Also, there has now been stability in the stock market and the domestic policies of easing liquidity and credit and lowering interest rates have enabled economic sectors to grow. Then the opportunity cost of Malaysia pegging its dollar to the US dollar is floating uncompetitive exchange rate against others money (e.g. EU dollar). For example, Malaysia dollar is pegging to the US dollar at 3.8 RM/USD, EU dollar's exchange rate is 0.8EUD/USD, so Malaysia dollar's exchange rate against EU dollar is 4.47RM/EUD, and when EU dollar float to exchange rate at 0.95EUD/USD, Malaysia dollar increase exchange rate at 4RM/EUD, then Malaysia's production will lose competitiveness in EU market.…
