The country’s economy still recorded high growth in addition to the largest investment inflows even though the value of the ringgit declined.
Prime Minister Datuk Seri Anwar Ibrahim said, the current situation is not the same as the economic crisis of 1998 which at that time saw the value of the ringgit and investment falling and inflation rising.
He said the government will constantly monitor the current situation of the ringgit while also focusing on the cost of living of the people. “Why should it be seen only in terms of the Ringgit and compared to 1998 because as I mentioned earlier the Ringgit fell, investment fell, inflation rose so it is not the same.
“Right now, our investment is the last figure that was announced yesterday after the National Investment Council Meeting, the highest in the history of Malaysian investment. If the confidence was lacking because of the Ringgit, he would not have invested like this,” he said after the Tun Razak Exchange (TRX) Launch Ceremony as the Center International Finance Malaysia at Menara Exchange 106 in Kuala Lumpur.
Anwar was asked to comment on the situation of the value of the ringgit which continued to depreciate, putting it almost to the lowest level recorded in 1998 during the Asian financial crisis.
Previously, the Governor of Bank Negara Malaysia (BNM), Datuk Abdul Rasheed Ghaffour said that the ringgit’s performance in recent times, just like other regional currencies, has been affected by several external factors.
He said, some of these factors include the market’s adjustment to expected changes in United States (US) interest rates, geopolitical concerns and uncertainty surrounding China’s economic prospects.
Anwar, who is also the Minister of Finance, added that the government is not taking the situation lightly and ensured that the situation returned to normal.
He said, Malaysia managed to record an approved amount of RM329.5 billion last year, an increase of 23 percent compared to 2022, thus seeing that amount is the highest approved investment in the country’s history.
“But we have to look and see the highest investment in the country’s history, inflation falling, and unemployment falling while growth remains stable compared to neighbouring countries.
“So I see we need a comprehensive view and the country’s ability to grow in addition to looking at the rate of investment,” Anwar added.
