As of November 4, 2024, Malaysia's ringgit has appreciated by 5.03% against the US dollar, according to Finance Minister II Datuk Seri Amir Hamzah Azizan. The ringgit has also seen significant gains against other currencies, with a 13.3% rise against the yen, 12.2% against the won, 7.5% against the rupiah, and 3.7% against the baht. This strengthening of the ringgit is attributed to various global factors, including lower US monetary policy rates and ongoing geopolitical unrest, which have influenced currency markets worldwide. [ed0fa140]
Amir Hamzah highlighted that Malaysia's economy has shown resilience, growing by an average of 5.1% in the third quarter of 2024, with a preliminary estimate of 5.3%. Inflation remains low, recorded at 1.8% in September 2024, which is conducive to maintaining a stable economic environment. Furthermore, approved foreign direct investment reached RM160 billion in the first half of 2024, up from RM136 billion during the same period in 2023, indicating strong investor confidence in Malaysia's economic prospects. [ed0fa140]
The government's commitment to maintaining an orderly currency market is evident, as Amir Hamzah reiterated the importance of economic reforms and fiscal strategies aimed at sustaining growth and stability. This includes a record spending plan for 2025, which seeks to reduce the budget deficit below 3% of GDP by 2028. The planned end of blanket subsidies for RON95 fuel by May is expected to save about 8 billion ringgit annually, further supporting the government's fiscal objectives. [259615ce]
In light of these developments, Amir Hamzah projected that the ringgit could rise to RM3.55 against the US dollar by the end of 2025, driven by favorable global market conditions and robust domestic fundamentals. The government's initiatives under the MADANI economy framework, along with the Public Finance and Fiscal Responsibility Act, are expected to bolster investor confidence and economic resilience. [c4157e8b]
Overall, Malaysia's GDP is anticipated to continue its positive trajectory, with growth projections for 2025 surpassing analysts' expectations, as the government fosters a conducive environment for economic growth and stability, reinforcing the ringgit's position in the regional market. [bcda8827]