MELBOURNE, March 7 – 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 the 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 but 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 the depreciation value of the ringgit during the Prime Minister’s meeting with the Malaysian diaspora on Wednesday, he said the factor does not affect the confidence of the 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 while Bank Negara governor is also confident that once the ringgit appreciates, there will be a flow of investment into Malaysia.
“If that is the case (depreciation of the ringgit) 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 as a result, last year saw the highest level of investment recorded in history, despite the fall in the value of the ringgit. “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 the 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.
