According to Deputy Finance Minister Lim Hui Ying, the Malaysian ringgit is projected to strengthen against the US dollar in the final quarter of 2024.
Lim stated that the ringgit’s performance is on the right track to achieve this improvement, especially compared to previous months, considering the country’s economic performance and investment inflows.
In February, Finance Minister II Datuk Seri Amir Hamzah Azizan set a target for the ringgit to trade at RM4.50 against the US dollar by the end of this year, bolstered by the country’s positive economic outlook.
“The ringgit is also the only regional currency to have appreciated by 1.4 per cent against the US dollar since February 26, 2024,” Lim noted.
“In contrast, regional currencies such as the Indian rupee have depreciated by -0.8 per cent, the Singapore dollar (-0.8 per cent), the Chinese renminbi (-0.9 per cent), and the Thai baht (-1.8 per cent). Furthermore, the Taiwanese dollar has contracted by -2.4 per cent, the South Korean won (-3.9 per cent), the Philippine peso (-4.9 per cent), the Indonesian rupiah (-5.1 per cent), and the Japanese yen (-5.3 per cent),” she said in response to a query from Hassan Abdul Karim (PH-Pasir Gudang) regarding the ringgit’s performance against the US dollar in the Dewan Rakyat today.
Lim explained that various global and domestic factors, including commodity prices, financial market sentiment, and economic growth projections influence the ringgit’s movements.
“Malaysia continues to record success in attracting foreign investments, with approved investments surging in the first quarter of 2024. This indicates growing investor confidence in the country’s economic development and the government’s initiatives,” she added.
Lim also mentioned that the government anticipates sustained inflows of foreign funds and investments, which will further support the strengthening of the ringgit.
