KUALA LUMPUR – Malaysia’s largest trading partner China has given its commitment to take up a proposal by Datuk Seri Anwar Ibrahim for the idea of an Asian Monetary Fund (AMF) to be revisited.
The prime minister told the Dewan Rakyat today that Chinese President Xi Jinping affirmed this personally to him during his recent historic visit to China.
“During the Boao Forum in Hainan, I made an open proposal on AMF, so that we don’t only rely on the US dollar or International Monetary Fund (IMF).
“Later during my meeting with the president, he mentioned that, in reference to my suggestion about AMF, he welcomes the matter to be discussed further,” he said, here.
Anwar, who is also finance minister, said this in response to a supplementary question from M. Kula Segaran (Ipoh Barat-PH) on whether Malaysia will emulate many other countries globally in ditching the US dollar for international trade matters.
Dollar-denominated debt exposure of smaller economies, reducing dependency on the US and plans by smaller nations to boost regional trade has been cited among several reasons for the de-dollarisation.
Anwar said there is no reason for a country like Malaysia to continue depending on the US dollar while noting that the economies of many Asian countries are now in a much stronger position.
“I have proposed (the use of AMF) previously when I was the finance minister, but it was not well received by Asia then, because, at the time, the US dollar was considered strong.
“But now, with the strength of the Chinese and Japanese economies, among others, I feel this (AMF) needs to be discussed – and secondly, the possibility of using the ringgit with the other respective countries’ currencies (for trade).”
Anwar pointed out that Malaysia and Indonesia currently use their own currencies as the basis of negotiations while the country is also currently negotiating with China on possibly using the ringgit and renminbi for exports and imports.
On a separate matter, the Pakatan Harapan chairman said Malaysia remains firm in its stand that Petronas will continue with its oil and gas exploration in the South China Sea despite claims made by China.
He pointed out that this stance has been conveyed to Xi and Chinese Premier Li Qiang during their recent meetings.
“Yes, both quarters have overlapping claims in the South China Sea. In particular, China is concerned that Petronas is operating massively in an area claimed by the nation.
“I have spoken about this with Li and Xi, and Malaysia regards this as our territory. As such, Petronas will continue with its oil and gas exploration there.
Anwar however said if China feels it should have the right over the territory and the oil and gas reserves, Malaysia is open to negotiations.
“In the meantime, we will continue with our oil and gas operations. Asean also feels that overlapping claims should be resolved through negotiations. But as of now, Malaysia is stern in its stand that it is our territory.”
Meanwhile, Anwar said as a result of the RM170 billion investment from China, consisting of 19 memoranda of understanding, about 35,000 job opportunities are expected to open up. – The Vibes, April 4, 2023
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