Malaysia re-pegging the ringgit to the US dollar would be ‘an unmitigated disaster’ : Najib

Prime Minister Datuk Seri Najib Razak said that Malaysia will never re-peg the Malaysian ringgit to the US dollar.
Reuters

Prime Minister Datuk Seri Najib Razak made it clear that Malaysia will never re-peg the Malaysian ringgit to the US dollar during a keynote address in Kuala Lumpur on Tuesday (Jan 23).

He even referred making such a move as “an unmitigated disaster for our economy and therefore for the prosperity of our people,” reported The New Straits Times.

And as for the supporters of pegging the Malaysian ringgit, Najib dismissed them as people who “really don’t understand economics”.

Instead, he highlighted the need for Malaysia to keep its fiscal deficit and government debt down, to below a a self-imposed level of 55% of gross domestic product, and affirmed the government’s commitment to improving its transparency, accountability and efficiency to increase the country’s attractiveness to businesses.

“We will continue to strive to make our country even more business and market-friendly, which means we are always working to improve transparency, accountability, and efficiency,” said Najib.

He added: “There may be short term fluctuations, (but) in the longer term the level of the ringgit would reflect the strength of the Malaysian economy”.

Malaysia pegged the ringgit to the US dollar in 1998, during the Asian financial crisis, and removed it in 2005.