KUALA LUMPUR: Deputy Finance Minister Lim Hui Ying has assured that the ringgit will be efficiently managed to strengthen its resilience against external factors.
In the Dewan Rakyat, she said the government would ensure that the ringgit was traded in an orderly manner, and Bank Negara Malaysia (BNM) would remain prepared to curb excessive currency movements in the foreign exchange market.
"Issues in the Middle East and the outcome of the United States elections may contribute to fluctuations in global financial markets, including the ringgit and emerging market currencies.
"However, the positive prospects for Malaysia's economy, including the government's commitment to implementing structural reforms, will continue to provide support to the ringgit.
"The government and BNM have long taken proactive steps to promote the use of the local currency for international trade and investment settlements. This initiative aims to enable more efficient management of foreign exchange exposure and strengthen resilience against external factors," she said.
She was responding to a supplementary question from Jimmy Puah Wee Tse (PH-Tebrau) who asked how Malaysia would overcome challenges following the outcome of Donald Trump's presidency.
Lim added that the government had also explored opportunities for local currency settlement cooperation with strategic countries such as China, Thailand, Indonesia and other Asean countries with high bilateral trade volumes.
"As Asean Chair next year, the government will continue to lead efforts to further expand the use of regional currencies with other Asean nations," she said.
She added that Malaysia, as a small and open economy, collaborates with various parties such as the Organisation for Economic Cooperation and Development (OECD), Apec, and Brazil, Russia, India, China, and South Africa (BRICS).
This engagement would help improve Malaysia's standing on the international stage and expand the country's trade potential.