According to Tan Sri Lin, an investigation was carried out to determine the losses and subsequently he recommended to Mr Jaffar that the central bank cease all future commitments. Critics say the inquiry was formed by the administration of Prime Minister Najib Razak to smear the name of his chief critic, ex-premier Tun Mahathir Mohamad who led the country at the time of the huge BNM losses. The losses were also reported by BNM officials to then finance minister, Anwar Ibrahim who is now an opposition leader.
Malaysia's former deputy secretary-general of the Treasury said he had, together with Anwar, briefed Dr Mahathir on the losses in late Clifford Francis Herbert, in his testimony, said that Dr Mahathir's response was, "sometimes you make profits, sometimes we make losses". Dr Mahathir's lawyer who was present, Haniff Khatri Abdulla, pointed out that market talk over BNM's possible forex losses had surfaced since The inquiry heard on Wednesday that the chief dealer of the forex trading team at the cental bank then, Nor Mohamed Yakcop, did report directly to the governor, but witnesses were unable to say if Mr Jaffar was accurately briefed on the profits and losses incurred.
Tan Sri Nor Mohamed later became a minister in the prime minister's department in charge of economic planning. He's well-intentioned," said Mr Lin, adding: "I think he was too trusting of his forex officer". The former deputy governor said he is not aware if Dr Mahathir was brief by others on the matter. Based on his conversation with Anwar, an opposition leader currently in prison, Mr Lin said the former minister was "unhappy" with the losses and wanted existing open positions to be closed as soon as possible.
Despite billions lost from forex trading, Mr Lin said Malaysia's strong economy at that time would've weathered the loss if the sum was reported in the profit or loss margins instead of the other reserve accounts. The treasury's former secretary-general Mohd Sheriff Mohd Kassim said BNM's decision to conduct "accounting adjustments" by moving sums to "other reserves" was upon agreement with the Auditor General.
Tan Sri Sheriff said the move was not a cover-up and done to "protect" BNM and the country from "dangerous implications to the economy and the Malaysian ringgit". The commission ruled last week that the actual losses were RM Note also that BNM and DrM lied in Parliament about the true size of the losses and covered it up with creative accounting, until Lim kit Siang exposed it. To his credit, Jaafar took the fall.
This is the problem with our top govt officers and Ministers, Najib down. They deliberately make it out that they do not understand where the buck stops and what integrity is, but want all the trappings of high office. Then comes corruption too. He should also resign or be sacked! Only in Malaysia is abject corrupt failure rewarded with elevation after elevation!
Those involved or found guilty mostly got away Without punishments or with just a tap on the knuckles. Investigations were just public relation. It did NOT happen. Swift action and heavy punishment shall be imposed on those found guilty, directly or complicitely, of misconduct or abuse of power in performing their duties.
That was his duty. Not much later. Others may have been at fault, but so was Jaffar. He was not lily-white and free of any wrongdoing. As for Sally Yates, the Acting AG , well, I may be wrong, if so I apologize , but she was an Obama appointee and is on the way out next week anyway and so why not go out with a Bang?
Perhaps she has no lose of pension or some other benefits to worry about? Would Tan Sri Jaffar have resigned if the forex speculation had turn out a profit instead of a loss. If it was not BNM business to speculate in forex, he should have stood firm and resigned rather than see through the forex speculation. Might well have been the case! But that would have been an even bigger Red Flag than resigning promptly, no?
All the more reason for Jaffar Hussein to put his foot down. Pingback: Skandal perdagangan mata wang asing dari hingga You are commenting using your WordPress. You are commenting using your Twitter account. You are commenting using your Facebook account. Notify me of new comments via email. Notify me of new posts via email. This site uses Akismet to reduce spam. Learn how your comment data is processed. Maybe he can help in the investigations. Share this: Twitter Facebook. The difference is his father-in-law resigned and retired, but he, Nur Jazlan, got promoted?
Jaffar Hussein must be turning in his grave? Certainly, he acted with honour when he resigned in over the billions in forex losses.
To get to forever and we would end up that you are. What is deception identity column and exfiltration, insider threat, to attract cyber video icon on. Interested in joining while you're away.
We have an alternative suggestion - exclude the investigation to the press and public," Mr Tan Hock Chuan said in court on Monday morning. If everything is under OSA, what's the point of having an inquiry," he said. The forex losses scandal was among the biggest from Dr Mahathir Mohamad's time as prime minister. The inquiry will take place over 10 days up to Sept 21, with its report to be submitted within three months from July 15, the date the RCI was established.
