearheading efforts to deepen regional financial and economic integration through the Financial Track.
The expansion of ASEAN’s regional payment network is a notable achievement, with 29 payment systems now interconnected across member countries. This enables faster, more secure, and lower-cost cross-border transactions for tourists and businesses, reducing friction and creating new economic opportunities.
He further noted that ASEAN’s collective resilience has been strengthened through initiatives such as the Chiang Mai Initiative Multilateralisation and strategies under the ASEAN Geoeconomic Task Force, enhancing the region’s ability to respond to external shocks.
Abdul Rasheed said BNM will continue to prioritize readiness in addressing emerging challenges while maintaining focus on long-term goals of strengthening economic prospects and national resilience.
He added that the Monetary Policy Committee will closely monitor economic developments and assess risks to growth and inflation. The central bank stands ready to ensure orderly market conditions and manage excessive volatility when needed.
As the Financial Sector Plan 2022–2026 enters its final phase, BNM plans to accelerate implementation while shaping the next phase of Malaysia’s financial sector development. This includes promoting innovation in areas such as digital finance, stablecoins, and climate adaptation, ensuring progress is achieved in a safe and responsible manner.
![KUALA LUMPUR, March 31 — Malaysia has entered a new era in labour protection with the enforcement of the Gig Workers Act 2025 [Act 872], marking a major milestone in safeguarding the rights and welfare of workers in the rapidly expanding digital economy. The landmark legislation, which officially comes into force today, reflects the strong commitment of the MADANI Government under Prime Minister Anwar Ibrahim to ensure that economic progress goes hand in hand with social justice. Described as a bold and comprehensive move, the Act provides long-awaited legal recognition and protection for gig workers, a sector that has grown significantly in recent years due to technological advancements and shifting employment trends. With an estimated 1.64 million gig workers in Malaysia set to benefit, the law introduces key safeguards including basic workers’ rights, improved transparency in contractual agreements, clearer dispute resolution mechanisms, and stronger social security protections. Officials подчеркнули that Malaysia’s approach places it ahead of regional peers such as Singapore, Indonesia, and Philippines, where gig worker protections are still being introduced gradually or remain limited to specific sectors. In contrast, Malaysia’s dedicated legal framework positions the country among Asia’s leaders in addressing the challenges of the gig economy. The Ministry of Human Resources, Ministry of Human Resources Malaysia, played a central role in developing the Act, working closely with a wide range of stakeholders including gig worker associations, trade unions, academics, and media representatives. “This is not just about economic growth, but about fairness and inclusion,” the government said, emphasizing that the goal is to build a digital economy that is not only innovative and fast-growing, but also equitable and sustainable. The introduction of Act 872 is seen as a defining step in positioning Malaysia not merely as a participant in the regional gig economy, but as a model nation demonstrating that technological advancement and social protection can progress together. The government expressed appreciation to all parties involved in shaping the legislation, noting that the achievement reflects a collective national effort to secure a more just and resilient future of work.](https://minutesmy.com/wp-content/uploads/2026/03/657983552_122263032920166941_1934844252325807125_n-1024x683.jpg)
