Positive ringgit backed by robust economic growth
KUALA LUMPUR: The ringgit’s current upward momentum against major currencies is backed by the country’s robust domestic economy and healthy trade performance, underpinned by the recovery in global oil prices.
Second Finance Minister, Datuk Seri Johari Abdul Ghani said the ringgit was also supported by Malaysia’s strong export performance, which increased 20.2 per cent from Jan-Nov 2017, as compared to the same period in 2016.
“The global economy is also showing positive growth momentum this year, and is forecast to ramp up between 3.7-3.8 per cent this year (World Bank). This will positively impact Malaysia’s economic growth,” he told reporters after the launch of the new Register of Property Managers yesterday.
He said the ringgit’s performance so far is reflected by the positive sentiment in the local and global economies, with Malaysia’s gross domestic product ( GDP) expected to grow between 5.0-5.5 per cent this year.
Meanwhile, on the plan to impose a digital tax on the digital platform, Johari said the government is still awaiting feedback from the Organisation for Economic Co-operation and Development (OECD) countries on the right mechanism on the imposition.
“We are looking at a suitable mechanism for the tax as almost 20 per cent of business transactions in Malaysian are now being done through the digital platform. The problem is, some of the companies, are not Malaysia-based.
“That’s why we are engaging the OECD countries to get their feedback and learn more about how they have been managing these digital companies, in terms of imposing tax on them,” he added. — Bernama