Finance and domestic trade ministries will work to ensure import cost savings from a stronger ringgit are passed on to consumers, not just absorbed by businesses.
BALIK PULAU: The Finance Ministry will collaborate with the Domestic Trade and Cost of Living Ministry to ensure the benefits of a stronger ringgit translate into lower consumer prices. Finance Minister II Datuk Seri Amir Hamzah Azizan said the ringgit has appreciated by about 14% against the US dollar since early last year.
It has also strengthened by around 6.5% to 7% against other major currencies. This reduces the cost of importing goods into the country, creating room for prices to fall if savings are passed on.
The government is analysing the best mechanisms with KPDN to ensure these lower import costs are passed through to the people. However, Amir Hamzah noted that not all prices are expected to decline due to previous cost increases.
A balance must be struck between existing cost structures and current market conditions. He made these remarks after the Finance Minister II MADANI Adopted Village outreach programme at Kampung Pulau Betong.
Commenting on economic performance, he said data shows Malaysia’s economy remains resilient. Gross domestic product grew 6.3% in the fourth quarter and 5.2% for the full year last year, among the highest in ASEAN.
This reflects the effectiveness of the government’s comprehensive economic reforms. These include social protection measures and targeted interventions to ensure growth benefits all segments of society.
The stronger ringgit and improved economic performance have boosted public confidence. Amir Hamzah described spending and mobility as indicators of stronger purchasing power and economic stability.
Nevertheless, the government’s priority remains long-term efforts to strengthen the economy. This involves attracting quality investments and ensuring development benefits reach the people through targeted initiatives like Sumbangan Asas Rahmah.
