KUALA LUMPUR – Prime Minister Datuk Seri Najib Tun Razak has given an assurance the government will do its best to resolve the problems which have resulted in the weakening of the ringgit with the purpose of stabilising the country’s economy.
Writing on his blog, www.najibrazak.com, Najib, who is also Finance Minister, said Malaysia was recently shocked by the fall of the ringgit against the US dollar and listed several factors as the causes for the decline.
He said China’s move to devalue the yuan also caused the ringgit as well as other South-East Asian currencies to fall.
“The fall in the prices of the commodities, like oil, palm oil and rubber also contributed to the plunge because Malaysia was the producer of these commodities,” he said.
Another reason for the local note’s decline was the expectation that the US will raise its interest rates, which will make investors worldwide move their funds to US currency, he said.
Najib said the existence of political play and intense speculation had also resulted in an uncertain sentiment towards the administration and this affected the ringgit.
He said although faced with various factors which affected the economy, the latest report showed Malaysia’s economic growth remained on a stable foundation with a growth rate of 4.9 per cent in the second quarter of 2015. – Bernama