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Bank Negara Malaysia Publishes Annual Report 2024, Economic and Monetary Review 2024 and Financial Stability Review for Second Half 2024
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24 Mar 2025
Bank Negara Malaysia (BNM) today published its flagship publications: the Annual Report 2024 (AR 2024), the Economic and Monetary Review 2024 (EMR 2024), and the Financial Stability Review for the Second Half 2024 (FSR 2H 2024). These reports detail the central bank’s activities in the past year in upholding monetary and financial stability, as well as assessments for 2025.
2024 was a year of commendable growth and moderate inflation
The Malaysian economy registered a strong growth of 5.1% in 2024 with a moderate inflation of 1.8%. The ringgit ended the year 2.7% higher against the US dollar and 7.5% higher against our major trading partners. The feature articles ‘Curbing Inflation, Easing Costs: The Policy Perspective’ and ‘The Drivers of the Ringgit’ are available in AR 2024 to provide BNM’s view on these economic indicators.
BNM also continued to ensure a sound regulatory framework to promote financial stability and protect financial consumers. In 2024, eleven key prudential and market conduct policies were issued to support capital framework reforms, strengthen risk management standards, and ensure fair outcomes for financial consumers.
Financial institutions are well-capitalised with strong buffers to support financial activities for the economy. They have also continued to step up their efforts in managing climate-related risks and supporting businesses in their transition to more sustainable operations. The latest stress test also reaffirms the industry’s ability to withstand adverse shocks and support economic growth. Read more about our policies affecting financial institutions in FSR 2H 2024 through these feature articles:
- Implementation of the Standardised Approach for Credit Risk: Key Revisions under Basel III and Impact on Banks
- Navigating the Financial Sector’s Transition to the National Sustainability Reporting Framework (NSRF)
In 2024, BNM undertook a mid-term review of the Financial Sector Blueprint 2022–2026. Against a backdrop of technological advancements, climate transition and demographic shifts, BNM has adapted its Blueprint strategies and development priorities to keep pace with upcoming trends and challenges.
The digital financial landscape continues to evolve rapidly. Businesses and consumers are increasingly embracing digital payments. E-payment transactions grew by 19% to 409 transactions per capita, translating to at least one e-payment per Malaysian per day. However, cash remains a vital component of the payment ecosystem. BNM will continue to explore longer-term initiatives that are sustainable to ensure Malaysians continue to have easy and affordable access to cash.
Malaysia continues to be global leader in Islamic finance. Key contributing efforts include enhancing cross-border linkages, promoting Shariah mutual recognition, and sharing insights at international forums. The feature article ‘Deepening the Islamic Financial Market and Liquidity Management’, which can be found in AR 2024, highlights efforts to further develop the Islamic financial market. The feature article ‘Guiding Hajah and Darurah Application in Islamic finance’, available in FSR 2H 2024, delves into the application of key governance frameworks to strengthen the integrity and resilience of Islamic finance practices.
To continue the efforts in combatting financial scams, BNM, PayNet, and financial institutions launched the National Fraud Portal (NFP) in September 2024. NFP is an integrated platform designed to enhance the operational capabilities of the National Scam Response Centre (NSRC). This has reduced the time taken by financial institutions to identify suspected fraud transactions by 75% and increased identification of mule accounts by 65%. Additionally, BNM issued a policy on Fair Treatment for Victims of Unauthorised e-Banking Transactions in 2024, imposing shared responsibility between consumers and financial institutions to ensure fair and equitable investigations and compensation for fraud incidents. Find out more about the BNM’s multi-pronged approach to combat online fraud through the feature article ‘Building a United Front Against Online Fraud Risk’ in AR 2024.
Malaysia will continue to grow in 2025, anchored by domestic demand
The Malaysian economy is projected to grow between 4.5% and 5.5% in 2025. This growth will be driven by sustained domestic demand, despite heightened external uncertainties that could lead to a more moderate expansion of exports.
In 2025, headline and core inflation are expected to average between 2% and 3.5% and 1.5% and 2.5% respectively. Inflation is expected to trend higher but will remain manageable, amid easing global costs and the absence of excessive demand pressures.
Domestic monetary and financial conditions will remain supportive of financing needs amid sustained economic expansion. Credit demand will be driven by positive prospects of domestic growth and income.
Despite potential risks from external developments, Malaysia’s financial markets are expected to remain resilient and well-positioned to preserve orderly market conditions.
Several bright spots remain in sight for the Malaysian economy. Learn more about some of the drivers of Malaysia’s economic growth in these feature articles:
- Malaysia’s Position in the Global E&E Value Chain and Prospects
- Deciphering Malaysia’s Investment Cycles
Bank Negara Malaysia Governor Dato’ Seri Abdul Rasheed Ghaffour said ‘While uncertainties remain on the global horizon, BNM will continue to faithfully discharge our mandate and build the trust of the rakyat. Our diversified economic structure and a wide array of policy tools will accord us the resilience and agility to navigate these headwinds. We are confident that the Malaysian economy will remain on a steady growth path, with inflationary pressures to remain broadly manageable. With favourable domestic conditions expected, Malaysia should continue its pursuit of key structural reforms to ensure sustainable growth for the years to come.’
As audited and certified by the Auditor General, the financial position of BNM remained healthy in 2024. Total assets amounted to RM621.54 billion as at 31 December 2024. A net profit after tax of RM13.16 billion was recorded for the financial year, of which RM7.91 billion has been transferred into BNM’s Risk Reserve. BNM has declared a dividend of RM5.25 billion to the Government for the financial year 2024.
The AR 2024, EMR 2024 and FSR 2H 2024 also contain other feature articles on timely and pertinent topics:
- Financial Capability and Inclusion Demand Side Survey 2024
- In the Driver’s Seat: Enhanced Claims Settlement Practices
- Malaysia's Fifth National Risk Assessment on Money Laundering and Terrorism Financing 2023 (NRA 2023)
- Securing Sustainable Access for Medical and Health Insurance/Takaful Protection
- Navigating the Future of Digital Assets
- Drivers of Malaysia’s Current Account of the Balance of Payments in the Post-COVID Period
- Supply Shocks and Implications for Monetary Policy
To read the publications, please visit bnm.gov.my/AR2024
See also:
Bank Negara Malaysia
24 March 2025
© Bank Negara Malaysia, 2025. All rights reserved.
Disclaimer
The information provided in this report is of a general nature and has been prepared for information purposes only. It is not intended to constitute research or as advice for any investor. The information in this report is not and should not be construed or considered as an offer, recommendation or solicitation for investments. Investors are advised to make their own independent evaluation of the information contained in this report, consider their own individual investment objectives, financial situation and particular needs and should seek appropriate personalised financial advice from a qualified professional to suit individual circumstances and risk profile. The information contained in this report is prepared from data believed to be correct and reliable at the time of issuance of this report. While every effort is made to ensure the information is up-to-date and correct, Bond and Sukuk Information Platform Sdn Bhd (“the Company”) does not make any guarantee, representation or warranty, express or implied, as to the adequacy, accuracy, completeness, reliability or fairness of any such information contained in this report and accordingly, neither the Company nor any of its affiliates nor its related persons shall not be liable in any manner whatsoever for any consequences (including but not limited to any direct, indirect or consequential losses, loss of profits and damages) of any reliance thereon or usage thereof.
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