According to the chief executive officer of the Employees Provident Fund (EPF), Ahmad Zulqarnain Onn, the ringgit is considered to be fundamentally undervalued. He made this statement during a press conference held after the EPF’s 2023 Financial Performance Briefing in Shah Alam on Sunday (March 3).
Zulqarnain explained that the retirement fund assesses whether an asset is undervalued or overvalued before making any decisions. He stated, “Our house view on ringgit is that it is fundamentally undervalued.”
He further added that if an asset is perceived to be undervalued, they tend to take profit from it. While foreign exchange rates play a role in their decision-making process, it is not the sole factor they consider.
Addressing concerns about repatriating overseas funds to support the ringgit and its potential impact on dividends, Zulqarnain emphasized that foreign exchange rates are just one of many factors that influence their asset transactions.
Bank Negara governor Abdul Rasheed Ghaffour had previously commented on the undervaluation of the ringgit, suggesting that it should trade higher based on positive economic fundamentals and prospects.
As of Friday (March 1), the ringgit experienced a decline against the US Dollar, reaching 4.744/748 compared to the previous day’s closing rate of 4.740/7455.
