Malaysia must build resilience to ride out global economic uncertainties - Zeti

Malaysia needs to build its own strength and resilience to ride out the patch of uncertainties in China and the United States.

Bank Negara Malaysia Governor Tan Sri Dr Zeti Akhtar Aziz said factors affecting the ringgit were largely driven by the global economic developments.

"When the US Federal Reserve have had zero-bound interest rates for seven years now, and everyone is looking for the timing for the exit, and this contributes to the strengthening of the US dollar.

"External developments like this are affecting countries like ours, which is highly open," she said during a session at Malaysia's Economic Update forum organised by the Performance Management and Delivery Unit (Pemandu) today.

"China is taking rebalancing activities in order to make its economy sustainable and if China did not undertake this restructuring, we would be more vulnerable in the future," said Zeti.

On the domestic front, she said the recovery of the ringgit would depend on the progress of the economy.

Zeti in a recent interview had said that the decline in the ringgit was not unique as about 120 currencies globally had fallen against the strengthening US dollar.

On the issues surrounding 1Malaysia Development Bhd (1MDB), she said the central bank had completed its part of the investigation regarding contravention to the approvals specifically given to the strategic development fund and already handed the report to the Attorney-General's Chambers.

Meanwhile, Minister in the Prime Minister's Department Datuk Seri Abdul Wahid Omar said the government must come out with holistic solutions for 1MDB to recover as much as possible from its assets.

"I think what happened had happened. There is a due process to find out what had transpired. A number of investigations have been undertaken at both the Parliamentary level and agency level," he pointed out.

Abdul Wahid said the Public Accounts Committee will be reconstituted in the next Parliament session to continue and complete its investigation on 1MDB.