Govt committed to implementing policies to strengthen international reserves, ringgit

KUALA LUMPUR - The government remains committed to implementing policies that can bolster the nation’s economic growth and competitiveness to attract funds that will strengthen the international reserves and the ringgit.

The Finance Ministry said the government would also continue to carry out policies to improve the investment climate and national productivity to enhance Malaysia’s long-term appeal for foreign direct investment and foreign portfolio investment.

"Amid the global financial market uncertainty, a flexible ringgit exchange rate plays an important role in cushioning against external shocks so that domestic economic activities are not affected,” it said in a written reply to the Dewan Negara published on the Parliament website.

The ministry was replying to Senator Mohd Apandi Mohamad who asked about measures taken by the government to stabilise the ringgit vis-a-vis the US dollar.

It said the local currency’s recent performance versus the greenback was in tandem with currencies in the region and developed countries, spurred by expectations of US interest rate hikes.

It noted that factors that could strengthen the ringgit included global market stability, positive investor sentiment and higher foreign exchange acceptance firmly supported by the country’s core economic activities.

"Bank Negara Malaysia’s (BNM) approach for strengthening the ringgit is focused on ensuring the ringgit adjustment is done in an orderly manner, thus helping people and businesses in planning their expenditures and investments well,” it explained.

The ministry said BNM would continue to manage risks from domestic and external developments as well as using its policy instruments to ensure an orderly market situation. - BERNAMA