Monday, September 22, 2008

Shall we peg the ringgit again?

What does our new Finance Minister Datuk Seri Najib Razak got to say about this -- Tun Dr Mahathir Mohamad has suggested the reintroduction of the ringgit peg to lessen the impact of the global economic crisis on the currency.

In his support remarks, International Trade and Industry Minister Muhyiddin Yassin said the government should study the suggestion to cushion off the impact of the weakening US dollar against other major currencies.

Tun and Muhyiddin are right. The fluctuations in the ringgit value had affected the country's economy and the government should not continue with the managed float of the ringgit. The value must be fixed as it would strengthen the economy and create structural changes without having to depend on the model from western experts.

“If the US economy declines, the country, which is among its key trading partners, will also be badly affected,” Dr M said.

The ringgit's RM3.80 peg against the US dollar imposed in Sept 1, 1998 was scrapped in July 21, 2005 and was operated by a managed float against a basket of currencies. Although the pegging of the ringgit by the government in 1997 is perceived to be different from the current uncertain global economic scenario, it was possible that several mechanisms in the previous pegging of the ringgit could be used again.

Muhyiddin said the uncertain global economy today is due to the sub-prime problems prevailing in the United States which resulted in several major banks in the country to go bankrupt and this scenario is different from the situation in 1997.

The government, he said needed to keep tabs on the current world economic developments and take necessary initiatives to tackle the problem.


Now, Najib... its time to be a good 'money-man'!


6 comments:

Better in Time said...

I wonder, what will happen when Tun dies?

We can freeze him cryogenically and then try to bring him back to life by science? That would be virtually impossible given life and death only in Allah's hands.

It's quite pitiful actually, that our current leaders dari Pak Lah ke Najib, semua tak de idea bernas atau the intelligence and foresight to steer the nation. They still have to rely on TUN, sooner or later...

Kita dah tak dak pemimpin yang berwawasan dan berkaliber...and whatever happened to our think tanks and researchers, economists, scientists et al?

The administration needs more talent and experts in the various fields...instead we are still stuck with the ageing, past sell-by politicians yang macam ular sawa kenyang...lethargic dan lembab. (sorry ular2 sawa...I admire you guys, bukan nak hina dan samakan macam pemimpin kita tau...saje nak pakai analogy)

My Raison D'etre said...

Saudara,

Unfortunately (or fortunately - something we will have to see) Najib has decided to not peg the Ringgit.

Something about commitment to free trade thingy.

Could it be that he wants to be original?

Wasalam.

bujai said...

better in time,
u r VERY right. they dont make a leader like tun anymore.

i miss the times when we, journalists, sat down together with tun, sipping at our coffee and chat at the coffee house once in a while during his overseas trips...

bujai said...

my raison,
not blaming najib. he's still a freshie at finance ministry although he has vast experience in business.

someone may have told him NOT YET to peg the ringgit.

remember, he still got a BOSS up there.... and his cadres

hashim harris said...

Jai,

To peg or not to peg, Najib as Finance Minister knew full well just how precarious his position was. For almost a decade our currency was pegged to USA Dollars, well that when The US economic and currency was deem to be strong, but now it is not the case.

In doing the balancing act, one must fully understand the mechanism of currency and credit risks. Perhaps in 1997, TDM timing and decision was accurate since our currency was attacked then.

Please also note that, TDM was not only pegging the ringgit against Dollar but he was also using other economic and fiduciary measures to comprehend the attack on Malaysian Ringgit. But presently, we do not face that issue.

As such, fundamentally, money wise, why should we peg our currency to a currency that is weakening? As an exporter we will suffer? As an importer, we will also suffer if US Dollar keep plummeting.

pistolair said...

