Malaysian PM: No ringgit peg or capital controls

The authorities has suspended two newspapers and an internet site that have been reporting on 1MDB.

“Not only did Malaysia receive the donation from Saudi Arabia, two or three more countries also received, including the Muslim community in the Philippines and [Southern] Thailand”, Wan Adnan Wan Mamat said at the opening of a Umno Kuantan division meeting.

“Malaysia’s leader is still facing a legitimacy crisis with declining domestic support”, said Bridget Welsh, senior research associate at the Center for East Asia Democratic Studies at the National Taiwan University.

On whether the ringgit would be able to bounce back, Najib said: “It all depends on the external factors”.

The scandal over the almost $700 million revealed to have been transferred to Mr. Najib’s bank accounts is the biggest crisis of his six-year tenure. Najib sits as the chair of its advisory board.

“I specifically say regulate, not restrict, so that none should have to suffer being criminally defamed and so that the Internet does not become an ungoverned space dominated by insults and untruths”, he said in his speech on “Leadership in Challenging Times” at the 25th Tunku Abdul Rahman Lecture, organised by Malaysian Institute of Management, here.

“Even those who had come to me complaining about Najib’s administration before, upon being given posts in his government, have now changed their stand”.

Najib’s comments mirrored remarks made by Bank Negara Malaysia governor Zeti Akhtar Aziz.

“They fought for what was right, took hard decisions and created radical policies – all from the most noble and moral motives”, he said. “In this matter, the Government will continue with the economic transformation programme to strengthen the economy’s structure and enhance diversification”, he said.

But Lim also warned against expecting the Malaysian central bank to renege on its pledge not to lock down the local bourse and currency.

The commitment by ministries and agencies to the Good Regulatory Practice had also gaining traction, with the take up of regulatory impact analyses (RIA) projects had been very encouraging, which totaled 30 at the end of a year ago , he said.

Najib on July 28 sacked his deputy premier and attorney general in a cabinet reshuffle widely seen as an attempt to strengthen his hold on power as he battles corruption allegations.

Said Karpall, acting manager of the pro-democracy group Bersih that is organising an anti-government rally in the capital this month. It began falling initially on concerns that the world slump in oil prices will harm economic growth in oil-exporting Malaysia.