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On Jan 20, former prime minister Dr Mahathir Mohamad abruptly suggested a review of the policy of pegging the Malaysian ringgit to the US dollar. Ironically it was Mahathir who, during his term as premier, pegged the country's currency to the US dollar in 1998.

In subsequent years, despite the stabilisation of the Malaysian economy after the Asian financial crisis, Mahathir continued to resist any attempt to review or relax the currency peg.

However, there is no reason to celebrate the repentance of the former PM. Without a doubt, many quarters of Malaysian society believe that a re-evaluation of the currency peg and the rate of Malaysian ringgit is timely and necessary.

But it is highly inappropriate for a retired head of government to make such a public comment on this. His action has implicitly shown contempt for the government of the day.

Of course, Mahathir is entitled to express his opinions freely on current issues even after having stepped down in October 2003. However, his reckless comments on key policies could unnecessarily undermine public confidence in the leadership of Prime Minister Abdullah Ahmad Badawi.

Mahathir should have instead channeled his opinion on the ringgit peg to his successor privately.

While Mahathir might feel he is still influential in the decision-making process of the government, he has to learn to refrain from interfering in the administration of the country. The Malaysian economic recovery has not yet fully regained its previous vigour.

The timing of a policy change regarding the currency peg will have an enormous impact on market stability. In effect, Mahathir's statement has caused much speculation and uncertainty. Policy changes should not be made in a rush due to pressure from groups with vested interests.

The government needs to be careful and prudent in studying the situation. It is rash for Mahathir to open such a debate before the government is ready with all the information.

In view of the urgency and importance of the issue, the government should initiate without delay a broad consultation involving economists, the business community and international experts. The currency peg critically affects the national economy and the livelihood of millions of people. As such the government must be ready with competent solutions.

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