Prime Minister Najib Razak is taking a page out of the playbook of mentor-turned-nemesis, former premier Mahathir Mohamad. To stem a decline in confidence in Malaysia, he’s even tapping the expertise of Mahathir’s ringgit peg architect.
As a plunge in global financial markets this week deepened the ringgit’s slide and heightened comparisons with the Asian financial crisis, Najib unveiled an economic task force, echoing Mahathir’s National Economic Action Council in 1998. Members of Najib’s committee include business leaders and former Second Finance Minister Nor Mohamed Yakcop, who helped Mahathir design Malaysia’s now-abandoned capital controls and currency peg.
The move underscores the growing pressure on Najib to prevent a further loss of confidence as a political scandal and plunging commodity prices undermine an economy that by many measures has strengthened since the 1997-1998 regional crisis. While Najib has vowed Malaysia won』t return to the capital controls or fixed currency regime that drew the ire of the International Monetary Fund 17 years ago, his government hasn』t yet been able to stem the exodus of capital from its financial markets.
「What makes the current situation particularly worrying」 is the risk of a sustained erosion in confidence, said Nicholas Spiro, managing director of Spiro Sovereign Strategy in London. 「The government is scrambling to come up with ways to stem the rot which, given Malaysia’s history of unorthodox financial measures, is weighing further on sentiment.」
Businessman Brother
Also on the task force is Najib’s brother Nazir Razak, chairman of one of the country’s biggest lenders, who has criticized the current administration. Other members include Azman Mokhtar, managing director of state investment company Khazanah Nasional Bhd., and Malayan Banking Bhd. Chief Executive Officer Abdul Farid Alias.
「The act of establishing a task force comprising of 『old guards』 and 『critics』 helps bolster credibility insofar that economic crisis management is relegated to a more apolitical sphere and is taking centerstage with a visible and experienced task force,」 said Vishnu Varathan, a Singapore-based economist at Mizuho Bank Ltd.
Najib is grappling with allegations of financial irregularities at state investment company 1Malaysia Development Bhd., and has deflected Mahathir’s calls to resign as the debt-ridden fund’s woes contributed to investors souring on the country. Foreign funds have dumped more than $3 billion of the nation’s shares this year and the currency has weakened beyond the peg set by Mahathir in 1998.
Speculator Bets
Nor and Mahathir hatched a plan during the Asian financial crisis that would lead to the ringgit being pegged at 3.8 to the dollar in September 1998. That halted speculator bets that had caused it to plunge 31 percent in 12 months against the U.S. currency.
The IMF, which called Malaysia’s response 「a step back」 at the time, later acknowledged it was a 「stability anchor.」
The ringgit reached 4.2990 per dollar Wednesday, the lowest since July 1998. It has weakened more than 17 percent in 2015.
「The ringgit is way undervalued, but it’s not fundamentals driving it; there’s some panic that’s being traded in the market,」 said Gerald Ambrose, managing director of Aberdeen Asset Management Sdn. in Kuala Lumpur. You can "wring your hands in the air or you can look at it as a good opportunity to buy assets at a significant discount to their fair value,」 he said.
Weekly Meetings
Najib said Wednesday that the newest task force will meet weekly to find ways to minimize the impact of 「any arising economic issues.」 They will look at short- and medium-term strategies to strengthen the country, he said.
「Where the committee could likely make an impact is in reiterating the importance of sticking to the structural reform agenda, pushing areas where there are limited progress so far,」 said Euben Paracuelles, a senior economist at Nomura Holdings Inc. in Singapore. That may be better than 「thinking about immediate policy fixes which institutions like Bank Negara Malaysia are in a better position to formulate.」
Malaysia has been struggling to boost confidence in its economy and finances since oil prices started slumping late last year. Other than allegations of irregularities at 1MDB, Najib is facing accusations of impropriety after it was disclosed that political donations ended up in his private accounts in 2013. The accounts have since been closed.
Newspaper Suspended
Nazir, 48, said in April the government needs to disclose more information about the liabilities of 1MDB to reassure investors in the currency and stock market even if it doesn』t pose a risk for the banking system. He has also censured his brother’s administration for suspending a newspaper which had questioned some of 1MDB’s business deals.
