BY NAZLI IBRAHIM
SHAH ALAM, SEP 27: The Federal Government must comprehensively review all risks before investing billions of ringgit in the United States (US), as announced by Prime Minister Datuk Seri Mohd Najib.
Chief Executive Officer (CEO) of the Selangor Economic Advisory Office, Dr Fahmi Ngah, said that as investing in the US could put pressure on the ringgit and depreciate its value.
“Surely when we invest abroad, we would have to sell ringgit and buy foreign currency. In this case, we would have to buy USD in big amounts which would definitely depreciate the ringgit.
“We are not sure yet of the returns as the Prime Minister has not announce details of the investment in the US, only that we are buying aircrafts which will certainly only benefit the US,” he said when contacted by SelangorKini.
He said the decision to buy 25 units of 737-MAX 10 aircrafts and 8 units of 787 Dreamliners, estimated to cost RM10 billion in the near future, is adding to worries that there is probability of asset purchases at much higher prices than the actual value.
Among the hottest issues on the national asset purchases being debated, has been the purchase of national defense asset, the Scorpene submarine, several years ago.
He said assets purchased at much higher prices than the original value is one of the signs that there is some corruption in the transaction.
Previously, Najib had in a meeting with the US President Donald Trump, announced that Malaysia will be buying 25 units of 737-MAX 10 aircrafts and 8 units of 787 Dreamliners costing USD10 billion, a USD4 billion investment by the Employees Provident Fund (EPF) in the US’s infrastructure, and also increasing Khazanah Nasional’s investment in Silicon Valley, California; with all these helping the US more than benefiting Malaysia.
Investing in US risks depreciating ringgit
