He said the factors behind the ringgit’s current depreciation were only temporary and the value of the ringgit was expected to remain stable.

The ringgit would continue to strengthen as the economy expanded by 3.6% in the fourth quarter of 2021, and 5.0% in the first quarter of 2022.

Among the factors for the ringgit’s decline were the continued tightening of global liquidity, which caused investors to reallocate funds to higher-yielding assets denominated in US dollars, and movement restrictions in major cities and in China which had also affected Malaysia-China trade.

“However, all of these factors are regarded as temporary,” he said.

Tengku Zafrul said Bank Negara Malaysia actively manages the ringgit to ensure that fluctuations are orderly and not excessive, allowing the economic sector to make investment and expenditure plans based on a more stable value of the ringgit.

He said the country’s continued economic growth prospects were also reflected in the most recent analysis of the International Monetary Fund, which projects 5.75% gross domestic product (GDP) growth in 2022, driven by pent-up domestic demand and continued strong external demand.

“The finance ministry is optimistic about the country’s economic growth prospects,” said Tengku Zafrul.

“Malaysia’s GDP is expected to grow between 5.3% and 6.3% in 2022, contributing to the ringgit’s stability. The finance ministry and BNM will continue to monitor both financial and non-financial risks to the national economy in order to maintain economic stability and the well-being of all Malaysians,” he said.