Assalamualaikum guys.. Today I want to share about our Ringgit falls. Why it can happen? We can't blame anyone. Our topic focus on falling ringgit, rising price. Why I say like that, this is because when our Ringgit falls, the goods of imports will rise. For example rice, milk, sugar, meat and others. Due to this, the rate of household income will continue to decline. In addition, the cost of living continues to rise than rising prices. People will be depressed and prosperity will decline.
As we know, the Malaysian ringgit fall almost RM 4 per US dollar (US) thus showing the lowest decline since the 1997 Asian financial crisis. In 1997, issues of this happen but it can solve with any method by Tun Dr. Mahathir Mohamad the fifth prime minister. The depreciation of the currency led to the loss of confidence of foreign investors to continue investing and trading in Malaysia. According Hajrudin Somun (2003), until June 1997, the world still believe in the ability of Asian economies to continue to go well in the world market. A few months later, World Competitiveness Yearbook, an economic journal published by the American International Institute for Management Development (IMD) which influence has issued a statement that Malaysia experienced some economic difficulties said to be very serious, especially at the microeconomic level.
As we know, the Malaysian ringgit fall almost RM 4 per US dollar (US) thus showing the lowest decline since the 1997 Asian financial crisis. In 1997, issues of this happen but it can solve with any method by Tun Dr. Mahathir Mohamad the fifth prime minister. The depreciation of the currency led to the loss of confidence of foreign investors to continue investing and trading in Malaysia. According Hajrudin Somun (2003), until June 1997, the world still believe in the ability of Asian economies to continue to go well in the world market. A few months later, World Competitiveness Yearbook, an economic journal published by the American International Institute for Management Development (IMD) which influence has issued a statement that Malaysia experienced some economic difficulties said to be very serious, especially at the microeconomic level.
As a student, I think this issues give impact to students that studies in abroad which is Mesir, London, and others. If we in our country like Malaysia, we can't feel our ringgit falls. If we want go holiday to outside of country, we can feel how difficult when our ringgit is lower rather than other country.
This graph showed that although the prices of goods produced in Malaysia has declined from a year ago, prices of goods imports remained at the same price (see Graph 1 in the report of the Department of Statistics). In an economy still relies heavily on imported goods, particularly food, this certainly affects the price paid by consumers.
As a conclusion, I think this issues can't happen. This is because, this matter will burden its own society. Not all our society has stable income, so we must think about the fate of their own to support the family. Necessities such as rice and sugar are important to everyday life. How do they want to get it if the price is higher. Think about the society in our own country.
Thank you. See you in next blog.. :P
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