Sunday, January 15, 2017


Mahathir during his hour-long speech also talked about the depreciating ringgit, saying if the opposition were the government, it would protect the currency without selling the country’s USD reserves.

“We will come up with more effective methods to help our currency recover so the public won’t be burdened by it, especially those with children studying overseas.”

Without touching currency reserves? Does it mean pegging the currency by using Capital Controls again? 

BTW, most people do not realize that among others, the UK Pounds, India Rupees, Russian Rubble, Mexico Peso , Argentinean Pesos, Brazilian Real  - all reached all-time historic lows against the USD in recent months. It is not just Malaysia alone and it is indeed helping boost our exports.

The same policy that caused Malaysia's economy and investments to stall from 1998 to 2005, when the peg and currency controls were finally removed?

As for students studying overseas, this is not necessarily true for those who study in UK and Australia.

The Ringgit is essentially little change to the Aussie Dollar compared to 10 years ago and it is stronger than the UK pounds then which was at RM7 to UK Pounds one. In fact at RM5.40, the Ringgit is actually much stronger against the Pound compared to one year ago when it was as high as RM6.70.

But a better suggestion would be for the children to study locally in the many foreign campuses now in Malaysia. The Govt had promoted these campuses for the exact reason to get quality education at a lower cost locally.

So, why not promote and practice this and reduce outflows too?

This is why Why Malaysia does not want to peg the Ringgit like it did in 1998:

Why Malaysia does not want to peg the Ringgit like it did in 1998

Because it causes much long-term damages to our economy aand income levels compared to the short-term benefits.

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