Join ST's Telegram channel and get the latest breaking news delivered to you. Nadirah H. Anwar was Malaysia's finance minister from to However, Mr Mohd Sidek disagreed. Sign up or log in to read this article in full. Former Malaysian central bank official implicates Anwar in forex losses inquiry. Sign up. Already have an account?
Log in. Resend verification e-mail. The research house says while the is negative for equities, the impact on the stock market should be muted as the increase is minimal. In the property sector, rising interest rates would increase mortgage payment and reduce affordability.
However, CIMB opines that the impact of a gradual rise in interest rates will be mitigated as the key drivers of property demand are the overall economy and the stock market. CIMB notes that the banking sector will benefit from the rate hike due to a positive re-pricing gap between lending and deposit rates. Investment bank research head cites expectations of softer economic growth in H2.
KUALA LUMPUR: Kenanga Investment Bank Bhd has taken the contrarian view and believes that an interest rate hike is unlikely to materialise today, saying that it would be unjustified given jittery economic fundamentals that would not be able to take such a hike. Most analysts opine that Bank Negara is likely to raise the overnight policy rate OPR for the first time since May today, even though they tend to differ on the quantum of increase, between 25 basis points bps and 50 bps.
Bank Negara is scheduled to hold its latest monetary policy committee MPC meeting this evening. Kenanga Investment Bank deputy head of research Wan Suhaimie Saidie pix opined that this is not the right time to raise interest rate as economic growth is expected to trend lower in the second half compared with the first half of the year. Wan Suhaimie said as Malaysia is an open economy, the interest rate outlook will be externally dependent, whereby it has been observed that Bank Negara would shift towards tightening mode when the global manufacturing PMI breaches Wan Suhaimie believes with the implementation of the goods and services tax GST next year, the local economy may even slow down for at least two quarters, making the case for an interest hike far from compelling.
Wan Suhaimie said instead of raising the interest rate, Bank Negara could take additional macroprudential measures to address imbalances in the financial system, such as reducing the loan-to-value ratio and debt-to-income ratio. According to data compiled by Kenanga, Bank Negara is one of the most conservative central banks in the world, with only 10 rate adjustments made over the past 10 years. It explained that on the back of rising cost of living and the upcoming stress of the goods and services tax, the last thing BNM and hence, the government would want to see is the adjustment be a burden the people.
It said impact to the ringgit would also be more conducive if policy rates get adjusted in September and that an adjustment of 25 bps would suffice. With no hike in the OPR, volatility in the market will continue and is likely to see the ringgit fall back to 3. The ringgit has been rising lately, surging to as high as 3.
Contributed by Lee Weng Khuen sunbiz thesundaily. According to a circular from Bank Negara to financial institutions early last week, all banks are required to set aside a minimum of 1. The requirement, effectively, will put a stop to the present situation where banks are left to set aside their CA ratio based on their own risk assessment of their asset profile.
The CA ratio was previously known as the general provisions that all banks were required to adopt. The general provisions requirement was a minimum of 1. However, after the introduction of the new accounting standards three years ago, the general provisions requirement was replaced with a CA ratio, with banks free to set their own ratio.
The central bank no longer set the minimum requirement for banks to comply with in regards to the provisions. Bankers, when contacted, were divided on the impact that the requirement would have on their bottom lines. According to one banker, the move to comply with the ruling will not impact profitability because the additional amount required to be set aside can be transferred from retained earnings.
Another banker said the financial institution was seeking clarification from Bank Negara on whether to set aside the provisions from its profits. OCBC Bank M Bhd country chief risk officer Choo Yee Kwan said the background to the new requirement was that Bank Negara wanted to ensure that impairment provisions could keep pace with strong credit growth.
He said the sector might witness an increase in the overall level of impairment provisions at the industry level. CIMB Research in a report stated that the proposed new guideline could have a negative impact on banks based on its theoretical analysis. For banks with a CA ratio of above 1. Another analyst, however, is of the view that the new requirement from Bank Negara would have a negligible impact on the operations and earnings of banks. Secondly, the minimum ratio of 1.
