Workers' rights group: Weakening ringgit crushing poor, BNM must act

A workers’ rights group has criticised Bank Negara Malaysia (BNM) for defending the trajectory of the nation’s economic growth despite the ringgit sinking to its lowest since the 1997 Asian Financial Crisis.

Social Protection Contributors Advisory Association Malaysia adviser Callistus Antony D’Angelus said while the weak ringgit can serve to benefit exporters, it drives inflation and escalates the cost of living.

“Its impact is most felt by the poor, with little or no disposable income. The already acute cost of living crisis, as acknowledged by the government, is getting worse by the day.

“What is being done, via policy instruments, to alleviate their economic hardship?

“BNM quotes indicators and spews out economic projections in aggregate terms. How does this impact and affect the B40 and M40 communities?” he asked in a statement today.

D’Angelus asked if it is indeed true that the economy is growing, are the real income levels of the low- and middle-income population in the country growing as well?

Disproportionate increase

“What is apparent is that there is a growing wealth and income inequality in the country,” he added.

According to D’Angelus, the issue is that senior executives of public-listed companies, many of those owned by the government, are seeing their income levels rising disproportionately compared to the country's economic growth.

“Performance measures for these individuals, which are tied to their compensation packages, are written in their favour and therefore seemingly justified.

“This is a farce, a con job perpetrated on the economy and common people,” he added.

Labour activist Callistus Antony D’Angelus

D’Angelus said BNM has the power and authority to step in, and through the institution of appropriate policies, redress this imbalance.

He added that the central bank must act by working with the Finance and Human Resources Ministries.

“Robbing the poor and raping the country of its resources to serve the interests of the rich, corporate titans and corrupt politicians is driving the country over the cliff.

“Plus, we must correct the trajectory of the country for the people’s sake. We cannot expect the beneficiaries of a corrupt system to make any changes - which will deprive them and in turn, benefit the common people,” he added.

D’Angelus said the government, in promising reforms, must take the lead and work to move away from merely serving business interests.

On Tuesday, BNM governor Abdul Rasheed Ghaffour said the ringgit’s level does not reflect the positive prospects of the economy going forward.

He said the recent performance of the ringgit, similar to other regional currencies, has been influenced by external factors.

“Some of these factors include market adjustment to changing US interest rate expectations, geopolitical concerns and uncertainty surrounding China’s economic prospects,” he said. - Mkini