KUCHING: Introducing Sarawak’s own currency would serve as a protective measure which would reduce negative impacts arising from other parts of the country.
In stating this, Sarawak Business Federation (SBF) secretary-general Datuk Jonathan Chai said it is an interesting idea which requires in-depth study before the matter is proposed to the federal government.
“Looking at what is going on in the country, it is certainly worthwhile to look into the issue or proposal with an open mind.
“Indeed, Sarawak might have to consider having its own currency if West Malaysia’s economy slacks and the exchange rates for the Ringgit continues to deteriorate due to internal problems and politicking over trivialities,” he told New Sarawak Tribune.
He was asked to comment on Works Minister Datuk Seri Alexander Nanta Linggi’s remarks on the possibility of the state introducing its own currency considering the unpredictable economic conditions in Malaysia.
Chai said with a more stable currency, the prices of goods especially imported goods and the cost and standard of living could be more effectively controlled.
“Even though we are still very much part of Malaysia, there is nothing wrong to have a country with two systems or two currencies having considered our unique constitutional and historical status in the country.
“We can emulate Hong Kong and Macau or even Scotland with commercial banks issuing their own notes with their own designs,” he said.
Historically, he explained in the early days in the 18th or 19th century, the state used to have its own notes and there were not any problems encountered.
“Of course, there are legal and technical aspects that we need to study before embarking on such a bold and major move in this modern era.
“It will involve an amendment to the prevailing law as Bank Negara Malaysia is currently the only institution empowered by the Central Bank of Malaysia Act as the sole authority to issue currency in Malaysia,” he said.
Secondly, he said there will be issues of circulation and exchange of the proposed currency.
“Thirdly, the putting in place of a comprehensive legal framework and setting up of a monetary authority to regulate and oversee the operation of the monetary system to ensure the stability of the currency,” he said.
Due to the complexity of the matter, he said it will take some time to resolve the preliminaries before its implementation if any consensus or agreement could be reached between the federal government and Sarawak government.
