‘Najib has stepped down, but ringgit is still suffering’
Najib steps down, the ringgit will rise. But now that Najib has stepped down, the ringgit is still suffering.”
This was the remark by former prime minister Datuk Seri Najib Razak (BN-Pekan), who said the 2019 Budget has failed to inject confidence in Malaysia’s currency and other markets.
Najib said the Budget failed to take into account the worstcase scenario in the global crude oil market.
“When the 2019 Budget was tabled, Bursa Malaysia had fallen 200 points after the 14th General Election (GE).
“People said the ringgit also continued to plunge. I heard a statement going around before the general election, which said ‘If Najib steps down, the ringgit will rise’. But now that Najib has stepped down, the ringgit is still suffering.
“We are witnessing more outflow of foreign capital. This means the Budget has failed to instil confidence in the market,” he said in debating the Supply Bill 2019 yesterday.
He slammed the government for failing to craft a budget that takes into account adverse conditions in the global crude oil market.
“I have warned against taking US$70 (RM293.47) per barrel as the forecast price (for the 2019 Budget). The Budget was crafted with the assumption that the price would be at US$80 per barrel.
“Yesterday, the Brent oil price decreased to US$65 per barrel. Not even 10 days, the 2019 Budget would be rendered irrelevant. This is serious.”
Najib also warned of risks from the downgrading of Petronas’ outlook as it might adversely affect Malaysia’s own rating.