MM:
PM’s Asian Monetary Fund idea meant to aid trade with China, says Tengku Zafrul as he downplays fallout with US
Datuk Seri Tengku Zafrul Abdul Aziz says Prime Minister Datuk Seri Anwar Ibrahim had proposed the Asian Monetary Fund to help firms adopt a different currency when trading with China in a bid to mitigate the effects of a strong dollar. — Bernama pic
Thursday, 06 Apr 2023 1:25 PM MYT
KUALA LUMPUR, April 6 — Prime Minister Datuk Seri Anwar Ibrahim had proposed the Asian Monetary Fund to help firms adopt a different currency when trading with China in a bid to mitigate the effects of a strong dollar, Minister of International Trade and Industry Datuk Seri Tengku Zafrul Abdul Aziz reportedly said.
The minister told American broadcaster CNBC suggested that the disadvantage caused by a strengthening dollar may have prompted the idea, which Anwar had first touted in the 1990s as then finance minister.
“This is an idea which has been talked about since the 1990s. And I recently as well, at a conference three years ago, talked about the strength of the US dollar, and how its monetary policy has impacted countries like Malaysia, where we obviously have to deal with the changes that are made in the United States,” the minister told CNBC’s Squawk Box talk show.
A transcript of the interview was made available to Malay Mail.
“Having said that, the yuan has continued its dominance. In terms of currencies traded today... now it’s number five, about 7 per cent of market share.
“But the US, obviously, is still the most traded currency, followed by euro, pound sterling, as well as yen. So I think what he’s talking about is about having an alternative for companies, especially for companies that are trading with China,” he added.
Anwar told Parliament on Tuesday that China is open to talks on forming an Asian alternative to the International Monetary Fund amid the world’s growing impatience with the dominance of the US dollar.
The prime minister said he proposed setting up the fund at the Boao forum in Hainan last week, stressing the need to reduce reliance on the dollar.
Tengku Zafrul also commented on the recent influx of investments from China following Anwar’s official visit there.
After Malaysia attracted RM170 billion of potential foreign direct investment (FDI) from China and could have RM2.44 billion in potential exports to China, Tengku Zafrul downplayed the potential of this causing a stir in Putrajaya’s relationship with Washington DC.
“I don’t think so. And I think what we are seeing is that Malaysia continues to be a destination where we are able to provide the right ecosystem for investors... for companies, especially in US and China, they’re looking at Malaysia not only because of the incentives given but because of the major industries that have been in Malaysia for quite a while,” he reportedly said.
Tengku Zafrul led the Miti mission to China from March 31 to April 2 where he met with five potential Chinese investors in Beijing.
Anwar also paid a courtesy call to China’s President Xi Jinping during his three-day visit here to deepen the strategic bilateral political and trade relationship with China.
Anwar is among the first foreign leaders to visit China and met with Xi after his reelection as China’s President for the third term on March 10.
Thursday, 06 Apr 2023 1:25 PM MYT
KUALA LUMPUR, April 6 — Prime Minister Datuk Seri Anwar Ibrahim had proposed the Asian Monetary Fund to help firms adopt a different currency when trading with China in a bid to mitigate the effects of a strong dollar, Minister of International Trade and Industry Datuk Seri Tengku Zafrul Abdul Aziz reportedly said.
The minister told American broadcaster CNBC suggested that the disadvantage caused by a strengthening dollar may have prompted the idea, which Anwar had first touted in the 1990s as then finance minister.
“This is an idea which has been talked about since the 1990s. And I recently as well, at a conference three years ago, talked about the strength of the US dollar, and how its monetary policy has impacted countries like Malaysia, where we obviously have to deal with the changes that are made in the United States,” the minister told CNBC’s Squawk Box talk show.
A transcript of the interview was made available to Malay Mail.
“Having said that, the yuan has continued its dominance. In terms of currencies traded today... now it’s number five, about 7 per cent of market share.
“But the US, obviously, is still the most traded currency, followed by euro, pound sterling, as well as yen. So I think what he’s talking about is about having an alternative for companies, especially for companies that are trading with China,” he added.
