KUALA LUMPUR: The government will continue to intensify efforts to improve foreign investor confidence in Malaysia by implementing policies that promote the country as an exciting investment destination.
Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz said the government would give more focus on encouraging investments into emerging industries as well as implementing the National Investment Aspirations framework to attract high-quality investments.
"External corporate credit risks remain manageable," he said in the Dewan Rakyat today in reply to Wong Hon Wai (DAP-Bukit Bendera), who asked what measures were taken by the government via Bank Negara Malaysia (BNM) to mitigate foreign exchange risks.
Tengku Zafrul said there was no easy or quick fix for the ringgit's weakness against the United States dollar.
"However, BNM uses operational policy instruments to ensure an orderly foreign exchange (forex) market," he added.
He said that while BNM did not target any exchange rate level, the central bank was striving to prevent drastic or extreme changes in the ringgit's value to help businesses plan and implement decisions and investments better.
BNM would ensure that banking institutions and corporations in the country took prudent measures in dealing with forex risks and safeguarding the ringgit from speculative activities, Tengku Zafrul said.
"This can reduce the risk of excessive changes in the ringgit's rate."
In addition, he said the central bank had implemented various initiatives to increase access and attract foreign investors to the bond market, including improving the secondary bond market liquidity as well as strengthening the structure and liquidity of the forex market.
"Daily onshore forex transaction volume has continued to rise to reach an average of US$13.3 billion to date, compared to US$11.3 billion in 2021, amid two-way flows," he said. -- Bernama