KUALA LUMPUR (Sept 17): Though Malaysia has been scarred by the 1MDB scandal that has resulted in the country suffering a RM1 trillion debt, the country is determined to put in all necessary measures to ensure corruption and abuse of power is eradicated from its administrative system, said Finance Minister Lim Guan Eng.

While Malaysia as a global trading nation has not been immune to recent uncertainty in global developments, which has created greater pessimism and increased downside risks in global economic growth, in particular emerging markets, he said the FBM KLCI is still one of the best performers in Asia Pacific year-to-date, with a slight increase of 0.13% as of Sept 7. 

"In comparison, the Singapore STraits Times Index and the Nikkei 225 index decreased by 8.29% and 1.72% respectively, over the same period," the minister noted in a press statement today, which contained an excerpt of a speech he made at the CLSA 25th Anniversary Investors Conference in Hong Kong on Sept 13

He also outlined eight key factors that underlie the resilience of the Malaysian economy, leading with its steady growth that is expected to continue, its highly diversified economy, its favourable labour market conditions that remain supportive of growth, and its health current account surplus.

The remainder four are: a flexible exchange rate; sufficient external buffers with an international reserve position of US$104.4 billion which he said is adequate to facilitate international transactions; a low inflation rate that will "shield" the country from any imported inflation; and the unique investment opportunity created for the country amid the trade conflict between China and the US.

"With strong economic fundamentals, good governance and fiscal responsibility, the only way to go is up," the minister said, adding the government is committed to fiscal sustainability, strengthening the country's resilience, and achieving a sustainable and equitable growth.