KUALA LUMPUR: Malaysia's central bank said on Wednesday better external demand, along with robust domestic demand, are supporting the country's economic expansion even as the country's currency remains under pressure.

"The improving global economy together with the tech upcycle are benefitting our exports, especially since Malaysia is a dominant player in the global semiconductor industry," according to a text of Bank Negara Malaysia governor Datuk Shaik Abdul Rasheed Ghaffour's speech at a finance conference.

He reiterated that Malaysia's economy is set to grow 4-5% in 2024. Further, Malaysia's external sector resilience is a key strength, Abdul Rasheed said citing current-account surplus, "manageable" level of external debt, net external asset position and an "adequate" level of international reserves.

"This has enabled Malaysia to weather the volatile global financial conditions from a position of strength, and has ensured the domestic financial markets continue to remain orderly," he said.  

Bank Negara Malaysia will announce its monetary policy decision on Thursday (March 7). A survey of 19 economists by Bloomberg unanimously called for the central bank to maintain the overnight policy rate at 3.00% at its second of six scheduled monetary policy reviews for this year.

The Malaysian ringgit meanwhile has backed away from its 26-year low against the US dollar following sharp gains over January-February.

"We are highly resolved to ensure that the ringgit remains stable," Abdul Rasheed stressed.

In addition to engagements with state-owned enterprises to encourage repatriation to Malaysia, "we are also stepping up our engagements with international investors... to showcase the positive prospects of Malaysia and that Malaysia remains highly attractive for investment and business," he said.

Abdul Rasheed also continued to emphasise that the ringgit remains undervalued given the country's growth prospects that is also backed by "sustained investor confidence" as evidenced by the stable, long-term government bond holdings by non-residents at around 22%, and recent foreign inflows into equities.