KUALA LUMPUR, Nov 14 — The value of the ringgit is unlikely to go back up after it has dropped, said former prime minister Tun Dr Mahathir Mohamad today.
In a Facebook post, the Gerakan Tanah Air chairman said that with the US dollar trading at a high against the ringgit, export costs are also up, which in turn keeps local manufacturing costs raised.
"Previously it was RM2.50 for one US$1. Then it was RM3.80 for US$1. Now it is RM4.60 for US$1.
"Can it return to RM3.80? Can it return to RM2.50?... usually no," he said, adding that Malaysian wages have not kept up with the increased living costs.
Back in May this year, Mahathir who is defending his Langkawi seat in the coming 15th general election, had suggested to once again peg the Malaysian ringgit at RM3.80 to the US dollar in the face of the local currency's dropping value.
His administration had done the same over 20 years ago when he was still prime minister, as the country grappled with the effects of Asian Financial Crisis.
In 2005, the ringgit peg was scraped under the administration of Tun Abdullah Ahmad Badawi.
