*Ringgit jatuh antaranya disebabkan menteri PH ‘bodoh’ – Daim* ??

This is taken fully from here : http://kulihatlangitbiru.com/ringgit-jatuh-antaranya-disebabkan-menteri-ph-bodoh-daim

By admin on May 29, 2019 19

KUALA LUMPUR – Notis cukai pendapatan yang terlalu banyak dihantar kepada orang ramai membuatkan rakyat takut berbelanja hingga menyebabkan ringgit mengalami kejatuhan, kata bekas Pengerusi Majlis Penasihat Kerajaan Tun Daim Zainuddin.

Daim berkata perkara itu diburukkan lagi apabila penghantaran notis cukai itu diumumkan kepada orang ramai hingga menyebabkan mereka takut berbelanja.

“Income tax tak perlulah kacau orang. Kalau hantar notis mereka takut nak belanja, patut jangan kacau rakyat.

“Sebelum ini tidak pernah umum, bila Pakatan Harapan jadi kerajaan, hantar notis sampai lapan juta.

“Lapan juta notis kalau seorang isteri dan seorang suami sudah 16 juta, kacau ni. Anda bunuh keyakinan. Dulu mereka keluar makan, sekarang mereka takut nak keluar,” katanya dalam satu wawancara eksklusif bersama Astro AWANI.

Beliau menasihatkan menteri-menteri Kabinet supaya berbincang terlebih dahulu dengan Setiausaha Akhbar masing-masing sebelum mengeluarkan kenyataan.

“Kalau nak buat kenyataan, bincang tengok apa kesannya, bincang dengan pegawai kemudian bincang menteri dengan menteri. Bukan seronok-seronok buat kenyataan.

“Kalau positif keluar kenyataan, kalau negatif jangan keluar kenyataan, kalau negatif nak umum juga, bodoh lah,” katanya.

My comments :  No Sir this is incorrect.  Eight million notis cukai maybe excessive and stupid. But only people earning above RM3,000 need to worry about taxes. People earning below RM3000 per month (about 90% of the population) not only does not pay income taxes but they have no money to buy things.

The purchasing power in the economy has gone down. That is why people are not spending.

Whether people spend money or not may not have as much influence on the value of the Ringgit. I dont know where you got this idea. 

The value of the Ringgit, as in any currency, is dependent on the demand for the Ringgit, especially from importers of Malaysian goods in other countries.

The more we can export, the higher the demand for our Ringgit and the higher the value of the Ringgit.

The less we export or less value added we export then the less demand for the Ringgit. 

Even if we do not do anything the value of the Ringgit depends on what our trading partners are doing.

For example the Ringgit has fallen against the Thai baht. Why?

Dulu we export manufactured products to Thailand. Higher value added.

Thailand sold rice and canned rambutans to us. Less value added.

So our Ringgit was stronger.

Now we import manufactured products from Thailand - (Toyota, Ford pick up trucks), Continental, Michelin tyres etc.  More value added.

We export less value added to Thailand. 

So our Ringgit has fallen against the Thai Baht.

This has nothing to do with the Income Tax Department sending notis cukai.

If the people spend less on imported goods (Toyota trucks, Ford trucks, Continental tyres, Michelin tyres made in Thailand) it should help our Ringgit.

But even that is not happening.

We need very high value added, manufacturing and export industries. 

Not toll roads.

But according to your third world class bodoh Minister of Education, 60% of your university graduates are unemployed. These are mostly Malay kids.

The solutions to the country's problems are simpler than a child digging a hole with a stick.

But it enriches everyone.  In this country that seems to be the problem.