M'sia won't repeat measure of re-pegging ringgit: Najib
Published on: Wednesday, January 24, 2018
Kuala Lumpur: Malaysia will never repeat the measure of re-pegging the ringgit as the move will be an unmitigated disaster for the economy and the prosperity of the people, Datuk Seri Najib Tun Razak said."We have made it very clear that we would never repeat that measure, trusting that while there may be short-term fluctuations, in the longer term the level of the ringgit would reflect the strength of the Malaysian economy," the Prime Minister said when launching Invest Malaysia 2018, here, Tuesday.Najib was responding to remarks made by opposition leaders whom he said had the notion that re-pegging the ringgit would be an easy and helpful move.
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He said the measure to peg the ringgit against the US dollar that Malaysia implemented during the Asian Financial Crisis in 1997/98 was taken "far too long"."Investors and global markets lost confidence in us and it took a long time to win that back. That was a very heavy cost to the country," he said.Najib, who is also Finance Minister, said this was among the issues of the past that the Government had to correct, and the focus now had been centred towards the future of Malaysia.
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"We know that depends on our human capital infrastructure, our preparedness for the fourth industrial revolution, our embracing of the digital economy, our proficiency in languages, including English, and our investment in the hard infrastructure of roads, railways, ports and the like," he said.The Prime Minister said the robustness of the Malaysian economic transformation was evident in the new economy the country is building, with the ringgit appreciating 10.4 per cent against the US dollar last year.
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On Jan 5, 2018, the ringgit closed at a 17-month high, breaking the 4.0-psychological level barrier."This rise may have been partially underpinned by the recovery in crude oil prices, but it also indicates positive sentiment among investors and recognition of Malaysia's excellent economic and financial fundamentals," he added.Meanwhile, Najib said some of the country's development under a former leader had come with an unnecessary price tag in the form of a class of crony capitalists whose wealth came at the cost of ordinary Malaysians.In his keynote address at Invest Malaysia 2018 here on Tuesday, the Prime Minister said his government vowed this would end as it learned lessons from past mistakes in planning Malaysia's economic transformation, confronting many legacy issues along the way.Citing public transport as an example, he said the matter was neglected for decades resulting in it being incoherent, with different owners and systems, and certainty no integration."One man's obsession with the idea of a national car – which is now being turned round under international joint ownership – led to Malaysia lacking an efficient public transport system."This was a serious obstacle to our ambition to achieve high income status and for Kuala Lumpur to be a world class capital. So, we immediately took steps to rectify that and indicated that public transport would be a top priority for the Government," said Najib, who is also Finance Minister.Taking aim at the Independent Power Plant concessions signed by the government during that time, Najib said they were so lopsided that consumers had to pay far more for energy than they should have, even energy they were not using."This was a real burden to the people, so we renegotiated these concessions – determined that in future, we would not allow private companies to earn excessively at the expense of ordinary Malaysians," the Prime Minister said.The ringgit, he said, was pegged against the US dollar for far too long during that period, prompting investors and global markets to lose confidence in the country."And it took a long time to win that back. That was a very heavy cost to the country," Najib said, adding that his Government would never repeat that measure.The Prime Minister also dwelled on what he described as a concentrated campaign to sabotage Malaysia's economy for political gain.Najib said challenges at state-owned institutions, such as 1Malaysia Development Berhad (1MDB), were amplified and used as a tool to suggest that Malaysia's economy was collapsing."I'm not going to brush over this issue. There were indeed failings at the company, there were lapses of governance. There was a valid cause for concern."This is why I ordered one of the most comprehensive and detailed investigations in Malaysia's corporate history, one that involved multiple lawful authorities including a bipartisan parliamentary body."Their findings were taken on board and the company's board was dissolved, its management team changed and its operations reviewed," he said.Najib pointed out that 1MDB had rationalised its assets and, with the proceeds, took an aggressive approach to reduce the debts to its lowest possible levels."The company concentrated its efforts on ensuring its two most valuable assets - Bandar Malaysia and Tun Razak Exchange - remain as attractive investment propositions to both shareholders and investors," Najib said.In addition, he took a swipe at those who claimed that Malaysia was selling its sovereignty by courting foreign direct investment from China."I know that the well-informed and well-educated audience here today will recognise what baseless nonsense this is. My government will never sacrifice an inch of our sovereignty," he said.Stay up-to-date by following Daily Express’s Telegram channel.
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