YOURSAY ‘The cost of servicing 1MDB loans keeps going up.’

Ringgit sinks to 16-year low amid PM crisis

Commentable: (1) "Malaysia’s currency is Asia’s worst-performing exchange rate this year as it tumbled to the weakest level since a dollar peg was scrapped in 2005.” (2) Bank Negara Malaysia may try to slow the pace of the ringgit’s decline. (3) Bank Negara “stands ready to maintain orderly conditions in the foreign-exchange market”.

And just how is Bank Negara governor Zeti Akhtar Aziz going to defend the sinking of the ringgit? By whatever tools given to her by the government.

Examples are the imposition of the Goods and Services Tax (GST), the incessant increment of petrol price despite a drop in world prices, toll hikes, power tariff hikes and other ‘Barang Naik’ measures.

Zeti, and by extension PM Najib Razak, must have convinced Fitch Ratings with promises of more hush-hush financial tightening measures that are forthcoming real soon.

Why else did Fitch change its mind to go ahead with a downgrade ‘following a review’ and have instead raised the outlook to stable?

Perhaps it may not be enough for some of us to just tighten our belts, as the burden may be back-breaking.

Doc: Certainly this ringgit slide is not due to Najib’s dismal handling of the nation's economy and finances. Nor is it due to the 1MDB fiasco or the US$700 million (RM2.6 billion) allegedly found in his personal Ambank account.

Here are most probable causes of the RM slide: 1) Dr Mahathir Mohamad. 2) Chinese Malaysians. 3) Jews. 4) Americans. 5) Ungrateful Malaysian people. 5) Americans.

Nippon: Malaysia will not have enough reserve to sustain the level of the depreciating ringgit. The kitty is already running dry with all the corruption and missing money. Ringgit will hit US$1 to RM4.50 by December 2015.

So far the predictions about the Malaysian state economy have been 100 percent correct. More foreign funds will pull out of the country but once the multinational corporation’s (MNCs) factories start to close shop, it will spell trouble for Umno.

Isana: Borrow at RM3.20, now need to pay back at RM3.80. The cost of servicing 1MDB loans keeps going up. It's not RM42 billion any more, it's much higher now. They will continue to raid cash-rich funds to service the debts.

Fair Play: Zeti did what she had to do - defending the ringgit by citing that strong economic fundamentals are still in place. But she is no politician and she must obey her political masters to say and do what she had to do.

The malaise facing the nation had gone beyond economics such as governance, transparency, accountability, cronyism, perception, alleged illegal capital flight, racial and inter-faith tension, etc, etc.

It looks like short-term measures such as capital control, managed exchange rate, austerity drive, government spending cut, interest rate hike, etc, have to be introduced as stop-gap solutions.

And the contagion effect of the present Greece situation might be a grim reminder if no action is taken.

Basically: Anwar Ibrahim's fault? Opposition lies? Malaysiakini spin? Perception? The Wall Street Journal (WSJ) report, 1MDB slander?

Well, yes, except WSJ’s report only came out last week and the 1MDB ‘slander’ only started a year ago. The ringgit has fallen steadily over many years.

Take it further, it started falling sen by sen the moment Singapore left. Finance ministers I and II, how do you explain that?

Hang Babeuf: It's time for Dr M to float once more his grand idea of the global Islamic gold dinar, backed with the full credibility of the Pahang network and those bullion speculators.

High-speed rail not feasible economically

EmEmKay: I have all along said that we don’t have to spend this amount of money to build the high-speed rail (HSR) as a prestigious project.

We just have to upgrade the current KTMB rail tracks from meter gauge to broad gauge and change the rolling stock or bogies to the appropriate requirements.

Wherever, the tracks have sharp turns, it can be realigned to specification. With that, the rail speed can be increased to 200 kph.

All these can be done at a quarter of the cost of building the new HSR. More people will travel by rail if the travelling cost is kept at affordable rates.

MrM: The existing KTM route is not suitable for high-speed rail. Upgrading from meter gauge to standard gauge will be tremendously expensive and require a complete overhaul of all existing rolling stock. Might as well lay a new track dedicated for HSR.

However, the locations of the terminuses are stupid. To be truly effective, Kuala Lumpur should terminate at KL Sentral and Singapore should terminate in the city centre, somewhere like Tanjong Pagar (near Outram Park station).

Orang Putih PJ: The first thing is having Sungai Besi as a terminus. You mean, another transport hub?

Surely to goodness, you can use KL Sentral, and then the ERL lines to KLIA1 and KLIA2. Thence to Seremban, using an elevated formation next to the current KTMB mainline. And from there - Malacca. Then Muar, Batu Pahat, Johor Baru Sentral, and into Singapore itself.

The old Tanjong Pagar line formation is still intact. Though it is slow, without the required space for a 20 meter wide double track electrified alignment, it is the simplest and cheapest option.

If it is elevated, it should be fit for 160kph operation from Singapore to Senai. From Senai to Batu Pahat, Muar, Malacca to Seremban, 250kph. That’s adequate.

Legit: At the current rate, Malaysia will not be able to afford it. There are obvious benefits that the project will bring to both countries but at what cost?

I wonder if any study on its feasibility and viability was ever conducted or was it announced just to boost PM Najib Razak's popularity.

Besides, knowing BN's track record, there will be cost overruns and many financial misappropriations, embezzlement, and all those evils that the Malaysian taxpayers have to put up with.

The project should only be implemented under a responsible and clean government post-BN.

Snake-in-the-Grass: Frankly, Malaysia just needs a giant rickshaw pulled by Najib & Co - that would be paradise for all locals and tourists.

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