Kuala Lumpur (VNA) – Malaysia is not experiencing an economic crisis just because the ringgit is trading at a low level against the USD, the country's Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz has affirmed.
While the ringgit has depreciated by 7.5% against the USD since the beginning of 2022, many currencies in the region and developed countries have also fallen against the greenback.
For example, the Japanese yen has slid 19.2%, the lowest in 24 years; the pound sterling has dropped 14.4%, the lowest in 37 years; and the euro has weakened by 11.7%, the lowest in 20 years, Tengku Zafrul was quoted by local media.
The ringgit has strengthened compared with the currencies of Malaysia's other trading partners, he noted.
Among others, the ringgit has risen by 14.2% against the Japanese yen, 8.2 % versus the pound sterling, 4.5% vis-a-vis the euro, 3.9% compared with the New Zealand dollar, and 7.2% against the Republic of Korea’s won.
Tengku Zafrul said that the country's unemployment rate of 3.7% in July 2022, the lowest since the COVID-19 pandemic hit the country, is further proof that the country is not experiencing an economic crisis.
He also pointed to the Industrial Production Index which rose by 12.5% year-on-year in July 2022, and the sales value of the wholesale and retail trade which surged 41% to 130.7 billion RM in the same month.
He added that net foreign investment in the local stock market has amounted to more than 8 billion RM and net retail investment has reached 1.8 billion RM year-to-date.
The country's inflation rate is also manageable at 2.8% for the first seven months of 2022 due to price control measures, particularly through the provision of subsidies of almost 80 billion RM this year.
So, it makes no sense for some to say, despite these positive indicators, that Indonesia is in an economic crisis, Tengku Zafrul said./.
While the ringgit has depreciated by 7.5% against the USD since the beginning of 2022, many currencies in the region and developed countries have also fallen against the greenback.
For example, the Japanese yen has slid 19.2%, the lowest in 24 years; the pound sterling has dropped 14.4%, the lowest in 37 years; and the euro has weakened by 11.7%, the lowest in 20 years, Tengku Zafrul was quoted by local media.
The ringgit has strengthened compared with the currencies of Malaysia's other trading partners, he noted.
Among others, the ringgit has risen by 14.2% against the Japanese yen, 8.2 % versus the pound sterling, 4.5% vis-a-vis the euro, 3.9% compared with the New Zealand dollar, and 7.2% against the Republic of Korea’s won.
Tengku Zafrul said that the country's unemployment rate of 3.7% in July 2022, the lowest since the COVID-19 pandemic hit the country, is further proof that the country is not experiencing an economic crisis.
He also pointed to the Industrial Production Index which rose by 12.5% year-on-year in July 2022, and the sales value of the wholesale and retail trade which surged 41% to 130.7 billion RM in the same month.
He added that net foreign investment in the local stock market has amounted to more than 8 billion RM and net retail investment has reached 1.8 billion RM year-to-date.
The country's inflation rate is also manageable at 2.8% for the first seven months of 2022 due to price control measures, particularly through the provision of subsidies of almost 80 billion RM this year.
So, it makes no sense for some to say, despite these positive indicators, that Indonesia is in an economic crisis, Tengku Zafrul said./.
VNA
