BANK Negara (BNM) governor Nor Shamsiah Mohd Yunus has to “speak the truth” and explain why the ringgit is steadily depreciating, PKR’s Abdul Hassan Karim said.

He urged her to stop issuing “sugarcoated” statements on Malaysia’s economic situation, alleging the downsliding currency could harm the country and the people’s well-being.

“The Bank Negara governor has to please tell the truth to the government, especially the prime minister, who is finance minister.

“Don’t give sugarcoated statements that Malaysia’s economy and finances are on the right track and growing, and that the fall of the ringgit is temporary and under control.

“People don’t want to hear such things. Malaysians are smart and have the latest information at their fingertips,” the Pasir Gudang MP said.

The veteran Johor lawmaker took a swipe at the central bank for saying the Overnight Policy Rate (OPR) hike would strengthen the currency, but the results have turned out to the contrary.

“BNM has previously said the increase in OPR will strengthen the value of the ringgit but despite a number of hikes, why is the ringgit still depreciating? The governor has to explain this to the prime minister,” he said.

Hassan was commenting on BNM’s ongoing management of the declining ringgit and the country’s economy, while responding to Nor Shamsiah’s view that the OPR hike was not premature, but instead a careful move to preemptively lower local inflation.

Earlier this month, BNM raised the OPR by 25 basis points, restoring it to the pre-pandemic level of 3%.

The hike was BNM’s fifth increase since last May.

Hassan said BNM cannot brush off the matter by saying the ringgit’s fall is not its fault but is because of external factors beyond its control.

“BNM cannot claim all foreign currencies also fall like the ringgit. Fortunately, BNM doesn’t say that, but when the value of the ringgit falls against the American dollar, why do the values of the Singapore dollar and Indonesian rupiah soar?” he said.

“Are there structural problems in the Malaysian financial and economic sectors? We cannot rejoice. When the Singapore dollar soars high and the Malaysian ringgit weakens, then traders in Johor Baru make huge profits, and Malaysians working in Singapore see a rise in their income in Malaysian ringgit.

“The uncontrollable depreciation of the Malaysian ringgit has a negative impact on the Malaysian economy. We import a lot of goods from abroad. Malaysia also has debts with external parties. This all affects the Malaysian economy, the cost of living of the people and the national debt.

“So the BNM governor and her team need to advise the prime minister and his cabinet on how to save the country’s economy and finances, which are closely related to the people’s lives. Speak the truth even if it is bitter,” he said.

Hassan said it would be unreasonable to blame the government on the downsliding ringgit, claiming the currency was weak even during past administrations.

“It is not just now that the value of the ringgit has fallen. In the past, the government experienced a fall in the currency as well,” he said.

“For example, a year ago, when Ismail Sabri Yaakob became prime minister, the value of the ringgit was also weak.

“But the question is why even after six months of the new administration led by Anwar and despite various good financial policies, the situation still recurs? In fact, the value of the ringgit is lower than a year ago.

“Are there other non-economic and financial factors that are causing the fall in the value of the ringgit? If the answer is yes, then please tell the prime minister so recovery measures can be taken by the government,” the lawmaker said.

Hassan said BNM has to help the government, regardless of who leads it. – May 29, 2023.