The Malaysian ringgit floating system is appropriate when security and stability in the country is maintained, said former Prime Minister Tun Dr Mahathir Mohamed.
He said political instability or weak economic management would provide space and opportunity for unscrupulous parties to manipulate the ringgit, thus causing the depreciation of the currency.
"What we have to do to ensure that the ringgit does not continue to depreciate is make sure that the politics and economic management of this country is well.
"Of course we can fix the currency rate but if you want to float it, please ensure that this country is peaceful, stable, the laws are followed, no corruption, and politics of this country is stable," he said.
Dr Mahathir said this when delivering his talk at the Global Leadership Series titled Vision 2020, Mistakes Made, Lessons Learnt and Ways to Move Foward here, today.
The ringgit was pegged at 3.80 to the US dollar in 1998 after the local unit substantially depreciated during the 1997 Asian financial crisis.
Dr Mahathir who resorted to peg the ringgit said the government had to fix the rate at 3.80 to the dollar at that time due to competition from neighbouring countries.
"Why 3.80? If you make the currency too strong, we cannot compete with each other, so we were stuck at 3.80 per US dollar and that remained fixed for a longer time, and because of that our currency became stable.
"We recovered much faster than other countries and now even those who condemned us are saying we did the right thing," he said.
Meanwhile, Dr Mahathir said the goal of becoming a developed nation by 2020 which is only five years away was still relevant, but stressed that Malaysia needed to achieve the status on its own mould and not take after the developed countries in the West.
The former prime minister pointed out that to be a developed nation did not only mean wealth, but Malaysia had to ensure its intelligence, education and industries were sophisticated.
"People in Malaysia must get good education, or one or two to receive Nobel Laureates or at least well recognised for his contribution...that is developed nation," Dr Mahathir said.
Bernama
Sat Apr 04 2015
The ringgit was pegged at 3.80 to the US dollar in 1998 after the local unit substantially depreciated during the 1997 Asian financial crisis.
Iran's supreme leader says Hamas leader's death will not halt 'Axis of Resistance'
The "Axis of Resistance", built up with years of Iranian support, includes Hamas, the Lebanese Hezbollah group, the Houthi movement in Yemen, and various Shi'ite groups in Iraq and Syria.
Putin says Russia willing to seek compromises between Iran and Israel
Russia is ready to help seek compromises between arch-foes Israel and Iran, President Vladimir Putin said on Friday, saying these would be difficult but possible.
What proposals will Russia push at the BRICS summit?
The proposal is also to establish a BRICS reinsurance company to allow uninterrupted shipment of goods and key commodities between members.
Indonesia's free meals plan in the spotlight as Prabowo readies for office
Prabowo calls the programme one of the main drivers of economic growth, eventually set to add an estimated 2.5 million jobs.
Astro AWANI's revamped English news website, AWANI International, launches on Oct 21
Astro AWANI's revamped English platform delivers in-depth global news and expert analysis to keep you informed on key developments.
Israeli strikes kill 33 people in Jabalia refugee camp in Gaza, medics say
Residents of Jabalia said Israeli tanks had reached the heart of the camp after pushing through suburbs and residential districts.
Liam Payne's ex-partner calls for media restraint after 'painful' death
Cheryl Tweedy used her statement to urge the media to remember they had a seven-year-old son, Bear, who could read the reports.
Analysts: Indonesia's strong MoF leadership team to boost investor confidence
Sri Mulyani Indrawati as head of Indonesia's Ministry of Finance is expected to instil confidence among investors.
Biden offers both a carrot and a stick to Israel as his term nears an end
Israel has frequently resisted US advice and has caused political difficulties for the Biden administration.
Putin says BRICS will generate most of global economic growth
Russian President Vladimir Putin will host a summit of the group in the city of Kazan on Oct. 22-24.
ISIS Malaysia's perspective of Budget 2025
An excellent rakyat-centric budget under the overarching principle of a caring and humane economy.
Budget 2025: Record increase in STR, SARA aid initiatives
The government will provide a significant boost to the Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA) initiatives next year.
Budget 2025: EPF contributions to be made mandatory for foreign workers – PM Anwar
The government plans to make it compulsory for all non-citizen workers to contribute to the Employees Provident Fund (EPF).
What policies to expect from Indonesia's new President Prabowo
Prabowo will be open to foreign investment, his aide has said, such as by offering investors management of airports and sea ports.
Budget 2025: Govt allocates RM470 mil to empower women's participation in PMKS
The Women's Leadership Apprenticeship Program will be intensified as an effort to produce more female corporate personalities.
Israel sends more troops into north Gaza, deepens raid
Residents of Jabalia in northern Gaza said Israeli tanks had reached the heart of the camp, using heavy air and ground fire.
Indonesia ramps up security ahead of Prabowo's inauguration
Prabowo Subianto will be sworn in as Indonesia's president on Sunday with Vice President-elect, Gibran Rakabuming Raka, also taking office.
Immediate allocation of RM150 mil for local authorities, DID to tackle flash floods
Datuk Seri Anwar Ibrahim said this allocation is intended to address the recent flash floods that hit the capital and several major towns.
Budget 2025: Sabah, Sarawak to continue receiving among highest allocations - PM
Sabah and Sarawak continues to be prioritised under Budget 2025, with allocations of RM6.7 billion and RM5.9 billion respectively.
NFOF will be operational in November 2024 with funding of RM1 bil
PM Anwar Ibrahim said NFOF will support venture capital fund managers to invest in startup companies with RM300 million set aside for 2025.