Minister, govt questioned over ringgit drop
TUAN BUQHAIRAH TUAN MUHAMAD ADNAN NAZRIN ZULKAFLI
SHAH ALAM - The value of the ringgit dropping uncontrollably is causing many political figures including government supporters to urge the government to take immediate measures to save Malaysia from an economic disaster.
Umno Supreme Council member Datuk Dr Mohd Puad Zarkashi questioned what significant measures would be taken by Economy Minister Rafizi Ramli towards the recovery, especially to overcome the Ringgit issue.
He said the Pandan MP should at least introduce a new ‘people’s economy’ policy.
“At least there would be a new people’s economy policy where it’s better than BR1M.
“Is Rafizi not prepared to become a minister? That is the issue with having multiple formulas before becoming a minister,” he said in a statement on Wednesday.
Puad released the statement a day after Rafizi explained the efforts to manage the economy must be seen as a whole instead of having it decided by a currency’s value.
Rafizi had said many aspects needed to be considered, including economic growth, inflation, national revenue collection rate and the fiscal deficit.
Puad jokingly reminded Rafizi not to be in a situation where the public statement becomes ‘Rafizi steps down, Ringgit goes up’.
The ringgit value on Monday was RM4.60 compared to one United States (US) dollar and RM3.40 when compared to 1 Singaporean dollar.
Malaysian ringgit recorded its lowest value in history on November 2022 at RM4.74 to US$1.
Pasir Gudang MP Hassan Abdul Karim on Sunday reminded the fall of ringgit’s value negatively affected the economy.
He said Malaysia still imported goods and had several debts with outside parties.
“This affects the Malaysian economy, cost of living and national debt.
“The Bank Negara Malaysia (BNM) Governor and her team must provide advice for the prime minister and his Cabinet leaders to save the economy as well as national finances that were closely tied to the public’s livelihood. Speak the truth even if it hurts.
“Are there other factors not in an economic and financial form causing ringgit’s fall?
“For example, the question of Malaysian’s confidence towards the economic performance and their futures,” he said in a statement.
DAP veteran Lim Kit Siang wanted all parties to realise that Malaysia faced a major issue reflected in the ringgit’s value.
He said in 1965, the ringgit’s value was equivalent to the Singaporean dollar, but it has fallen to RM3.40 per Singaporean dollar.
“Was this due to Singapore having more talent and professional workers than Malaysia?
“Is it because Singapore is currently a great nation because talented and skilled Malaysians were migrating to the republic to find their sustenance,” he said taken from a portal on Tuesday.
Lim warned that Malaysia was falling behind compared to other countries such as Taiwan, Singapore, South Korea and Vietnam.
“If we do not improve our performance, other countries will pull ahead of us as well,” he explained.
Meanwhile, Rafizi stated their economic and financial basis had gone through a crisis earlier this year.
“The US central bank is currently searching for methods and has yet to give a clear signal whether to continue their policy or set interest rates creating an uncertainty in the global economy,” he said.
He said every uncertainty would cause the international market to cover its risks.
“Two safe investment instruments are gold and the dollar,” he said at the press conference after the Special Task Force to Facilitate Business (Pemudah) Session 3/2023 here on Wednesday.
Rafizi said currently, no agreement had been reached between the president and Congress regarding the US debt ceiling and budget.
“Without an agreement, there are risks where the US government could not pay their debts and would contribute to the uncertain value of the Ringgit,” he added.
He said Malaysia’s currency performance from December 2022 to February 2023 was firm at RM4.20 per US$1 due to political stability and good economic performance.
“However, it started falling in February due to a series of crises beyond our control,” he said.
Rafizi said the overnight policy rate (OPR) at three per cent was lower when compared to some countries reaching almost five per cent.