Anwar told Parliament on Tuesday that China is open to talks on forming an Asian alternative to the International Monetary Fund amid the world’s growing impatience with the dominance of the US dollar.
The prime minister said he proposed setting up the fund at the Boao forum in Hainan last week, stressing the need to reduce reliance on the dollar.
Tengku Zafrul also commented on the recent influx of investments from China following Anwar’s official visit there.
After Malaysia attracted RM170 billion of potential foreign direct investment (FDI) from China and could have RM2.44 billion in potential exports to China, Tengku Zafrul downplayed the potential of this causing a stir in Putrajaya’s relationship with Washington DC.
“I don’t think so. And I think what we are seeing is that Malaysia continues to be a destination where we are able to provide the right ecosystem for investors... for companies, especially in US and China, they’re looking at Malaysia not only because of the incentives given but because of the major industries that have been in Malaysia for quite a while,” he reportedly said.
Tengku Zafrul led the Miti mission to China from March 31 to April 2 where he met with five potential Chinese investors in Beijing.
Anwar also paid a courtesy call to China’s President Xi Jinping during his three-day visit here to deepen the strategic bilateral political and trade relationship with China.
Anwar is among the first foreign leaders to visit China and met with Xi after his reelection as China’s President for the third term on March 10.
Anwar Ibrahim has made a very clear Tilt towards China.
ReplyDeleteNotice that in the over five months that he has been PM, Anwar has not made a single friendly remark towards USA, while being effusive, practically bootlicking towards China.
This is a strategic error by Anwar.
Malaysia's national interest lies in cultivating friendly ties with Both China and USA.
Tilting clearly towards China side will not do any long term good for Malaysia's economic and security interests.
Watch what Cambodia has become.
Wakakaka…
DeleteCambodia!
Which areas have Cambodia evolved since the Cambodian chased out the 白眼狼 Vietnam with the helps of China?
Ooop… everything done by the 台毒 triads r the faults of PRC!
Here's the reality, not just the superficial headlines.
ReplyDeleteThailand exports a substantial amount of rice to Malaysia. Thailand ain't interested in being paid for its exports in Ringgit. It may consider being paid in Thai Bhat, but what Thailand really wants is cold hard Dollars.
Malaysia exports Palm Oil to Thailand.
Malaysia ain't interested in being paid for its exports in Thai Bhat.
It may consider being paid in Ringgit,but that is of limited advantage to Malaysia .
There aren't enough RMB around to make it possible to easily trade using RMB.
So.. the reality is Greenback is going to be around a Nong Nong time.
Reality check?
DeleteThe usage of US$ in international tradings has a long legacy that bonded closely with the past US military might.
Hence, the payments scenarios u r farting about.
Besides, simply bcoz of the US$ seigniorage forced upon all the international trading nations via
1st, gold backed US$ conversion under the failed Bretton Woods accord.
2nd, the arm twisting monopoly payment of US$ in all OPEC oil procurement.
Many nations require to expand their markets and access goods and services that otherwise may not have been available domestically.
Thus it becomes necessary for countries to obtain US$ in order to keep their national developments well lubricated since almost all international trades r forcefully US$ based.
Besides, using agreed inter-country currencies, other than US$, to settle trade payments r been handicapped/blocked by SWIFT banking system - controlled by the Yankee financial vultures.
The failed SWIFT sanctions on Russian Rouble, ie via a cleverly designed Vostro account in local bank, has enlightened the trading world, especially those primary resources producing countries, to exercise a way out of that Yankee SWIFT payment protocol shackles.
Hence more & more countries r using their own currencies for bilateral trade settlements under an agreed currency exchange to bypass the conventional US$ requirements!
Thus M'sia can sell the palm oil to Thailand using RM while Thai rice can be paid for with Baht under a mutually agreed exchange format. In fact both countries can agreed upon using a stable 3rd country currency or RMB to formalise the trades - totally bypassing the old US$ bondage!
Mmmm…I I'm not here to educate a recalcitrant Yankee bootlicker about how to do business in the coming new century. This blurred f*ck can keep it's family heirloom business in US$ & continuingly been sacrificed by its idol, economically & financially!