Exclusive report by SITI NOOR AFERA ABU

KUALA LUMPUR, Oct 11  -- Malaysia has not been borrowing from the Multilateral Development Banks (MDB) over the past two decades with the country’s capital market has become more dynamic and to reduce exposure to foreign exchange risks, according to the Economic Outlook 2020 released by Ministry of Finance (MoF) today.

Nevertheless, the country continues to benefit from its membership with the MDBs through various facilities.

A multilateral development bank is an international financial bank commissioned by countries with the aim of economic development, particularly in poorer nations.

Malaysia is a member of five of these institutions, namely the World Bank Group (WBG), International Monetary Fund (IMF), Asian Development Bank (ADB), Islamic Development Bank, Asian Infrastructure Investment Bank.

The report said one benefit is the reimbursable advisory services provided by the WBG on a vast range of areas, including sustainable development, competitiveness and economic management.

“Through the WBG’s local presence since 2015, Malaysia has been able to gain direct access to its pool of knowledge and expertise to enhance capacity, as the country moves towards a developed and high-income economy,” it added.

The WBG also provided analysis on policy challenges and recent economic developments of the country through the publication of bi-annual Malaysia Economic Monitor (MEM).

The MEM published in June 2019 entitled, “Re-energising the Public Service”, focused on the vital role the public service played in line with the government’s reform agenda.

Membership in the IMF has also benefitted the country through annual surveillance activities, involving an assessment of the nation’s economic and financial developments.

The ADB’s support in Malaysia has been focused on advancing regional cooperation and integration, catalysing private investments and capacity building.

“The ADB targets specific sectors and identifies thematic priorities to help Malaysia achieve its development through technical assistance and advisory services,” the report said.

Malaysia’s involvement in these MDB’s has reflected the country’s commitment and concern for international efforts in economic development and cooperation, in line with the United Nations’2030 Development Agenda.

-- BERNAMA