KUALA LUMPUR: The narrowing of interest rate differentials between Malaysia and advanced economies could benefit the ringgit despite volatility in global financial markets, said Bank Negara Malaysia governor Datuk Seri Abdul Rasheed Ghaffour.
Abdul Rasheed said geopolitical developments, changes in monetary policy by global central banks, and more recently, the just-concluded US elections, have led to heightened volatility in global financial markets this year.
"Despite this, the narrowing of interest rate differentials between Malaysia and advanced economies is positive for the ringgit," he said at the launch of InvestMalaysia portal here today.
Abdul Rasheed said Bank Negara is closely monitoring global developments and ready to manage any spillover to domestic markets.
This includes ensuring sufficient liquidity in the domestic foreign exchange market.
"Nevertheless, what remains constant is that the domestic landscape remains on firm footing, owing to the country's solid economic prospects and fundamentals," he said.
The government today launched the InvestMalaysia portal as a one-stop gateway for investors to obtain information on Malaysia.
Finance Minister II Datuk Seri Amir Hamzah Azizan said the InvestMalaysia Portal aims to address the gap of finding that final bit of information about investing in Malaysia.
Amir Hamzah said he is confident that through the InvestMalaysia Portal, Malaysia will not only attract global interest but also foster meaningful partnerships that drive the nation's progress and prosperity.
"What we have built is a platform where you enter with questions and exit with answers, or at the very least being pointed to the right direction to find the right information.
"Together, the Investor Relations Office and the InvestMalaysia portal will act as navigators for portfolio investors looking to participate in our market," he added.