Rosmah Bakal Perdana Menteri Malaysia? – Bahagian Satu: Belanja Lumayan, Anak Suami Tak Dilayan

Sebelum rakyat dan ahli-ahli UMNO memberi sokongan kepada Dato' Seri Najib Tun Razak sebagai Presiden Parti dan Perdana Menteri negara, wajarlah tingkahlaku dan dosa anak Perdana Menteri kedua Malaysia ini diselidiki sepenuhnya. Tolak ketepi dahulu kebarangkalian pengbabitannya dengan pembunuhan ngeri Altantuya Sharibuu yang mengaibkan kerajaan Malaysia di mata dunia. Imbasan ringkas sejarah busuk Najib dan isterinya Rosmah sudah cukup untuk mengajar kita betapa bahaya parti dan negara jatuh ke tangan gandingan suami-isteri (atau lebih sesuai, ISTERI-suami) ini.

Belum sempat keperitan hati keluarga mangsa-mangsa Helikopter Nuri diubati, kronisme dan nepotisme Najib-Rosmah terserlah dengan penggantian Nuri dengan Eurocopter, meskipun ia merupakan model paling mahal sejauh 25% dan tidak diuji medan perang. Mengapa Najib sewaktu menjadi Menteri Pertahanan sekian lama enggan memeterai perjanjian untuk Sikorsky Blackhawk yang jauh lebih murah dan mempunyai rekod cemerlang di zon-zon perang?

Jawapannya datang dalam bentuk seorang adik bernama Nazim Razak yang muncul berkecimpung dalam isu-isu pertahanan negara sungguhpun merupakan seorang arkitek. Dengan rangkaian luasnya dengan pencipta-pencipta Eurocopter, Nazimlah sebenarnya yang menandatangani perjanjian Eurocopter sekaligus meraih komisen besar sewaktu rakyat Malaysia sibuk memikirkan kos sara hidup yang kian meningkat.

Yang cukup membimbangkan kita, sebenarnya bukan Najib yang berkomplot langsung dengan adiknya Nazim dalam hal Eurocopter ini. Tetapi isterinya Rosmah, yang berkelakuan seperti wanita sihir atau "witch" dalam cerita kanak-kanak Inggeris! Rosmah cukup bijak; wanita durjana ini menghabiskan wang yang diberi Nazim, untuk bersuka ria di London. Siapa tak kenal Rosmah dan perangai borosnya itu di negara perantauan. Dalam satu kes, cukai-tambah-nilai sahaja dilaporkan oleh penguatkuasa di England sebanyak 50, 000 pound (sekitar RM350 000)! Jika cukainya yang tak sampai 20% pun sudah bernilai RM350 ribu bayangkanlah berapa tinggi nilai sebenar perbelanjaannya.

Tak cukup lagi dengan keborosan di kedai-kedai mewah di London, Rosmah juga menghabiskan RM 500 ribu untuk pembedahan plastik dan botox di London tahun lepas. Jika tak percaya, lihat sajalah wajah wanita sihir itu dulu dan sekarang; mustahil cukup tempe di Malaysia ini!

Mungkin sikap Rosmah ini tidaklah memeranjatkan, jika kita lihat sejarahnya yang lampau. Sudahlah mencuri suami orang (Najib pada awalnya berkahwin dengan Tunku Puteri), Rosmah cuba sedaya upaya menghalang Najib untuk menghadiri majlis akad nikah anaknya sewaktu bersama Tunku Puteri, Nizar Najib bersama anak usahawan mahsyur dan bekas Exco Wanita UMNO Malaysia Dato' Maznah Hamid. Kuatnya pengaruh Rosmah ke atas suaminya, Najib hampir-hampir akur dengan saranan Rosmah untuk tidak ke majlis tersebut.

Setakat ini sahaja bahagian satu siri Rosmah Bakal Perdana Menteri Malaysia. Tiga isu yang dikupas setakat ini:

1) Perjanjian kronisme Eurocopter yang menguntungkan Rosmah
2) Perbelanjaan lumayan Rosmah di London (wang rakyat!!)
3) "Queen Control" hinggakan perkahwinan anak sah Najib pun tidak direstui