Page 368 - Westport Guide To Malaysia

360 MALAYSIA MEANS BUSINESS
Economic & Financial Stability
The Malaysian economy is now well diversified on a steady growth trajectory. The economy is operating close to full employment levels with generally low and stable inflation for decades. The managed float exchange rate regime with orderly market movements has also served the economy well.
The international reserves of Bank Negara Malaysia amounted to USD115.2 billion as of 15 March 2022. The reserves position is sufficient to finance 6 months of retained imports and is 1.2 times the short- term external debt. Meanwhile, the financial sector has advanced, becoming more resilient and moving from a growth enabler to growth driver in
the economy. Progressive banking, financial and insurance services have, together, become vital ingredients that have successfully contributed
to the nation's balanced economic growth, including insulating the economy from the worst of the global financial crisis.
Access to Finance
According to the World Bank, Malaysia ranks 37th out of 190 economies for ease of getting credit. This is the result of multiple initiatives in building infrastructure
for access to financing over the years, including the centralised credit reference information system (CCRIS). Borrowers can source their financing needs from 26 commercial banks, 16 Islamic banks and 6 development finance institutions as well
as the bond market, which is the largest in Southeast Asia.
Malaysia is also the world leader in Islamic finance and has maintained its leadership in the global sukuk (Islamic bond) market, commanding 45.1% of global sukuk outstanding in December 2020. Islamic financial products are
by no means restricted to Muslim individuals or businesses, and many secular organisations are discovering that Islamic financial products match their borrowing needs exceptionally well.
Low Taxes & High Incentives
The Malaysian government pursues a pragmatic taxation regime. For corporate tax, the current rates imposed on companies with paid-up capital of not
The ground-breaking ceremony for the Pelican Project, Intel’s new expansion facility in Bayan Lepas Free Industrial Zone, Penang. Intel celebrates its 50th anniversary in Malaysia in 2022 and plans to invest RM30 billion over the next 10 years. Showing off their spadework skills are MIDA CEO Datuk Arham Abdul Rahman (left), Penang Chief Minister Tuan Chow Kon Yeow (centre) and Intel Malaysia MD Chong Aik Kean (right).