M’sia will never repeg ringgit, says Najib
> Last currency peg caused global markets to lose confidence in the country
KUALA LUMPUR: Malaysia will never repeg the ringgit to US dollar, according to Prime Minister Datuk Seri Najib Abdul Razak.
“We’ve made it very clear that we would never repeat that measure, trusting that while there may be short-term fluctuations, in the longer term the level of the ringgit would reflect the strength of the Malaysian economy,” he said during his keynote address at the “Invest Malaysia 2018” event.
Najib recalled that investors and global markets had lost confidence in Malaysia following the ringgit peg to US dollar in September 1998 during the Asian financial crisis. It was only abandoned in July 2005.
“It took a long time to win that back. That was a very heavy cost to the country.”
He also noted that it is not an easy and helpful move to repeg the ringgit.
“There are some leading the Opposition whom I’m afraid really don’t understand economics. The reality is that going to brush over the issue. There were indeed failings at the company, there were lapses of governance. There was valid cause for concern,” Najib said.
This, he said, had led him to order one of the most comprehensive and detailed investigations in Malaysia’s corporate history, one that involved multiple lawful authorities, including a bipartisan parliamentary body.
Najib further explained that their findings were taken on board – and the company’s board was dissolved, its management team changed, and its operations reviewed.
“1MDB rationalised its assets, and with the proceeds, took an aggressive approach in reducing the debts to its lowest possible levels, and the company concentrated its efforts on ensuring its two most valuable assets, Bandar Malaysia and Tun Razak Exchange, remain as attractive investment propositions to both its shareholders and investors,” he said.