The role of Bank Negara Malaysia Kuala Terengganu in ensuring financial stability in the east coast of Malaysia

This study explores the pivotal role of Bank Negara Malaysia (BNM) Kuala Terengganu in ensuring financial stability in the East Coast of Malaysia, focusing on the unique economic challenges faced by this region, which includes Terengganu, Kelantan, and Pahang. The East Coast has historically experienced slower development compared to the more industrialized West Coast, primarily due to its heavy reliance on agriculture and natural resources. This dependence makes the region particularly susceptible to fluctuations in commodity prices and environmental factors, which can lead to economic instability. Through qualitative interviews with key personnel at BNMKT, the research identifies critical issues such as limited access to financial services, low levels of financial literacy, and the challenges faced by small and medium enterprises (SMEs). These factors have hindered economic progress in the region and necessitate effective financial oversight and intervention. Insights from BNM personnel reveal that their efforts extend beyond regulatory oversight; they actively shape the financial landscape to foster resilience and growth. BNM's strategic initiatives aimed at enhancing financial inclusion, promoting digital payment systems, and providing support to SMEs are essential for addressing the unique challenges faced by the East Coast. For instance, increasing credit access for SMEs is vital for local employment and economic diversification. Additionally, promoting digital payment adoption not only modernizes transactions but also improves efficiency and security for businesses operating in a predominantly cash-based economy. The findings underscore the importance of tailored interventions that consider local economic dynamics to foster a more resilient economic environment. Ultimately, this research contributes valuable insights into the effectiveness of central banking in addressing regional disparities within Malaysia's broader economic landscape. Moving forward, enhancing financial literacy among residents, expanding digital infrastructure, and supporting economic diversification will be crucial for strengthening financial stability in the East Coast. By tackling these areas, BNM can bolster the region's capacity to withstand external shocks and maintain economic stability.