PM Anwar says Malaysia’s economy, investments booming despite ‘concerning’ ringgit free fall

Prime Minister Anwar Ibrahim said surging investments and falling jobless rate showed the country was in a better shape to tackle currency volatility

He added the central bank would keep monitoring the ringgit, which hit a 26-year low against the US dollar this week

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Malaysia’s Prime Minister Anwar Ibrahim. Photo: Bloomberg

Published: 1:26pm, 23 Feb 2024Updated: 1:32pm, 23 Feb 2024

The ringgit’s decline this week to a 26-year low against the US dollar does not reflect the reality of Malaysia’s strengthening economy, Prime Minister Anwar Ibrahim said on Friday, trumpeting investment, positive unemployment data and solid growth rates.

Markets raised the alarm on Tuesday when the ringgit fell to 4.7965 against the dollar, according to Bloomberg data, its lowest since an all-time low of 4.885 in January 1998 during the Asian financial crisis.

The currency continues to hover close to its lowest-ever level on elevated pressure from expectations of a US Fed rate change and sustained weakness in China’s economy.

But Anwar, who is also finance minister, said the ringgit’s performance was “concerning” but Malaysia’s economy is in a much better position now to manage currency volatility compared to the crisis of the late 1990s.

“They always compare to ‘98. In ‘98 the ringgit was down, inflation was up, unemployment was up and there were no investments,” Anwar told reporters on the sidelines of an event.

“But look at the overall [now]. Investments are the biggest ever in the country, inflation continues to go down, unemployment is down, our growth is sustained as compared to our neighbours.”

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