THE economy is sound despite what the detractors are alleging, pinning their argument on the depreciating ringgit. Disingenuously they have conveniently forgotten to add that while it is more expensive for Malaysians holidaying or studying abroad, imports are more costly and, of course, those servicing off-shore loans are hard hit, the reverse is also true. For example, because of a cheaper ringgit, Singaporeans are crossing the Causeway to shop in Johor, from foodstuff to petrol through to changing their holiday destinations to Malaysia. In fact, many even hold wedding banquets here at half the price they would have to fork out in the republic. It works well for the economy as Malaysian exports become more competitive. Chinas recent yuan devaluation testifies to this truth. As argued by experts, it was intended to re-establish Chinas export competitive edge, which had waned in recent years. Furthermore, a cheaper ringgit should, too, increase the consumption of locally-produced goods by Malaysians as imports become expensive. This promotes real economic growth.
To continue reading the rest of the article, click here