The Malaysian ringgit has emerged as the top-performing currency compared to nine other regional countries. This achievement follows the implementation of coordinated measures among the government, Bank Negara Malaysia (BNM), government-linked investment companies (GLICs), and government-linked companies (GLCs) on February 26, 2024.
Finance Minister II Datuk Seri Amir Hamzah Azizan announced this milestone during a session at the Dewan Negara today, citing data from BNM’s Financial Markets Committee dated March 1, 2024. He emphasised the immediate impact on market trends and increased market interest in the ringgit following these measures.
“The government remains committed to ensuring the ringgit’s performance is robust and resilient,” said Amir Hamzah.
He elaborated on the various measures undertaken, including BNM’s efforts to maintain orderly domestic foreign exchange markets and financial stability.
Moreover, BNM is actively monitoring the conversion of export revenue into ringgit by exporting companies, aiming to reduce dependence on the US dollar.
The Ministry of Finance and BNM are collaborating on integrated actions to bolster the foreign exchange market, encouraging GLICs and GLCs to repatriate foreign investment income and convert it to ringgit consistently.
In addition to joint efforts with BNM, the government is focusing on economic reform initiatives to indirectly strengthen economic performance and the ringgit.
Additionally, Amir Hamzah highlighted the Madani Economic framework, aimed at restructuring the economy to emerge as a leader in Asia and ensuring Malaysia’s competitiveness as an investment destination.
To address the issue of the ringgit’s value, Amir Hamzah urged all parties to play their roles, emphasizing a “Malaysia First” approach among Malaysians. He encouraged the purchase of Malaysian goods and services, investment in unit trusts, domestic hedge investments, and increased domestic tourism and support for local goods.
Furthermore, steps have been taken to attract foreign tourists, such as visa exemptions for Chinese and Indian citizens from December 2023, aiming to stimulate economic growth and strengthen the ringgit.
