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Look different view re-peg currency ringgit 

In 1997 ringgit is peg to dollar. But this situation is different.  

ALOR STAR: Former Prime Minister Tun Dr Mahathir Mohamad said Malaysia should re-peg the ringgit to relieve pressure from the global economic crisis.

Stabilising the exchange rate would be one measure the Government could take immediately, suggested Dr Mahathir, also a former finance minister.

Malaysia has the capacity to determine the value of the ringgit because it has sufficient foreign currency and substantial savings, with the Employees Providence Fund alone holding more than RM200bil in its coffers.

“We shouldn’t float the currency. The country would lose money if the currency is vulnerable to external forces,” he said at a press conference after presenting a keynote address at a national-level seminar on Development of Higher Learning Institute on Saturday.

From Dr Mahathir

But
Govt will not re-peg ringgit
PUTRAJAYA: The Government has no intention to re-peg the ringgit now or in the future and it is committed to allowing the market determine the currency’s value, Finance Minister Datuk Seri Najib Tun Razak said.

He said the ringgit was stable enough and the Government was confident that its present position reflects the true value of the currency.

“There have been statements speculating on the re-pegging of the ringgit. I wish to categorically state that we have no intention to re-peg the ringgit now or in the future.

“We are committed to allowing the market determine its value,” he told reporters Monday after a briefing by ministry officials on his first day as Finance Minister.
Study ringgit pegging
TEMERLOH: International Trade and Industry Minister Tan Sri Muhyiddin Yassin wants the Government to study the suggestion by former prime minister Tun Dr Mahathir Mohamad to re-peg the ringgit.

Although the pegging of the ringgit by the Government in 1997 is perceived to be different from the current uncertain global economic scenario, Muhyiddin said it was possible that several mechanisms in the previous pegging of the ringgit could be used again.

“The uncertain global economy today is due to the subprime problems prevailing in the United States, which resulted in several major banks in the country to go bankrupt and this scenario is different from the situation in 1997,” said Muhyiddin. He said this to reporters after attending a meeting with several Umno leaders and grassroots in the Temerloh and Kuala Krau divisions late last night.

He was commenting on Dr Mahathir’s suggestion to re-implement the pegging of the ringgit to ward off the adverse effects of the weakening US dollar.

TheStar

The real situation goverment will not re-peg the currency

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Malaysia KLSE Composite Index

Index Value:	1,372.39
Trade Time:	Oct 5
Change:	2.55 (0.19%)
Prev Close:	1,369.84
Open:	1,372.60
Day’s Range:	1368.81 - 1376.73
52wk Range:	967.19 - 1,392.18

FACTORS TO WATCH

================

- Malaysia will consider raising the price of gas supplied to local industry, a minister said on Tuesday, amid concerns that its state oil firm is subsidising some of the nation’s richest private firms.

- Malaysia will launch a programme next month to transform its ethnic Malay heartland into an economic powerhouse by pouring in funds of 112 billion ringgit ($32 billion) by 2020, local media said on Tuesday.

- Sate oil company Petronas aims to develop a plastics manufacturing hub in the northeast town of Kertih, where it already runs one ethylene cracker and co-owns another, the Star newspaper said on Tuesday.

- The Employees Provident Fund has hired Wall Street investment bank Goldman Sachs to help it find a strategic foreign partner for the RHB banking group, the country’s fourth-largest lender, the Business Times said on Wednesday, quoting the state pension fund’s deputy investment chief.

The fund owns 82.3 percent of RHB Capital Bhd (RHBC.KL: Quote, Profile, Research), the group’s main business unit, and is looking to sell up to 30 percent to a partner, the paper added.

- AirAsia X, a Malaysian budget long-haul carrier partly owned by British billionaire Richard Branson, is considering buying up to 25 Airbus A350 planes, the airline said on Tuesday.

- Malaysia will not raise the price of petrol this year despite a surge in global energy prices, state news agency reported on Tuesday quoting Deputy Prime Minister Najib Razak.

- Developer Golden Plus Holdings Bhd (GPLU.KL: Quote, Profile, Research) is looking to venture into the financial sector with the possible purchase of the insurance arm of PanGlobal Bhd (PGLO.KL: Quote, Profile, Research), the Edge Financial Daily said on Wednesday, quoting sources.

Golden Plus may also make a rival bid for a controlling stake in Oriental Capital Assurance, the paper said, adding that Salcon Bhd (SLCN.KL: Quote, Profile, Research) had already offered 129.8 million ringgit for a 74.25 percent stake currently held by Maika Holdings Bhd.

- Pakistan has bought about 140,000 tonnes of palm oil for September shipment to meet strong demand during the Muslim holy month of Ramadan, but imports are likely to decline later, an industry official said on Tuesday.

- Malaysia’s manufacturing sales in July fell 2.2 percent to 45.21 billion ringgit ($12.97 billion) from a year ago, official data showed on Tuesday.

- Palm planter IOI Corp (IOIB.KL: Quote, Profile, Research) has agreed to invest $82.9 million in several Indonesian joint ventures to expand its palm estate, the firm said on Tuesday. IOI would invest $62.6 million for an indirect stake in Indonesia’s PT Bumitama Gunajaya Agro, which has 35,300 hectares of plantation and about 64,500 hectares of unplanted land, it said. The rest would be invested in local companies with a land bank of about 52,700 hectares.

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