Ringgit's current level does not reflect fundamentals - Wahid

The ringgit's current level does not reflect the country's fundamentals which are still strong, Minister in the Prime Minister's Department Datuk Seri Abdul Wahid Omar said.

Abdul Wahid, who is also chairman of the newly set-up Special Economic Committee (SEC), said the committee would work towards strengthening the fundamentals.

He was speaking to reporters before attending a meeting at the newly launched Malaysia Expatriate Talent Service Centre (MYXpats Centre) here today.

Opened in June, the MyXpats Centre is a centre for employers applying employment passes and other related immigration passes for their expatriate employees.

The ringgit closed higher today at 4.1620/1680 against the greenback from last Friday's 4.1950/1050.

It hit an intraday low of 4.2700 to the greenback last week, the lowest level since the Asian financial crisis 17 years ago.

In PUTRAJAYA, speaking to reporters after chairing the SEC inaugural meeting, Wahid said the government was monitoring all activities on non-deliverable forward (NDF) ringgit offshore, including in Singapore.

He said the government would not impose capital control or peg the ringgit against the US dollar.

"After the devaluation of the yuan, the financial market is a bit rattled and Malaysia is not spared.

"We need to continue to focus on fundamentals. As Malaysia continues to enjoy trade surplus at this moment, this will translate into current account surplus too.

"As far as the ringgit is concern, what we need to do is to make sure that we stick to the fundamentals while reviewing other policy options.

"Eventually, the value of the ringgit will reflect its underlined fundamentals,” he said, adding that it is not wise to speculate on the ringgit movement and disclose recommendations and measures discussed at the meeting.

"Let us carry on with our job. Any (new) policy decided will be announced by the prime minister," he said, adding that recommendations made after each meeting would be presented to Prime Minister Datuk Seri Najib Tun Razak as the committee reports directly to him (Najib).

Abdul Wahid said Malaysia's economy was expected to grow between 4.5 per cent to 5.5 per cent this year.

"Development projects like the MRT will continue, but they will be streamlined from time to time after taking into account the country's fiscal position.

"Measures and policies discussed will also take into account the intended and unintended consequences. It will be further discussed at the second meeting (of the SEC) on Friday," he said.

Present were SEC Secretariat Chief Datuk K.Yogeesvaran, who is also Economic Planning Unit (EPU) Director-General and representatives from the Ministry of Finance, Bank Negara Malaysia, EPU, the Ministry of International Trade and Industry, the Prime Minister's Office, and the Securities Commission.

CIMB Group Chairman Datuk Seri Nazir Razak espoused on the economy and financial market through video conferencing.