MOF: Govt, BNM continue to take remedial measures to strengthen the ringgit

MOF: Govt, BNM continue to take remedial measures to strengthen the ringgit

KUALA LUMPUR: The government and Bank Negara Malaysia (BNM) are continuing to take various remedial measures to strengthen the value of the ringgit, including ensuring that the domestic foreign exchange market remains orderly, said the Ministry of Finance (MOF).

The government and BNM will also take necessary measures, including interventions, to limit excessive currency fluctuations, said the MOF in a written reply to an oral question from Muhammad Fawwaz Mohamad Jan (PN-Permatang Pauh) who wanted to know about the short, medium and long-term action plan by the government to increase the value of the ringgit against the United States dollar (USD).

The ministry also said it will monitor the conversion of export earnings into ringgit by exporting companies, in addition to continuing efforts to encourage the use of local currency for export settlements to reduce dependency on USD.

Integrated and coordinated action will also be taken to increase the inflows into the foreign exchange market to strengthen the ringgit value, said the MOF.

“The government will also further strengthen joint efforts with government-linked investment companies (GLICs) and government-linked companies (GLCs) to encourage them to bring home income from foreign investments (repatriation) and convert that income into ringgit more consistently,” the MOF noted.

The government will also control overseas investment by private companies, including encouraging them to prioritise domestic investment and delaying new overseas investment.

“Foreign investments that are carried out also need to be managed prudently such as protecting the value (hedging) of foreign currency exposure and bringing back the results of foreign investments to reduce pressure on the ringgit,” said the ministry.

The MOF added that the government continues to commit and focus on implementing structural policies to strengthen the value of the ringgit for the long term.

These steps include policies to improve Malaysia’s investment climate and productivity through the implementation of the New Investment Policy (NIP), following efforts to transform the country’s economy guided by the MADANI Economic Framework.

This includes policies such as the National Energy Transition Roadmap, the New Industrial Master Plan 2030 and the Half-Term Review of the 12th Malaysia Plan, said the MOF.

“The government will also implement structural policies that can increase the country’s economic growth and competitiveness to attract the inflow of funds and quality foreign investment.

“The emphasis will be on the government’s responsibility, especially the MOF, in setting any fiscal targets in the future through the Public Finance and Fiscal Responsibility Act 2023 (Act 850),” added the MOF. -Bernama


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