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| Analyst wants Putrajaya to peg ringgit |
Malaysia’s ringgit is sliding toward its fixed exchange rate of a decade ago and central bank assurances the weakness will prove temporary aren’t convincing everyone.
Putrajaya has been urged to revert to the system of pegging the ringgit to counter its current depreciation and enable it to stabilise.
Md Shukri Shuib, who is a senior lecturer in political and international studies at Universiti Utara Malaysia, said it was crucial to peg the ringgit because its sliding value could push up import costs, thus impacting the prices of essential goods.
"The fluctuating Ringgit will not only have a bearing on international trade but if left uncontrolled, it can lead to higher cost of living, and could become one of the factors behind the disruption of the three universal functions of politics, economy and social.
"There's little point in the nation garnering an income of RM104 billion from the tourism industry when millions of Malaysians are experiencing the negative effects of the ringgit's depreciation,"
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