WHILE a hike in interest rates will help resolve the depreciation of the ringgit, it will also increase the burden on the people, said the prime minister's political secretary.
During a recent visit to the Sin Chew Daily office in Petaling Jaya, Chan Ming Kai also refuted allegations that the government 'did not care' about the depreciation of the ringgit.
"Yes, increasing interest rates will resolve the matter, but this will not be in the people's favour.
"The issue we are facing is not about the depreciation of the ringgit, but the drastic interest rate hike by the United States," he said.
He explained that the move by the US has impacted the global economy and the currencies of most countries have also depreciated.
"The currencies of some countries depreciate more than others. When compared to the Singapore dollar, the ringgit depreciates more.
"Our figures on unemployment, inflation and investment are all good. The only thing is that we do not increase interest rates and this causes the ringgit to depreciate. This is a global issue.
"If we increase interest rates, it will upset the people," stressed Chan, adding that the government has done what is appropriate without burdening the people. - The Vibes, February 28, 2024
