More engagement with corporates to boost fund flow
The government and Bank Negara Malaysia will continue to intensify engagement with corporates, including exporters, importers, government-linked investment companies (GLICs) and government-linked companies (GLCs) to encourage fund flows into the foreign exchange (forex) market.
In a post on X yesterday, Prime Minister Datuk Seri Anwar Ibrahim said during the National Economic Action Council’s (MTEN) second meeting of the year yesterday, Bank Negara governor Datuk Abdul Rasheed Abdul Ghaffour stressed that the ringgit’s performance against the US dollar continued to improve.
Anwar, who is also the finance minister, said this was the result of various initiatives coordinated by the government, Bank Negara, GLICs and GLCs, as well as the forecast announced by the United States Federal Reserve.
He said the forecast showed US inflation was more manageable and the US monetary policy normalisation plan this year would curb US dollar appreciation.
“Since the joint operation began, the ringgit’s value strengthened by 1.4 per cent to 4.7135 yesterday from 4.7773 on Feb 23. However, the global financial market uncertainty will continue to influence the local currency’s movement as long as the monetary policy actions of developed economies remain unclear,” he added.
Meanwhile, the Anwar said
the government would implement the “New Deal for Business” (NDFB) by improving process and procedural efficiency as well as carrying out structural reforms for operating business.
He revealed that the NDFB proposal, which was aimed at boosting investor confidence and increasing productivity, competitiveness and national economic growth, was discussed at length during the MTEN meeting.
Anwar said the Special Taskforce to Facilitate Business would be tasked with monitoring the execution of all NDFB initiatives.
The “Strengthening of OldAge Income Security Framework in Malaysia” was also discussed during the meeting.
It focused on ageing issues and their effects, including the country’s preparedness in providing old-age income security, he said.