GOVT, BNM INTENSIFYING ENGAGEMENT WITH CORPORATES TO DRIVE FUNDS INTO FOREX MARKET

The government and Bank Negara Malaysia (BNM) will continue to intensify engagement with corporates, including exporters, importers, government-linked investment companies (GLICs) and government-linked companies (GLCs) to encourage fund flows into the foreign exchange (forex) market.

In a post on social media platform X, Prime Minister Datuk Seri Anwar Ibrahim said that during the National Economic Action Council's second meeting of the year, BNM governor Datuk Abdul Rasheed Abdul Ghaffour informed that the ringgit's performance has continued to improve against the US dollar.

Anwar, who is also the Finance Minister, said this was the result of various initiatives coordinated among the government, BNM, GLICs and GLCs as well as the forecast announced by the US Federal Reserve.

According to him, the forecast shows US inflation is more manageable and the US monetary policy normalisation plan this year will curb US dollar appreciation.

“Since the joint operation began, the ringgit's value has strengthened by 1.4% to 4.7135 on 21st March from 4.7773 on 23rd February, 2024. However, the global financial market uncertainty will continue to influence the local currency's movement as long as the monetary policy actions of developed economies remain unclear,” he said.

Meanwhile, the Prime Minister also said the government will implement “New Deal for Business” (NDFB) by improving process and procedural efficiency as well as carrying out structural reforms for operating business.

He revealed that the meeting also studied in depth the NDFB proposal which is aimed at boosting investor confidence and increasing productivity, competitiveness and national economic growth.

Therefore, Anwar said, the Special Taskforce to Facilitate Business (PEMUDAH) will be tasked with monitoring the execution of all NDFB initiatives.

Also discussed during the meeting was the “Strengthening of Old-Age Income Security Framework in Malaysia”, said the Prime Minister.

The discussion focused on ageing issues and their effects, including the country's preparedness in providing old-age income security, he said.

Therefore, he added, the meeting concluded that a comprehensive study must be done to improve the old-age income security framework in Malaysia to make it more holistic.