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The Malaysian Government would have to review the strategy to maintain the stability of the Ringgit so as to ensure the confidence of the people towards our currency.
Statement by Dr Tan Seng Giaw, DAP National Vice-Chairman and MP for Kepong on the need for a stable currency that exudes trading confidence. 11.1.2002.

 
The 1997 economic crisis and inherent weaknesses such as mismanagement and corruption affected Malaysian currency, the Ringgit. Since 1998, the Malaysian Government has imposed currency control, pegging RM3.8 to US$1. But, the recent depreciation of the Japanese Yen makes people nervous.

Every nation aspires to a stable currency. This is a basis of
a sound economy. Although U.S.A. has huge national debt, the world has confidence in her currency. She, among other things, has mammoth resources and high productivity to prop up the dollar.

Since 1st January, 2002, Euro has become the common currency in 12 countries in Europe. As the Prime Minister, Dato' Seri Dr Mahathir has said, we hope that it is stable, providing an alternative to the U.S. dollar. Then, we can avoid over dependence on the latter.

Dr Mahathir is right to point out that we have a long way to go to have a
common currency in East Asia. Meanwhile, we need

to work hard to make the ASEAN Free Trade Area, AFTA work.

STABLE RINGGIT

The 1997 economic crisis hit the Ringgit. Although we may not see it, the value of whatever we possess has gone down by at least 50%. Hence, the Government has fixed RM3.8 to US$1. Now, the world is watching what the Government proposes to do with the currency control. The decline in the value of the Japanese Yen is worrying.

We believe in a stable ringgit and no inflation. However, apart from the
loophole in the international financial architecture, there are other
factors that affect our currency such as corruption, nepotism, mismanagement and wastage. For example, the Government buys controlling shares and eight aircrafts from MAS. Some of the reasons for the failure of MAS are seen in other consortiums like Renong.

Let the Government review the strategy for a stable Ringgit and overcome the factors that affect the currency.

Dr Tan Seng Giaw

 

 
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