KUALA LUMPUR: Strong economic fundamentals and prudent ringgit management are expected to contribute to the strengthening of the ringgit against the US dollar despite several temporary factors that have contributed to the ringgit's current depreciation, Minister of Finance Tengku Datuk Seri Zafrul Tengku Abdul Aziz said.
He said that based on current factors, the ringgit's value is expected to remain stable as Bank Negara Malaysia (BNM) actively manages the local unit to ensure that fluctuations are orderly and not excessive, allowing the economic sector to make investment and expenditure plans based on a more stable value of the ringgit.
"What is more important are our economy's strong fundamentals such as the country's continued economic growth prospects," he said in a statement today.
He said the ringgit would continue to strengthen as the economy expanded by 3.6 per cent in the fourth quarter of 2021 and five per cent in the first quarter (Q1) of 2022.
"This is also reflected in the most recent International Monetary Fund (IMF) analysis, which projects 5.75 per cent gross domestic product (GDP) growth for Malaysia in 2022 driven by pent-up domestic demand and continued strong external demand.
"At the same time, the expectation of a current account surplus means that demand for the ringgit will remain strong," he said.
Moving forward, Tengku Zafrul said the Ministry of Finance (MoF) is optimistic about the country's economic growth prospects with Malaysia's GDP expected to grow between 5.3 and 6.3 per cent in 2022, contributing to the ringgit's stability.
"The MoF and Bank Negara Malaysia (BNM) will continue to monitor both financial and non-financial risks to the national economy in order to maintain economic stability and the well-being of all Malaysians," he added.
-- BERNAMA
Bernama
Sat May 28 2022
Strong economic fundamentals and prudent ringgit management are expected to contribute to the strengthening of the ringgit against the US dollar, Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz said. - BERNAMA
Motorcycling - Marquez wins Australian MotoGP after intense battle with Martin
The 31-year-old, third in the championship standings, has now won the Australian MotoGP four times in the premier class.
Prabowo takes up Indonesian presidency, vows to tackle corruption, other issues
Indonesia's Prabowo Subianto on Sunday took over as president of the world's third-largest democracy, vowing to combat internal issues
Nepal's Sherpas deserve more, says teenager who scaled world's 14 tallest peaks
Sherpas are known for climbing skills that make them the backbone of mountain expeditions.
Inside the underground lab in China tasked with solving a physics mystery
China will soon collect neutrino data, aiming to unravel one of particle physics' biggest mysteries.
Millions in Cuba still without power as major outage persists
Millions of Cubans remain without electricity because of a prolonged outage at the main power plants on the island, Anadolu Agency reported.
Surge in Gaza violence increases famine risk, monitor says
About 1.84 million people across the besieged Palestinian enclave are living through high levels of acute food insecurity.
Israel pounds Beirut and Gaza after rockets hit Israel's north
A drone was launched at Prime Minister Benjamin Netanyahu's holiday home.
Elon Musk promises to award $1 mil each day to a signer of his petition
He awarded a $1 million check to an attendee of his event in Pennsylvania aimed at rallying supporters behind Donald Trump.
Former special forces commander Prabowo to take up Indonesian presidency
Indonesia's Prabowo Subianto will take over as president of the world's third-largest democracy after sweeping the country's election with policies like free meals for school children
Father of Malaysian Islamic banking, Abdul Halim Ismail passes away
His dedication and pioneering spirit played an important role in shaping the journey of Bank Islam as well as leaving a lasting impact on the development of Malaysia's Islamic finance industry.
Zayn Malik postpones US tour dates after One Direction bandmate Liam Payne's death
Payne, 31, died on Wednesday after falling from a third-floor hotel room balcony in Buenos Aires, shocking fans of the boy band.
Why voters in a handful of swing states will decide the US presidential election
The contest will almost certainly be decided by just tens of thousands of voters a tiny fraction of the populace in a handful of states.
INSIGHT - Sudan's war risks 'lost generation' of children
A devastating crisis is unfolding in Sudan, where the most vulnerable members of society children are bearing the brunt of the violence.
Who is Prabowo Subianto, incoming president of Indonesia?
A wealthy ex-general with ties to Indonesia's popular outgoing president and its dictatorial past, looks set to be its next leader.
Trump says he would impose tariffs on China if China went into Taiwan
Republican presidential candidate Donald Trump said he would impose additional tariffs on China if China were to "go into Taiwan,"
Iran's supreme leader says Hamas leader's death will not halt 'Axis of Resistance'
The "Axis of Resistance", built up with years of Iranian support, includes Hamas, the Lebanese Hezbollah group, the Houthi movement in Yemen, and various Shi'ite groups in Iraq and Syria.
Putin says Russia willing to seek compromises between Iran and Israel
Russia is ready to help seek compromises between arch-foes Israel and Iran, President Vladimir Putin said on Friday, saying these would be difficult but possible.
What proposals will Russia push at the BRICS summit?
The proposal is also to establish a BRICS reinsurance company to allow uninterrupted shipment of goods and key commodities between members.
Indonesia's free meals plan in the spotlight as Prabowo readies for office
Prabowo calls the programme one of the main drivers of economic growth, eventually set to add an estimated 2.5 million jobs.
Astro AWANI's revamped English news website, AWANI International, launches on Oct 21
Astro AWANI's revamped English platform delivers in-depth global news and expert analysis to keep you informed on key developments.