PONTIAN, Nov 8 — The ringgit’s depreciation against the Singapore dollar (SGD) will not retard economic growth, rather it will further encourage exports to the island nation, said Deputy Finance Minister, Datuk Ahmad Maslan.

Ahmad said the rakyat need not worry about this development because the ringgit’s value versus the US dollar was still strong and the nation’s economic growth was still positive till the third quarter of this year.

“This (depreciation) is not a huge burden because the low exchange rate will boost exports and encourage more Singaporeans to spend in our country.

“International transactions are based on the value of US dollar and not the Singapore dollar. Also, the ringgit is still strong against the US dollar,” he said after officiating the groundbreaking ceremony at Taman Benut Utama 3 here today.

Ahmad said this when commenting on Singapore media reports on the fall in the ringgit to RM2.50 against the Singapore dollar, which was the lowest in 15 years.

Earlier, Ahmad urged private sector to take the initiative to build more affordable houses to help the government achieve its plan to provide 223,000 more affordable homes by next year under Budget 2014.

“We hope the private sector does not only focus on building apartments and luxurious condominiums but help the government achieve the plan,” he said. — Bernama