“I believe we are on track to achieve the GDP growth trajectory … if we were not, you would see more measures being introduced,” the central bank governor told reporters on the sidelines of the Responsible Finance Summit here yesterday (March 30).

Bank Negara last week announced its GDP growth projection of between 4 per cent and 4.5 per cent for Malaysia this year. The central bank’s forecast was in line with the projection issued by the Finance Ministry early this year under the recalibrated Budget 2016.

Noting that the present policy package to support Malaysia’s economy was based on an average oil price estimate of US$35 to US$40 per barrel on the Brent, Zeti said unless oil prices collapse further, and financial markets become highly or extremely volatile with negative implications, there wouldn’t be other new measures necessary to support the economy.

Separately, Zeti said the implemenation of Goods and Services Tax (GST) had produced tremendous fiscal benefits to the government.

“So far, it is producing the desired results and households are adjusting to it,” she said.

At the inaugural two-day Responsible Finance Summit, which brought together key stakeholders from the conventional responsible and Islamic finance sector, Zeti noted responsible finance was pivotal to ensure countries achieve stronger, more balanced and sustainable growth.

“Responsible finance at its core strives to serve wider objectives that is consistent with, but goes beyond, the predominant objective of enhancing shareholder value. In delivering long-term sustainable value, allocative efficiency is achieved in a manner that promotes stability and prosperity in the broader economy and sustainability of the environment.

“Above all, responsible finance aims to optimise its positive impact on society, economic wellbeing and development,” she said in her keynote address.

Zeti pointed out that the world had made much progress since the eruption of the 2008/09 Global Financial Crisis.

“While having to strike a balance between pursuing financial stability and the potential increased costs to financial intermediation, efforts have been made through the global financial reforms towards more sustainable financial systems,” she said.

“This includes the recalibration of financial regulations to curb tendencies for excessive leveraging, strengthened regulatory and supervisory systems that are forward looking and responsive to risk, as well as provisioning standards that reduce procyclicality and that restrain the build-up of risks,” she explained.

In addition, advancing consumer protection, furthering financial education and literacy as well as improving access to financial services have remained important long term items on the agenda, Zeti added.