CONSIDER CAREFULLY ANY MOVE TO ALLOW RINGGIT TO TRADE OFFSHORE, SAYS MAHATHIR

KUALA LUMPUR, Sept 13 (Bernama) –- Any move to allow the ringgit to trade
offshore again should be carefully considered, says former Prime
Minister, Dr Mahathir Mohamad.

"According to recent reports, currency traders trade in about US$4 trillion
daily. But there are no spin-off effects such as job opportunities or other
benefits for the people," Dr Mahathir told reporters during a Hari Raya open
house at his home in Seri Kembangan.

He also attributed the Asian financial crisis in 1997 to the activities of
currency traders.

Prime Minister Najib Tun Razak in an interview with CNBC on
Saturday said that Malaysia may consider allowing the ringgit to trade offshore
if it would help the economy.

Offshore trading of the ringgit was banned in 1998 at the height of the
Asian financial crisis.

Meanwhile, in order to give the Malaysian economy a boost, Dr Mahathir also
suggested that local investors be given support by the government, as they can
fill the gap in falling foreign direct investment (FDI) in the country.

He said Malaysia faces a drop in FDI as investors are more keen on
other countries such as China and Vietnam.

In another development, Deputy International Trade and Industry Minister
Mukhriz Mahathir said, the strengthening of the ringgit is not a concern
as it means the country can import products at much cheaper prices.

"It also helps in lowering the cost of production and is an indication of
the confidence in and strength of the Malaysian economy," he added, at the same
funtion.

BERNAMA