Engagement between the government and Bank Negara Malaysia (BNM) will be intensified to include corporate bodies like exporters, importers, government-linked investment companies (GLICs) and government-linked companies (GLCs) to encourage fund flows into the foreign exchange (forex) market.
Prime Minister Datuk Seri Anwar Ibrahim, in a post on social media platform X, said that during the National Economic Action Council’s second meeting of the year on Mar 21, BNM governor Datuk Abdul Rasheed Abdul Ghaffour informed that the ringgit’s performance has continued to improve against the US dollar.
Anwar, who is also the Finance Minister, said this was the result of various initiatives coordinated among the government, BNM, GLICs and GLCs as well as the forecast announced by the U.S. Federal Reserve yesterday.
According to him, the forecast shows US inflation is more manageable and the US monetary policy normalisation plan this year will curb US dollar appreciation.
“Since the joint operation began, the ringgit’s value has strengthened by 1.4 per cent to 4.7135 today from 4.7773 on Feb 23, 2024. However, the global financial market uncertainty will continue to influence the local currency’s movement as long as the monetary policy actions of developed economies remain unclear,” he said.
Anwar said the government will implement “New Deal for Business” (NDFB) by improving process and procedural efficiency as well as carrying out structural reforms for operating business.
He said the meeting also studied in depth the NDFB proposal which is aimed at boosting investor confidence and increasing productivity, competitiveness and national economic growth.
The Special Taskforce to Facilitate Business (PEMUDAH) will be tasked with monitoring the execution of all NDFB initiatives, Anwar said.
Also discussed during the meeting was the “Strengthening of Old-Age Income Security Framework in Malaysia”, said the Prime Minister. The discussion focused on ageing issues and their effects, including the country’s preparedness in providing old-age income security.
The meeting concluded that a comprehensive study must be done to improve the old-age income security framework in Malaysia to make it more holistic.
