BNM governor should not sugar-coat statements for ringgit drop

29 May 2023 12:45pm
Pasir Gudang MP Hassan Abdul Karim - FILEPIX
Pasir Gudang MP Hassan Abdul Karim - FILEPIX

JOHOR BAHRU - The uncontrolled fall of the Malaysian Ringgit is bringing negative effects towards the economy.

Pasir Gudang MP Hassan Abdul Karim said Malaysia continues to import items and at the same time has debts with outside parties.

“This is affecting the economy, cost of living and the national debt. The Bank Negara Malaysia (BNM) Governor and her team should advise the Prime Minister and the Cabinet leaders to save the economy and the country’s finances which are closely linked to people’s lives. Speak the truth even when it hurts.

“Are there other factors besides economic and financial factors causing the fall in the value of Ringgit? For example, the question of Malaysians’ confidence in the country’s economic performance and their futures.

“If the answer is yes please inform Prime Minister Datuk Seri Anwar Ibrahim and recommend recovery measures to be implemented by the government,” he said in a statement on Sunday.

He said an agency under the Economy Ministry, which is the Malaysian Statistics Department (DOSM) suddenly on Thursday had reported that the Leading Index could be interpreted as the malaysian economy for the third quarter is slowly growing.

He explained the economy’s performance is not very good which is why the BNM governor must mention the real problem to the government especially the Prime Minister who is the Finance Minister.

“Don’t sugar-coat statements that the economy and finances on the right track and developing. Somehow the Ringgit dropping is temporary and in control. The people don’t want such words. Malaysians are smarter with the latest information in their hands,” he said.

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Hassan said BNM especially its governor must aid the government by advising Anwar and providing an explanation such as the overnight policy rate (OPR) increase issue.

He said BNM previously informed that the increase in OPR would strengthen the value of Ringgit, but the rates have been increased several times by BNM and the Ringgit continues to fall.

“For example, on Friday one United States (US) dollar is equivalent to RM4.63. The BNM governor must come clean to Anwar, what’s the real reason for the ringgit to continue to drop

“BNM can’t simply deflect it and keep their hands clean stating the Ringgit falling is not their fault, that it is something outside of their control. BNM can’t preach that all foreign currencies are dropping like the Ringgit.

“Luckily BNM did not say such things. While the Ringgit’s value is dropping when compared to the American dollar, why is the Singapore dollar and Indonesian Rupiah increasing in value,” he questioned.

He said the BNM governor must be truthful to Anwar about the real reasons on the Ringgit’s drop in value despite it admittedly falling before under the hands of a different government.

“Is there a structural issue in Malaysia’s financial and economic sector? We can’t cheer and be happy. When the Singapore dollar climbs higher and the Malaysian Ringgit drops and weakens, Johor Bahru traders would make major profits and Malaysians working in Singapore would see an influx in their income in Ringgit,” he said.