YOURSAY ‘The cost of servicing 1MDB loans keeps going up.’

Ringgit sinks to 16-year low amid PM crisis

Commentable: (1) "Malaysia’s currency is Asia’s worst-performing exchange rate this year as it tumbled to the weakest level since a dollar peg was scrapped in 2005.” (2) Bank Negara Malaysia may try to slow the pace of the ringgit’s decline. (3) Bank Negara “stands ready to maintain orderly conditions in the foreign-exchange market”.

And just how is Bank Negara governor Zeti Akhtar Aziz going to defend the sinking of the ringgit? By whatever tools given to her by the government.

Examples are the imposition of the Goods and Services Tax (GST), the incessant increment of petrol price despite a drop in world prices, toll hikes, power tariff hikes and other ‘Barang Naik’ measures.

Zeti, and by extension PM Najib Razak, must have convinced Fitch Ratings with promises of more hush-hush financial tightening measures that are forthcoming real soon.

Why else did Fitch change its mind to go ahead with a downgrade ‘following a review’ and have instead raised the outlook to stable?

Perhaps it may not be enough for some of us to just tighten our belts, as the burden may be back-breaking.

Doc: Certainly this ringgit slide is not due to Najib’s dismal handling of the nation's economy and finances. Nor is it due to the 1MDB fiasco or the US$700 million (RM2.6 billion) allegedly found in his personal Ambank account.

Here are most probable causes of the RM slide: 1) Dr Mahathir Mohamad. 2) Chinese Malaysians. 3) Jews. 4) Americans. 5) Ungrateful Malaysian people. 5) Americans.

Nippon: Malaysia will not have enough reserve to sustain the level of the depreciating ringgit. The kitty is already running dry with all the corruption and missing money. Ringgit will hit US$1 to RM4.50 by December 2015.

So far the predictions about the Malaysian state economy have been 100 percent correct. More foreign funds will pull out of the country but once the multinational corporation’s (MNCs) factories start to close shop, it will spell trouble for Umno.

Isana: Borrow at RM3.20, now need to pay back at RM3.80. The cost of servicing 1MDB loans keeps going up. It's not RM42 billion any more, it's much higher now. They will continue to raid cash-rich funds to service the debts.

Fair Play: Zeti did what she had to do - defending the ringgit by citing that strong economic fundamentals are still in place. But she is no politician and she must obey her political masters to say and do what she had to do.

The malaise facing the nation had gone beyond economics such as governance, transparency, accountability, cronyism, perception, alleged illegal capital flight, racial and inter-faith tension, etc, etc.

It looks like short-term measures such as capital control, managed exchange rate, austerity drive, government spending cut, interest rate hike, etc, have to be introduced as stop-gap solutions.

And the contagion effect of the present Greece situation might be a grim reminder if no action is taken.

Basically: Anwar Ibrahim's fault? Opposition lies? Malaysiakinispin? Perception? The Wall Street Journal (WSJ) report, 1MDB slander?

Well, yes, except WSJ’s report only came out last week and the 1MDB ‘slander’ only started a year ago. The ringgit has fallen steadily over many years.

Take it further, it started falling sen by sen the moment Singapore left. Finance ministers I and II, how do you explain that?

Hang Babeuf: It's time for Dr M to float once more his grand idea of the global Islamic gold dinar, backed with the full credibility of the Pahang network and those bullion speculators. -Mkini