NO NEED TO RE-PEG RINGGIT, SAYS ASLI'S CEO

KUALA LUMPUR, Sept 22 (Bernama) -- There is no need to re-peg the
ringgit for the moment, said the Asian Strategy and Leadership Institute's
(ASLI) chief executive officer, Dr. Micheal Yeoh.

"I think the floatation of ringgit is the right thing for now as the
ringgit is not under any pressure when compared to the 1997/98 financial crisis.

"In comparison,Malaysia has now also substantial foreign reserves and it
is more that sufficient to ensure the ringgit stays at a competitive level," he
told reporters after the launch of the first Malaysia-India CEO forum here
Monday.

Yeoh was responding to a question on the government's decision to not
re-peg the local currency.

The ringgit was pegged at RM3.80 to the greenback in September 1998 to
cushion it against rogue currency speculators, which in the process also
insulated the economy.

The ringgit closed higher against the US dollar today. At 5.00pm, the
ringgit was higher at 3.4130/4180 against the greenback's close of 3.4570/4620
last Friday.

Yeoh noted that that ringgit was currently at a competitive level and
would have even strengthened more if not for the crisis in the US.

"It did strengthen earlier in the year and I believe the ringgit will
remain competitive," he said.

Commenting on the outflow of foreign funds recently, Yeoh said that it was
because of the severe downturn in the US and overseas markets.

He said the political uncertainties undoubtedly had an impact on the
decisions of fund managers.