They added that rising exports would provide the much-needed tailwind for Asian economies to sustain growth even as domestic demand moderated. Malaysia on Friday reported a 2. While imports grew at a faster pace than exports in , Malaysia continued to enjoy a strong trade surplus. The favourable trade surplus combined with an anticipated smaller services deficit and transfer outflows would translate into a larger current account surplus of RM The ringgit, along with other emerging Asian currencies, have been under pressure since June last year after the US Federal Reserve began talking and later started to reduce its quantitative easing QE.
Fears about the US Fed tapering down the supply of cheap money to the market first surfaced in May last year and it triggered a huge sell-off on emerging market assets. Countries such as Indonesia and India had seen their currencies depreciate the most in , Both economies had wide current account deficits.
Not helping emerging market currencies is the recovery in advanced economies, such as a rebound in economic growth in the US which rose by 3. But if economic recovery in the US and eurozone were to stay on course, so would demand for cheaper emerging market exports. This, in turn, would help shrink the huge current account deficits that had hobbled countries such as Indonesia, India and Turkey.
Its exports surged in December, while imports slowed on the weaker rupiah. Malaysia, too, is on track for sustained growth. PETALING JAYA: A new circular from the central bank that took effect last Friday will pile more pressure on an already hard-hit property sector, even if its merits are likely to be felt in the long-term, analysts and industry executives said.
In a bid to make the property market sustainable, the new rules have put the brakes on interest capitalisation schemes ICS and the developer interest-bearing scheme DIBS. It also calls for the use of the net selling price of a property as the benchmark for obtaining bank loans, which raises the amount to be paid upfront. The circular prohibits financial institutions from granting end-financing facilities to individuals or non-individuals for the purchase of property offered under an ICS, including the DIBS.
Financial institutions are also barred from granting a bridging facility to finance a property development that offers ICS. Another key item on the circular requires banks to calculate the LTV ratio based on the net price of a property instead of its gross price. While property executives expect a slowdown in sales, they believe that genuine buyers will remain undeterred.
Leong noted that the lending environment was still conducive, with low interest rates and banks offering BLR minus 2. Increase transparency in property prices 2. New tax rate on property to keep away flippers.
Malaysia has addressed many issues, risks. She said three series of macro prudential measures had been introduced this year to avoid the very risk of the formation of such a bubble asset. This is the result of the focus over the last decade on financial reforms that have strengthened the foundation of our financial system.
Meanwhile, in her opening address at the conference, Zeti said the modernisation of the Asian financial system had been accompanied by a significant strengthening of the regulatory and supervisory frameworks. She said it had also been accompanied by improved financial safety nets, a more effective surveillance of financial stability risks and stronger legal underpinnings. She also said these developments continued to support the region through the recent episodes of turbulence in the global financial markets.
On the Asian financial integration model for the ten Asean economies, Zeti said it was focused on strengthening pre-conditions through collective capacity building to promote more open market access. Meanwhile, Bank Negara and the Bank of Korea jointly announced the establishment of a bilateral local currency swap arrangement.
It is designed to promote the use of local currencies for bilateral trade and strengthen financial cooperation between Malaysia and South Korea, Bank Negara said in a statement. This arrangement allows for the exchange of local currencies between the two central banks of up to five trillion Korean won or RM15bil.
The effective period of the arrangement is three years, and could be extended by mutual agreement between the central banks. Malaysian property sector no immediate bubble risk — Rightways 2. EduCity project, Iskandar Malaysia 3. Property investments: good Infrastructure a way to huge profits and success 4. Kuala Lumpur property market gains stronger Momentum 5. Gross domestic product GDP for the three months to June grew 4.
This was due to lower goods surplus as well as sustained services deficit and outflows in the income accounts. The CPI grew 1. In addition, our reserves level currently is at its strongest ever and we have a low level of external indebtedness.
Year-to-date, for instance, the ringgit has fallen around 7. We received something like RM70bil in inflows in search of higher returns. We expect that there would be reversals of capital. But then, deleveraging set in as major developed nations attempted to reduce their indebtedness , which resulted in a significant reversal of funds, and that precipitated a depreciation in our currency and a significant decline in our reserves.
We have been able to have strong and resilient domestic demand, which grew at 7. Central bank governor Zeti Akhtar Aziz holds press conference earlier at pm THIS week was a rough one for Malaysia. Market observers agree that the revised outlook is bad news for the stock market, but they also agree that the situation is a temporary hiccup.
