Malaysia said on Monday it had no plan to change its fixed-currency system, repeating the government's standard line despite a move by neighbouring Singapore to allow its currency to strengthen.
The remark by Second Finance Minister Nor Mohamed Yakcop contrasted with a statement from the trade minister, who told exporters on Monday not to rely on the fixed exchange rate of the ringgit currency for competitiveness.
The Monetary Authority of Singapore surprised investors on Monday by saying it would allow "modest and gradual appreciation" of the Singapore dollar as part of efforts to head off inflation as economic growth surged at an annualised 11 percent rate in the January to March quarter.
But Nor Mohamed said Malaysia would keep its ringgit peg, fixed at 3.8 to the dollar, unchanged.
"I already made my statement in Singapore. There's not going to be any change of the peg," he told reporters after launching a conference on global competitiveness.
Nor Mohamed, who attended a meeting of Southeast Asian finance ministers in the city state last week, said then that there was no convincing argument to change the peg, though the government would review the fixed exchange rate if it was in the country's interest to do so. His ministry oversees the country's monetary, financial and economic policies.
The ringgit peg was put in place in late 1998 as part of capital controls to protect the economy from the worst ravages of the Asian financial crisis.
Its retention is seen by foreign investors as a key risk to long-term economic growth, and several business groups have in recent weeks called for its removal.
Manufacturers who rely on imported materials for their products have asked for a review, because a stronger exchange rate would reduce their costs.
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