“We want to increase the use of local currency in trading with China … or de-dollarisation. To stop the reliance on the US dollar is difficult, but Malaysia will be more active and aggressive in the use of ringgit,” Anwar told parliament.
The ringgit is trading near historical lows and has lost about 7.5 per cent of its value against the dollar this year.
Anwar said the ringgit’s decline was largely due to external developments such as rising US interest rates.
Malaysia would implement structural reforms that can attract investments and boost the economy, which would bolster the local currency, he added.
Anwar is due to present Malaysia’s budget for 2024 on Friday, with the government expected to cut subsidies for the wealthy and provide more support for low-income groups amid a global slowdown and fiscal strains.