Ringgit’s depreciation not an issue for Australian investors — Anwar
MELBOURNE: The depreciation of the ringgit is not an issue for investors from Australia since they remain steadfast to invest in Malaysia because of their confidence in the economy of the country, said Prime Minister Datuk Seri Anwar Ibrahim.
Anwar, who is also Finance Minister, said throughout the many discussions held with business leaders and senior executives during his official visit to Australia, there was no mention of the ringgit’s performance; rather they were more interested in knowing the basic economic policies and other matters like share market and inflation.
To questions raised about the performance of the ringgit and concerns about its depreciation during a meeting yesterday with the Malaysian diaspora here, where he is attending the Asean-Australia Special Summit, Anwar said this did not affect the confidence of investors.
“(Depreciation of the ringgit) is cause for concern, but not alarming,” he said, adding that the value of the ringgit is associated with the US dollar’s interest rate.
He said Bank Negara is also confident that once the ringgit appreciates, there will be a flow of investment into Malaysia.
“If that (depreciation of the ringgit) is the case, we would not have seen investment of RM24.5 billion from Australia… the issue of ringgit is certainly not a concern,” he said referring to the commitment of investors from Australia during his meeting with them here.
Anwar noted that despite the fall in the value of the ringgit, last year saw the highest level of investment recorded in history.
“That would not have been possible if the investors had no confidence.”
The Prime Minister said there were temporary measures in place to strengthen the ringgit through Malaysia’s biggest trade partner China, which is using the ringgit for 25 per cent of trade.
“If we can expand trade using local currency, it will assist in the recovery. I believe with investment figures like this, the ringgit will become stronger,” he said. — Bernama