Increase in OPR will have minimal impact on country’s exports — Husni

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PUTRAJAYA: The increase in the overnight policy rate (OPR) will have a minimal impact on the country’s exports, Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah said.

“The quantum is not that large to affect the cost of production,” he told reporters after chairing the Focus Group Meeting for the Budget 2015 here yesterday.

He said that Malaysia’s exports this year was increasing month on month.

“Many other countries have adjusted the overnight policy rate (OPR) earlier, some about three years ago,” he added.

Bank Negara Malaysia announced a 25 basis points increase in the OPR to 3.25 per cent last week.

Earlier, Husni said Malaysia’s export performance in the first five months of the year has been robust, increasing by 13.5 per cent in tandem with the pick-up in global demand, broad recovery in advanced economies, the recovery in global semiconductor sales, firm commodity prices and strong regional trade.

Imports have been strong as well, at 6.7 per cent during the same period, he added.

This bodes well for the Malaysian economy as it is reflective of strong domestic economic activity and export capacity.

Husni said he is confident that the external sector will continue to perform well, contributing to Gross Domestic Product (GDP) growth at well above five per cent.

“I understand that world trade is set to improve considerably in 2015. This will be positive for trade, investment, capital flows and job creation as well,” he added. — Bernama