KUALA LUMPUR: The ringgit’s value is still strong amid recent market developments and adjustments, with the local note rising by 5.03 per cent against the US dollar as at Nov 4, 2024. Finance Minister II Datuk Seri Amir Hamzah Azizan highlighted the ringgit’s robust performance, noting its appreciation against several regional currencies, including a 13.3 per cent rise against the yen, 12.2 per cent against the won, 7.5 per cent against the rupiah, and 3.7 per cent against the baht.

According to BERNAMA News Agency, Amir Hamzah attributed the ringgit’s strength to global developments, particularly changes in expectations regarding lower monetary policy rates in major economies, especially the United States. He also pointed out that geopolitical unrest in the Middle East and forthcoming elections in the US have added to the volatility in the global financial markets, impacting the ringgit and other emerging market currencies.

Amir Hamzah was responding to a query from Lim Guan Eng (PH-Bagan) concerning the p
erformance of the ringgit this year in comparison to the US dollar and other foreign currencies, and its alignment with the rise in foreign investment, robust GDP growth, and controlled inflation. He noted that the Malaysian economy continues to show positive growth, having expanded by an average of 5.1 per cent as at the third quarter of 2024.

Further, Amir Hamzah mentioned that the Department of Statistics Malaysia’s preliminary estimate for 3Q 2024 is 5.3 per cent growth. The national economy is projected to grow between 4.8 per cent and 5.3 per cent for the entire year 2024. Inflation was reported to be low and stable at 1.8 per cent in September 2024, and approved foreign direct investment reached RM160 billion in the first half of the year, compared to RM136 billion in the same period in 2023.

Amir Hamzah also emphasized the positive outlook for the Malaysian economy, supported by the government’s commitment to policies under the MADANI framework, which will continue to bolster the ringgit’s performan
ce. He assured that the government is focused on ensuring the orderly trading of the ringgit and that Bank Negara Malaysia is prepared to intervene in the foreign exchange market to manage excessive currency movements.