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A long way to go for the ringgit to recover

Since Singapore separated from Malaysia about 50 years ago, the value of the ringgit has dropped from year to year and was never the same then.

Prior to the separation, the ringgit was at par although it started to lose its value when Malaysians had to pay say, five to 20 sen more, to convert to one Singapore dollar during the first year.

However, it went up in the next year and slowly but surely till today, Malaysians are paying RM1.70 more to buy S$1. That means we are paying RM2.70 to buy S$1 today, Jan 31, 2015. This is a lot, especially for both nations whose currency had been 1:1 at the time of separation.

We, the rakyat, do not understand why the government keeps on saying that Malaysians should not compare the value of the ringgit with stronger currencies of other nations; let alone we are led to believe that the ringgit is doing fairly well in comparison to currencies of Myanmar, Cambodia, Vietnam and Laos. Of course, when the ringgit is looked at with these poorer nations, it is still ahead.

In fact, the best and proper thing to do is to use the Singapore dollar as the measuring stick to monitor how the ringgit is performing daily. It will put pressure to the government that if they do not face facts to accept its severity and do the right thing quickly, then the value of the ringgit will continue to slide further beyond recovery.

You see, Singapore took about 50 years to enjoy the existing stronger currency; so hypothetically speaking, it would take Malaysia at least 50 years or longer to catch up if the government keeps on saying that the ringgit is still strong when it is compared only with poorer nations.

For your information, Singapore has started planning since 2014 for the best 50th National Day celebrations this year. Everybody there is happy and proud of their achievements in 50 years, particularly when the Singapore dollar has reached RM2.70 to a dollar on Jan 31, 2015.  

Well, Singaporeans are optimistic that it will reach RM3 to S$1 this year.

That's good for Singapore, but bad for Malaysia.

In short, Malaysians should not brag that Malaysia can do everything under the sun when the nation had surpassed 50 years of Independence. The fact is, we are not able to buy the same goods, services and things like we used to do with RM1. Cash is king-mah!

The bottom line is, Malaysia must face reality and be brave to compare its standing performances in all fields with nations whose currencies are strong and appreciating, instead of depreciating.

When the government says that the ringgit will recover, do they mean that the value will return to 1:1 against the Singapore dollar, is misleading?

We can understand if Singapore’s currency also fell when the ringgit has been depreciating with a weakening US dollar - on the contrary though, the Singapore dollar remains strong and Malaysians still need to pay more to buy the Singapore dollar.


LAU BING is a community activist and writer in Subang Jaya.

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