Malaysian pride soars with the ringgit

 

It has been a while since Malaysians began to feel some pride. Certainly, the strengthening of the ringgit against the 

There is bo doubt that the country's political stability under PM Datuk Seri Anwar Ibrahlim is one of the main reasons for Malaysis's economic success.

KUALA LUMPUR: It has been a while since Malaysians began to feel some pride. Certainly, the strengthening of the ringgit against the dollar has made a big impact on national confidence.

The Malaysian ringgit, which continues its upward trend, has surged to its highest level against the greenback since March 2022.

Not only is it the best-performing currency in the region, but it also became the world's top-performing currency this month as it rode on the US Federal Reserve's large interest rate cut.

The comeback story of Malaysia, underpinned by an economy that has expanded at its fastest rate in the past 19 months, has attracted global attention.

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• Ringgit hits 4.1150 to the US dollar

• Domestic tourism expenditure soars to RM78.7bln in 2023 - DoSM 

• Ringgit opens flat against the greenback as investors await US CPI data

• The ringgit's uptrend: Why it may continue to strengthen [BTTV]

There is no doubt that the country's political stability under Prime Minister Datuk Seri Anwar Ibrahim is one of the main reasons for Malaysia's economic success compared to Thailand and Indonesia, which fell by the wayside politically.

The ringgit climbed to a 30-month high recently of 4.1815 against the US dollar recently. It ended last week, closing on Friday at 4.1230/1280.

Now, the speculations are that the ringgit could go up to RM4 against the dollar as BMI, a unit of the Fitch group, revised its year-end forecast for the ringgit from 4.55 against the US dollar to 4.0, reflecting the local currency's robust performance in the third quarter of 2024.

Looking beyond the six-month period, BMI even predicted the ringgit to strengthen by nine per cent next year, reaching 3.55 against the dollar by the end of 2025.

It sounds very good, but as we all know, the ringgit depends very much on external factors, especially on the US Fed interest rate trajectory and mainland China's growth, which is our biggest trading partner.

Over the medium view, there will always be some profit taking, which would affect our rate, but it is healthy and natural.

At one time last year, there was fear that the ringgit could hit as low as RM5 against the dollar, but now the ringgit has appreciated more than 12 per cent against the dollar.

Last week, the South China Morning Post (SCMP) reported that "for Malaysians, the exchange rate of the ringgit against the US dollar, as well as regional currencies like the Singapore dollar and the Thai baht, serves as an indicator for how well the economy is doing and reflects confidence in the government."

Whatever the criticisms and misgivings that have been levelled against Anwar Ibrahim for his purported delays in reforms and even making compromises with the conservative groups who didn't vote for him in the last general election, he is on the right track for sure.

Malaysia is politically stable, and his Madani Unity government isn't going to give way soon. His opponents must wait for another three years to challenge him despite the many political noises generated, which Malaysians have grown used to.

The SCMP quoted Mohd Afzanizam Abdul Rashid, the chief economist at Bank Muamalat Malaysia, saying, "The stability has facilitated more effective policymaking and implementation, boosting confidence in the ringgit.

"This has created better reviews by the credit rating agencies and global investment banks."

Reuters reported a news article under the heading "Malaysia shines as foreign investors return, peers stumble."

In its Aug 22 article, the news agency said, "Malaysia is fast becoming a haven in Southeast Asia, and foreign investors are returning to a long-overlooked market as a confluence of improving growth, stable government and rising currency sets it apart among peers grappling with political flux."

"Foreigners have steadily poured more money into Malaysian debt and stocks this year. In July, as political troubles brewed in Thailand and Indonesia, they pumped US$1.75 billion into Malaysian debt markets – the highest in a year.

"The stock market, Bursa Malaysia, is gunning for its strongest yearly performance in well over a decade."

At home, while the cost of living remains a big concern among many Malaysians, the inflation rate has decreased to 1.90 per cent in August from 2 per cent in July 2024.

Trading Economics reported that the inflation rate is expected to be 1.50 per cent by the end of this year, according to its global macro models and expectations from analysts.

More importantly, the number of jobs in the first quarter of this year increased by 1.5 per cent to 8.94 million – the highest recorded since 2018, according to the Employment Statistics, First Quarter 2024.

