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Malaysia says rgt strength reflects economy - report

Sat Feb 16, 2008 2:37pm IST
 
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KUALA LUMPUR, Feb 16 (Reuters) - Malaysia's appreciating ringgit reflects the economy's strength, Prime Minister Abdullah Ahmad Badawi was quoted as saying on Saturday.

An advocate of a strong ringgit policy, Abdullah has said in the past that the currency's gains reflect confidence in the economy.

But some analysts have questioned the benefits of a firm ringgit for the export-driven economy, especially in light of weak global tech demand and a possible U.S. recession.

The ringgit <MYR=> has risen about 2.6 percent so far this year, making it one of Asia's best performers. It was last quoted at 3.2210 per dollar.

But, Abdullah -- who is gearing up for a general election next month -- played down concerns about the currency's appreciation.

"I hope the stability and strength of the ringgit will continue to improve so that the country will keep on enjoying a healthy economy," Abdullah was quoted as saying by state-run Bernama news agency in the northern state of Kedah.

"It is also hoped that this development will be an impetus for other countries to strengthen their economic, trade and investment ties with us." (Reporting by Liau Y-Sing; Editing by Lincoln Feast)

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