Malaysian equity and financial markets are capable of navigating the heightened tariff-led volatility, driven by strong institutional support during the period and ample liquidity, said Finance Minister II Datuk Seri Amir Hamzah Azizan.
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00:00I think fundamentally what we wanted to do was to actually focus about what's
00:07happening in the world today and what are the ASEAN challenges they have. The
00:13good thing that we saw today is that I think there is a renewed confidence that
00:17ASEAN has things that it has within it. Today it is still one of the better
00:24growing regions. It has a lot of potential that it can continue to do and
00:29we continue to look at ways and means we can enhance inter-regional trade. So all
00:36the ASEAN countries and so on are encouraging increase inter-regional trade
00:41and under the Malaysian initiative under the finance track what we want to do is
00:47to enable stronger inter-Asian trade through instant payment mechanisms.
00:55So I think that's a good sign that directionally it was on track and we're going to do.
01:01We also had a re-affirmation that sustainable changes for the future are so important which
01:08means that energy transition continues to be a big topic item and we will get support
01:14particularly from the EU in order to help with ASEAN's push towards climate change and this may mean
01:23whether it comes in from technical support, it comes in from financing mechanisms, ventures,
01:28joint ventures and so on. It will come and help us as we push forward. In the ASEAN,
01:34Malaysian led ASEAN Business Council, one of the key areas they were looking at is how do we facilitate more
01:41inter-Asia, inter-Asean business opportunities so we can drive FDIs in a better form. So I think there was
01:48good dialogue and support that we should be looking at things that will increase the ease of doing
01:53business to simplify regulation and so on. So I think all ASEAN countries have also embraced that,
01:59to say if nothing else this recent turmoil that's happened it's going to encourage ASEAN to get closer
02:06together. It's a good sign. We also recognize that the business councils play an important road to
02:12lobby the various governments to do more in doing this and I think our message to the US-Asia Business
02:21Council is that you must help us also because you are representative of companies in Malaysia,
02:27Malaysia, in ASEAN that will have challenges that if this new regime is actually quite difficult it
02:35will also affect your companies. We want you to represent us when you talk to the government and so
02:40on because you know what we are doing in ASEAN to make businesses prosper to help you in doing your
02:48business and we're always welcoming along the way. I think we've got support particularly from the US
02:53Business Council that they will also play their part to make sure the messaging is also delivered
02:59in a better form. In the EU, I think the messaging was similar but maybe more in terms of what more
03:06can we do as ASEAN and EU also looks at diversification so encouraging more trade missions, encouraging
03:13more connects, looking at promoting more FTAs so that we can also continue to strengthen that part.
03:19We recognize that the position will still be challenging. We all have a shock that hit the
03:26system but there is a way forward. There is a path that we can manage through in order to address
03:32these things. And when we all have to work better and stronger together.
03:37Well, you mentioned about renewing today but we understood that the US in causing another
03:44rhetoric in China and this probably will cause another shock to the financial market especially
03:51from like bursa a few years ago, almost 5%. So maybe you can touch on the market and how
03:58how will you ensure in the area ASEAN?
04:00I think we all have seen volatility over a while now. Whether you look at Asian financial crisis,
04:07you look during the Covid period, you look at shocks that hit the system, market has shown
04:12volatility and market has also shown resilience ability to manage through. And I think we've
04:19messaged out that to be clear that actually Malaysia has its own resilience. We have our own resilience
04:25because our liquidity in the market is actually quite high. Local financial institutions, GLICs and so on
04:33are actually very strong financial institutions and they look at this not only in terms of investment for the
04:40long term but it's actually a time that they can reset their portfolios in terms of picking quality
04:46assets along the way. And we've seen strong institutional support during this period. Hence, the volatility
04:53level at the bursa level is manageable. Bursa has not triggered circuit breakers during this period.
05:00Yeah, it's still been one of the more resilient and if you look at the ringgit also has stayed within range
05:07on so far. So I think it is a position that we can manage along the way. I don't deny that there is
05:16volatility. Yeah, but the key is to understand that can we manage and can we absorb, can we move on.
05:23And the key is also to understand what do we do going forward. Can we take proactive steps? Expanding out trade
05:29is a proactive step. Increasing inter-regional trade is a positive step. Yeah, providing cushion support
05:36when necessary is a positive step. So I think that's what we should be focusing on rather than dealing
05:41with emotive things that happen as one trigger point. All right. Okay, thank you.