Finance minister Tengku Zafrul Aziz said the government will give more focus on encouraging investments in emerging industries as well as implementing the National Investment Aspirations framework to attract high quality investments.

“External corporate credit risks remain manageable,” he said in the Dewan Rakyat today in reply to Wong Hon Wai (PH-Bukit Bendera) who asked what measures are being taken by the government through Bank Negara Malaysia (BNM) to handle foreign exchange risks.

Tengku Zafrul said there was no easy or quick fix for the ringgit’s weakness against the US dollar.

“However, BNM uses operational policy instruments to ensure an orderly foreign exchange (forex) market,” he said.

He said that while BNM did not target any exchange rate level, it strived to prevent drastic or extreme changes in the ringgit’s value to help businesses plan and implement decisions and investments better.

He said BNM ensured that banking institutions and corporations in Malaysia took prudent measures in dealing with forex risks and safeguarding the ringgit from speculative activities.

“This can reduce the risk of excessive changes in the ringgit’s rate,” he said.

In addition, he said, the central bank had implemented initiatives to increase access and attract foreign investors to the bond market, including improving the secondary bond market liquidity and strengthening the structure and liquidity of the forex market.

“Daily onshore forex transaction volume has continued to rise to reach an average of US$13.3 billion to date, compared to US$11.3 billion in 2021, amid two-way flows,” he said.