PM Anwar: Ringgit growing strong from best showing in 14 years, with fastest recovery rate in Asia

KUALA LUMPUR, Aug 6 — Prime Minister Datuk Seri Anwar Ibrahim has lauded ringgit’s notable recovery today, saying it has recorded the best movement in 14 years and the fastest recovery rate in Asia now.

He cited the stable political climate and clear policies as factors contributing to this economic improvement, as well as the role of dedicated civil servants and private sector employees.

“It has been reported that the ringgit, which was a problem for us, is now performing better.

“If we look at the numbers, the [movement] of ringgit is the best it has been in the past 14 years. And in terms of growth rates, although it is not the best in Asia, the rate of improvement is the fastest,” he said during his speech when officiating the Malaysia Madani Civil Servants' Housing programme (PPAM) at Bandar Sri Permaisuri here.

He then went on to say that the issues of abuse of power and leakage in diesel subsidies also need to be addressed.

He added that despite the government’s efforts to manage these subsidies, inefficiencies and mismanagement have led to significant issues, including funds being diverted to foreign entities that do not contribute to the nation’s tax system.

“We already know that such leakage leads to people diverting public funds and providing subsidies to foreign entities that do not pay taxes. Who actually benefits from these subsidies? Taxpayers end up shouldering the cost of subsidies given to foreigners. This subsidised money is being taken out of the country without proper oversight.

“With an allocation of RM5 billion annually, the actions taken to address this issue must be effective. If not, the problem will persist,” Anwar added.

He said failure to address the leakage may result in prolonged financial losses and continued strain on the economy.

The ringgit has risen for the 11th consecutive day, reaching a 15-month high against the US dollar.

It has shown continued strength against the US dollar at opening today, trading slightly higher at between 4.42 and 4.43 against the dollar, compared to yesterday.

Earlier today, Anwar conceded that while targeted subsidies and revising electricity tariffs may be unpopular, they are actions that need to be taken by a responsible government to save the country’s economy.