KUALA LUMPUR: The policy direction put in place by the Unity Government is yielding results and beginning to attract and restore investor confidence, going by several latest developments on the country's economy, said Economy Minister Rafizi Ramli.
He said the developments included a convincing economic narrative, increasing foreign investments, commitment to fiscal strengthening, Malaysia's projected economic growth of 5.8 per cent in the second quarter of 2024, as well as the strengthening signs of the ringgit.
The Unity Government's commitment to difficult fiscal reforms and comprehensive economic planning has resulted in a new economic growth narrative, he added.
"The local currency has appreciated against the US (United States) dollar for 10 consecutive days, notching the best streak of gains in 14 years.
"So far, the ringgit has strengthened by 2.16 per cent against the US dollar. The ringgit's performance has also outperformed several major international currencies such as the British pound, Chinese renminbi and the euro," he explained.
Rafizi said the ringgit is the only Asian currency that has strengthened against the US dollar.
"This proves that the government's policy direction is yielding results and beginning to attract and regain investor confidence.
"Moving forward, we anticipate the first interest rate cut in the US, which could happen as early as mid-September, will further strengthen the ringgit's position.
"Although there is consensus among research firms that the ringgit will continue to strengthen, my focus remains on the effective implementation of the planned policies," he added.
However, according to him, the global economy will continue to be volatile in the near term, which will continue to influence the fluctuations of the ringgit.
Therefore, he said, the ringgit can only be sustained against this global uncertainty if the country's economy is restructured towards high technology to ensure sustainable economic growth.