Depreciating ringgit has not impacted investors' confidence - PM

 

The depreciating value of the ringgit has not affected investors’ confidence in Malaysia, said Prime Minister Anwar Ibrahim.

He also urged the public not to compare the ringgit’s situation to that of the 1998 Asian Financial Crisis, where inflation and unemployment levels were high.

“If (investors) confidence is low because of the ringgit, there wouldn’t be investments like this,” he told reporters at a press conference after an event at TRX this morning.

However, he stressed that the government was not taking the issue lightly, adding that measures are being taken to remedy the situation.

Yesterday, Anwar announced that Malaysia recorded total approved investments of RM329.5 billion in 2023 which is 23 percent higher than in 2022.

Anwar, who is also the finance minister, pointed out this is the highest amount of approved investments in the country’s history and foreign investments were the main contributor at 57.2 percent, compared to domestic investments at 42.8 percent.

Investment figures reassuring

Meanwhile, he said the country’s economic situation must be looked at comprehensively instead of only focusing on the ringgit’s value.

“(Economic) growth we can sustain as compared to our neighbours so I think look at the comprehensive view and the capacity of the country to grow.

“What is reassuring to me is the investment figures,” he said.

He added that the government will continue to do its daily monitoring of the situation especially when it comes to the cost of living.

On the declining ringgit, Bank Negara Malaysia (BNM) has been assigned to monitor the situation, Anwar said.

“So of course, BNM has been assigned to monitor. As you know, it is the field of competence of BNM but it is affecting all countries.

“But what is important is to focus on what we can do what we should do and we are doing it daily,” he added.

On Tuesday, BNM governor Abdul Rasheed Ghaffour expressed his belief that the ringgit’s level does not reflect the positive prospects of the economy going forward.

He said the recent performance of the ringgit, similar to other regional currencies, has been influenced by external factors.

As of 12.15pm today, the ringgit stood at 4.775 against the US dollar, according to BNM’s website.