Malaysia against fixed rate

Malaysia against fixed rate

SHAH ALAM, Malaysia (AFP): Finance Minister Anwar Ibrahim said yesterday that Malaysia would not consider adopting a currency board system such as that being planned by Indonesia.

"For Malaysia, there has not been any call," Anwar told reporters attending the opening of an Ericsson plant west of Kuala Lumpur.

"There is no need," he added. "The ringgit in the last few weeks has been strengthening. We have taken all adequate measures such as the imposition of credit plans and therefore it does not warrant us to consider a new system."

The remarks by Anwar, who returned Thursday from a five-day visit to Japan and Taiwan, echoed comments by Prime Minister Mahathir Mohamad.

Under a currency board system such as that used in Hong Kong, the local currency is backed by its equivalent in foreign reserves at a pre-set rate.