KUALA LUMPUR: The Malaysian government and central bank are ramping up efforts to give the economy a much needed boost, after the country missed growth targets by a whisker last year.
In February, the ringgit had dropped to levels not seen since the depths of the Asian financial crisis more than a quarter of a century ago.
The ringgit hit a 26-year low on Feb 20 this year, falling to 4.7965 against the US dollar – the weakest it has been since the 1998 crisis when it hit 4.885.
The currency has since shown signs of stabilising, and Malaysia’s economy is expected to improve this year.
Since Malaysian Prime Minister Anwar Ibrahim took office in November 2022, the ringgit has depreciated over 6 per cent against the US dollar.
However, that is largely externally driven and does not reflect Malaysia’s economic fundamentals, according to the government.
To help boost the local landscape, the Ministry of Finance has urged government-linked companies to bring back funds from overseas, while encouraging private sector firms to invest domestically.
“We are encouraging government-linked companies and government-linked investment companies to bring back foreign earnings and convert them to ringgit in a more consistent manner,” Malaysian Second Finance Minister Amir Hamzah Azizan said in parliament recently.
“The government will also check on private companies regarding their overseas investments to help ease pressures on the ringgit. They are encouraged to prioritise domestic direct investment and postpone new investment overseas.”
Source: CNA
