Page 14 - Introduction To Investment Management

Table 1: Funds Raised by Public and Private Sector in the Capital Market.

iii. Government Sector

As business institutions, governments usually require funding to manage public
expenditure. Most of the government revenue is comprises of tax collection, and if the

generating revenue is not enough to cover the expenditure, the government should
consider other methods to meet their needs. Figure 1.1 shows As at end-July 2021, M1

or narrow money grew at a rate of 10.8% to RM550.8 billion continuously buoyed by

higher currency in circulation (13.7%) and demand deposits (9.9%) while M3 expanded by
3.8% to RM2,106.4 billion. The expansion was mainly driven by higher net foreign assets
in the financial sector amid net portfolio inflows and the continued extension of credit to

the private sector, especially through loans. (Source: Bank Negara Malaysia and

Kementerian Kewangan Malaysia – Monetary and Financial Development)

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