International Trade and Industry Minister Tan Sri Muhyiddin Yassin wants the government to study the suggestion by former prime minister Tun Dr Mahathir Mohamad to repeg the ringgit to cushion off the impact of the weakening United States (US) dollar against other currencies.
Although the pegging of the ringgit by the government in 1997 is perceived to be different from the current uncertain global economic scenario, Muhyiddin said it was possible that several mechanisms in the previous pegging of the ringgit could be used again.
“The uncertain global economy today is due to the sub-prime problems prevailing in the United States which resulted in several major banks in the country to go bankrupt and this scenario is different from the situation in 1997,” said Muhyiddin.
He said this to reporters after attending a meeting with several Umno leaders and grassroots in the Temerloh and Kuala Krau divisions late last night.
He was commenting on Dr Mahathir’s suggestion to reimplement the pegging of the ringgit to ward off the adverse effects of the weakening US dollar.
Muhyiddin said the government needed to keep tabs on the current world economic developments and take necessary initiatives to tackle the problem. BERNAMA