KUALA LUMPUR: Even as the ringgit hit a low of 4.764 to the dollar, Ministry of Finance's (MOF) Treasury secretary-general Datuk Johan Mahmood Merican voiced optimism that the ringgit's performance will ultimately mirror the robust fundamentals of the country's economy.
"I believe the general issue is that the movement in currency is more a result of the US dollar strengthening rather than the ringgit weakening. "I mean, because you can observe that many of our neighboring countries are also similarly weakening relative to the US dollar. "But on the other hand, if you look at our fundamentals, the country's fundamentals are still very strong," he said in an interview with Business Times yesterday.
Johan highlighted that Prime Minister Datuk Seri Anwar Ibrahim's remarks on the nation's economic status echoed this sentiment, emphasizing several key indicators.
He noted that this includes Malaysia's unemployment rate, which has dropped to 3.4 per cent, nearly returning to pre-pandemic levels and inflation rates for July and August hovered around two per cent.
He added that investments and trade activities have also seen increases, further illustrating the nation's economic strength.
As such, Johan expressed optimism about building upon this solid economic base, particularly with the implementation of the Madani reforms under the 2024 Budget, aimed at driving continued growth, especially in the coming year.
Johan pointed out that this trend isn't unique to Malaysia, as several neighboring countries are facing similar challenges due to the robust US dollar.
The ringgit closed at 4.764 to the dollar as at 5pm on Thursday, one of its lowest levels since the Asian financial crisis in 1998.