COMMENT | Ringgit slide: Parallels to 1998

COMMENT | The fall of the Malaysian ringgit to record lows this past week, lower than the 1998 financial crisis, has become the focus of concern. Prime Minister and Finance Minister Anwar Ibrahim has said that the current slide cannot be compared to the 1998 Asian Financial Crisis.

To a certain extent, he is correct. The global conditions are different and many indicators in Malaysia’s economy are stronger than has been acknowledged. This includes promised investment, growth in the digital economy and service sector more broadly, as well as greater diversification.

No question, that Malaysia’s economy has a strong foundation that with better management and positioning, it can build on.

Yet, there are parallels to the events 26 years ago that should be discussed...