Govt has no plans to peg ringgit – Husni

TANJONG KARANG: The government has no plans to peg the ringgit against the US dollar to address its depreciation, said Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah.

He said the government expected the ringgit would stabilise given the fact that Malaysia's economic fundamentals remain strong.

"I think the (ringgit) will stabilise based on all our studies," he told a press conference after officiating at the Tanjong Karang Umno division delegates conference yesterday.

Ahmad Husni said this when asked to comment on calls by certain quarters for the ringgit to be pegged to address its plunge in value as oil prices tumbled to below US$50 a barrel.

He said the movement that is seen now in oil prices mainly comes from the dollar's strength which also affected regional currencies like the Singapore dollar and Indonesia's rupiah.

On the 1Malaysia Development Bhd (1MDB) issue, Ahmad Husni said the strategic fund's rationalisation plan was progressing well and that its current cash flow problem is expected to be resolved by yearend.

"Let's focus on the rationalisation plan, and look at the interests of the nation. We want 1MDB (to be) very healthy," he added.

On a another development, Ahmad Husni, who is Umno Treasurer-General, advised leaders at all levels starting from village heads to political leaders to do a 'demographic profile' study on their respective constituents to empower those from the bottom 40 per cent income bracket through career enhancement like skills development.

He said the government is currently focusing on skills development and the agencies concerned should study the requirements of technical and vocational education for skilled workers.

Ahmad Husni said the development of community colleges was the best example of how the people's skills could be upgraded. - Bernama