Main image caption: Datuk Seri Anwar Ibrahim and his Malaysian delegation with New Zealand PM Christopher Luxon (Source: Anwar’s Facebook)
I CAN understand Prime Minister Datuk Seri Anwar Ibrahim’s (PMX) concern for the well-being of Malaysia.
This is the reason why he is bending over backwards to say that investors have great confidence in the country.
Earlier, he cited the registered foreign direct investments (FDIs) last year to show the high confidence level among them as to economic and financial fundamentals of the country.
Later, the Bank Negara Malaysia (BNM) governor Datuk Shaik Abdul Rasheed Gaffour reiterated a similar argument by going one step forward to dwell on the subject of consultations with foreign and local investors to beef up the Malaysian economy.
Moreover, Finance Minister II Datuk Seri Amir Hamzah Azizan elaborated in the Dewan Rakyat how the ringgit would stabilise to RM4.50 against the greenback by end-2024.
Unfortunately, the top officials of the Finance Ministry and the central bank have steered away from giving a full unbiased explanation to the slide of the ringgit.
The argument that the ringgit will appreciate against the US dollar is no explanation against the current slide. The debates in the Parliament seem to provide no clues as what ails the ringgit.
Show us the money
Anwar in his recent trip Australia boasted of investors eagerly wanting to invest in Malaysia. Even before the chickens were hatched, Anwar informed that Australian investors might be investing about RM24.5 bil in the country.
This information was given far ahead of the actual net investments flowing into the country. Apparently, Anwar had during his visit remarked that Australian investors were not even bothered about the ringgit slide.
Revealing that Australian investors had great confidence in the country’s financial and economic fundamentals. Anwar’s thinks that the currency crisis is temporary and having no effects on foreign investors.
As the country’s Finance Minister, he has to-date failed to explain the dramatic devaluation of the ringgit other than talking about in investors’ confidence whether real or imagined.
While Anwar’s primary focus is on how the country can overcome the crisis by inviting foreign investors, he has miserably failed to see the impact of the ringgit’s devaluation on ordinary Malaysians.
The ringgit depreciation has clearly and unequivocally has caused inflation in the country. The most affected are not the rich political and bureaucratic elite but the poor ordinary Malaysians.
Suffer on silence
In other words, those in the lower socio-economic background. Never once Anwar in recent times touched on the tragic plight of ordinary Malaysians who have to put up with rising prices as a result of inflation.
At the level of political propaganda, there is much publicity to the idea of Madani government. But unfortunately, the head of the Madani government who is Anwar himself seems mesmerised by foreign investors rather than having confidence in the rakyat to overcome the present economic crises.
Even if there is investors’ confidence, the depreciation of the ringgit is caused by multiple factors, be they Malaysia’s foreign reserves, how debts are serviced, the ratio of reserves to imports and others.
Unfortunately, Anwar has never cared to touch factors other than investors’ confidence in trying to revive the ringgit. How to impart confidence when the government has been less than sincere in fighting corruption?
Political expediency and survival cannot be masked by too much emphasis on investors’ confidence.
Anwar’s approach in seeking foreign investments to prevent the ringgit’s slide can be best captured by the Malay proverb Anak kera di hutan disusui, anak di rumah kebuluran (paying attention to the interests of foreigners rather than locals).
Former DAP stalwart and Penang chief minister II Prof Ramasamy Palanisamy is chairman of the Urimai (United Rights of Malaysian Party) Interim Council.
The views expressed are solely of the author and do not necessarily reflect those of Focus Malaysia.
Images credit: Datuk Seri Anwar Ibrahim’s Facebook
