BNM governor Abdul Rasheed Ghaffour said the bank has elevated its engagements with government-linked companies and government-linked investment companies to encourage more consistent repatriation and conversion of their foreign investment income.

“We are also stepping up our engagements with international investors to showcase the positive prospects of Malaysia and that the country remains highly attractive for investment and business.

“Thus, with the current ringgit undervaluation and ongoing and forthcoming investment opportunities, global investors stand to reap the benefits from participating in Malaysia’s growth prospects,” he said in his keynote address at the virtual Islamic Finance Symposium 2024, organised by Fitch Ratings, today.

Rasheed also said that the ringgit has been under pressure since 2022, largely influenced by the aggressive policy rate adjustments by the US Federal Reserve, a phenomenon that is not specific to Malaysia but reflects broader currency market dynamics.

“Given our positive growth prospects, the current ringgit level is undervalued. This is unwarranted, as the ringgit is also supported by sustained investor confidence, evidenced by the stable long-term government bond holdings by non-residents at around 22%, and recent foreign inflows into domestic equities,” he said.