KUALA LUMPUR: The government and Bank Negara Malaysia (BNM) are taking various remedial measures to strengthen the value of the ringgit, including ensuring that the domestic foreign exchange market remains orderly, says the finance ministry.
The government and BNM would also take the necessary measures, including interventions, to limit excessive currency fluctuations, said the ministry in a written reply to a question from Fawwaz Jan (PN-Permatang Pauh) who wanted to know about the government’s short, medium and long-term action plan to increase the value of the ringgit against the US dollar.
The ministry also said it would monitor the conversion of export earnings into ringgit, in addition to continuing efforts to encourage the use of local currency for export settlements to reduce dependency on the dollar.
Integrated and coordinated action will also be taken to increase inflows into the foreign exchange market to strengthen the ringgit’s value, it said.
“The government will further strengthen joint efforts with government-linked investment companies and GLCs to encourage them to bring home income from foreign investments (via repatriation) and convert that income into ringgit more consistently,” the ministry said.
It said the government would also control overseas investment by private companies, including encouraging them to prioritise domestic investment and delaying new overseas investment.
It added that the government continued to focus on implementing structural policies that would strengthen the value of the ringgit in the long term.
These policies include improvements to Malaysia’s investment climate and productivity through the implementation of the New Investment Policy, following efforts to transform the country’s economy guided by the Madani economic framework.
The efforts include 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 ministry.
“The government will 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 in setting any fiscal target in the future through the Public Finance and Fiscal Responsibility Act 2023,” it said.
