KUALA LUMPUR: The government will focus on the country’s fundamentals amid concerns over the weakening ringgit, which hit its lowest level since September 2006 to touch 3.7665 versus the US dollar yesterday, said Minister in the Prime Minister’s Department Datuk Seri Abdul Wahid Omar.

“I am not able to comment on the value of the (local) currency, but despite the weakening trend, we will still stick to focus on our (economic) fundamentals,” he told pressmen after opening the Second National Economic Summit organised by the Asia Strategy and Leadership Institute here yesterday.

According to Reuters, the ringgit hit a nine-year low and the Indonesian rupiah set a fresh 17-year low yesterday, after robust US jobs data bolstered expectations of an interest rate hike by the US Federal Reserve before year-end. The rupiah fell to as low as 13,380 against the greenback, its lowest level since August 1998.

Asked if concerns over the beleaguered 1Malaysia Development Bhd (1MDB) are part of the root cause that dragged the local currency, Abdul Wahid said in regards to the local financial system, the strategic development company poses no systemic risk.

“The financial system is stable, the banks are well capitalised, and the government has implemented steps to widen the revenue base so as to sustain through any implication,” he said.

He also said Putrajaya has already met with Fitch to explain steps it was taking to deal with 1MDB, after the international credit rating agency warned that it was downgrading the country’s rating because of the RM42 billion debts the firm had chalked up.

This article first appeared in The Edge Financial Daily, on June 9, 2015.