26 May 2023
Press statement by MCA Deputy Treasurer General Datuk IR Lawrence Low
Government Urged to Implement Countermeasures to Revive Malaysian Ringgit and Foster Economic Growth
In response to the declining exchange rate of the Malaysian Ringgit against the US Dollar and the Singapore Dollar, MCA Treasurer Deputy: Datuk IR Lawrence Low calls on the government to take immediate action to revive the Ringgit and stimulate economic growth.
“The continuous weakening of the Ringgit has created significant challenges for businesses, leading to a loss of competitiveness in the global market. This, in turn, puts pressure on the cost of living for the people, impacting their purchasing power and overall well-being", said Low.
Recognizing the far-reaching consequences of a prolonged weak currency on economic growth, Low emphasizes the need for proactive countermeasures. To address this, he proposes a range of strategies:
(1)Short-term Strategy: Allow Enterprises to Store Foreign Currency
Enabling businesses to hold US Dollars or Singapore Dollars in foreign exchange accounts will provide stability and minimize losses due to currency fluctuations. This measure will instill confidence in businesses and attract foreign investment.
(2)Medium-term Strategies:
a. Strengthen Export Promotion Efforts: Expand trade missions, enhance marketing campaigns, and offer financial incentives to boost exports. This will create a higher demand for the Ringgit.
b. Enhance Competitiveness through Innovation and Technology Adoption: Encourage businesses to invest in innovation, technology adoption, and skills training to improve productivity and reduce costs. This will strengthen their competitiveness and contribute to the Ringgit's stability.
(3)Long-term Strategy: Promote Economic Diversification
Reduce reliance on specific sectors and promote industries such as renewable energy, high-value manufacturing, and technology-based services. This diversification will generate new sources of economic growth and increase demand for the Ringgit.
"Revitalizing the Ringgit is crucial for businesses and the well-being of the people", said Low. He remains optimistic that with the government's commitment and swift action, Malaysia can overcome the challenges, regain competitiveness, and secure a prosperous future for all Malaysians.
-MCA Online-