Chief Statistician Datuk Ser Dr Mohd Uzir Mahidin was quoted by Bernama as saying that 8.81 million jobs were recorded in the first quarter of 2023.

HR Asia reported that Malaysia's job market remains robust throughout 2024, with "companies continuing to hire in line with ongoing economic expansion."

Malaysians now look forward to the annual economic report as well as the Budget to be presented in Parliament next month to have a clearer and more detailed idea of what's in store for us.

 Datuk Seri Wong Chun Wai, an award-winning veteran journalist with over 40 years experience, is the chairman of Bernama.

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Wooing non-malays with little to offer

 
PAS has finally realised that it cannot take over the Federal Government without support from non-muslim voters. However, its plans to win them over seem strange, sometimes ludicrous.

Abdul Hadi Awang

President

REALITY has finally bitten PAS painfully.

It cannot hope to form the Federal Government without support from the non-malay electorate, including those from Sabah and Sarawak.

And it knows that even many Muslim voters in the peninsula, especially those in urban and semi-urban areas, find the PAS brand of politics a little too extreme.

This admission was made by PAS deputy president Tuan Ibrahim Tuan Man who told the recent PAS annual gathering that it cannot capture Putrajaya with Malay votes alone.

All political party gatherings have plenty of chest-thumping rhetoric and drummed up optimism for the diehard delegates.

The Islamist party’s general assembly in Temerloh, Pahang, was no exception, with plenty of hot air.

But PAS has a problem. It cannot decide what it should do next to convince non-muslims that it is worthy of their votes.

Non-muslims, especially the Chinese, are practical people. They look at PAS and they only see politicians in robes, serbans (turbans), beards, and goatees, with religious studies as their only credentials. Chinese voters are unlikely to be inspired by having theologians run the country.

Call it prejudice or whatever, but the constant harsh statements from PAS have not helped to improve how non-malays see the party. The ‘’Green Wave’’ – a term to describe the growing strength of PAS – has probably frightened or alienated non-muslims even more.

It also doesn’t help that at PAS general assemblies, there is a glaring absence of discussions of substantial issues like the economy, growth, tackling the cost of living, boosting the ringgit, digital challenges, and how PAS can take Malaysia to the next level of development.

Instead, party leaders continue to be obsessed about projecting themselves as puritanical and pious, with little knowledge or interest in handling development priorities.

The biggest comic relief this time came from Selangor PAS Youth leader Aubidullah Fahim Ibrahim who proposed that members marry non-malays to increase support for the party, reportedly saying “a mixed marriage would not just be able to secure one vote but hundreds from the non-malay community’’.

PAS youth chief Afnan Hamimi Taib Azamudden urged members to start learning vernacular languages to help the party get closer to non-malay communities.

He said the ability to converse in two languages can be a powerful tool for PAS members in wooing support from non-malay voters.

At least Afnan spoke some sense. But the Barisan Nasional candidate for the Mahkota by-election, Syed Hussien Syed Abdullah, has already beaten the PAS man to it. Syed Hussien has an advantage because of his Chinese school education: He speaks Mandarin fluently.

The Chinese community just hopes that leaders from both PAS and Umno will stop talking of shutting down vernacular schools and not just use Chinese language as a tool to win votes during elections.

While some were talking about how to woo the non-malays, one PAS delegate loudly proclaimed that their next target would be the Malay majority state of Pahang, and vowed to shut down all gaming outlets in the state, including the Genting Highlands casino.

Most Chinese voters have reacted with alarm at the statement. While most Chinese do not encourage gambling, we tolerate this game of risks as long as there is a level of self-restraint.

It is common to see card games with small bets during Chinese New Year while mahjong is encouraged as a pastime for senior citizens to keep their minds sharp. Naturally, there are bets involved.

Pahang PAS deputy commissioner Andansura Rabu quickly moved to soothe ruffled feathers, saying the decision may involve the Federal Government and thus won’t be easy.

Gaming licenses come under the purview of Putrajaya and until PAS forms the next Federal Government on its own, this remains just plenty of hot air.

