PETALING JAYA: The Federation of Malaysian Manufacturers (FMM) has come out in support of Bank Negara's call to support its initiatives to manage the short term pressure on the ringgit.
"This includes cooperation from corporate bodies and investors to ensure more inflows into the foreign exchange markets.
"FMM has urged members to heed the call by BNM for businesses to be part of the whole-of-nation approach needed to ensure the stability of the ringgit," said the federation's chairman Tan Sri Soh Thian Lai in a statement Monday (March 25).
Soh said Bank Negara's Annual Report 2023, Economic and Monetary Review 2023 and Financial Stability Review for Second Half 2023 on March 20, 2024, stressed that despite strong fundamentals and positive growth prospects for 2024 (between 4% and 5%), inflation is expected to average between 2% and 3.5%.
He said different factors can affect the movement of the ringgit over the short and long term as it is mainly cyclical factors including interest rate differentials, fluctuation in global economic conditions and changing investor sentiments.
"Bank Negara during an engagement session with the Chambers of Commerce, business councils, trade associations and CEOs of Malaysian companies on March 22 had stressed that a whole-of-nation approach is needed to ensure the stability of the ringgit amidst the on-going efforts being undertaken by the central bank," he said.
Soh said FMM has conveyed to its members via a members advisory to adopt a "Malaysia First" attitude, manage investment activities that minimise outflows and manage trade activities in a prudent manner.
"It is hoped that with the collective action by BNM to ensure sufficient liquidity in the domestic FX market and dynamic management of monetary operations and the support from the business community, the ringgit will strengthen in the coming months," he added.