But on Thursday, the local bourse rebounded to close 0. It continued its uptrend yesterday, advancing 0. He explains while foreign investors are prone to a cash out their positions in the market, the situation is instead cushioned by the local investors. He adds that people in the market are aware of the issue, hence it did not result in any immediate implication. The ringgit has depreciated further to RM3. CIMB Research in a report says the depreciation of the ringgit benefits exporters, such as plantation, rubber glove and semicon players, as well as those with foreign currency revenues.
Since the first quarter, the current account surplus had narrowed to 3. In , current account surplus stood at 6. He adds that the downward pressure on the current account is due to the slowdown in export growth and an increase in imports as the domestic demand grows.
He notes a deterioration in the balance of payments should not be a cause for alarm. Budget is expected to be tabled on Oct Bank Negara governor Tan Sri Dr Zeti Akhtar Aziz says Malaysia has the capacity and capability to address its fiscal vulnerabilities in a gradual and sequenced manner. She adds Malaysia is a highly open market and that it could cope with such volatility because its financial market is one of the most developed among emerging economies.
Email Address:. Sign me up! Rightways Think Global Act Local! Search for:. Blog: Rightways Topics:. Follow my blog. The panel, in confirming that RM The RCI, in its page report that was tabled in the Dewan Rakyat yesterday, said the duo had concealed facts from the cabinet. It also recommended that Dr Mahathir and Anwar be investigated for criminal breach of trust and fraud. Former BNM adviser Tan Sri Nor Mohamed Yakcop was also implicated as the commission found that he was responsible for the billions of ringgit in losses.
RCI had recommended that Nor Mohamed be investigated for alleged criminal breach of trust and for allegedly contravening the Central Bank Ordinance The commission also found that former finance minister Tun Daim Zainuddin had allegedly abetted Nor Mohamed. Daim was finance minister until before he was replaced by Anwar. BNM lost RM Nor Mohamed was in charge of several portfolios in BNM at the time, including the management of external reserves.
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Financial Institutions. Posted in civil liberties , Economy , Education , entrepreneurs , family , General Management , Investments , Laws , property , security , Stock markets. Is timing right for Bank Negara Malaysia interest rate increased now!? July 12, — rightways. Bank Negara says going forward, the over all growth momentum is expected to be sustained.
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Malaysian Central Bank raises defence; weak currency February 11, — rightways. Malaysia banks told to set minimum CA ratio at 1. Weaker currencies are a boon for Malaysia and Indonesia, helping to tip the balance of trade back in their favour, as exporters benefit from rising demand for goods and commodities from advanced economies, coupled with steady growth in China.
This, he said, was positive for the ringgit and the capital market. For many emerging economies, had gotten off to a grim start. But the current market volatility does not portend weaker growth. Asian central banks fix the mess created by their governments. Posted in Economy , entrepreneurs , Investments , Politics , property , security. Bank Negara Malaysia new ruling to curb interest capitalisation and developer interest bearing housing loan schemes November 20, — rightways.
Fee ling the heat: Although the guidelines on the prohibition of the DIBS is not surprising, the new rule on using the net selling price to determine the loan- to-value ratio is a negative surprise to some analysts. Posted in civil liberties , Economy , Education , entrepreneurs , family , Financial institutions , General Management , Investments , Main , property , Relationship , security.
No asset bubble, said Malaysian Central Bank governor October 22, — rightways. Posted in Economy , Education , entrepreneurs , Financial institutions , General Management , Investments , Politics , property , Property management , Relationship , security. Fears that Malaysia and Thailand could join that club have pushed their currencies to multi-month lows in recent days, raising concern that the market contagion could spread to economically healthier countries in Southeast Asia.
Still, the decline was not as much as some economists had fears. Economic growth accelerated slightly to 4. In a nod to the deteriorating growth prospects, the central bank cut its forecast for full-year growth to 4. Malaysia, which is heavily dependent on its exports of commodities such as palm oil, could soon be recording its first current account deficits since the Asian financial crisis.
Other data on Wednesday showed that inflation ticked up to 2.
Lee was testifying at the RCI's fourth hearing today on BNM's alleged forex losses. The RCI's hearing began on Aug 21 this year. Today, Lee said. PUTRAJAYA: Former Bank Negara Malaysia (BNM) Governor, the late Tan Sri Jaafar Hussein, was exceptionally 'buoyant' of the profits the bank. Witnesses at the proceeding said former governor Jaffar Hussein did not Mr Jaffar later resigned from BNM over the forex scandal.