Anwar Says Improving Economic Indicators Driving Ringgit Strength

KUALA LUMPUR, Jan 27: Prime Minister Datuk Seri Anwar Ibrahim said Malaysia’s improving economic performance and positive macroeconomic data have played a key role in reinforcing the strength and stability of the ringgit.

Anwar said the recent appreciation of the local currency reflects growing confidence in Malaysia’s economic system, supported by stronger investment inflows, rising incomes, and declining unemployment.

“The strengthening of the ringgit should not be viewed in isolation. It must be seen alongside increased investment, higher incomes, and lower unemployment,” he told the Dewan Rakyat during Question Time on Tuesday.

“Overall economic indicators show a positive trend, and this contributes directly to the ringgit’s resilience and position,” he added.

The Prime Minister, who is also Finance Minister, was responding to a supplementary question from Datuk Dr. Ku Abd. Rahman Ku Ismail (PN–Kubang Pasu) on the factors behind the ringgit’s gains against the US dollar and the impact on Malaysia’s exports and imports.

Anwar said the stronger currency has not disrupted trade flows, noting that the government will continue efforts to strengthen the economy through sound fiscal management, deficit reduction, and policies aimed at attracting quality investments.

“Generally, a stronger currency brings positive effects, although there may be minor concerns related to exports and imports. Overall, no country wants its currency to weaken or fall below its intrinsic value,” he said.

At 8am on Tuesday, the ringgit was traded at 3.9650/9750 against the US dollar, compared with 3.9615/9670 at Monday’s close. The local currency was last at a similar level in May 2018.