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Malaysia will never again peg ringgit against US dollar: PM Najib

KUALA LUMPUR: Prime Minister Najib Razaksaid yesterday that Malaysia will never again peg the ringgit against the US dollar.

At a gathering of business leaders and entrepreneurs, Mr Najib said his government has learned from "lapses of governance" at state investment fund 1Malaysia Development Berhad (1MDB), which has been the subject of probes in at least six countries.

In 1998, during the Asian financial crisis, then-Prime Minister Mahathir Mohamad, now Mr Najib's bitter political rival, pegged the ringgit against the US dollar. The peg was maintained until 2005.

Mr Najib said the pegging resulted in a loss of confidence among global investors.

"While there may be short term fluctuations, in the longer term the level of the ringgit would reflect the strength of the Malaysian economy," Mr Najib told the conference in Kuala Lumpur. - REUTERS

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