Deputy Prime Minister and Finance Minister Najib Tun Razak, despite his shortcomings, made a good decision not to repeg the ringgit.
From a economic point of view, his decision not to repeg would correct conform to the economic viewpoint of many ISI (Import Substitution Industrialisation) economists. In short, ISI economist like Ha-Joon Chang argue that a development of a nation should be a twofold process - first install high trade barriers and protectionist policies, then when the nation has the capacity to compete in the international market, remove those barriers.
The ringgit peg was done in 1997 as a counterbalance to the shrinking economy and the reduction of the competitiveness of many companies in the nation. The ringgit peg was one of the many interventinoist and protectionist policies taken to protect our industries.
From a economic point of view, his decision not to repeg would correct conform to the economic viewpoint of many ISI (Import Substitution Industrialisation) economists. In short, ISI economist like Ha-Joon Chang argue that a development of a nation should be a twofold process - first install high trade barriers and protectionist policies, then when the nation has the capacity to compete in the international market, remove those barriers.
The ringgit peg was done in 1997 as a counterbalance to the shrinking economy and the reduction of the competitiveness of many companies in the nation. The ringgit peg was one of the many interventinoist and protectionist policies taken to protect our industries.
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