COMMENT | How Anwar can power the ringgit
COMMENT | The value of the ringgit over time in a freely floating market is always a reflection of what the market thinks is the state of the economy, political stability, and outlook after taking into account what is happening, results achieved, and improvement measures.
Yes, in the shorter term, movements are impacted by the flow of funds such as foreign investments, outflows of funds, market conditions, uncertain events, and many others. While short-term factors are difficult to control, longer-term ones are fundamental.
If you run the economy well, reduce wastage, have political stability, are competitive, and etc, the long-term effect on the ringgit will be positive - it will become stronger because the economy is strong, funds flow in, confidence all-around is high, and people are happy, educated, and productive.
It’s not difficult to identify what makes for a stronger ringgit. What is needed is the long-term political commitment to do what it takes, putting the right people in place and unrelenting and scrupulous implementation.
This is what Prime Minister Anwar Ibrahim must do - without compromise. But this is lacking and that is why confidence in the ringgit is sagging, hitting an all-time low against the US dollar and the Singapore dollar. We did a good job from independence until about the eighties. Then things started to change - for the worse.
