Liow: Malaysia not facing financial crisis

Datuk Seri Liow Tiong Lai - File pix

KUALA LUMPUR: Malaysia is not facing the 1997 Asian financial crisis, says MCA president Datuk Seri Liow Tiong Lai. 

Referring to the plunging ringgit, Liow assured the public that Malaysia's economic fundamentals are still strong. 

"In 1997, our gearing ratio was too high. Furthermore, we only had RM30bil in our Federal Reserves.

"Today, our reserves are three times as much," said Liow during the 95th anniversary celebration of the Federation of Chinese Guilds Associations, Thursday. 

Liow pointed out that the depreciating currency issue was not isolated to Malaysia alone. 

"It is caused by a global drop in commodity prices.

"Countries exporting raw materials including New Zealand, Australia, India, Indonesia and Thailand are all affected," he said. 

Nevertheless, Liow said the depreciating ringgit is a burden to many businesses and the Government is taking this matter "very seriously". 

"In our Cabinet meeting yesterday (Wednesday), we discussed on how to strengthen the ringgit. We will not allow its depreciation to halt our economy," he said. 

Liow said MCA would be holding a forum together with business associations on Saturday to discuss how the ringgit had affected them and find a solution to aid businesses. 

"It (the forum) serves to consolidate ideas from all industries. We will then compile and submit a proposal to the government," he added.