Illustration image (Source: tinbao24h) Malaysian Prime Minister Najib Razak has said the government will pump 20 billion MYR (4.6 billion USD) into a domestic investment fund to support the stock market.
The fund ValueCap, which was set up in 2002, will be reactive with 20 billion MYR in capital, he said on September 14.
The PM reiterated that the government has no plans to bring back capital controls as Malaysia’s economy and financial system are in far better shape than during the Asian financial crisis.
The Malaysian ringgit is down 26 percent from a year earlier, breaching 4 ringit to the US dollar last month, its weakest level in 17 years. The stock market is down 7.5 percent in the past three months.
According to Najib, the government is maintaining measures to reduce the budget deficit to 3.2 percent of the country’s gross domestic product (GDP).
Malaysia’s economic growth reached 5.3 percent in the first half of this year and is expected to further increase in 2016.-VNA
