MALAYSIAN CURRENCY VALUE AND DEBTS

By : STEPHEN YAMAN

The PM has been talking on and on about progress and “high-income” nation, a great nation but what is the use talking of 'high income' when our currency has lost its previous face value by more than 2.4 times against the Brunei/Singapore Dollar?

Singapore was a part of Malaysia in 1963. In other words, the purchasing power of the Malaysian Ringgit has fallen miserably. This explains why we are paying more for so many basic things such as rice and sugar that we import.

If you earn RM1,000 in the 1970s, the same amount would be worth B/S$400 only today. B/S$ have higher purchasing power versus the RM today. I am asking the PM can we improve the value of the RM so that RM1,000 is worth B/S1,000 today.

It is useless to earn RM$10,000 per month when its purchasing power is only B/S$4,000. So, what is the use of 'higher income' when it can purchase only fewer items that we need when compared to 1970s? Should BN be very proud that under their management the Ringgit has badly lost its face value?

The other major issue is our massive foreign debts of RM458 billion. In other word, we have a lot of borrowings while Brunei/Singapore has none. This simply means that we have to pay a lot every month to service our debts. And over the years, Malaysia’s debts have been gradually piling up under the management of BN.

Selangor and P. Pinang have good management under the Pakatan Rakyat. The increasing state reserve fund is a good example when compared to the bad figures since it took over the two states in 2008. It is useless to earn a lot of money just to keep paying a lot of debts that will never seem to finish. What has Singapore or Brunei got that we don’t have?

So, whatever the people earn through the so called 'higher income' just diminish to lower purchasing power or less value worth of our money and coupled with high inflation.

Whatever Malaysia earns goes to paying debts and interests. What is the use of 'Transformation', when Malaysia can’t maintain the face value of our ringgit and its purchasing power, and how to repay and clear our debts totally?

If we were equal to Singapore or Brunei in the 1970s, are these very difficult yardsticks for the BN to achieve? If BN can't produce that result, then it is time to change the management…!