Rakyat: Currency regime best for nation
By : Eileen Ng
New Straits Times
7 December 2007
currency float regime which the government adopted after it unpegged the
ringgit to the US dollar will remain.
Ministry parliamentary secretary Datuk Dr Mohd Hilmi Yahya said the
managed float gives stability and flexibility to our currency.
“This is because Malaysia has a small and open economy,” he said in
reply to Datuk Che Min Che Ahmad’s (BN-Pasir Puteh) question whether the
government would consider a different regime to determine the value of
“It is important that we have a stable foreign exchange to encourage
stable commerce and robust economic growth.
“At the same time, the regime will lead to an increase in the ringgit’s
two-way movement compared to the major currencies.”
He said this
would give flexibility for the ringgit to adjust to structural changes
that occurred in the regional and international finance and economic
“The regime also gives an additional advantage to the country to absorb
external shocks, such as developments brought about by the US subprime
“The regime is the best choice for Malaysia as it is appropriate with
the country’s economic progress in a challenging global environment.”
To a question by Loh Seng Kok (BN-Kelana Jaya) on the Employees’
Provident Fund (EPF) investments, he said as of June 30, it stood at
Of the amount, 34.6 per cent or RM104.21 billion were invested in
Malaysian government securities, 37.2 per cent (RM112.15 billion) were
in loans and bonds, 19.4 per cent (RM58.64 billion) in equities, 8.2 per
cent (RM24.7 billion) in financial market instruments, while the rest,
at RM1.72 billion, was in real estate.
He said EPF had its own method of managing its investments, whereby all
such activities were monitored by its investment panel, comprising
professionals appointed by the government.
On the performance of RHB Capital Bhd, which EPF took over, Hilmi said
in the first half of this year, RHB Capital net interest income stood at
RM1.03 billion, an increase of 12.3 per cent or RM113.3 million,
compared with the corresponding period last year.
In the same period, Hilmi said the income of RHB Islamic Bank stood at
RM184.1 million, compared with RM93.2 million last year.