Kuala lumpur: Fiscal discipline and systematic management of the national economy have enabled the ringgit to record the best performance in all of Asia, according to Prime Minister Datuk Seri Anwar Ibrahim. He noted the ringgit’s strengthening against the US dollar, with an increase of 8.2 percent as of November 14.
According to BERNAMA News Agency, Anwar emphasized that domestic policies, such as targeted subsidies, have been instrumental in this achievement. The government halted subsidy funds that did not directly benefit lower-income Malaysians, leading to positive impacts on the ringgit, especially through measures like subsidies for RON95 fuel.
Anwar, also serving as the Finance Minister, highlighted the strategic role of government-linked investment companies and government-linked companies in national development. He pointed out that similar strategies have been adopted by South Korea and several European countries, including the United Kingdom, reinforcing the validity of Malaysia’s approach despite some local economists’ skepticism.
In response to a question from Jimmy Puah Wee Tse (PH-Tebrau) about strategic sectors receiving investments amid the ringgit’s appreciation, Anwar mentioned the services sector’s strengthening. This sector recorded a surplus of RM0.7 billion in the third quarter of 2025, marking the first surplus in 14 years. This achievement was supported by the MADANI Economy strategies, the New Industrial Master Plan (NIMP), the energy transition agenda, the National Semiconductor Strategy (NSS), and high-impact sectors such as data centers.
Anwar explained that the rapid development of data centers has significantly benefited the national economy. Despite substantial initial import costs for their construction, these assets contribute to strong service export earnings once operational.
However, Anwar acknowledged concerns about the ringgit’s strengthening not yet translating into lower prices for goods, particularly in the livestock sector reliant on imported animal feed. He noted that while inflation is low, the expected reduction in prices has not been evident.
To address the cost-of-living issue, the government is focusing on two main approaches. The first involves stricter enforcement by the Domestic Trade and Cost of Living Ministry to ensure that companies importing goods reduce prices according to lower import costs. Anwar stressed that price reductions should be unavoidable if import costs are lower.
The second approach involves expanding the Jualan Rahmah program and strengthening the network of retail outlets offering lower prices, ensuring immediate benefits from price stability for the people.