Govt finding ways to increase use of ringgit, says PM
Malaysia is "actively and aggressively" looking at increasing the use of the ringgit to reduce trade dependency on the US dollar, says Datuk Seri Anwar Ibrahim.
When replying to a question raised by Datuk Awang Solahuddin Hashim (PN-Pendang) in Parliament on Tuesday (Oct 10), the Prime Minister said that the country has begun using ringgit when trading with several countries in line with "de-dollarisation" by increasing demand for local currency.
Read more at https://tinyurl.com/y2rsw4ab
WATCH MORE: https://thestartv.com/c/news
SUBSCRIBE: https://cutt.ly/TheStar
LIKE: https://fb.com/TheStarOnline
When replying to a question raised by Datuk Awang Solahuddin Hashim (PN-Pendang) in Parliament on Tuesday (Oct 10), the Prime Minister said that the country has begun using ringgit when trading with several countries in line with "de-dollarisation" by increasing demand for local currency.
Read more at https://tinyurl.com/y2rsw4ab
WATCH MORE: https://thestartv.com/c/news
SUBSCRIBE: https://cutt.ly/TheStar
LIKE: https://fb.com/TheStarOnline
Category
🗞
NewsTranscript
00:00 "In our meeting with the investors, several issues were raised. Because of the large increase, including, I say, from Indonesia, Rp21.6 billion, Singapore Rp20 billion, Japan Rp24 billion, and South Korea Rp23 billion, and the United States Rp07 billion.
00:22 This is because of the stable political situation, and as I have emphasized, clarity in our basics, the economic economy, industrial plan, energy transition, and also in the half-term study of the 12th Malaysia Plan.
00:46 And God willing, I will clarify and clarify in this Friday's budgetary spending."
00:53 "My question is, how much will the government's steps in handling the impact of the falling Ringgit value, which is getting more and more severe, up to Rp4.73 compared to the US dollar, and its implications in general, including the M40 group,
01:17 which is partially not receiving the firewood subsidized by the targeted subsidy system?"
01:27 "This is an important question, and I will answer it. As of 6 October 2023, the Ringgit value has decreased by -6.5% compared to the US dollar.
01:48 But not even half, the Japanese yen has decreased by 10.8%. Thailand, like Malaysia, has decreased by 65%.
02:01 Although we see that Korea is less similar, Indonesia is better. Indonesia, as I have emphasized in the last session, is more determined in cancelling subsidies.
02:20 And then, there are some steps that may be a little difficult for the time being, but give confidence in terms of Rupiah strength, although not as strong as expected.
02:35 As we know, the value of the Ringgit does not depend on fundamentals. Growth is good, investment is good, inflation is down, unemployment is down, the value of the Ringgit is down.
02:50 It is not in line with economic policy or position or argument. It is only because of the actions of the US Fed that has increased the price.
03:05 So we face this problem. So what is it called? Volatility. This is happening and we admit that some steps have been taken by the state banks.
03:23 The first is to establish export with Ringgit. Then in the session, I discussed with China and also in ASEAN Jakarta, asking for us to use local currency to trade.
03:43 China responded well. So only 20 to 28% of investment, which is actually a big one, Rp10 billion, is not using dollars or Ringgit.
03:56 And this does not affect the loss or the accumulation of Ringgit. The same with Thailand.
04:04 So far, we have managed to use local currency in Indonesia, Thailand and China. But not all sectors, especially if it is involved in international trade.
04:19 This is one of the suggestions. That is why we also suggest using the term "de-dollarization". Because ASEAN and Asia, I discussed with Prime Minister Lee Chiang in Manning,
04:34 that the dependence on the dollar causes the value of our currency to fall, as is also the case with Yuan, Renminbi, China and Yen in Japan.
04:51 What other steps can be taken to strengthen the local economy? Because as long as our interest rates, Indonesia is increasing.
05:07 So if we compare the interest rates of Indonesia, Indonesia is high. So it can accommodate. That is not completely.
05:17 We take the basis so as not to increase the interest rates solely by the US dollar. And this will cause our Ringgit to fall.
05:28 Although yesterday in my meeting with the Governor of the country, he considered the end of this year to be a more convincing development.
05:37 So based on the figures and new data that we receive. And we hope with the basic explanation, including economy and investment base,
05:55 and energy transition that can be pulled now, it will help in attracting investment and the industry to strengthen the Ringgit settlement.
06:08 Thank you.