Capital markets will remain open during MCO, emergency, says Tengku Zafrul

 

Tengku Zafrul Aziz says the country’s banking system has policies in place to mitigate the impact of any potential downgrading of credit rating. (Bernama pic)

PETALING JAYA: The country’s economic recovery from the Covid-19 pandemic will not be affected despite the latest movement control orders (MCO) and the state of emergency, which was declared today.

Finance Minister Tengku Zafrul Aziz said this was because capital markets will remain open with fundraising, trade and investment activities proceeding as usual and with all regulatory functions in place.

“The government would like to assure all Malaysians and investors that the administration of the country has always been facilitated by a well-regulated financial system, including the capital and financial markets,” he said in a statement.

He added that the country’s sound economic fundamentals will continue to enable the government to respond to the current challenges while maintaining growth and resilience.

“Malaysia has a resilient capital market ecosystem, supported by ample liquidity. There are proper market management measures in place to manage volatility.”

Tengku Zafrul added that the Securities Commission and Bursa Malaysia will continue to monitor the developments to manage and mitigate risks in the marketplace, and will introduce additional precautionary measures if needed.

He added that Malaysia’s banking system has policies in place to mitigate the impact of any potential downgrading of credit rating and allow for banks to continue lending during the state of emergency and varying MCOs.

On top of measures already part of the 2021 federal budget, aimed at reviving the economy and providing financial assistance to the public and businesses, he said the government has the liquidity to fund additional initiatives if needed.

“In fact, the finance ministry has begun considering various measures to support the rakyat and businesses during this period. We will not compromise on the rakyat and businesses’ well-being,” he said.

Earlier today, Prime Minister Muhyiddin Yassin announced that the Yang di-Pertuan Agong had declared a state of emergency to curb the spread of Covid-19, which will last until Aug 1 or until case numbers are reduced and stabilised.

The announcement came less than 24 hours after the prime minister had said that five states and all federal territories would be placed under an MCO. - FMT