Muhyiddin: Sort out 1MDB to save ringgit

Political issues a cause of currency collapse, not just the dollar or falling oil prices, he says

SEMPORNA: Umno deputy president Muhyiddin Yassin has urged that issues surrounding 1Malaysia Development Bhd be resolved in order to stabilise the falling ringgit.

He said instability would leave foreign investors afraid to invest in Malaysia.

“The reason for the ringgit’s collapse was not just because of the increasing value of the US dollar or falling oil prices, he said, but because of political issues.

“1MDB has its impact on us. Malaysia is a good place to invest but the investors don’t want to,” he said when addressing about 2,000 Semporna Umno members at their divisional meeting.

He acknowledged that several factors affected the dropping value of the ringgit but he focused on the 1MDB scandal as a key factor.

Muhyiddin’s reasoning runs counter to that of Najib on Tuesday, in which he said four factors were behind the weakening ringgit, which has fallen to RM4 to one US dollar.

Najib said the reasons were excessive politicking, speculation by certain quarters, China’s devaluation of the yuan, an anticipated increase in interest rates in the US, and the fall in commodity prices.