Depreciation of ringgit not an issue for Australian investors, says PM

 

The ringgit’s depreciation is not an issue for investors from Australia, since they remain steadfast in investing in Malaysia because of their confidence in the economy of the country, said Prime Minister Anwar Ibrahim.

The finance minister said in the many discussions held with business leaders and senior executives during his official visit to Australia, there was no mention of the ringgit’s performance.

Anwar said they were more keen to know the basic economic policies and other matters like the share market and inflation.

To questions raised during his meeting with the Malaysian diaspora on Wednesday about the ringgit’s performance and concerns about the local note’s depreciation, he said it does not affect the confidence of the investors.

“(Depreciation of the ringgit) is a cause for concern, but not alarming,” he said.

The ringgit’s value, he said, is associated with the US dollar’s interest rate, adding that the Bank Negara Malaysia governor is also confident that once the ringgit appreciates, there will be a flow of investment into Malaysia.

“If that is the case (depreciation of the ringgit) we would not have seen an investment of RM24.5 billion from Australia. The issue of ringgit is certainly not a concern,” he said referring to the commitment of investors from Australia during his meeting with them in Melbourne.

Anwar noted that as a result, last year saw the highest level of investment recorded in history, despite the fall in the value of the ringgit.

“That would not have been possible if the investors had no confidence.”

Measures in place

The prime minister said there were temporary measures in place to strengthen the ringgit through Malaysia’s biggest trade partner China which is using the ringgit for 25 percent of the trade.

“If we can expand trade using local currency, it will assist in the recovery. I believe with investment figures like this, the ringgit will become stronger,” he said.

PM Anwar Ibrahim

To another question from a Malaysian student in Australia, Anwar said approval would be given to students who are under the Public Service Department scholarship and have completed their studies to remain in the country and gain some working experience.

Anwar said such approval could be given since he would be chairing the meeting.

“We will give the greenlight if there are opportunities to gain some working experience in Australia,” he said.

The prime minister also encouraged other Malaysian students in Australia to discuss with their respective scholarship providers to seek approval for the same purpose.

Earlier in his speech, Anwar stressed that Malaysia must be brave to embrace changes and sweep aside the old culture to ensure the country moves into the progressive path.

The prime minister said such changes should not only be embraced by the government and the cabinet but by the people as well.

“If there is a need for transition of power... we go ahead. If we need a digital transformation, change in technology for agriculture, we will do it,” he said.

Anwar said in the one year and three months under the administration of the coalition government, not a single case has emerged whereby a “minister or prime minister or finance minister who are in power” attempted to plunder the nation of its wealth, citing the firm approach of the government in all matters.

- Bernama