Domestic Economy And Measures Key To Ringgit Strength -- PM Anwar

PUTRAJAYA, Aug 6 (Bernama) -- The strength of the domestic economy and the measures taken by the Ministry of Finance and its associated departments and agencies play a crucial role in efforts to bolster the ringgit, said Prime Minister Datuk Seri Anwar Ibrahim.

He noted that the domestic position and the current strength of the ringgit are highly encouraging despite a concerning global geopolitical situation.

"The numbers clearly show the ringgit's impressive performance (the longest winning streak) over the past 14 years," he said at today's Ministry of Finance monthly assembly.

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On Aug 2, the ringgit closed at 4.49 against the US dollar, marking a 1.6 per cent increase against the greenback and an upward trend for the tenth consecutive day – its best streak since 2010.

The ringgit's strength against the greenback continues, boosted by the growing likelihood of US interest rate cuts.

As of 8 am today, the ringgit appreciated to 4.4200/4300 against the US dollar, up from 4.4240/4305 on Monday.

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Anwar added that the government's decision to implement targeted diesel subsidies, despite being unpopular, has improved investor confidence in choosing Malaysia as their preferred destination.

He also described the rejection of subsidy targeting as an unwise move, noting that all previous Prime Ministers had agreed to halt the leakage.

"It means that if you want to invest, you know the policy is responsible. There is no leakage, and with the Fiscal Responsibility Act, the targeting of chicken subsidies and electricity tariffs demonstrates that this government is willing to take unpopular actions to save the national economy," he said.

He noted that the government saved over RM4 billion by implementing the subsidy targeting programme.

Anwar also urged the Ministry of Finance Communication Unit to be more aggressive and proactive in educating the public about the realities of subsidy targeting.

"We can't blame people for not understanding because sometimes we fail to educate them and enlighten them about the economy," he said.

At the same event, Anwar launched the countdown to the 2025 ASEAN Financial Track Meeting.  The Ministry of Finance, as the leader of the ASEAN Financial Track, will chair four related meetings.

Next year, Malaysia will once again chair ASEAN, following its previous chairmanships in 2005 and 2015.

-- BERNAMA