Government should act to avoid the Ringgit from continuing to plummet

SHAH ALAM, 4 Dec: The federal government should act quickly to ensure that the value of the Malaysian Ringgit (MYR) is maintained, in addition to controlling expenditure and national debt from continuing to slow and fester.

PAS Research Centre Executive Director, Dr Dzulkefly Ahmad, said that as the single country in exporting oil in the whole of Southeast Asia, then sentiment and perception towards Malaysia will fall, coupled with the increasingly growing national debt.


He said that the fall in global crude oil prices also contributed to the depreciation of the Ringgit based on the concept of supply and demand, in addition to the factors of sentiment and perception among investors.

“When crude oil prices plunge, the national revenue will reduce and the government debt will increase.

“So it will cause the perception and sentiment towards the country to fall when they start rejection to trade in Ringgit” he said, taken from Harakah Daily.

Similarly with the suspension of the currency, he said based on the concept of demand and supply, will be clearly affected when no one wants to trade with Malaysia.

He said that if the demand for the Malaysian Ringgit is high, then the value will be high, and vice versa.

In the meantime, he said that even though world crude oil prices continue to decline, it is not a good sign for Malaysia, which is the oil producing country in Southeast Asia.

In fact, the fall in global crude oil prices will cause the country to be at risk of losing revenue for the country, which has no reached RM25 million.


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