KUALA LUMPUR (April 1): Finance Minister II Datuk Seri Amir Hamzah Azizan has reiterated the government's steadfast commitment to maintain the stability and resilience of the ringgit.

He highlighted Bank Negara Malaysia's (BNM) continuous efforts to uphold stability in the domestic foreign exchange market, noting that aside from vigilant monitoring of financial markets, BNM takes proactive steps, including intervention when necessary, to curb excessive currency fluctuations.

"Additionally, BNM oversees the conversion of export earnings into ringgit by exporters, while encouraging the adoption of local currency in export settlements to reduce reliance on the US dollar," he said during the winding up of the debate on the Supplementary Supply Bill (2023) 2024 in the Dewan Negara.

Amir Hamzah also emphasised the collaborative efforts between the Ministry of Finance and BNM in facilitating fund inflows into the foreign exchange market.

"This collaborative approach includes encouraging government-linked investment companies (GLICs) and government-linked companies (GLCs) to repatriate foreign investment income and consistently convert it into ringgit," he added.

He underscored the positive outcomes resulting from these measures, citing the observation made by BNM's Monetary Policy Committee on March 1, 2024, when the committee said there has been a notable impact on market flows, coupled with an increased market interest in the ringgit.

He added that with Malaysia's economic growth forecast at 4%-5% this year, analysts estimate that the ringgit will recover against the US dollar towards the second half of 2024, within the range of RM4.50.