As we embark on a new decade, I look forward to 2020 with optimism. Although external headwinds and the US-China trade dispute continue to impact the global economy, I am encouraged by prospects ahead for Malaysia. Consumer and tourism-related industries remain potential areas of growth, in addition to the potential rollout of construction and infrastructure projects which could provide positive spillover effects to the manufacturing and services sectors. The 2020 National Budget is also expected to act as a catalyst, given its strong focus on development expenditure to support growth and improve sentiments.

As an attractive investment destination, Malaysia is set to continue to benefit from Foreign Direct Investment (FDI). Testament to this, for the first half of 2019, approved FDI increased by 97% to RM49.5 billion from RM25.1 billion in the same period last year, which is certainly promising.

The outlook for the Ringgit remains tied to trade relations between the US and China. Should trade negotiations prove favourable, this could see a stronger Renminbi against the US Dollar, which would bode well for the Ringgit to strengthen.

While challenges will persist for the banking industry, I remain positive on the sector and expect to continue to see improved policy certainties and better clarity. Moreover, our portfolios are strongly focused on loans growth and bright prospects for small to medium enterprises (SMEs).

This is all the more meaningful as SMEs are poised to see robust growth in 2020, underpinned by relevant incentives and key policy measures including heightened digitalisation and connectivity. SMEs are well-positioned to leverage on fast-emerging areas such as cybersecurity, supply chain integration, innovative technology and disruptive business models.

Building on these indicators, I firmly believe that Malaysia is on the right track to achieve stable growth despite the challenging environment.

UNQUOTE