The depreciation of the ringgit is due to the United States easing its monetary policy and its process of economic recovery, said the World Bank’s Development Research Group lead economist Norman Loayza.
“My perspective is, this is not a country-specific issue. The depreciation is because the US economy is recovering,” he said at the Labuan International Business and Financial Centre (Labuan IBFC) 25th anniversary conference here today.
He said it is imperative for any mature economy to look at productivity, which includes innovation, education, efficiency, infrastructure and finance as the key to growth.
“Preparation in good times through prudent macroeconomic and financial policies, targeted social insurance and protection and a flexible private sector are among important issues to focus on in managing risks and crises,” he said.
Loayza said the quality of infrastructure and income levels in East Asia were remarkable, and other developing regions were looking to emulate its economic development.