Sarawak premier: Strengthening ringgit by increasing exports can help Malaysia sail through Covid-19 recession
KUCHING — Malaysia can breeze through this coming post Covid-19 recession by strengthening the value of the ringgit through increasing its exports.
This is because the increase in the country’s export will encourage more currency exchange which will in turn increase the ringgit’s value, Sarawak Premier Datuk Patinggi Tan Sri Abang Johari Openg said.
“Our economy needs to increase its exports so that there’s a supply and demand on our currency. When they buy our products, of course they will need ringgit. If there is no export, people don’t buy our currency, resulting in no demand and our currency’s value will definitely lessen,” he said when met after Friday prayers and launching of the Masjid Darul Naim in Kampung Lintang yesterday.
At the same time, he revealed that he anticipated that the economic recovery phase would be affected post Covid-19, unless the government injects capital into the economy.
Thinking ahead, he said the state government has implemented the Post Covid Development Strategy 2030 (PCDS2030) to shield Sarawak from such issues.
“Our development projects are on track, and if we have ‘sick’ projects, we will use rescue contractors to continue the ‘sick’ projects, with adjustment of the material costs to the current rate.
“This will ensure the project will continue on and not affect job employment. We have also injected our State Budget to ensure that our economy continues to move.” However, only one thing that affects the people, which is the price hike of products as many food items are imported and currently the ringgit is weak, resulting in high import cost. And this high import cost will be transferred to the consumers, he said.
When asked about certain parties urging the general election to be held sooner to tackle inflation, Abang Johari deflected by saying that he would just let the matter be resolved by the leadership at the federal level.
In conclusion, he said that it is important for the nation to have a very strong government to ensure political stability as it will increase the confidence of foreign investors.
“If there is no confidence, our foreign investments will be affected. When this happens, there will be no inflow of foreign funds,” he added.
Present was Deputy Minister in the Premier’s Department (Law, MA63 and State-Federal Relations) Datuk Sharifah Hasidah Sayeed Aman Ghazali.
— Borneo Post Online