He used Instagram to voice his opinion on the ringgit’s decline, saying this month as the currency weakened beyond 4 per dollar that it’s a 「terrible time to be distracted by politics and so much negative international media coverage.」
「Both of them are extremely able, and have always been strong proponents of good governance,」 Aberdeen’s Ambrose said of Nor and Nazir, adding that he worked with them in the 1990s. 「That combination of ability and honesty is what’s needed.」 -- BLOOMBERG
中文翻譯：
首相納吉走的是首頁輸出導師出身的剋星，前總理馬哈迪的劇本。為了遏制信心在馬來西亞的下降，他甚至竊聽馬哈迪的林吉特盯住建築師的專業知識。
由於全球金融市場暴跌，本周加深了林吉特的幻燈片，並與亞洲金融危機加劇的比較，納吉公布的經濟專案組，呼應馬哈蒂爾的國家經濟行動理事會納吉委員會1998年成員包括商界領袖和前第二財政部長諾莫哈末，誰幫助設計馬哈迪，馬來西亞現在已經廢棄的資本管制和匯率制度。
此舉凸顯對納吉的越來越大的壓力，防止信心作為政治醜聞和暴跌大宗商品價格進一步的損失削弱了許多措施，因為1997 - 1998年亞洲金融風暴加強的經濟。雖然納吉曾發誓馬來西亞將不會返回到資本管制或固定匯率制度，17年前提請國際貨幣基金組織（IMF）的憤怒，他的政府還沒有能夠從金融市場阻止資本外流。
「是什麼讓目前的情況特別令人擔憂」，是信心的持續侵蝕的危險，尼古拉斯說斯皮羅，斯皮羅主權策略在倫敦的董事總經理。 「政府正在爭先恐後地拿出辦法來阻止它，鑒於非傳統的財務指標馬來西亞的歷史，是市場人氣進一步打壓了腐爛。」
商人兄弟
同樣在專案組是納吉的弟弟納齊爾·拉扎克，該國最大的銀行之一董事長，誰批評現政府。其他成員包括阿茲曼穆赫塔爾，國家投資公司國庫控股有限公司，董事總經理，和馬來亞銀行有限公司。執行長阿卜杜勒·法里德別名。
「建立一個特別工作組，包括」老衛兵「和的行為」批評「有助於加強可信度，只要經濟危機的管理被轉移到一個更非政治領域，並正在關於CenterStage一個可見的，經驗豐富的專案組，說：」毗濕奴Varathan，一位駐新加坡的經濟學家瑞穗銀行有限公司
納吉正在努力解決財務違規行為的指控，在國家投資公司的一個馬來西亞發展有限公司，並已偏轉馬哈蒂爾的呼吁辭去債務纏身基金的困境促使投資者發酸的國家。外資已經傾倒了全國股更$ 30十億今年的貨幣已經減弱超越了釘住由馬哈蒂爾於1998年成立。
投機者投注
這將導致被掛在3.8美元馬幣1998年9月即暫停了已造成其暴跌31％兌美元匯率12個月投機者押注亞洲金融危機期間也和馬哈蒂爾醞釀了一個計劃。
國際貨幣基金組織（IMF），這被稱為馬來西亞的回應「退後一步」的時候，後來承認這是一個「穩定錨」。
馬幣達到4.2990兌美元周三以來最低。1998年7月它在2015年削弱了17％以上。
「令吉是遠遠被低估，但它不是基本面驅動它;有是一個的被交易的市場一定的恐慌，「傑拉爾德·安布羅斯，安本資產管理私人有限公司董事總經理。在吉隆坡。你可以「擰乾你的手在空中或者你可以把它看作是一個很好的機會，在一個顯著折扣公允價值購買資產，」他說。
每周例會
納吉周三表示，最新的專責小組會每周召開一次會議，以設法減少的影響「而產生的任何經濟問題。」他們將著眼於短期和中期戰略，以加強該國，他說。
「如果該委員會可能會產生影響是在重申堅持結構性改革議程，推動那裡的進展有限，到目前為止領域的重要性，」Euben Paracuelles，野村控股公司在新加坡的高級經濟學家說。這可能是比「想著眼前的政策修正它像馬來西亞國家銀行機構更好地制定。」
馬來西亞一直在努力提振信心的經濟和財政狀況，因為石油價格開始下滑，去年年底。除了違規指控在1MDB，納吉面臨不當行為的指控後，又透露政治捐款結束了在他的私人帳戶於2013年的帳目，至今已關閉。
報紙懸
納齊爾，48，在四月表示，政府需要披露1MDB的負債安撫的貨幣和股市投資者，即使它不會對銀行體系風險的更多信息。他還指責他哥哥的政府中止其曾質疑一些1MDB的生意報紙。
他用Instagram的表達他對林吉特的跌勢意見，說這個月的貨幣削弱超過4％的美元，這是一個「可怕的時間通過政治和這麼多負面的國際媒體的報道而分心。」
「他們兩人都是非常有能力，而且一直是善政的強烈支持者，」Aberdeen的劉漢銓說，NOR和納齊爾的，並補充說，他在上世紀90年代曾與他們。 「能力和誠實這樣的組合是什麼需要。」 - 彭博