‘Positive domestic growth boosts local currency’
KUALA LUMPUR: The current strengthening of the ringgit reflects the positive domestic and external economic growth, said Second Finance Minister Datuk Seri Johari Abdul Ghani.
The local currency also showed good consolidation, benefiting from positive export growth, he said.
During the first 11 months of last year, the country’s exports grew strongly by almost 20.2 percent, and the increase in global crude oil prices also supported the strengthening of the local currency.
“When the country’s economy is strong, rising oil prices and strong export growth will strengthen the ringgit,” he said.
Johari was speaking to reporters after the launch of the Property Manager List, here, yesterday.
He said the country’s economy was also expected to grow strongly this year, with a projected growth of 5.0-5.5 per cent, while the global economy is expected to grow 3.7-3.8 per cent this year.
He said when global trade rises, it would have a positive impact on the country as Malaysia practices an open economy concept.
Meanwhile, on the tax bill for digital platforms, Johari said the government was still studying the best mechanism to impose the tax.
About 20 per cent of the country’s transactions are carried out via a digital platforms.
He said the government was still waiting for feedback from the Organisation for Economic Cooperation and Development on how they manage the tax regime.