Treasury secretary-general Mohd Irwan Serigar Abdullah says Malaysia's economy is still on the right track and still expanding, dismissing social media speculations that the country would be bankrupt following the fall in the ringgit's value and global oil prices.

"The fall is a global phenomenon which is also felt by several other nations with a commodities-based economy amid the strengthening US dollar.

"If you look at a country like Russia, which is overly dependent on oil, it is facing an even worse situation than Malaysia. And it's the same with Brazil, Australia and New Zealand,” he said at a briefing at the 'Enhancing National Unity and Integration Conference: Towards a Common Destiny - Where Do We Go From Here?' in Kota Kinabalu today.

The conference, organised by the National Unity and Integration Department and Asian Strategy Leadership Institute (ASLI), was opened by Prime Minister Najib Abdul Razak.

Mohd Irwan said the country's current economic crisis was caused not just by the slowing world economy but also by "political noises" in Malaysia.

"The political noises, which are unnecessary but controllable, have to some extent affected the country's economy," he said, adding the government has taken several proactive measures to mitigate the crisis, which it hopes to overcome in a few months in order to stabilise the economy.

"We are also going to table our Budget 2016 on Oct 23, when more strategies and measures will be announced by the prime minister," he said.

Focus on developing Sabah

At the conference, Mohd Irwan touched on the government's focus on developing Sabah, including providing funds for the construction of the Pan Borneo Highway linking the state with Sarawak.

"An estimated RM12.6 billion will be for upgrading a 706km. stretch of the highway in Sabah including for the construction of new roads.

"The existing roads are too narrow, now we want to broaden them and build bypasses to make it easier for drivers," he said, adding the highway would benefit the state's rural residents.

The federal government is also providing various other allocations for the state, including for maritime security, he said.

"If you want big vessels, we can give, then if you need smaller ones (to combat smuggling and encroachment), we can also give. We will also upgrade the equipment needed by the military, the police and other security agencies.

"We will provide all the necessary equipment and radar system to monitor the movements of pirates and others, I hope Sabah's waters will be more secure, and more allocations will be provided," he added.

He said discussions between the federal and state governments have also included giving the latter more freedom to make its own decisions.

- Bernama