‘Cur­ren­cies of other na­tions also de­clin­ing’

The Star Malaysia - - Nation -

KUALA LUMPUR: Malaysia is not alone in ex­pe­ri­enc­ing a de­cline in its cur­rency as other coun­tries in the re­gion are also fac­ing the same chal­lenges.

Prime Min­is­ter Datuk Seri Na­jib Tun Razak said this fol­lowed the strength­en­ing of the US dol­lar.

Re­spond­ing to a ques­tion from Dr Tan Seng Giaw (DAP-Ke­pong) at the De­wan Rakyat, he said the de­clin­ing ring­git was mostly due to the changes in the flow of funds in the mar­ket, which were in­flu­enced by ex­ter­nal fac­tors.

Among these were the ex­pec­ta­tion that the in­ter­est rate in the United States would in­crease along with un­cer­tain­ties in the price of crude oil and China’s fi­nan­cial mar­ket.

The prime min­is­ter said po­lit­i­cal un­cer­tainty in the United King­dom, Europe and the US also had an im­pact on de­mand in the grow­ing mar­kets.

“These are among the many fac- tors that had given a neg­a­tive im­pact on most cur­ren­cies of the de­vel­op­ing coun­tries,” said Na­jib.

As a short-term mea­sure, he said the Gov­ern­ment would al­ways make sure that the for­eign ex­change mar­ket would not be badly af­fected.

The po­si­tion of Bank Ne­gara Malaysia’s re­serves amount­ing to USD$95bil (RM420­bil) would con­tinue to be a cush­ion to the fluc­tu­a­tions in the fi­nan­cial mar­ket, he added.

He said Bank Ne­gara would con­tinue to pro­vide liq­uid­ity in the mar­ket to en­sure a smooth and sta­ble con­di­tion.

Na­jib pointed out that the mea­sures taken by the Gov­ern­ment were show­ing en­cour­ag­ing re­sults as the value of the ring­git had sig­nif­i­cantly sta­bilised.

He said that el­e­ments of eco­nomic sab­o­tage con­ducted by cer­tain ir­re­spon­si­ble quar­ters should be stopped im­me­di­ately, in the in­ter­est of the coun­try and the rakyat.

Na­jib also said the views and sen­ti­ments made by paint­ing sto­ries with in­ac­cu­rate and un­founded facts could have an ad­verse im­pact on the econ­omy.

“Although we have dif­fer­ent po­lit­i­cal lean­ings, the coun­try’s in­ter­est should not be pawned for the in­ter­est of their party pol­i­tics.

“This is of high im­por­tance as the na­tional in­ter­est should be above every­thing else,” he said in re­ply to a sup­ple­men­tary ques­tion from Datuk Seri Dr Ir­mo­hizam Ibrahim (BN-Kuala Se­lan­gor).

Na­jib said that the coun­try nearly lost some RM31­bil of in­vest­ment from Saudi Ara­bia’s Aramco, which re­cently in­vested in the Re­fin­ery and Petro­chem­i­cal In­te­grated Devel­op­ment (RAPID) project in Pengerang, due to the spread of base­less facts by cer­tain quar­ters.

“How­ever, we man­aged to cor­rect the facts, and con­vinced them that the econ­omy is ad­min­is­tered in the right way and had been recog­nised by var­i­ous rat­ing bod­ies,” said Na­jib.

Although we have dif­fer­ent po­lit­i­cal lean­ings, the coun­try’s in­ter­est should not be pawned for the in­ter­est of their party pol­i­tics. Datuk Seri Na­jib Tun Razak

Newspapers in English

Newspapers from Malaysia

© PressReader. All rights reserved.