Don’t compare weakening ringgit to 1998 Asian financial crisis, says Anwar

The Prime Minister said that the current situation must be based on an overall picture including the country's capacity to grow and the reassuring investments figures.

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File photo of Datuk Seri Anwar Ibrahim. PHOTO: THE STAR

February 23, 2024

KUALA LUMPUR – The current weakening of the ringgit cannot be compared to the 1998 Asian financial crisis situation, says Datuk Seri Anwar Ibrahim (pic).

The Prime Minister said that the current situation must be looked at comprehensively and based on an overall picture, including at the country’s capacity to grow and the reassuring investments figures.

“But why should we only look at the ringgit and compare it to 1998 (1998 Asian Financial Crisis)?

“During 1998, the ringgit fell, investment fell and inflation went up.

“But now, it is not the same. The latest figures as announced by the National Investment Council meeting, it is the highest record in history,” he told reporters after launching the International Financial Hub at Exchange 106 at TRX on Friday (Feb 23).

On Thursday (Feb 22), Malaysia recorded total approved investment worth RM329.6bil in 2023, the highest ever in the country’s history.

On Jan 24, Bank Negara Malaysia said the recent ringgit movements were primarily driven by external factors and are not reflective of the current domestic economic performance and prospects.

Anwar, who is also the Finance Minister, said the most important thing was to focus on measures that can be done to address the challenges.

“But what’s important is to focus on what we can do and what we should do, we are doing it on a daily basis.

“We are not ignoring it or taking it lightly, it is a daily effort to make sure that things work,” said the Prime Minister.

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