ISKANDAR PUTERI, May 29 — The government has not planned to revise the economic growth forecast this year following the depreciation of the ringgit’s value in the last two weeks.
Economy Minister Rafizi Ramli said, however, the government will continue to monitor the development in the movement of the local currency.
He added that the depreciation of the ringgit over the past two weeks was largely influenced by discussions on the United States (US) debt ceiling which had also affected market sentiment.
“It is still too early to see if the depreciation of the local currency for one or two weeks will have an impact on the (economic growth) projection.
“We have to wait for the trade and economic data in the next month or two because the growth forecast is not so much affected by the value of the ringgit, but rather by trade activities (such as) exports, imports, oil prices and so on,” he said to reporters here, yesterday.
Nonetheless, he said the ringgit’s current depreciation does have its benefits, such as in terms of the oil revenue, given that the pricing is in the US dollar.
“The higher the price and the weaker the ringgit, the more money we get, but (it’s the opposite) for exports, so we will continue to monitor the situation, but right now there is no need (to revise the projection),” said Rafizi.
The government had projected economic growth to be at four to five per cent this year.
Earlier on, Rafizi attended the engagement session on the 12th Malaysia Plan (12MP) half-term review at the Iskandar Puteri City Council here yesterday, which was also attended by Johor Menteri Besar Datuk Onn Hafiz Ghazi.
— Bernama
