KUALA LUMPUR: Fund managers are still placing their bets on the ringgit in view of the healthy Malaysian economy and despite the currency having depreciated by 7.07 points thus far, this year.
Kenanga Investors Bhd Chief Investment Officer Lee Sook Yee said the economic fundamentals, by all international standards, remained strong with low fiscal deficit, manageable debt level and strong foreign reserves.
“Although some may argue that if you take into consideration the contingency liability, the debt to Gross Domestic Product level can be higher, but then again, at the official level of 55 per cent, this is very manageable.
“Foreign reserves is at about US$120 billion, which is almost at an all-time high. While the ringgit has fallen a lot, it is not near any crisis scenario,” she told a press conference held in conjunction with the one-day 6th Annual Investment Conference 2015 organised by Phillip Capital Group.
She said the ringgit, which closed at 3.7660/7690 on Friday, would be well supported at this level and not likely experience any free-fall.
“The only ‘noise’ surrounding the ringgit right now is the unresolved 1Malaysia Development Bhd issue and the potential downgrade of Malaysia’s sovereign ratings by Fitch.
“I am actually not that bearish on the ringgit at this juncture,” Lee added.
Commenting on the debt level, Amanah Mutual Bhd Chief Executive Officer Sheila Halim said given that most of Malaysia’s debt were now internal, this should mitigate a further downside of the foreign exchange market. – BERNAMA