In July, the High Court in Alor Setar ruled that the Kedah PAS government needed to uphold consistency with the Federal Constitution, which says only the Federal Government has the authority to enact laws and regulations concerning gambling.

The High Court also ordered the Kedah state government to compensate STM Lottery Sdn Bhd and Magnum Corporation Sdn Bhd, the companies behind Sports Toto and Magnum 4D respectively, for the losses they suffered when the state closed their outlets.

As expected, the state government has said that it will take the matter to the Court of Appeals.

Perlis PAS delegate Saifizi Saidon reportedly devoted his speech to calling for action to be taken against certain party leaders, especially those who shook hands with women. He also attacked those who went to karaoke lounges.

To make things worse, Terengganu has banned women from taking part in gymnastics and swimming events, because of “non-syariah compliant” outfits.

Recently, the Terengganu Amateur Swimming Association had to apologise for taking part in the Malaysia Games despite getting approval from the national association and the athletes’ families.

Political observers who have followed the PAS general assembly would have noticed clearly that the agenda of the party hasn’t changed. It has probably got worse with added race and religious narratives.

Its past presidents, like the late Kelantan Mentri Besar Nik Abdul Aziz Nik Mat and the late Datuk Dr Fadzil Noor, focused on religion as the main thrust of the party’s struggle. As in any democracy, PAS has a right to its political ambitions, and it has been fairly consistent.

It has grown in clout and has a sizeable number of Members of Parliament, with three states under its administration. Despite having 43 MPS and being the party with the largest number of lawmakers in the Dewan Rakyat, PAS has reached its limits. That is why it has to win over non-muslim voters.

But how can party president Tan Sri Abdul Hadi Awang expect his party to endear itself to non-malays when he described non-muslim leaders in government as becoming arrogant and irresponsible as well as seeking to play on racial and religious sentiments?

He also claimed that Malaymuslim leaders in the government are unable to “control” their fellow non-muslim leaders.

PAS is upset that it was dismissed as being Taliban-like and its style of running state governments equated with that of the Afghan leaders. That may be an unfair comparison, but the pronouncements of its leaders have not helped shed such perceptions.

To be fair, there are some PAS leaders with professional backgrounds and credentials, seemingly giving it a progressive image, and who prefer to talk to the media on issues like the economy, investments, and good governance.

One shining example is Terengganu Mentri Besar Dr Ahmad Shamsuri Mokhtar, an aerospace engineer, but he is not among those who call the shots in the party. That is done by the ultra-conservative leaders, who continue to spook non-muslims with their declared aim of turning Malaysia into an Islamic State.

These are the guys who issue cut-and-paste statements with a list of festivals and events that they wish to ban, with calls for gender segregation, and a demand to stop “hedonism”, a popular agenda they like to use without even understanding the word.

Tuan Ibrahim has proudly asked PAS members to organise visits to Kelantan to see the development there for themselves.

This is ironic since Kelantan is certainly not a shining example for anyone. After 34 years of PAS rule, it has remained one of the worst run states in this country where one cannot even get decent clean water from the taps.

While then posturing by PAS leaders could have been done to retain its core base, it really needs to embrace diversity and to champion the rights of non-muslims to win them over.

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By Wong Chun Wai

Wong Chun Wai began his career as a journalist in Penang, and has served The Star for over 35 years in various capacities and roles. He is now group editorial and corporate affairs adviser to the group, after having served as group managing director/chief executive officer. On The Beat made its debut on Feb 23 1997 and Chun Wai has penned the column weekly without a break, except for the occasional press holiday when the paper was not published. In May 2011, a compilation of selected articles of On The Beat was published as a book and launched in conjunction with his 50th birthday. Chun Wai also comments on current issues in The Star.

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Ties that bind Malaysia and China

Bustling metropolis: China has transformed tremendously since it began to open and reform its economy in 1978. Now more than 800 million people have been lifted out of poverty in the country. — Reuters

Let’s dispense with the Western narrative and embrace our centuries’ old friendship.

It’s mindboggling how quickly the Chinese government has successfully turned the country into an economic powerhouse with huge leaps into technological and digital realms including artificial intelligence.

TWO months following Malaysia Airlines’ maiden voyage to Beijing on March 31, 1991, I had my first trip to China.

