PUTRAJAYA, Aug 6 — The strength of the domestic economy and the measures taken by the Finance Ministry and its associated departments play a crucial role in efforts to bolster the ringgit, said Prime Minister Datuk Seri Anwar Ibrahim.
He said the domestic position and the current strength of the ringgit are highly encouraging despite a concerning global geopolitical situation.
“The numbers clearly show the ringgit’s impressive performance (the longest winning streak) over the past 14 years,” he said at the monthly Finance Ministry assembly today.
On August 2, the ringgit closed at 4.49 against the United States dollar, marking a 1.6 per cent increase against the greenback and an upward trend for the tenth consecutive day — its best streak since 2010.
The ringgit’s strength against the greenback continues, boosted by the growing likelihood of United States interest rate cuts.
As at 8am today, the ringgit appreciated to 4.4200/4300 against the greenback, up from 4.4240/4305 yesterday.
Anwar added that the government’s decision to implement targeted diesel subsidies, despite being unpopular, has improved foreign investor confidence.
He also said rejecting subsidy targeting is an unwise move, noting that all previous prime ministers had agreed to halt the leakage.
“It means that if you want to invest, you know the policy is responsible. There is no leakage, and with the Fiscal Responsibility Act 2023, the targeting of chicken subsidies and electricity tariffs demonstrates this government is willing to take unpopular actions to save the national economy,” he said.
He noted that the government has saved over RM4 billion by implementing the subsidy targeting programme.
Anwar also urged the ministry’s Communication Unit to be more proactive in educating the public about the realities of subsidy targeting.
“We can’t blame people for not understanding because sometimes we fail to educate them and enlighten them about the economy,” he said.
At the same event, Anwar launched the countdown to the 2025 Asean Financial Track Meeting. The Finance Ministry, as leader of the Asean Financial Track, will chair four meetings.
Next year, Malaysia will once again chair Asean, following its previous chairmanships in 2005 and 2015.
— Bernama
