KUALA LUMPUR, Apr 25 – Malaysia’s international reserves remain strong at RM423.2 billion or US$95.7 billion as of April 14. Deputy Finance Minister Senator Datuk Lee Chee Leong said the reserves level is sufficient to finance 8.2 months of retained imports and is 1.1 times the short term external debt.
“At the international level, the reserves position is sufficient to finance at least three months of retained imports and 1.0 times the short term external debt,” he told the Dewan Negara here today when he in reply to a question from Senator Datuk Dr Hou Kok Chung who had asked the Finance ministry to state the country’s foreign reserves position at present and the steps being taken to strengthen it.
Lee said the stable reserves position had enhanced the country’s economic resilience and ability to face the uncertain global economic scenario. He said at the same time, the government and Bank Negara Malaysia (BNM) would continue to monitor the international reserves position by taking the necessary steps needed to ensure it remains sufficient in being a buffer towards meeting external obligations.
Lee clarified that the reserves position is not the only source for the government to fullfil its external obligations. He said at present, the reserves position encompasses only 24% of the external assets value, while available external banking and company assets are sufficient to finance about 80% of the equivalent external debts. In addition, he also added that the flexible foreign exchange also reduces the country’s dependence on the international reserves to meet its outside obligations. — Bernama