Improving global sentiment and investor confidence in Malaysia, as well as a moderation in the US dollar are among major factors supporting the ringgit, said Deputy Finance Minister Steven Sim Chee Keong.
According to him, the ringgit had strengthened 3.2% between Nov 4, 2022 and Feb 17, 2023 and this was also due to domestic political stability, resulting in improved investor confidence, apart from the expectation of a slower interest rate hike in the United States.
Sim was responding to queries from Lim Guan Eng (DAP-Bagan) in Parliament on Wednesday (Feb 22) with regard to the impact on the ringgit, inflation and economy since the unity government was set up.
China’s reopening of its borders on Jan 8 also helped to support the ringgit, he added.
The deputy finance minister also pointed out that the country’s economy expanded 7% in the fourth quarter and 8.7% overall last year, despite major external headwinds.
“At the same time, the country’s inflation rate moderated to 3.8% in December 2022, compared to 4% in November of 2022,” he noted.
