Malaysia has no plan for capital controls - Chua

The government has no plan to implement capital controls like during the 1997-1998 ASEAN financial crisis in the face of Ringgit depreciation as the situation is different, Deputy Finance Minister Datuk Chua Tee Yong said. He said Malaysia achieved a Gross Domestic Product (GDP) growth of six per cent in 2014 and 4.7 percent in 2013, driven mainly by robust domestic demand and external trade. "This development resulted from various initiatives taken (by the government) to diversify the economy, and enhance resilience and competitiveness," he said during the question and answer session at the Dewan Negara here today. Responding to a question from Senator Norliza Abdul Rahim, Chua said strong economic fundamentals like low unemployment, sound financial system and high international reserves had also contributed to the economic growth. He said the government is confident that Malaysia's economy would remain strong this year and achieve the growth target of between 4.5 and 5.5 per cent. On the Ringgit depreciation, he said it is not an isolated case, but prompted by external factors as well as the strengthening of the US dollar. He said the Ringgit decline had benefited exporters who reaped higher profits from higher earnings in Ringgit, while importers had to bear higher prices of importable goods. Rising costs of imports have a direct impact on the Consumer Price Index, which measures inflation, as imported goods will become more expensive, he added.