Ringgit has a competitive edge, says Dr M

Malaysia’s economy is doing well with the slight depreciation of the ringgit that works to our advantage in terms of competitiveness, says the Prime Minister.

Tun Dr Mahathir Mohamad said he had asked banks if currency depreciation was good or bad for Malaysia, adding that he wanted to take measures to strengthen the ringgit.

“We thought if we could strengthen the ringgit, Malaysia can pay less for imports.

“But it was pointed out that if our currency was strong, products will cost more and we will be less competitive.

“We are doing well with the slightly depreciated ringgit,” he said at a dialogue with French companies organised by Chamber of Commerce and Industry France Malaysia (CCIFM) here yesterday.

Also present were French ambassador to Malaysia Frederic Laplanche, CCIFM chairman Datuk Zainal Amanshah and its president Gilles Waeldin.

The ringgit is currently at RM4.14 per US dollar.

“Some people think I like to fix exchange rates but I have people who are very much against it, saying this time around it is not good,” said Dr Mahathir.

“But I still think fixing the exchange rate was the answer when there was so much manipulation and speculation on our currency. As it turned out, it worked well for us.

“But don’t expect (the government) to fix the exchange rate now,” he said.

At the height of the Asian Financial Crisis in 1998, Dr Mahathir – in his first stint as Prime Minister – pegged the ringgit to the US dollar at RM3.80.

It was then seen as a controversial move but one that went on to help stabilise the economy.

The Prime Minister believed that French beauty and cosmetic companies could have a “good future” in Malaysia.

“Your promotions are very effective because now I see that men want to be beautiful too.

“Malaysia can be your lab to test the products because we have many kinds of people,” he said.