Ringgit peg 'good for business'<\/p>\n
KUALA LUMPUR (AFP): A British minister Tuesday praised
\nMalaysia's once-controversial currency peg, saying it had helped
\nstabilize the economy and attract foreign investment.<\/p>\n
"Clearly it has been helpful to stabilizing the economy, which
\nhas now got sustainable growth," Trade Minister Richard Caborn
\nsaid.<\/p>\n
"Stability is very important if you want to attract foreign
\ndirect investment or to do business with a country. Uncertainty
\nis a very expensive commodity," he told a press conference.<\/p>\n
"If it (the peg) brings certainty, as it has done, then
\nobviously it must be a good thing."<\/p>\n
Malaysia in September 1998 imposed selective capital controls
\nand pegged its ringgit at 3.80 to the dollar to beat currency
\nspeculators.<\/p>\n
The controls and the peg were initially criticized
\ninternationally but later won greater support.<\/p>\n
Caborn was speaking at the end of a two-day visit. He goes on
\nto Singapore and Indonesia.<\/p>\n
Addressing local and British business leaders earlier, the
\ntrade minister praised Malaysia for the "pragmatic and purposeful
\nway" it addressed the East Asian economic crisis of 1997\/98.<\/p>\n
"Their approach, strongly criticized from some quarters, is
\nnow recognized by the business community as having been a very
\ncredible response," he said.<\/p>\n
Caborn also launched a scholarship program for next year.<\/p>\n
The program, funded by the British government, has helped 848
\nMalaysian students to study at British universities since 1984.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/ringgit-peg-good-for-business-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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