00:00Mr. Speaker, I would like to read the answer from the Minister of Finance.
00:06He is healthy, but his voice is not.
00:10Therefore, I will read the answer one by one.
00:15The movement for the value of the Ringgit this year is driven by the development
00:21in the global market and strong domestic economic performance.
00:26Since 2022, a higher base rate in the main economic countries
00:31has attracted investment funds from developing countries including Malaysia.
00:35With the transition of the global main economic monetary base,
00:39especially the United States, which has begun to lower the base rate,
00:44the behavior and sentiment of investors have also changed
00:47following a smaller difference in interest rates.
00:51This development has led to the willingness to take risks,
00:56investors' appetite for market funds that are eager to build
01:00with the permission of emerging market currencies, including Ringgit, to increase.
01:05In addition to global development, the Malaysia Ringgit shows stronger performance
01:09compared to domestic funds,
01:11driven by investors' confidence in the government's renewal agenda.
01:15The government's approach assures that the first approach
01:19is to establish a clear goal through the framework of the civil economy,
01:23and the second is to comply with the implementation of basic development,
01:26including public finances and fiscal responsibilities,
01:30as well as the implementation of electricity, water and diesel subsidies.
01:34The framework of the civil economy is also supported through basic papers
01:38such as the Induk Per Industrian Baharu 2030 Plan,
01:42which sets the strategy and focus of state investment
01:45to support the country's economic transition to be more prosperous,
01:48prosperous and sustainable.
01:50Subsequently, the country's economic base is getting stronger.
01:53First, the economic growth of the second ethnic group, 2024,
01:56reached 5.9% compared to the first ethnic group, 4.2%.
02:02Second, unemployment continues to fall to 3.2% in August 2024,
02:07in line with the situation before COVID-19.
02:10Third, inflation in August 2024 remained at 1.9%
02:15at a controlled level of 2% for the previous three months.
02:19In addition, the investment that was approved,
02:21trade and the Indeks Pengeluaran Per Industrian showed a stronger performance,
02:26as well as a strong financial system that also contributes to the increase in the value of ringgit.
02:30The Government and the Bank of Malaysia have also taken appropriate action
02:34to boost foreign investment income back
02:37and exchange it to ringgit by government-related companies,
02:40such as DLC and Korporat.
02:42This step helps to create a two-way network
02:45that is more robust in the domestic foreign exchange market,
02:48and then helps to strengthen the value of ringgit.
02:52Thank you for your explanation, Minister.
02:55Previously, the opposition played the issue of the value of ringgit.
02:59Some said it was the value of Rahmah.
03:02Some used wrong data from Google to attack the government.
03:06But today, we see that the value of ringgit is increasing,
03:09and this is due to a strong value.
03:12We need to remember that the value of ringgit has a lagging effect.
03:16When the government rises, it does not rise directly.
03:18In the next two years, we will see the effect.
03:20So my question is,
03:22major central banks such as the United States and the United Kingdom
03:26have lowered their interest rates.
03:29Will the Bank of Malaysia follow in the footsteps of these central banks?
03:34And if so, what impact will it have on ringgit?
03:42Thank you, Mr. Kampar.
03:44There is an answer here.
03:50It's a tricky question.
03:52I admit on behalf of the Ministry of Finance, it's a tricky question.
03:56If not, I can't answer, even though I know the answer.
04:00Even though I know the answer,
04:02but I can't be smarter than the other ministries.
04:05The answer is this.
04:07The decision of the OPR by the Bank of Malaysia
04:10will continue to be pushed by the development of domestic Malaysia
04:13which affects growth prospects and inflation.
04:17For example, when the Central Bank of the United States
04:19rapidly increased its base rate,
04:22the Bank of Malaysia did not follow along
04:24by increasing our OPR to 5%.
04:28Instead, the OPR remained at the same rate of 3%.
04:31The principle is still the same for the current situation.
04:34The Bank of Malaysia's consideration is different from other central banks
04:38and more dependent on the situation we face.
04:41The Malaysian economy is currently at an exciting stage
04:45and the price pressure is still under control.
04:48The OPR rate at the moment is conducive to supporting economic growth.
04:58For more UN videos visit www.un.org
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