Stop building castles in the air; Malaysians Demand Swift Action to Boost Ringgit, Rebuild Confidence
The Malaysian Ringgit (MYR) has been on a downward trend, recently hitting a new low of 4.80 against the US Dollar (USD), and our citizens have neither the patience nor the capacity to accept any more of the government's reasonings, excuses and analyses for a weak ringgit.
We call upon the Prime Minister Dato’ Sri Anwar Ibrahim, who is also the Finance Minister, to implement immediate and concrete measures to mitigate the impact of the weak ringgit on the economy and the people's livelihood.
MCA leaders have consistently offered policy solutions on various national issues, including those related to the economy.
However, the government has demonstrably failed to address our efforts and concerns. Over the past year or so, in the face of any economic challenges, the government responded with excuses and analyses, or overly optimistic predictions and confidence talks. What the people want are not hollow reassurances, but decisive policies to solve these pressing problems.
The prolonged depreciation of the ringgit has had a direct impact on the people's livelihood, and it hurts business operations. The various policies introduced by the government in the past year, including the imposition of new taxes and tax hikes, have not helped to bolster market and investor confidence. The rosy vision peddled by Cabinet ministers has also failed ostensibly to effectively stem the outflow of foreign investments from the stock market.
According to Maybank’s research, foreign investors net sold RM1.36 billion worth of Malaysian stocks in December last year, and there were 14 days of net foreign selling in January this year, totaling RM350 million, demonstrating a failure to inspire foreign confidence.
It is clear that the rakyat are hoping to see Prime Minister Dato’ Seri Anwar quickly introduce short-, medium- and long-term targeted measures to address the persistent weakness of the currency, in order to help alleviate its impact on business operations and the cost of living for the people, such as allowing businesses to hold US dollars or Singapore dollars in foreign exchange accounts in the short term, in order to provide a reliable mechanism for domestic businesses to manage foreign exchange risks and provide greater currency flexibility to attract foreign investment.
At the same time, the government must also quickly put forward a specific, clear and realistic direction for national economic development, and plan a series of development plans for soft and hard infrastructure that will help to revitalize the economy. These include strategies to strengthen, diversify and increase export rates, and broaden the implementation of a diversified economy to create a more resilient economy.
The most important thing is that these development directions and plans must be recognised by foreign investors, otherwise the government would fall into the predicament of building castles in the air, which bears no real benefit to the people.
The Prime Minister must launch a comprehensive plan to strengthen the MYR, not just for the sake of businesses, but for the well-being of Malaysians. Decisive action now will send a clear message to the world: Malaysia is open for business, committed to stability, and ready to reclaim its position as a leading regional economy.
Written by Ir Lawrence Low, MCA Vice President and MCA Economic, SME Affairs Task Force Chairman
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