Good fiscal management credited for strong performance
KUALA LUMPUR: Disciplined fiscal management, improved governance and a series of policy reforms have strengthened the ringgit, giving it the best performance in Asia this year, says Prime Minister Datuk Seri Anwar Ibrahim.
He said these measures had boosted investor confidence that Malaysia, for the first time in 14 years, has exited a services account deficit.
“One very interesting figure is that our deficit had always been a problem.
“But in the third quarter of 2025, we recorded a surplus for the first time after 14 years.
“The services account registered a surplus of RM0.7bil. This is the result of our economic planning.
“The current account balance is also positive at 12.2% in the same quarter,” he said during Minister’s Question Time in Dewan Rakyat yesterday.
He was responding to Jimmy Puah (PH-Tebrau), who asked about the main drivers behind the ringgit’s strengthening, now at its highest level against the US dollar in nearly four years, and how this benefits the wider economy.
Anwar said that as of Nov 14, the ringgit had strengthened by 8.21% against the US dollar, 5.66% against the Australian dollar and 5.26% against the Taiwan dollar, while also appreciating against the Chinese yuan and Singapore dollar.
“The increase is significant and very encouraging, and it reflects investor confidence,” he said.
He attributed the ringgit’s resilience to measures such as targeted subsidy rationalisation, which he said ensured government resources were directed efficiently to lower-income groups.
“The strength of the ringgit is clearly due to the policies we put in place from the start.
“First, we introduced targeted subsidies to ensure government resources benefit those who need them most. We have stopped subsidies that did not directly help lower-income groups.
“That is why adjustments, including for RON95 petrol, have had a very positive impact. While some may not be fully satisfied, the public has generally welcomed these changes.
“For example, during my recent visit to Sabah, people were very pleased with the reduction in petrol prices,” he said.
On another matter, Anwar said several key institutional reform Bills, including the Ombudsman Bill, Freedom of Information (FOI) Bill and the Political Financing Bill, are currently undergoing detailed stakeholder engagement before they can be finalised and tabled.
“The minister concerned has presented the policy decisions for Cabinet approval on the FOI, political funding and the distribution of powers involving federal and state officers.
“All (Ombudsman, FOI and political funding Bills) are in engagement processes,” he told Datuk Seri Doris Sophia Anak Brodi (GPS-Sri Aman), who asked on the government’s institutional and legal reforms and whether these measures would help improve Malaysia’s Corruption Perceptions Index (CPI),
Anwar said the reforms must go through several layers of scrutiny, including parliamentary processes, select committees and consultations with the Attorney General, as well as engagements with “various quarters that must be considered before the Bills are finalised”.
“According to the minister, these Bills can be tabled next year – some early in the year and some by mid-year,” he added.
Anwar stressed, however, that while legislative reforms are important, effective implementation remains the key factor in strengthening governance and improving the CPI.
“The most important thing is implementation. We cannot deny the fact that due to the commitment and determination shown by the MACC, Inland Revenue Board, police, Customs and others, we managed to recover RM15.5bil.
“You can talk about laws, regulations and equipment, but without political will, none of this would have happened.
“This deserves attention because the actions taken have produced successful outcomes,” he said.
