(AFP) Malaysia will consider fixing a new ringgit exchange rate if it experiences a sustained 20 percent fall or rise against regional currencies, Prime Minister Mahathir Mohamad said Monday.

There has been market speculation that the peg of 3.80 to the dollar - fixed in September 1998 - may be changed as other regional currencies slump, making their exports more competitive in dollar terms.

The speculation helped push the local stock market down sharply earlier this month.

Finance Minister Daim Zainuddin insisted on April 7 that the peg would not be altered or abolished, saying the ringgit remains competitive despite falls in other regional units.

Mahathir was asked at a press conference Monday if his earlier comments on a 20 percent movement had been accurately reported.

"They are still accurate but not of course if it (movement) happens for one day," he said.

"But if it is sustained and the value of the ringgit is too strong by 20 percent or too weak by 20 percent, we will consider determining a new exchange rate.

"But so far that has not happened."

Mahathir also said the government may finance this year's estimated budget deficit of around six percent of gross domestic product "through bonds and other viable means."