PUTRAJAYA: The strength of the domestic economy and the measures taken by the Finance Ministry and its associated departments and agencies play a crucial role in efforts to bolster the ringgit, says Datuk Seri Anwar Ibrahim.

The Prime Minister noted that the domestic position and the current strength of the ringgit are highly encouraging despite a concerning global geopolitical situation.

"The numbers clearly show the ringgit's impressive performance over the past 14 years," he said at the monthly assembly of the Finance Ministry on Tuesday (Aug 6).

On Aug 2, the ringgit closed at RM4.49 against the US dollar, marking a 1.6% increase against the greenback and an upward trend for the tenth consecutive day — its best streak since 2010.

The ringgit's strength against the greenback continues, boosted by the growing likelihood of US interest rate cuts.

As of 8am on Tuesday, the ringgit appreciated to 4.4200/4300 against the US dollar, up from 4.4240/4305 on Monday (Aug 5).

Anwar added that the government's decision to implement targeted diesel subsidies, despite being unpopular, has improved investor confidence in choosing Malaysia as their preferred destination.

He also described the rejection of targeted subsidies as an unwise move, noting that all previous prime ministers had agreed to halt the leakage.

"It means that if you want to invest, you know the policy is responsible. There is no leakage, and with the Fiscal Responsibility Act, the targeting of chicken subsidies and electricity tariffs demonstrates that this government is willing to take unpopular actions to save the national economy," he said.

He noted that the government saved over RM4bil by implementing the subsidy targeting programme.

Anwar also urged the Finance Ministry's Communication Unit to be more aggressive and proactive in educating the public about the realities of targeted subsidies.

"We can't blame people for not understanding because sometimes we fail to educate them and enlighten them about the economy," he said.

At the same event, Anwar also launched the countdown to the 2025 Asean Financial Track Meeting. The Finance Ministry, as the leader of the Asean Financial Track, will chair four related meetings.

Next year, Malaysia will once again chair Asean, following its previous chairmanships in 2005 and 2015. – Bernama

https://www.thestar.com.my/news/nation/2024/08/06/ringgit-strength-bolstered-by-domestic-measures-says-anwar