Weak ringgit: What's govt's new prediction, PAS MP jibes

PARLIAMENT | A PAS lawmaker has taken a dig at the government over its repeated “failed” predictions that the ringgit will strengthen against the US dollar this year.

Speaking in the Dewan Rakyat today, Ahmad Fadhli Shaari (PN-Pasir Mas) cited “missed” predictions by Economy Minister Rafizi Ramli and Finance Minister II Amir Hamzah Azizan.

Taking on a sarcastic tone, Fadhli (above) then asked Deputy Finance Minister Lim Hui Ying, in a supplementary question, if the latter’s ministry has any more “new ringgit forecast” to be shared with the people.

“I want to remind the minister (Lim) that in November 2023, the economy minister said the ringgit is expected to strengthen in 2024. At that time, the ringgit was at 4.65. Today, it’s at 4.71. That’s a missed prediction.

“The finance minister II (in February) said the ringgit was anticipated to recover by the second half of 2024, to 4.50 to the US dollar. That, once again, is a missed prediction.

“We are a few days away from the second half of the year. What is the Finance Ministry’s new prediction on the value of the ringgit per US dollar after this?” he queried.

Fadhli, who is also PAS information chief, pointed out that the weak ringgit is a serious matter as it has a major impact on Malaysia’s global competitiveness.

‘On right track’

In response, Lim (Harapan-Tanjong) said the ringgit is anticipated to further stabilise by Q4 2024.

“We are closely monitoring (the ringgit’s performance). Compared to a few months ago, we are on the right track,” she said.

Earlier, Lim said the ringgit had outperformed other regional currencies and was the only currency to appreciate against the greenback since Feb 26.

She also said regional currencies such as the Indian rupee contracted -0.8 percent, the Singapore dollar (-0.8 percent), the Chinese yuan (-0.9 percent), the Thai baht (-1.8 percent), the Taiwan dollar (-2.4 percent), the Korean won (-3.9 percent), the Philippine peso (-4.9 percent), the Indonesian rupiah (-5.1 percent) and the Japanese yen (-5.3 percent).

“Therefore, Bank Negara Malaysia (BNM) will continue to take appropriate measures to ensure the stability of the currency and the domestic foreign exchange market.

“This includes intervention steps to curb excessive currency movement.

“BNM is also actively monitoring the conversion of export proceeds into ringgit and will continue to promote the use of the local currency in export settlements to reduce reliance on the US dollar,” she added.

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