Malaysia PM says ringgit fall concerning but must look at comprehensive view

Malaysia PM says ringgit fall concerning but must look at comprehensive view

Anwar announces incentives for companies moving to new financial hub

Malaysian Prime Minister Anwar Ibrahim. (Photo: Reuters)
Malaysian Prime Minister Anwar Ibrahim. (Photo: Reuters)

KUALA LUMPUR: Malaysia's Prime Minister Anwar Ibrahim on Friday said the ringgit currency's fall to a 26-year-low this week was concerning but a comprehensive view of the situation must be taken into account.

Anwar said investments were high and inflation and unemployment were down, and Malaysia's growth could be sustained compared to its neighbours.

"Look at this comprehensive view and the capacity for the country to grow," Anwar told reporters at a launch event for the Tun Razak Exhange (TRX) financial centre.

Anwar said the government will continue to monitor the ringgit's value but would leave it to the central bank to act.

The central bank on Tuesday said the ringgit's recent performance was largely due to external factors and did not reflect the positive prospects of Malaysia's economy.

Bank Negara Malaysia Governor Abdul Rasheed Ghaffour said given improving exports, a recovery in tourism, an increase in investments, and the government's commitment to structural reform, most analysts were forecasting the ringgit to appreciate this year.

Anwar on Friday also announced incentives for companies moving their bases to the country's newly launched international financial centre, TRX, in Kuala Lumpur.

The incentives include an industrial building allowance, tax exemption on 70% of the statutory income for a period of five years for property developers, and stamp duty exemption on loan and service for a TRX status company.

TRX is a 70-acre development that aims to become Malaysia's international financial and business centre.

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