Explain how printing money and banning interest rates will help boost Malaysia’s economy, Guan Eng asks Perikatan

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Lim Guan Eng Questions Perikatan Nasional's Economic Policy Proposals

DAP chairman Lim Guan Eng has questioned the feasibility of Perikatan Nasional's (PN) economic policy proposals, specifically concerning the potential effects of printing more money and banning interest rates on Malaysia's economy. Lim raised concerns that such policies could lead to hyperinflation and severe disruption to the financial system, potentially causing significant job losses rather than boosting economic growth or strengthening the ringgit.
Concerns Regarding Money Printing

Lim Guan Eng cited the historical example of Germany in the 1920s, which experienced severe hyperinflation following extensive money printing. This historical event, he suggested, demonstrates the detrimental consequences of such monetary policies. He specifically referred to a 2020 proposal by Machang MP Wan Ahmad Fayhsal Wan Ahmad Kamal for Bank Negara Malaysia to print money and distribute it directly to citizens, questioning its practicality and potential economic repercussions.
Impact of Banning Interest Rates

Furthermore, Lim addressed the proposal by PAS and PN to ban interest rates. He argued that implementing such a policy would create significant turmoil within Malaysia's established financial infrastructure. This disruption, he posited, could lead to widespread unemployment across various sectors, including banking, insurance, and capital markets, due to the forced closure of institutions operating on an interest-based model.
Economic Context and Criticism

These criticisms were voiced in the context of PN leaders actively promoting their economic strategies in the lead-up to the upcoming six state elections. Lim, a former finance minister, highlighted that while Malaysia possesses a robust Islamic financial system that operates without interest, it coexists with a conventional interest-based system. He implied that removing the latter would destabilise the broader economic framework.

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Explain how printing money and banning interest rates will help boost Malaysia’s economy, Guan Eng asks Perikatan

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