KUALA LUMPUR - The ringgit is expected to continue to strengthen based on the latest trend, said Deputy Finance Minister 1 Datuk Seri Ahmad Maslan.
Speaking on Agenda Awani: The Ringgit Story and the People’s Pockets broadcast on Tuesday night, Ahmad Maslan said the ringgit is hovering at a relatively good range of RM4.53-M4.63 this week against the United States dollar.
He said the benchmark FTSE Bursa Malaysia KLCI also rose from the 1,380-level (earlier this month) to 1,406 points (on Monday), suggesting that the Malaysian economy is heading in the right direction with its strong fundamentals.
"Contributing to the rise is a reduction in the fiscal deficit, currently at 5.6 per cent of the gross domestic product (GDP). The government is working to reduce it to 5 per cent of the GDP.
"It is paying its debts at a rate not exceeding 15 per cent of its national revenue,” he said.
"The government is determined to continue spending to benefit the people. Budget 2023 of RM388.1 billion is the largest in the country's history. A total of RM289 billion from the budget was allocated for operating expenses and RM99 billion for development.
"As of June, 49 per cent of the development budget was used. The Prime Minister wants to raise this to 60 per cent by August. I am confident that this target can be achieved," he said. - BERNAMA