KUALA LUMPUR: The lower Overnight Policy Rate (OPR) increase by Malaysia as compared to the Philippines, Indonesia, Korea and India is one of the main reasons for the ringgit's decline, says Datuk Seri Amir Hamzah Azizan. The Second Finance Minister said while Malaysia’s OPR remained at 3% after it was increased by 125 basis points, the Philippines, Indonesia, Korea and India increased their key policy rates by 200 to 450 basis points, much higher than Malaysia. "The lower OPR increase compared to those countries is one of the main reasons for the ringgit's decline. "The significant difference in interest rates with the United States which is as much as 250 basis points prompts foreign investors to shift their capital out of the domestic market to markets that provide higher returns. "Now, the confidence in foreign investors who are investing in Malaysia is also encouraging.

Source: The Star March 11, 2024 23:08 UTC