KUALA LUMPUR: The ringgit is likely to strengthen against the US dollar in 2024, particularly in the second half of the year towards the 4.40 level, said the Malaysian Institute of Economic Research (MIER) today.
Its board member Tan Sri Dr Sulaiman Mahbob said that one of the factors driving the ringgit to strengthen against the greenback next year is the increase of the sales and service tax rate to 8.0 per cent which would generate extra revenue for the government and improving the fiscal position.
He noted that the ringgit has been declining in 2023 prompted by weaker external demand, slower economic growth in China as well as the US Federal Reserve interest rate hikes.
“The position of the ringgit has been a matter of concern for most of us. We have had to deal with the divergence of interest rates between us and the US and all the other countries too,” he said during his presentation of the Malaysian Economic Outlook at the National Economic Outlook Conference here today.
MIER also forecast Malaysia’s economic growth to be in the range of 4.3 per cent to 4.6 per cent in 2024. – Bernama