Strength­en­ing ring­git means more cap­i­tal goods can be bought for in­fra­struc­ture projects

New Straits Times - - Letters -

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

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