Finance minister II: No plans to peg ringgit for now

The government has no plans to peg the ringgit at this time, Finance Minister II Amir Hamzah Azizan said.

He said when the ringgit was pegged around 1998, the economic condition at that time was different compared to the current situation. 

He explained that in 1998 the stock market had plunged by 76 percent but from the start of this year, the stock market had risen six percent. Foreign debt in 1998 was more than 16 percent of the gross domestic product while currently it is only one or two percent. 

“Hence, if we look in terms of national reserves, Bank Negara has reserves of more or less US$114 billion. It’s much better at RM26 billion (recorded) in 1998.

“Therefore, (there’s) no need for us to react hastily. The government is indeed sensitive to the issue of the ringgit and will strive to address it,” he said during a question-and-answer session in the Dewan Negara today. 

Amir said analysts also opined that the ringgit will stabilise this year to a better level and possibly to the 4.50 level against the US dollar.

“Under the Madani economy framework, we believe the ringgit will perform better in the future,” he said. 

He was replying to a supplementary question from Senator Mohamad Fatmi Che Salleh, who wanted to know if the government was planning to peg the ringgit to control or safeguard the country’s assets.

- Bernama