KUALA LUMPUR- Malaysia’s Prime Minister Anwar Ibrahim said the ringgit currency’s fall to a 26-year-low this week was concerning but emphasized that strong fundamentals underpinned a promising outlook for the economy.
The ringgit is trading near lows last seen in January 1998, when it reached 4.8850 against the dollar.
“This is concerning, we’re looking at it and luckily it’s strengthened a little,” Anwar said, referring to the weak currency, at a launch event for the Tun Razak Exhange (TRX) financial center.
However, Anwar told reporters that Malaysia’s growth could be sustained compared to its neighbors as investments were high and inflation and unemployment were down.
Anwar said the ringgit’s current performance should not be compared to 1998, when the nation’s inflation and jobless rates were high and foreign investors had kept away.
As at Friday, the currency has slumped 4 percent against the dollar in 2024, extending its poor performance in recent years.
Anwar said Malaysia’s 329.5 billion ringgit ($68.99 billion) in approved investments in 2023, up 23 percent from 2022, was the highest in the country’s history and a “reassuring” sign. -Reuters
