Why is the Ringgit so weak against all the major currencies?

From http://bbs.my45.net/
My posting "为 甚 么RINGGIT 不 值 钱?"

根据首相阿都拉所发布的声明表示,令吉与美元的汇率也贬值，因此根据政府所使用的计算方程式，最多只能降低油价10仙。

几 十 年 来 我 国 的 令 吉 对 世 界 主 要 钱 币 的 汇 率 都 贬 值， 如 下
1〕1980 年， 令 吉 对 新 币 和 汶 币 差 不 多是1 对1， 现 在 是 1 新 元 或 汶 币 对 2。4 马 币。
2〕1980 年， 令 吉 对 加 币 是1 加 币 对1。8 马 币，现 在 是 1 加 币 对 3。2 马 币。

政 府 因 该 解 释 为 甚 麽 我 国 的 令 吉 一 直 贬 值。 自 MERDEKA 以 来， 国 阵 一 直 掌 管 国 家， 他 们 因 该 为 我 国 的 经 济 问 题 负 责。

贪 污， 腐 败， 新 经 济 政 策， 拐 杖 政 策， 朋 党 主 义， 华 基 政 党 自 我 矮 化 和 UMNO 一 党 独 大 都 是 目 前 我 国 作 大 的 敌 人。

The following is the comment by one YP from my45.net:
如果你以令吉贬低来控诉政府，我认为你该保留和study清楚先。因为货币政策太复杂，每个时期世界环境不同，方向不同。
而且弱势马币可以吸引他国来投资，就以中国来说，前几年都是以1美元兑8.27人民币挂钩。这吸引了几百亿的FDI (FOREIGN DIRECT INVESTMENT)，这造就中国成为世界工厂，上亿人口有工作，然后带动经济。现在成为发展中国家最强的国家，其能力直逼美日德三大先进世界经济体。
反观强势，他有他的优点，美国在克林顿总统时代采取强势美元非常奏效，详细的政策不多说。
其他如 “贪 污， 腐 败， 新 经 济 政 策， 拐 杖 政 策， 朋 党 主 义， 华 基 政 党 自 我 矮 化 和 UMNO 一 党 独 大 都 是 目 前 我 国 作 大 的 敌 人。” 这个大家有目共睹，但你认为以令吉一直贬低的话题来攻执政党，必须三思。就以非常简单的例子来讲，新元非常强，这让新加坡人来马消费，使柔佛州州经济活跃。而因新元兑换率高，吸引大马人民去新工作，为国家赚外汇。
但这句“根据首相阿都拉所发布的声明表示,令吉与美元的汇率也贬值，因此根据政府所使用的计算方程式，最多只能降低油价10仙”的确有蒙骗人民的成份在内。如果你针对这statement控诉，这还可以说的通。

My response to YP's comment was as follow:
The actual fact is a country's currency and its value is measured against its economy performance. If the country is economically strong, then its currency would have a higher value than say an under developed nation.

To say that we would be able to attract foreign direct investment if our currency is weak is against the principle of basic economic. For example, Indonesia with a "banana" currency, is definitely a weak economy marred by wrong economy policies and corruptions and political instability. So how come Indonesia can not attract FDI? Why the Indonesian can't catch up with China with such a weak and volatile currency?

We can't use China as an example to say that a weak currency would benifit the country and the people of China is unique with a strong cultural presence and a large educated yet cheap work force. But the capital income of the Chinese is way below the G7 nation. The purchasing power of the people are weak and their standard of living is far below the G7 counterpart. China now faces a big social problem where the gap between the rich and the poor is getting bigger by the day, it doesn't have big middle class like the G7.

If Malaysia is well managed, we should have a currency as strong as the Singaporean as well as the per capital income of the Singaporean which is even above some of the G7 countries. So isn't that a criteria to appriase the performance of the government. Remember that Singapore was part of Malaysia before it got its own Independence in 1965. Its founding father, Mr. Lee KY in his book said that the Island state has nothing to fall back on and he was worried as how it can survive once seperated from Malaysia. He further said in 2007 that Malaysia would be more prosperous than Singapore if its government practises meritrocacy and treat all Malaysian equally and fairly in terms of educational and career opportunity.

The conclusion is obvious, the government must be blamed for the rot in the country where the per capital income is only USD6000 plus compared to USD 25,000 of our Singaporean counterparts! It is still standing in the circle of fiery political rhetoric.

David Wong
26-09-2008