SHAH ALAM SEPT 6th: The recent depreciation of Malaysia’s ringgit value is making people poorer following declining purchasing power due to higher prices of imported goods, particularly food.
Institut Rakyat’s economist, Azrul Azwar Ahmad Tajuddin said such economic situation occurs when the value of the national currency decreases against the strength of foreign currencies, and thus affects people’s purchasing power.
“People are having difficulties in buying goods for the same price unlike the time prior to the collapse of the national currency. As a result, the ability of people buying goods is declining,” said the former Chief Economist of Islamic Bank to TV Selangor today.
The ringgit has fallen for more than seven percent this year, the lowest compared to 3.3 per dollar three years ago, and it is currently the worst record.
The impact of the price increase on ordinary people has become more severe when UMNO-BN government raised the prices of RON 95 and RON 97 recently.
Azrul said the currency devaluation has also resulted in imported goods such as necessities to increase in prices.
He urges the government to evaluate and find the cause for the currency collapse, and be proactive in addressing the problem.
“The government should make a concentrated effort in plumbing this financial leakage so as to avoid an increase of the national debts and spending deficits,” Azrul concluded.