We at #KLChronicle fully agrees with the statement given by MCA deputy president Datuk Dr Wee Ka Siong that the Government should encourage more export-oriented activities as a way of countering the depreciation of the ringgit. The proposal by Datuk Dr Wee makes perfect sense since the ringgit is depreciating, might as well we export our products overseas where it will be sold (or can be priced) in US Dollars. This in return would increase the profitability of local companies and industries.
We acknowledge that the depreciation in Ringgit has a big impact to the people of this country. People might disagree but for companies, some of their contracts for engineering, procurement, construction etc. are in USD. Initially when they started their projects (maybe a year or two back) or going to start a project, the economic sensitivity analysis that they would have done will definitely be based on a fixed exchange rate (maybe RM 1: USD 3.45). However, with the appreciation of the ringgit, the project cost would increase thus reducing the projects revenue and nett profit.
When this happen, companies reduces their tax payment due to the low profits and the government itself will find liquidity very low to operate the country. It is a snowballing affect that will impose hardship to a lot of people in this country. One way to resolve this is like what Datuk Dr. Wee Ka Siong says, i.e. for government to provide incentives for export. This can be done by giving tax breaks to exporters so that they products can be competitive in the world market.
We at #KLChronicle really hope that the government will look into the suggestion by Datuk Dr. Wee Ka Siong as our economy is really in need of a shot in the arm. If we all work together we can save the economy and the country. Reduce politicking and focus more on the economy and rakyat. This goes both ways mind you. Hopefully the opposition people also realize this as well. It is not worth it to "burn" the country just because you cannot control it.
ORIGINAL ARTICLE FROM THE STAR
The Government should encourage more export-oriented activities as a way of countering the depreciation of the ringgit, said MCA deputy president Datuk Dr Wee Ka Siong.
He said local manufacturers, especially those who needed to import raw materials from abroad, had been greatly affected by the slide of the Malaysian currency.
He suggested that more incentives be given to local businessmen to encourage exports, in which the goods were traded in US dollars.
"The Government should map out strategies to increase export activities from the current 19% to 25%," he said after opening the Negri Sembilan Wanita MCA annual general meeting here yesterday.
Dr Wee, who is also Minister in the Prime Minister’s Department, urged Government-linked Companies (GLCs) to give priority to domestic investments to stimulate the local economy.
He said there were now more Malaysian firms that were investing overseas than foreigners investing in the country, adding that the local economy would see a boost if the money was brought back to the country.
He also encouraged the people to buy local products.
"Many Malaysia-made products, such as furniture and sanitary ware, are of international standards and even better compared to imported goods," he said.
On Rural and Regional Development Minister Datuk Seri Ismail Sabri Yaakob’s call for a "Low Yat 2" for Muslim traders, Dr Wee said a national leader should not promote racial segregation and urged everyone to stop making statements that could harm national unity.
Wanita MCA chairman Datuk Heng Seai Kie said it would launch a campaign to promote the buying of local products, adding that these were cheaper and could reduce the reliance on imported goods to prevent any outflow of the ringgit.
Earlier, in his speech, newly appointed Negri Sembilan MCA chairman Datuk Seri Dr King Lim Chin Fui said MCA was not a "yes man" party and that he would not be keeping mum over issues affecting the people and MCA.