RINGGIT STABLE IF EXTERNAL UNCERTAINTIES, DOMESTIC ISSUES COMPLETE

The Governor of Bank Negara Malaysia (BNM), Tan Sri Dr. Zeti Akhtar Aziz dismissed the perception that domestic issues are becoming the main factors contributing to the decline in the ringgit recently. 

 

On the other hand, she pointed out, the currency is actually affected by the external factors include the expected change in policy direction, especially by the United States Federal Reserve (US), the decline in world oil prices and China's economic growth slow.

"When uncertainties and domestic issues are finished, I believe currency trends are better, reflecting our strong foundation," he told reporters in presenting the country's economic performance for the third quarter of 2015, here today.

Zeti said she was disappointed the global market does not give due recognition to the fact that Malaysia has a diverse economy with the manufacturing and services sectors accounted for 80 per cent.

 

She said a solid foundation however consists of strong growth trajectory, current account surplus and trade surplus, as well as a strong financial system, will allow the flexibility to absorb the shock of Malaysia.

 

She said, for the first three quarters of this year, the country registered five percent growth in gross domestic product (KDNNK) accumulated, the number is positive compared to the target of 4.5 to 5.5 percent this year.

Meanwhile, Zeti said BANK NEGARA MALAYSIA will evaluate more overseas investment 1Malaysia Development Bhd (1MDB) once all requested information obtained and verified.

 

She said the company's restructuring plan which is expected to be finalised later this year, will also be taken into consideration.

"BNM is now evaluating the response to this administrative instruction 1MDB, 1MDB and already stated publicly that funds for the redemption of the overseas investment has been used and also provided for the debt exchange of assets as part of their restructuring plans.

"So the central bank is confirming this now and will take into account any binding commitment made 1MDB under her plan that will help reduce its debt burden," she said.