KUALA LUMPUR: The government has no plan to implement capital controls like during the 1997-1998 Asean financial crisis in the face of ringgit depreciation as the situation is different, Deputy Finance Minister Datuk Chua Tee Yong said.
He said Malaysia achieved a gross domestic product (GDP) growth of 6 percent in 2014 and 4.7 percent in 2013, driven mainly by robust domestic demand and external trade.
“This development resulted from various initiatives taken [by the government]to diversify the economy, and enhance resilience and competitiveness,” he said during the question and answer session at the Dewan Negara on Monday.
Responding to a question from Senator Norliza Abdul Rahim, Chua said strong economic fundamentals like low unemployment, sound financial system and high international reserves had also contributed to the economic growth.
He said the government is confident that Malaysia’s economy would remain strong this year and achieve the growth target of between 4.5 percent and 5.5 percent.
On the ringgit depreciation, he said it is not an isolated case, but prompted by external factors as well as the strengthening of the US dollar.
He said the ringgit decline had benefited exporters who reaped higher profits from higher earnings in ringgit, while importers had to bear higher prices of importable goods.