KUALA LUMPUR, March 19 — Malaysia is now better-equipped to deal with any looming financial crisis compared to 1997 and 2008, Bank Negara Malaysia's  governor Tan Sri Zeti Akhtar Aziz said today.

She said Malaysia has stepped up in five major aspects, including major progress in having a resilient financial system.

“Quite a significant change has taken place,” Zeti told reporters after presenting the central bank’s annual report, and the Financial Stability and Payments Systems Report for 2013.

Earlier this week, Malaysia’s longest-serving prime minister Tun Dr Mahathir Mohamad warned of a global financial crisis caused by spiralling living costs and falling purchasing power.

Zeti said Malaysia's economic structure has improved with the economy has started to rely more on domestic demand rather than on exports.

Secondly, Malaysia's banking industry has grown to be more resilient and less fragmented, she added.

Zeti also said  the central bank has at its disposal a wider range of powers and instruments than previously.

She said a deeper bond market, which stands at 108 per cent of the gross domestic product, compared to just around 35 per cent during the first Asian financial crisis, also helps.