DECEMBER 24 — Now that the management of the ringgit (RM) seems to be the issue that has garnered the lowest satisfaction among Malaysians according to a survey by EMIR Research, what more can be done by the government to ensure a fair value for the RM? But first, let’s rehearse the arguments...
Stronger ringgit: Tackling underlying structural & macroeconomic imbalances — Jason Loh & Alissa AziziDECEMBER 24 — Now that the management of the ringgit seems to be the issue that has garnered the lowest satisfaction among Malaysians according to a survey by EMIR Research, what more can be done by the government to ensure a fair value for the RM?Currency depreciation is caused by the forces of demand and supply in the foreign exchange market, which in turn is affected by a country’s...
Therefore, when inflation outpaces the GDP, it usually results in reduced purchasing power, consequently higher cost of living is the outcome. Meanwhile in the short-term, over the past month, RM has appreciated by 0.75 per cent against the greenback . Concurrently, the current global uncertainties particularly the elevated trade spat between the US and China had further intensified the pressure on regional currencies and equity markets.
It is here that some underlying structural problems and macroeconomic imbalances may exist when an increase in demand of local products is not met by a corresponding increase in supply, especially when it comes to the supply of goods and services in which Malaysia has a comparative advantage. Some of the local agricultural produce falls into this category.
Dr Mahathir had hinted that pegging the RM could be an option, if and when necessary. In the wake of the 1998 Asian Financial Crisis, Dr Mahathir who was also the prime minister then had introduced pegging the exchange rate at RM3.80 per USD. In addition, capital controls were also imposed to curb outflow of funds in order to stabilise the situation.
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Ringgit opens lower against US dollar | Malay MailKUALA LUMPUR, Dec 23 — The ringgit opened lower against the US dollar today, as the greenback rebounded on the back of strong US economic data released on Friday. The US economy remained strong despite the slowdown and showed an annual growth rate of 2.1 per cent in the third quarter of 2019,...
Read more »
Ringgit opens higher against US dollar | Malay MailKUALA LUMPUR, Dec 24 — The ringgit opened higher against the US dollar today, spurred by fresh buying interest for the local note despite the greenback being near a two-week high on relatively strong United States growth data, a dealer said. At 9am, the ringgit was traded at 4.1390/1440 versus...
Read more »
Marisa Tomei cast alongside Jason Momoa in Netflix's 'Sweet Girl' | Malay MailLOS ANGELES, Dec 24 — Actress Marisa Tomei (Spider-Man: Far From Home) will play an American senator in a thriller starring the actor best known for wielding his trident as Aquaman. Two stars noted for their roles in the Marvel Cinematic Universe are to join forces for a very different project on...
Read more »
The Netflix decade: How one company changed the way we watch TV | Malay MailLOS ANGELES, Dec 23 — In the not-so-distant past, TV viewers were forced to wait a week for the next installment of their favourite shows, parcelled out by networks in half-hour or hour-long increments. Fast forward to 2019, when media and tech companies are subverting that schedule and the...
Read more »
Iran’s leader ordered crackdown on unrest: 'Do whatever it takes to end it' | Malay MailTEHRAN, Dec 24 — After days of protests across Iran last month, Supreme Leader Ayatollah Ali Khamenei appeared impatient. Gathering his top security and government officials together, he issued an order: Do whatever it takes to stop them. That order, confirmed by three sources close to the...
Read more »
UK widens fast-track visa plan for scientists as Brexit nears | Malay MailLONDON, Dec 23 — Britain said today it would increase the number of scientists and researchers eligible for fast-track visas, part of the government’s plans to attract more elite researchers after Brexit. The number of eligible fellowships which offer accelerated endorsement for visas will rise...
Read more »