Don't transfer cash abroad, Johor
Mentri Besar urges
Straits Times. Dec 31,1997
JOHOR BARU -- Mentri Besar Datuk Abdul Ghani Othman has urged
Johor residents to stop selling their assets and transferring their money
to a neighbouring country.
Although Datuk Ghani did not name the country, he was apparently referring to Singapore.
He said the people of Johor should rally behind the government during this time of economic problems instead of transferring their money to another country.
"Bank interest rates on fixed deposits in a neighbouring country is only 4 per cent, compared to an average of 8 per cent by banks here."
Of late, many Malaysians, especially those working in Singapore but holding bank accounts here, have resorted to transferring their money to the republic for fear that the value of the ringgit would slide further.
Although no statistics are available on this trend, checks with several banks here confirmed that there had been cases of depositors withdrawing their savings and closing their accounts.
The banks said the majority of these cases involved Malaysians woking in Singapore but commuting across the causeway.
"These people have no faith in the ringgit. They would rather sell their assets here and take their money to foreign banks," Datuk Ghani said.
"There is no reason to do this when Malaysian banks are offering up to 8 per cent in interest rates which is more than double the rate offered by the foreign banks."
Speaking at the opening of the Malaysian 4B Youth Movement's 23rd annual general meeting at his residence here on Sunday night, he said Malaysia's economic problems could be overcome if all citizens supported the government's initiatives to strengthen the economy.
He also urged non-governmental organisations and youth movements to organise forums to explain the present economic problems to the people.
"Do not be influenced by foreigners and speculators out to manipulate our currency," he said.
He said the International Monetary Fund was not the answer to Malaysia's current economic problems, noting that, despite the fund's intervention in Thailand, Indonesia and South Korea, the share markets in these countries had continued to plunge. -- NST.