MAHATHIR PROPOSES REINTRODUCTION OF RINGGIT PEG

SINTOK (Malaysia), Sept 20 (Bernama) -- Former Prime Minister, Dr Mahathir
Mohamad, has proposed that the ringgit peg be reintroduced to lessen the impact
of the global economic crisis on the currency.

He said the fluctuations in the ringgit value had affected the country's
economy and the government should not continue with the managed float of the
ringgit.

"We need to fix the value of the ringgit and I believe the government
should do away with managed float because it will result in a loss," he told
reporters after delivering his keynote address at a seminar on 'Development of
National Institutions of Higher Learning' at Universiti Utara Malaysia here
Saturday.

He said the peg would strengthen the economy and create structural changes
in economy without depending on the model from western experts.

"If the US economy declines, the country, which is among its key trading
partners, will also be badly affected," he said, when asked to comment on the
economic situation in the country.

The ringgit's RM3.80 peg against the US dollar imposed in Sept 1, 1998 was
scrapped in July 21, 2005 and was operated by a managed float against a basket
of currencies.