KUALA LUMPUR (Bernama) – The recent fluctuation of the ringgit has not adversely affected Malaysia’s economy in showing a balanced impact over the medium term.
Minister in the Prime Minister’s Department Datuk Seri Abdul Wahid Omar said the issue was underpinned by the country’s strong fundamentals via the current account surplus in the balance of payments of RM41 billion for the first nine months of the year compared to RM37 billion in 2013.
“At the same time, Malaysia’s economic structure has been diversified and no longer dependent on just the agriculture and commodity sectors,” he added.
“If previously we were dependent on just agriculture, commodities and oil and gas, we have now diversified, with the economic structure seeing a 55 per cent contribution from the services sector, 25 per cent manufacturing, seven per cent mining and eight per cent agriculture,” he said.
He said in view of the fact that Malaysia was no longer dependent on the commodity sector, if there was any sudden decline, the impact would not be harsh due to the diversified economy.
Citing the 1997 global economic crisis as an example, Abdul Wahid said Malaysia could still overcome the challenges then, as the economic fundamentals were strong and expanding over the last four decades.
“It is true that from time to time, there would be external factors which can influence the prices of commodities and the currency movement. But, what is important is, if the economic fundamentals and financial position of the country is strong, we can overcome the issues,” he added.