BALIK PULAU: The Finance Ministry will continue to work closely with the Domestic Trade and Cost of Living Ministry to ensure that the benefits of a stronger ringgit are reflected in lower consumer prices and not fully absorbed by importers.
Finance Minister Il Datuk Seri Amir Hamzah Azizan said the ringgit has strengthened by about 14 per cent against the US dollar since early last year and by around 6.5 to seven per cent against other major currencies.
"This has a positive impact on the cost of importing goods into the country, and creates room for prices to come down if the savings are passed on to consumers,” he told a press conference here today after the Finance Minister Il MADANI Adopted Village outreach programme at Kampung Pulau Betong.
He said the government is currently analysing the best mechanisms together with the Domestic Trade Ministry to ensure that lower import costs resulting from the stronger ringgit can be ‘passed through’ to the people.
However, Amir Hamzah said not all prices are expected to decline due to cost increases recorded over the past few years, and a balance must be struck between existing cost structures and current market conditions.
Commenting on the current economic performance, Amir Hamzah said data released by the Department of Statistics Malaysia (DOSM) showed that Malaysia’s economy remains resilient, with gross domestic product (GDP) growth of 6.3 per cent in the fourth quarter and 5.2 per cent for the full year last year, among the highest in Asean.
He said the performance reflects the effectiveness of the government’s comprehensive economic reforms, including social protection measures and targeted interventions, aimed at ensuring that growth benefits are felt across all segments of society.
Amir Hamzah also said the stronger ringgit and improved economic performance have boosted public confidence, including in terms of spending and mobility, which he described as indicators of stronger purchasing power and economic stability.
Nevertheless, he stressed that the government’s priority remains long-term efforts to strengthen the economy, attract quality investments and ensure that development benefits reach the people through targeted initiatives such as Sumbangan Asas Rahmah (Sara) initiative.- Bernama
