KUCHING: Sarawak United People’s Party (SUPP) has expressed concern over Malaysia’s economic direction and the future livelihood of its people.
Its Kuching branch treasurer, Jong Yean Pin, who aired these concerns said the Malaysian Ringgit (MYR) has depreciated by approximately 44 per cent over the past 11 years.
On April 17 this year, the MYR briefly touched 4.80 against the US Dollar and 3.51 against the Singapore Dollar (SGD).
“The global trend of rising interest rates, particularly by the US Federal Reserve, has put pressure on Asian currencies, including the Ringgit,” he said.
“Countries like Japan, South Korea, Thailand, India, and Vietnam have had to intervene to stabilise their currencies using foreign exchange reserves. Unfortunately, Malaysia’s performance in this regard has been subpar.”
Prime Minister Datuk Seri Anwar Ibrahim has promoted his “Visionary Economic Framework” as a solution to Malaysia’s economic issues.
But Jong said Anwar’s approach — relying on aid distribution and increasing civil servant salaries — is inadequate.
Malaysia’s national debt, Jong noted, has soared from RM740 billion in 2018 to RM1.5 trillion today.
But, he said, any attempt to stabilise the MYR by pegging its exchange rate against the USD would weaken imports.
Raising interest rates could burden citizens with higher loan repayments.
With limited reserves, the government faces a Catch-22 situation.
In this context, he said waiting for the US Federal Reserve to lower interest rates seems to be the only passive economic strategy, underscoring Malaysia’s weakening economic position.
“This year, the Sales and Services Tax (SST) has increased from 6 per cent to 8 per cent. Diesel prices in Peninsular Malaysia surged by 55 per cent after subsidies were removed, impacting transportation and logistics costs.
“While Sarawak’s diesel prices remain unchanged for now, imported goods from Peninsular Malaysia face higher prices.
“Furthermore, the Inland Revenue Board’s mandatory implementation of an electronic invoicing system in August has caused concern among small businesses and petty traders.”
