Malaysia PM Anwar says ringgit fall concerning but must look at comprehensive view

KUALA LUMPUR — Malaysia's Prime Minister Anwar Ibrahim on Feb 23 said the ringgit currency's fall to a 26-year-low this week was concerning, but a comprehensive view of the situation must be taken into account.

Datuk Seri Anwar said investments were high and inflation and unemployment were down, and Malaysia's growth could be sustained compared to its neighbours.

"Look at this comprehensive view and the capacity for the country to grow," Anwar told reporters at a launch event for the Tun Razak Exhange (TRX) financial centre.

Anwar said the government will continue to monitor the ringgit's value but would leave it to the central bank to act.

The central bank on Feb 20 said the ringgit's recent performance was largely due to external factors and did not reflect the positive prospects of Malaysia's economy.

Bank Negara Malaysia (BNM) Governor Abdul Rasheed Ghaffour said given improving exports, a recovery in tourism, an increase in investments, and the government's commitment to structural reform, most analysts were forecasting the ringgit to appreciate in 2024.

Anwar on Feb 23 also announced incentives for companies moving their bases to the country's newly launched international financial centre, Tun Razak Exchange (TRX), in capital Kuala Lumpur.

The incentives include an industrial building allowance, tax exemption on 70 per cent of the statutory income for a period of five years for property developers, and stamp duty exemption on loan and service for a TRX status company.

TRX is a 70-acre development that aims to become Malaysia's international financial and business centre.

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