KUALA LUMPUR – Despite being an unpopular decision, the government’s move to implement diesel subsidy rationalisation has saved RM4 billion and improved investor confidence in choosing Malaysia as their preferred destination.
Prime Minister Datuk Seri Anwar Ibrahim criticised the rejection of subsidy targeting as a misguided decision, pointing out that all previous prime ministers had consented to ending the leakage.
“It means that if you want to invest, you know the policy is responsible. There is no leakage, and with the Fiscal Responsibility Act, the targeting of chicken subsidies and electricity tariffs demonstrates that this government is willing to take unpopular actions to save the national economy,” he said.
Anwar also urged the Finance Ministry’s communications unit to be more aggressive and proactive in educating the public about the realities of subsidy targeting.
“We can’t blame people for not understanding because sometimes we fail to educate them and enlighten them about the economy,” he said.
Meanwhile, Anwar said that the strength of the domestic economy and the measures implemented by the Finance Ministry, along with its associated departments and agencies, played a crucial role in efforts to bolster the ringgit.
He said that the domestic position and the current strength of the ringgit were highly encouraging despite a concerning global geopolitical situation.
“The numbers clearly show the ringgit’s impressive performance over the past 14 years,” he said at the Finance Ministry’s monthly assembly today.
It was reported that on August 2, the ringgit closed at 4.49 against the US dollar, marking a 1.6% increase against the greenback and an upward trend for the 10th consecutive day – its best streak since 2010.
The ringgit’s strengthening against the greenback continues, boosted by the growing likelihood of US interest rate cuts.
As of 8am today, the ringgit appreciated to 4.4200/4300 against the US dollar, up from 4.4240/4305 yesterday. – August 6, 2024