Don't panic over sagging ringgit - Minister
There is no need to panic as Malaysia's economy has proven to pull itself out of the doldrums despite global economic crises. - Filepic
The depreciation of the ringgit is a slight turbulence and it is expected to bounce back once the economy stabilises, said Second Finance Minister, Datuk Johari Abdul Ghani.
Johari said there is no need to panic as Malaysia's economy has proven to pull itself out of the doldrums despite global economic crises.
"In 1997 and 1998, the GDP contraction was as much as 7 per cent. We grew back after that and then in 2008 and 2009, we were affected again with a 1.5 per cent GDP contraction, but we grew again.
“So this time around, with all these fluctuations, we are not contracting as we still have a growth of about 4.3 per cent.
“So I think, let's not panic because I think we have the ecosystem to make it right,” he said.
He added, the need for political stability and appropriate government policies to allow for free inflow and outflow of funds is crucial to increase the Malaysian economy's resilience when dealing with external fluctuations.
When asked to comment on the effect of the US interest rate hike, Johari remained positive on the Ringgit's ability to regain its value.
However, he remains uncertain on when the Ringgit will recover.
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