KUALA LUMPUR, Sept 26 – The ringgit has been rising steadily against the US dollar, notably since early July, following greater clarity of the interest rate path of developed countries, especially that of the United States, according to Bank Negara Malaysia (BNM).
Deputy governor Adnan Zaylani Mohamad Zahid said the narrowing of interest rate differentials with the US would be conducive for portfolio inflows, especially given Malaysia’s positive economic prospects.
“The domestic landscape is also quite positive. Ongoing government structural reforms, subsidy rationalisation and social protection enhancements offer a window of opportunity to pursue meaningful change.
“Furthermore, the coordinated actions between the government and BNM, which has already facilitated a better balance for (fund) flows, will continue and this will provide sustainable support for the ringgit.
“Importantly, ongoing structural reforms by the government, coupled with improving economic prospects, will continue to sustain global interest for investment in Malaysia,” he said at the IFN Asia Forum 2024.
Ahmad Zaylani emphasised sustainability as a key focus for Malaysia, noting that the country has already set its goals and plans in motion, which is to optimise diverse sukuk structures to fund a smooth transition to a sustainable economy, particularly for emerging markets.
He highlighted that in Asia, an estimated US$1.7 trillion is needed annually for new infrastructure, with a significant US$800 billion gap in climate financing, especially in renewable energy.
Over the next five years, more than US$138 billion is required to meet net-zero targets by 2050, double the current investment levels.
“Government revenues alone cannot meet these needs. Sukuk has the potential to catalyse wider funding sources in this space both for the government and private sector,” he said.
