Malaysian government not ignoring ringgit’s decline: PM Anwar
Malaysian Prime Minister Anwar Ibrahim is seen here interacting with members of the public at an eatery. (Photo: Facebook/Anwar Ibrahim)
This audio is generated by an AI tool.
KUALA LUMPUR: The Malaysian government is not ignoring or taking the decline of the ringgit lightly and is making continuous efforts to address the issue while also assuring that the country’s investment figures remain intact, Prime Minister Anwar Ibrahim said on Friday (Feb 23).
He added that the central bank has been assigned to monitor the ringgit closely. And on the government’s side, Mr Anwar stressed that relevant ministries and authorities – including the country’s investment council – are conducting daily meetings to tackle the issue.
“It is concerning. But look at the overall investments which are the biggest ever in the country’s (history), inflation continues to go down, unemployment is down and growth (is) sustained compared to our neighbours.
“I think (we should) take a comprehensive view and the country’s capacity for growth. What is more important to me is the reassuring investment figures,’ he told reporters after the launch of the Tun Razak Exchange as Malaysia International Financial Centre in Kuala Lumpur.
Experts whom CNA previously spoke to have warned that a further slip of the Malaysian currency may have political repercussions on Mr Anwar, especially if the public perceives a lack of action by his administration to tackle the issue. But one analyst said that such a scenario is unlikely given the “unassailable” majority the prime minister enjoys in Parliament.
Mr Anwar noted on Friday that if investors’ confidence was reduced because of the declining ringgit, Malaysia would not have been able to achieve its record-high investment of RM329.5 billion (US68.91 billion) last year – an increase of 23 per cent from 2022.
“Why should we look only in terms of the ringgit and compare it to 1998? In 1998, the ringgit fell, investment fell and inflation rose. It’s not the same,” said Mr Anwar.
At the same time, the prime minister said that it was important for the government to focus on what can be done and what needs to be done on a daily basis.
“We will continue to monitor the situation every day, including the cost of living and the impact on people’s lives,” said Mr Anwar.
Earlier on Tuesday, the ringgit fell to its lowest level since the Asian Financial Crisis of the late 1990s. The currency had also suffered a more than 4 per cent drop this year, partly due to poor export performance and rising US interest rates.
