Several measures introduced by Bank Negara Malaysia (BNM) in December last year have helped stabilise the ringgit and the central bank is ready to step in with more if needed. Governor Datuk Muhammad Ibrahim said the full impact of the measures implemented on Dec 5 was expected to be seen in mid-2017 and if necessary, BNM would introduce new measures to further strengthen it.

"However, these new measures are not capital control or fixing of the ringgit but to stabilise it and ensure liquidity in the market" he told reporters after the launch of the Karnival Kewangan Malaysia 2017 on Friday, Jan 14.

He said Malaysia's financial market was open and those who wanted to come in could always go out. "We will always welcome long-term investors into our bond market and we must ensure that they are protected by stabilising our currency so that they can make profits" he said.

Muhammad said results from initial measures implemented last year showed that the local currency has stabilised very much.

"Among the measures taken were to allow exporters to retain only up to 25 percent of export proceeds in foreign currency and the rest in ringgit.

He said residents with domestic ringgit borrowing were free to invest in foreign currency assets, both onshore and abroad, up to the prudential limit of RM50 million for corporates and RM1 million for individuals.

"We must not be fixated on any particular levels (of the ringgit). Once we have realigned the demand and supply for it be dictated by actual demand for the currency that is where the ringgit will stabilise.

"The key point is that ringgit must stabilise because it will let businesses to make the right decision" he said. Earlier, in his speech, Muhammad said, BNM and the Financial Markets Committee (FMC) had taken intervention measures to mitigate speculative activities in the offshore markets.

Muhammad said many observers and economic analysts had placed the value of the ringgit at an inaccurate and counter-productive level.

He said the demand for the ringgit in the domestic currency market was getting better and its volatility has eased.