share on
On top of the local currency outperforming the US dollar for 10 consecutive days, the Malaysian ringgit has also outperformed several international currencies such as the British pound, China's RMB and the Euro.
Malaysia's economy is showing significant signs of improvement, according to Minister of Economy Rafizi Ramli.
The leader attributed this to a series of recent developments in the country:
- Economic growth: Malaysia's economy is projected to grow by 5.8% in Q2 2024.
- Increasing foreign investment: There has been an increase in foreign investment, indicating growing confidence in the country’s economic prospects.
- Fiscal strengthening: A commitment to fiscal reforms and comprehensive economic planning.
As a result, the Malaysian ringgit has seen an improvement in performance, with the minister citing the following:
- The ringgit has outperformed the US dollar for 10 consecutive days, marking its best performance in 14 years.
- It has strengthened by 2.16% against the US dollar.
- The ringgit has also outperformed other major international currencies, including the British pound, China’s RMB, and the Euro.
- It is the only currency in Asia that has strengthened against the US dollar.
This positive trend suggests that the government’s policies are effective and attracting investor attention and confidence, the minister highlighted.
Looking ahead, the anticipated interest rate cut in the US, which could happen as early as mid-September, is expected to further strengthen the ringgit.
"Despite the consensus among research firms that the ringgit will continue to strengthen, my focus remains on the effective implementation of the policies that have been planned," Minister Rafizi commented.
The global economy will continue to face turbulence in the near future, which will impact the fluctuations of the ringgit, he further noted.
Thus, he affirmed that to sustain the value of the ringgit amidst global uncertainty, Malaysia's economy must be structured towards high-tech industries to ensure sustainable growth.
READ MORE: Malaysia's economy grew by 4.2% in Q1 2024
Lead image / Minister Rafizi Ramli's Facebook post
share on
