Report: Stabilising the ringgit key to rejuvenating the economy, Ku Li says

Report: Stabilising the ringgit key to rejuvenating the economy, Ku Li says



UPSET over Malaysia’s stunted progress, former Finance Minister Tengku Razaleigh Hamzah offered a slew of ideas on how to rejuvenate the country’s economy for the betterment of all.

In an interview with Business Today, the veteran politician said that the Government should start by first “fixing the foreign exchange” to attract more foreign capital and technology crucial to rebuilding Malaysia’s economy.

He noted that the Malaysian ringgit is on a downward trend due to political instability triggered by power-hungry politicians.

“Without stabilising the ringgit, investors will likely stay away from Malaysia and this will hamper efforts to infuse technology and capital in the economy.

“The moment investors convert their currencies into ringgit, and it takes a tailspin, they start losing, and therefore they are going to be wary of investing in Malaysia, “Tengku Razaleigh said.

He also stressed on the need to have foreign capital expertise in the country as “they have spent a lot of money on research” and it would help rejuvenate Malaysia’s economy.

“The Malaysian economy was still dependent on commodities and agriculture but our research and development (R&D) in the area is still lagging compared to other countries.

“Even in commodities like rubber and palm oil, we depend on London to do research and we just do and spend on research enough to cope with the market and nothing more,” the Gua Musang MP stated.

He said that Malaysia’s lack of investment on R&D was due to reliance on cheap labour, and the “easy way” Malaysia took, which not only deterred many industries from upscaling but also resulted in a massive outflow of funds, at about RM40 bil.

On that note, the veteran politician urged policymakers to identify key industries that could focus and train the workforce to meet the manpower needs of the future, as what many developed nations do.

Race based policies and climate change

Tengku Razaleigh also said that it was vital for Malaysia to attract top-tier investments but admitted the fact that such a move was hampered by lack of skilled human capital.

“This is where liberalising our human capital can catapult the Malaysian economy,” he quipped.

However, he noted that racial sensitivities must be taken into consideration given that race-based policies mooted by previous leaders can throw a spanner to the works, despite it being the right thing to do.

On related matters, Tengku Razaleigh also urged new industries to take climate change seriously and look into ways to address it.

“There is little tolerance on climate change, and I think they’re at it, and I think the whole world is reacting to it.

“You can see that even in China all the new art, architectural tourism, design, and drawing studies are geared towards this,” he remarked. – Nov 11, 2021.