PUTRAJAYA: The strength of the domestic economy and measures taken by the Finance Ministry have played a crucial role in the strengthening of the ringgit, said Prime Minister Datuk Seri Anwar Ibrahim.
Speaking at the Finance Ministry's monthly assembly here today, Anwar, who is also the Finance Minister said the current domestic situation and the strength of the ringgit was very encouraging, despite concerning global geopolitical conditions.
"If we look at the figures, the undeniable fact is that the strength of the ringgit compared to 14 years ago is very impressive," he said.
This is as the ringgit is set for its best run on the back of optimism over the economy and inflow of foreign funds.
Yesterday, the ringgit appreciated to 4.4930/5010 versus the US dollar from last Friday's close of 4.4945/4995 as investors redirected their investments towards the Asia-Pacific region following weaker US jobs data.
Anwar also said the government's decision to implement targeted diesel subsidies, which has been described as an unpopular move, has also helped boost investor confidence in choosing Malaysia as their preferred destination.
"Who doesn't want to be popular? Who doesn't want it to be easy? Just spend, give money, and we can still borrow. We are not in a severe situation, we can borrow RM3 billion or RM4 billion, what's wrong with that? But is that a responsible economic policy?"
"This means that if you want to invest, you know that the policy is responsible, meaning there are no leakages.
"With the Fiscal Responsibility Act, targeted subsidies for chicken, and electricity tariffs, people know this is a responsible government willing to take unpopular actions to save the country's economy," he said.
He added the government has saved more than RM4 billion due to its firm implementation of the targeted subsidy programme.
Anwar also called for the ministry's communication unit to be more aggressive and proactive in explaining the correct facts about targeted subsidies to the public.
"We cannot blame people for not understanding because sometimes we do not play our role in educating them about economic matters.
"We know that targeted subsidies (facts) are being manipulated. You know that because it is sometimes discussed by prominent political figures who have held significant positions, but when they speak, they never consider the facts and instead play on sentiments and emotions.
"We face the reality, and we cannot speak in such a manner," Anwar said adding that a responsible government must have the tenacity to undertake the right economic prescriptions and be ready to face such challenges.