KUALA LUMPUR: Investors will keep a close tab on Budget 2022 which will be tabled in Parliament on Oct 29 by Finance Minister Tengku Zafrul Abdul Aziz, as it could be a decisive factor in determining their confidence with regards to the ringgit's performance.
In early January 2021, the domestic unit breached the 4.00-level against the US dollar, depreciating to a year-to-date low of 4.24 mid-August before regaining its grounds to trade at the current level of between 4.14 and 4.19.
Bank Islam chief economist Dr Mohd Afzanizam Abdul Rashid said the strong commodities performance has helped to boost the ringgit.
He noted that three commodities, namely crude oil, liquefied natural gas (LNG) and crude palm oil (CPO) have remained at elevated levels.
"This should help to some degree, providing fiscal space for the government while being a catalyst for an improved capital expenditure plan among the oil and gas players," he said.
"Perhaps the upcoming budget announcement would shed more light on how the government plans to reduce the budget gap, given that the 12th Malaysia Plan (12MP) has indicated a fiscal shorfall of 3.0 per cent - 3.5 per cent of the gross domestic product (GDP) by 2025 as opposed to the 2022 estimates of 6.5 per cent - 7.0 per cent," he told Bernama.
The 12MP is a five-year roadmap for the country's development, with an annual GDP growth target of between 4.5 per cent and 5.5 per cent from 2021-2025.
Meanwhile, ActivTrades forex analyst Dyogenes Rodrigues Diniz believes the ringgit could hit the 4.10 level against the US dollar for the rest of the year.
He said the 12MP is aligned with the global goals of sustainable economic development and greater social equity -- positive pull factors for foreign investors to invest in Malaysia.
"As a currency pair, we also need to understand the US dollar situation. The recent announcement by the Federal Reserve (Fed) that it will not raise the interest rate for the US dollar until 2023 could weaken the currency.
"So, in general, we are talking about a simultaneous ringgit appreciation and a possible greenback depreciation, which could be good for Malaysia," said Diniz.
He also noted that the local unit has been appreciating against major counterparts in the past few months.
"However, the uptrend is not quite significant, given the uncertainties due to the onslaught of the Delta variant of COVID-19 in the region.
"Still, I see that the recovery is positive and the speed of this appreciation is also important as greater exchange rate stability provides more predictability for international trade," he said, adding that an excessively rapid appreciation of the ringgit could affect the trade balance.
-- BERNAMA
Bernama
Wed Oct 20 2021
The 12MP is a five-year roadmap for the country's development, with an annual GDP growth target of between 4.5 per cent and 5.5 per cent from 2021-2025. - REUTERS photo
Kuda terperangkap atas bumbung akibat banjir
Keberadaan kuda yang terperangkap sekurang-kurangnya 24 jam itu menjadi tular apabila imejnya yang berada di atas bumbung itu disebarkan.
AWANI Pagi: Malaysia Artificial Intelligence Nexus
Ikuti AWANI Pagi bersama Nursyazwani Saiful Sham & Azib Zikry, siaran langsung dari World Trade Centre, Kuala Lumpur, sempena pelancaran Malaysia Artificial Intelligence Nexus.
Diskusi bersama Dr. Muhammad Akmal Remli, Pengarah AIBIG, Fakulti Sains Data Dan Komputeran Universiti Malaysia Kelantan (UMK) & Prof Dr Amir Akramin Shafie Kulliyyah of Engineering (KOE) Universiti Islam Antarabangsa Malaysia (UIAM).
#AWANInews #AWANIPagi
Diskusi bersama Dr. Muhammad Akmal Remli, Pengarah AIBIG, Fakulti Sains Data Dan Komputeran Universiti Malaysia Kelantan (UMK) & Prof Dr Amir Akramin Shafie Kulliyyah of Engineering (KOE) Universiti Islam Antarabangsa Malaysia (UIAM).
#AWANInews #AWANIPagi
Serangan kapal terkait Israel akan dipertingkat - Houthi
Kumpulan Houthi akan menyasarkan kapal mana-mana syarikat pembekal barangan yang berkaitan dengan Israel tanpa mengira destinasi mereka.
AWANI Ringkas: Wanita sukar keluar daripada garis kemiskinan
Ikuti rangkuman berita utama yang menjadi tumpuan sepanjang hari di Astro AWANI menerusi AWANI Ringkas.
'MFL jangan bersikap ego'
Mohd Faizal berkata, penundaan tarikh dibuat atas faktor keselamatan bukan sahaja pengurusan pasukan dan pemain, malah penyokong.
Britain bantu Gaza, laksana 'airdrop' ke-11
Ia bagi membantu rakyat Palestin yang kelaparan di Gaza kerana lintasan ditutup oleh Israel.
'Kami akan berjuang menggunakan hanya kuku, jika perlu' - Netanyahu
Netanyahu tidak mengendahkan tekanan antarabangsa yang semakin meningkat untuk bersetuju dengan gencatan senjata.
Haji: Fokus doa dan solat sunat ketika di Raudah, bukan sibuk mengambil gambar
Jemaah haji yang berpeluang menziarahi Raudah di Masjid Nabawi, dinasihatkan tidak terlalu teruja dan sibuk mengambil gambar.
Politik kerjasama akan terus jadi tunjang - Loke
Loke berkaata politik kerjasama akan terus menjadi tunjang Pakatan Harapan dan kerajaan perpaduan, seperti mana yang sudah digagaskan oleh pemimpin-pemimpin terdahulu.
Mahu tunai haji, ikut saluran betul, dapatkan permit
Mereka yang mahu mengerjakan haji diminta mengikut saluran yang betul dengan memohon permit untuk menunaikan rukun Islam kelima itu atau berdepan penalti 10,000 Riyal dan diusir daripada Arab Saudi.