KUALA LUMPUR (Dec 4): The economic fundamentals of the country are still strong and the depreciation of the ringgit, which is determined by market forces, will not significantly affect the country's economy, Deputy Finance Minister Datuk Ahmad Maslan said in a Bernama report.

He said the country's expected exports for 2014 are RM762.8 billion and imports RM677.2 billion, which would record a trade surplus of RM85.6 billion.

"During this period of excessive volatility, Bank Negara Malaysia will always monitor the foreign exchange market for the ringgit.

"This will encourage and facilitate stability in exchange rate and encourage trade and investment," Ahmad Maslan was quoted by Bernama as saying today.

Ahmad Maslan said government's revenue from petroleum source including that of Petronas did not suffer much this year as average oil prices calculated for 2014 was based on US$110 per barrel.

"The average price for this year would be aroun US$104 per barrel, taking in account falling oil prices in November and December now," he said in the report.

With the shrinking ringgit, Ahmad Maslan said as prices of imported goods would rise, the public would turn to local products thus further expanding the local manufacturing sector.

"Our exports to foreign countries will be much cheaper and further expand our export sector.

"This will increase company profit, salary increase, bonuses, increased in manpower, increased tax for the government and number of factories will also increase," he added. 

The tourism sector will expand as hotel services, transportation and prices of goods will be cheaper from the perspective of countries whose currencies are higher compared with the ringgit.

The services that are given to foreigners will also expand as their costs would be lower in tandem with the percentage fall in the currency.

Bernama also reported Ahmad Maslan as saying that in tackling the ringgit depreciation, agencies such as the Malaysian Palm Oil Board, the Federal Land Development Authority and Felcra must immediately find new markets for palm oil.

Petroliam Nasional Bhd also needs to look for new oil and gas sources as well as undertake joint ventures in other countries.

Meanwhile, rubber downstream products with new creation and innovation must continue to be developed.