Strengthening ringgit means more capital goods can be bought for infrastructure projects
MALAYSIA’S rubber industry is showing significant improvement and advancement.
The prices of latex and standard Malaysian rubber, which are basic rubber products, increased 200 sen, or RM2 per kg.
With the rise, the new total turnover for a production unit will be monumental.
This is especially so if it is produced in great amounts or a large scale.
The leading importers of rubber products are China, Germany, Iran and the United States. In the manufacturing field, our country is also doing well.
Industrial production or output performance showed an increase of 4.7 per cent in February due to strong manufacturing growth of up to 6.5 per cent year on year.
People’s Aid 1Malaysia (BR1M), given to the less fortunate, will be extended since it increased the country’s growth.
By giving aid to the people, they are, in fact, earning more money through this mechanism.
This not only provides more financial strength to the country, but also political stability.
A lesson learnt from Singapore is its readiness to attract talent in various industries.
With a pool of talent at its disposal, the sky is the limit for its high-technology and business development plans.
I assume the republic would excel further in charting its economic strategies.
Similar to the policy set up by Japanese Prime Minister Shinzo Abe in managing the Bank of Japan, it was said that Japan, as much as Malaysia, is very much in favour of a stimulus policy.
This is shown by the fact that Malaysia had introduced BR1M in the past few years.
Malaysia should also capitalise on its strong currency by having a more export-oriented economy.
This could be done by increasing production of its key products.
The traditional products must also be released from stockpiling if they are subjected to current practices and exported to countries with high demand.
With the increased strength of the ringgit, more goods may also be imported with the same amount of currency.
This could lead to sound economic development since more capital goods may be bought from this transaction and a lot of projects, especially infrastructural ones, may be concluded successfully.
ZAKI TAHIR Merlimau, Melaka