Abdul Rasheed says the central bank is committed to playing its part to preserve confidence in the ringgit. — AFP photo
KUALA LUMPUR (March 20): Collective actions are needed to safeguard the value of the local currency, said Bank Negara Malaysia (BNM).
BNM governor Datuk Abdul Rasheed Ghaffour said the central bank is committed to playing its part to preserve confidence in the ringgit.
“To this end, we have collaborated with the government to increase inflows that would allow the ringgit to appropriately reflect the fundamentals and prospects of the Malaysian economy.
“Government-linked companies (GLCs) and government-linked investment companies (GLICs) have been encouraged to consistently repatriate foreign investment income and convert it to ringgit,” he said in his foreword in the Economic and Monetary Review 2023 report released today.
Furthermore, Abdul Rasheed said BNM has stepped up engagements with exporters and international investors to further promote conversions and to underscore Malaysia’s investment appeal.
“At the same time, we remain committed to maintaining orderly conditions in domestic financial markets through our liquidity and foreign exchange operations, while continuing to undertake measures to further enhance market efficiency, liquidity and accessibility,” he added.
Abdul Rasheed also assured that the central bank will continue to provide a favourable environment for global investors to invest in Malaysia.
“Dynamic hedging flexibilities remain available for investors, allowing them to take positions while protecting their investments,” he said.
Other than GLCs and GLICs, he said the private sector should also do its part.
Abdul Rasheed said by increasing the focus on domestic investments, corporate Malaysia can be part of the nation’s push towards key transformative growth areas, especially those in high-value and innovation-driven sectors.
“We also need businesses to invest in and level up on skills and innovation, while being mindful of global trends such as the growing emphasis on sustainability, which is set to impact global production chains, trade and investment, and technologies,” he continued.
He added that if Malaysia gets this right, it will be able to increase productivity and strengthen its fundamentals.
“Then we will be able to secure more enduring strength in the ringgit as well as a stronger and more competitive Malaysia,” he said. – Bernama