We certainly welcome his optimism. 'No more stimulus pacakages,we are alright,'that was the message of Ahmad Husni Hanadzlah, the Second Finance Minister. And inflation? "Wont't exceed 2%" he assuaged.
The rationale for his optimism? The effects of a great fiscal policy and monetary policy which will contain inflation between 1 and 2 pct.
So what does this imply? For one, no rate increase expected in 2010. If there need be, it will be at the end of 2010 amidst subdued inflationary pressure and weak demand conditions.
Asked if Malaysia was considering an international bond offering, he responded that the Government may be looking into it.
Malaysia last visited the offshore debt markets with a US$1.75 billion (RM6 billion) dollar bond sale in 2001.
Husni said the government was planning to divest stakes in 15-17 government-linked companies (GLC’s) across various sectors to boost competitiveness, and hoped to complete the process this year.
Last year, Prime Minister Datuk Seri Najib Razak asked state funds to sell down stakes in government-linked companies that dominated the market, to boost the free float of a stock exchange that has lagged Asian peers.
“We want the private sector to play a bigger role and we are quite happy with the progress so far,” Husni said.
On the dollar, Datuk Seri Husni said although the Malaysian ringgit was strong, it was difficult to predict future trends.
The ringgit has appreciated 2.12 per cent against the US dollar so far this year.
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