IT is time for Malaysia to peg the ringgit against the US dollar in light of the sliding value of the currency, former prime minister Dr Mahathir Mohamad said today.

During the Asian Financial crisis in 1998, Dr Mahathir introduced the controversial measure to stabilise the ringgit.

The peg was removed in 2005 as investors lost confidence and took their money overseas.

“When we set the value of the ringgit at RM3.80 to US$1, and we guarantee the supply of US dollars to anyone willing to pay this price, then the value of the ringgit will no longer fluctuate,” the Langkawi MP said in a statement posted on Facebook.

“Even currency traders cannot devalue the ringgit by selling it in large quantities.”

He said the fluctuating ringgit is also burdening businesses.

“For businesses whose imports are transacted in the US dollar, the fluctuating ringgit increases their cost and the cost of items in the market,” he said.

He also took a dig at politicians who did not understand the need to implement the peg.

“The fixed rate in 1997-1998 saved us, but that is only because politicians don’t know anything about the financial system. Don’t listen to them.” – May 11, 2022.