I was invited by our national carrier as part of the media and government official team to experience its new route.

By then, Beijing had already become a big city with tall buildings and highways, but the streets were still filled with bicycles.

Over the last three decades, I have repeatedly returned to Beijing and other cities. Like many regular visitors, I can’t help but marvel at the pace of the economic transformation.

It’s mind-boggling how quickly the Chinese government has successfully turned the country into an economic powerhouse with huge leaps into technological and digital realms including artificial intelligence.

Their infrastructure, especially their super rail connections, are certainly the best in the world now. None of the European and American links can hold a candle to the Chinese rails.

As of 2024, it’s reported that China has more than 159,000km of railways, the second longest network in the world, and 45,000km of high-speed rail, the longest HSR in the world.

Of course, Western rail networks began much earlier while China played catch up, but with new facilities, they are more sophisticated since they can avoid the mistakes and poor maintenance practices of those in the West.

They’re certainly the envy of the world as they whizz between cities at speeds of about 320km per hour.

Those who’ve never been to China can’t ever fathom how far the republic has overtaken the Western world.

On my travels, I’ve had the misfortune of meeting many Americans and Europeans who still have flawed, if not archaic, views of China and many other parts of Asia.

The Americans are the worst because many have never travelled beyond the United States. I have given up explaining to them where Malaysia is.

On a trip to Antarctica in January, as my fellow Malaysian traveller Yusof Hashim and I held our Jalur Gemilang proudly, a passing American expedition member asked my wife if we were holding the Taiwan flag!

But of course, the Brits are familiar with most of us from the Commonwealth countries, obviously because they colonised us, and don’t parade such ignorance.

In any case, the Western narrative against China has been such a resounding success that many Western tourists have kept away from “communist” and “dictatorial” China.

Accusations of unfair dealings, falsified data and purported persecution of Uighurs in Xinjiang, and Tibetans, are also entrenched in their minds although most can’t pinpoint these places on a world map.

From my anecdotal engagements with my Western friends, it’s obvious they swallow what their politicians tell them and steadfastly refuse to have anything to do with China, which is a shame.

I’ve always told them that they need to see for themselves how China has advanced.

But what is conspicuously downplayed is Western politicians viewing China as the biggest challenge of any nationstate in the world against the US and its allies.

The US wants a big share of China’s consumer market, which has embraced Western products, but the image of the republic seeking leadership roles in many multilateral platforms remains unpalatable.

An article by Dr Zuliu Hu and

Mohsin Khan from the International Monetary Fund titled “Why Is China Growing So Fast” attributes the progress to capital investment, which has made the country more productive.

Basically, new machinery, better technology, and more investment in infrastructure have helped to raise output, they wrote.

Its economy may have once been in the doldrums, but since opening to foreign trade and investment in 1979, China has been among the world’s fastest growing economies and among the highest in terms of purchasing power parity.

After all, it had a growth rate averaging 10% for over 30 years.

Since it began to open and reform its economy in 1978, more than 800 million people have been lifted out of poverty. Across China, and especially its cities, you don’t see slums like in India, or colonies of vagrants, like in the US.

Basically, there have been significant improvements in access to health, education and other services.

Emphasis is given to schools, and even in the most remote areas where I’ve seen and been thoroughly impressed by the kinds of facilities available to school children.

In Guangzhou, I saw robotics, 3D printing and coding already being taught in a secondary school during a trip in 2017.

No doubt, as the economy grows, there will be disparity, especially in a country of 1.4 billion people.

There are the upper middle class as well as those struggling to earn a living in the big cities, where at least 40% of their income goes to rental fees.

Fast forward to 2024, and as I continue my journeys in China, I have begun to feel that as Malaysians, we are poorer.

The depreciating ringgit hasn’t helped in our declining purchasing power.

As most countries direct factory outlets away from the cities, which makes travelling unnecessary, I still visited one which was right smack in three building blocks in Beijing.

Looking at the wide range of products from the West and China, I wondered how the Chinese can afford such expensive items, and where their money comes from!

In Shanghai, where many of the city folks are often welldressed, I felt even smaller.

This doesn’t bode well for me as a third-generation Chinese.

