Don’t Compare Current Ringgit Slide To 1998 Decline – PM Anwar

KUALA LUMPUR, Feb 23 – The ongoing decline in the value of the ringgit cannot be likened to its fall during the Asian Financial Crisis in 1998 as the country has a more stable economic foundation now, says Prime Minister Datuk Seri Anwar Ibrahim.

The ringgit has slid by over 4% so far in 2024, adding to losses from the previous three years. The currency opened at 4.7745/4.7800 to the US dollar today, compared with yesterday’s close of 4.7710/4.7800.

The ringgit slid to 4.7965 against the dollar on Tuesday, its weakest level since an all-time low of 4.8850 in 1998 following the fallout from the regional financial crisis.

Speaking to reporters after officiating the opening of the Tun Razak Exchange Financial Hub at the Exchange 106 Tower here, Anwar, who is also the finance minister, said that the ringgit’s drop in 1998 came amid increases in the inflation and unemployment rate.

Anwar, who was also finance minister then, said Malaysia found it hard to attract foreign investment during the period — which he said was a stark contrast to the current investor confidence the country enjoys.

“It (the ringgit’s performance) is concerning … we are looking at it. Luckily, it has strengthened a little, but look at the overall (economic performance),” he said.

“(New) investment is the highest ever in the country, inflation (is) down, unemployment (is) down and our growth is sustainable compared to our neighbours,” he added.

Yesterday Anwar said that Malaysia saw a record-high of RM329.5 billion in approved investments last year — a 23% increase from 2022’s total of RM264.6 billion.

The country’s inflation rate stood at 1.5% as of last December, while the unemployment rate Q4 2023 was 3.3%.

Malaysia’s economy recorded a 3.7% growth overall in 2023 down from 8.7% in 2022.

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