Ringgit will do better when investor confidence is restored: Zeti

KUALA LUMPUR: Tan Sri Zeti Akhtar Aziz said today the ringgit will perform better when investor confidence in the economy and the country is restored.
The former central bank governor said the new government is working very hard to address all areas of concern.
“I believe the fundamentals are still there (intact). When the fiscal regime and conditions improve, they will contribute towards improved ratings.
“This is because all other categories – financial system, macroeconomic conditions, inflation, and financial stability – are ready and should have a higher rating.
“But because of the fiscal issue, I understand, we (have been accorded) a single ‘A’ when actually we (Malaysia) have the potential to be rated double ‘A’,” Zeti told reporters after chairing a meeting with fund managers here.
The government, she said, wants to improve the fiscal position both on the revenue and the expenditure sides so that there will be project reprioritisation, and efforts to increase efficiency and reduce wastage.
On the abolishment of the Goods and Services Tax, which was part of Pakatan Harapan’s election manifesto, Zeti said it will be done in accordance with existing rules and processes.
“Tun Mahathir has always mentioned that rules exist in our country,” she said, referring to Prime Minister Tun Dr Mahathir Mohamad.
“We are not going to deviate from any of the rules and the processes in order to undertake these kind of changes. Therefore, what we’ll do within the 100 days is to make an announcement of what we want to do. The process of whether it has to go through Parliament for approval will take place thereafter,” she said.
Once a decision is made, everything, including strategy, process, technology and system, will be made known to the public. Everything undertaken will be comprehensive and will not done on a piecemeal basis, otherwise there will be other issues to be addressed, said Zeti.
About 180 local and international fund managers attended the meeting that lasted almost two hours.
“It’s (outcome) is going to be very positive. The meeting was helpful because the people involved in the Council (of Eminent Persons) have been involved in the economy before and fund managers are greatly assured by that,” Zeti said. – Bernama