The Ringgit has emerged as the best-performing currency in Asia against the US Dollar since the implementation of integrated measures by the Government and Bank Negara Malaysia (BNM) on 26 February 2024, according to Finance Minister II Datuk Seri Amir Hamzah Azizan.

Responding to a query from Dato' Shamsuddin Bin Hj. Abd Ghaffar in the Dewan Rakyat, Datuk Seri Amir Hamzah highlighted several key developments contributing to the Ringgit's improved performance.

"As of 17 July 2024, the Ringgit was traded at 4.6642 against the US Dollar, compared to 4.7987, the lowest exchange rate recorded this year," said Datuk Seri Amir Hamzah.

He added that the Ringgit's Nominal Effective Exchange Rate (NEER), which measures its performance against major trading partners, has also increased by 3.4 percent.

This improvement is attributed to efforts aimed at encouraging more consistent capital inflows into the domestic financial market, including the repatriation and exchange of foreign investment income by government-linked companies (GLCs/GLICs).

"Bank Negara Malaysia (BNM) has and will continue to take appropriate measures to ensure the stability of the currency and the domestic foreign exchange market. This includes intervention operations in the foreign exchange market to curb excessive currency movements," the minister explained.

BNM is also actively engaging with corporate companies, exporters, and importers, as well as monitoring the conversion of export proceeds into Ringgit by exporting companies.

Datuk Seri Amir Hamzah noted that the government remains committed to implementing structural reform policies and fiscal strengthening. He cited positive results from these efforts, including encouraging approved investments for 2023, which stood at RM330 billion, compared to RM267.8 billion in 2022. In the first quarter of this year, approved investments were RM89.7 billion, up from RM71.4 billion in the same period in 2023.

"After six years, JP Morgan upgraded Malaysia's rating from underweight to neutral following the implementation of structural reform policies, including investments in developing regional data hub centers and green technology," he added.

The minister concluded by expressing confidence that these inflows of funds and foreign investments are expected to continue, supporting the further strengthening of the Ringgit.