Strong economic fundamentals driving ringgit's growth - Bank Negara governor


Bank Negara governor Datuk Abdul Rasheed Ghaffour

KUALA LUMPUR: Malaysia's strong economic fundamentals are among the factors supporting the ringgit's growth, even during times of currency weakness, said Bank Negara Malaysia (BNM) Governor Datuk Seri Abdul Rasheed Ghaffour.

He highlighted that the country's projected economic growth rate of 4.0-5.0 per cent for this year is also a positive factor that will contribute to the strengthening of the ringgit, moving forward.

"In terms of our economic growth, the financial sector, and so on, we are indeed strong. Currently, these fundamentals remain solid and will only get stronger.

"The economic outlook is positive. These two factors are driving the appreciation of the ringgit," he said during Astro Awani’s "Fiscal and Monetary Strategies: Key to Strengthening Malaysia's Economy" programme, aired today.

The programme also featured Finance Minister II, Datuk Seri Amir Hamzah Azizan.

Abdul Rasheed added that, aside from macroeconomic factors, the structural reforms being implemented by the MADANI government also play a critical role in bolstering the ringgit's strength.

"This is where I have to congratulate the government for undertaking this painful policy reform which is important for the nation as it will strengthen us in the future.

"Investors see our commitment to these structural changes, and it has contributed to the ringgit’s appreciation. It will continue to drive further support for the currency in the future," he said.

He further emphasised that Malaysia's monetary policy, particularly in determining the Overnight Policy Rate (OPR), is guided by domestic factors, namely, inflation and the country's growth prospects.

"Our monetary policy must be aligned with domestic conditions, not external events. Even if the United States (US) Federal Reserve raises or lowers interest rates, it doesn't provide any direct indication on how we manage monetary policy in Malaysia.

"What we focus on is the impact of changes in the US or other countries on our inflation outlook and economic growth. Currently, at 3.0 per cent, the OPR is supportive of economic growth," he added. - Bernama

Follow us on our official WhatsApp channel for breaking news alerts and key updates!

   

Next In Business News

We must advance Malaysia’s venture ecosystem for sustainable growth, says Amir Hamzah
Advancing Malaysia’s venture capital ecosystem: Significant investments in capacity building, funding and regulatory reform
Sentoria Group triggers PN17 criteria
Ringgit rebounds to end higher against US$
Sapura Energy makes clarification on 'aspirational' timeline for regularisation plan
M'sian-born Tan Lip-Bu eyed to head Intel
Mulpha's Australian unit to acquire Marymount Mercy Centre in NSW for residential project
Nvidia signs deal to help build Thai ‘sovereign cloud’
DC Healthcare opens new Dr Chong Clinic in Penang
Bursa Malaysia ends higher amid strong interest in utility, tech stocks

Others Also Read