My grandfather left Guangdong in China because they were almost trapped in famine and needed to come to Malaya to escape poverty.

And now, many of my friends who have relatives in Fujian and Guangdong, speak about how financially secure their relatives have become.

For Malaysia, as we celebrate 50 years of friendship with China, it’s imperative we leverage on the ties which bind both nations.

The special bond began in the 1400s when Admiral Zheng He visited Melaka several times, marking the state’s significance.

I tip my hat to Malaysia and China!

By Wong Chun Wai

Related post:

China extends a TVET helping hand to Malaysia

Related news:

DPM's visit deepens bilateral ties

Warm send-off: Ahmad Zahid (second left) bidding farewell to staff from the Malaysian Embassy in China before leaving for Malaysia. With him is Malaysian Ambassador to China Datuk Norman Muhamad (left). — Bernama

THE 11-day official visit of Datuk Seri Dr Ahmad Zahid Hamidi to China has not only helped bolster Malaysia-China diplomatic relations but also fostered meaningful collaborations for businesses and the people back home.

Despite a tight schedule that took him through Hong Kong, Shanghai and Beijing, the Deputy Prime Minister always maintained a warm smile, especially during his numerous courtesy meetings with Chinese leaders and officials.

His joy and pride of being on the trip was palpable as he had on more than one occasion expressed his admiration for the responsiveness and openness of the Chinese government during the visit.

During an appreciation dinner, Majlis Amanah Rakyat (Mara) chairman Datuk Dr Asyraf Wajdi Dusuki, who was part of the Malaysian delegation, hailed the visit as “fruitful and impactful”.

“The swift and comprehensive responses from Chinese leaders and institutions regarding our cooperation proposals are a positive sign for Malaysia, particularly in educational collaborations between the countries.

“We have strengthened ties in higher education, especially in TVET (technical and vocational education and training), and tourism following the 30-day visa-free travel ease, benefiting both nations.

“We are delighted that Mara and GiatMara will offer more valuable TVET opportunities for Malaysian students.

“This is also a good sign of more such positive tie-ups to come, as both countries move towards a new chapter of an even stronger friendship after this golden jubilee celebration,” he said.

Despite this being his first visit to China as Malaysia’s Deputy Prime Minister, Ahmad Zahid, who is also the Rural and Regional Development Minister, is no stranger to Chinese leaders.

During a courtesy call on China’s State Councillor and Public Security Minister Wang Xiaohong, a warm and convivial atmosphere was prevalent as both leaders, who have been friends for a long time, shared laughter.

When Wang introduced his colleagues to his guest, Ahmad Zahid easily identified some of them.

Speaking to the media, Ahmad Zahid, also the National TVET Council Committee chairman, could not but marvel at China’s commitment to being a strategic partner in the TVET sector, an area close to his heart.

The bilateral discussions encompassed artificial intelligence, electric vehicles, renewable energy, and technology transfer.

Expectations are high for further cooperation between China and Malaysia, with the upcoming visit of Chinese Premier Li Qiang to Malaysia this month.

During engagements with the Malaysian diaspora in Tier 1 cities in China, Ahmad Zahid received a warm reception and commended the loyalty of Malaysians even when they were seeking opportunities abroad.

First-tier cities comprise Beijing, Shanghai, Guangzhou and Shenzhen – the four most developed cities in terms of economic and infrastructure development.

A media veteran observed that the choice of Hong Kong, Shanghai and Beijing on Ahmad Zahid’s itinerary was because of their expertise in TVET, high technology, and knowledge transfer.

“These visits are seen as a continuation of the agreements reached between Prime Minister Datuk Seri Anwar Ibrahim and his Chinese counterpart last year.

“Both sides are happy that he (Ahmad Zahid) is here, as assurance that the agreed projects are being implemented, the media veteran said.

Ahmad Zahid also emphasised the importance of setting a timeline for turning memoranda of understanding into action and reality.

It is clear that he is committed to ensuring that the collaborations and partnerships forged during his visit will produce tangible benefits for both Malaysia and China.

With continuing hard work and dedication, this solid relationship can only grow and prosper in the 50 years ahead – and beyond.

COMMENT 

50 years of enduring Malaysia-China friendship

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