Photo by Shahrin Yahya/The Edge

KUALA LUMPUR (March 19): The ringgit was in the first place compared to nine other regional countries since coordination measures among the government, Bank Negara Malaysia (BNM), government-linked investment companies (GLICs) and government-linked companies (GLCs) were implemented on Feb 26.

Finance Minister II Datuk Seri Amir Hamzah Azizan also said that based on BNM’s Financial Markets Committee statement on March 1, 2024, there was an immediate impact on market trends with increased market interest in the ringgit.

"The government is committed to ensuring that the performance of the ringgit is at a better and stronger level," he told the Dewan Negara on Tuesday.

He said various measures had already been taken, and that BNM always ensures that the domestic foreign exchange market remains orderly, and maintains financial stability. The central bank also continues to monitor the financial market and take the necessary measures, including intervention in the foreign exchange market, to curb excessive currency movements.

In addition, Amir Hamzah said, BNM also monitors the conversion of export revenue into ringgit by exporting companies, and continues to encourage the use of the local currency for export settlement, so that dependence on the US dollar can be reduced.

He said that the Ministry of Finance and BNM had taken integrated and coordinated actions to bring money into the foreign exchange market. "Among them are encouraging GLICs and GLCs to bring back foreign investment income, and convert the income to ringgit more consistently."

Amir Hamzah said the government also controls overseas investment by private companies to reduce pressure on the ringgit, including encouraging them to prioritise domestic investments and delaying new overseas investments. "Overseas investments must be managed prudently, such as protecting the value [of the ringgit] through 'hedging' foreign currency exposure and bringing back the proceeds of overseas investments."

In addition, he said that besides the joint measures with BNM, the government is also focusing on economic reform efforts, which will indirectly strengthen the economic performance and the ringgit.

"The government has introduced the Madani Economic framework, with the main pillar being to restructure the economy to emerge as a leader in Asia. The Madani economy focuses on ensuring Malaysia is a competitive investment destination," he said.

Meanwhile, the self-described technocrat said in dealing with the issue of the value of the ringgit, all parties should play their respective roles, and Malaysians are expected to adopt a “Malaysia first” attitude as daily consumers.

"Buy Malaysian goods and services, as well as invest in unit trusts and domestic hedge investments," he said, adding that the campaign to travel within the country and buy local goods will continue to be strengthened, because it helps strengthen the ringgit and improve economic performance.

The former chief executive officer of the Employees Provident Fund (EPF) said that to encourage the influx of foreign tourists, the government had taken steps, including exempting visas for 30 days for Chinese and Indian citizens from December 2023.