PETALING JAYA: Media group owner Datuk Tong Kooi Ong (pic) has denied the accusation by several blogs that he had taken position in the ringgit and gained financialy from its depreciation.
Tong, who now is the owner of The Edge Group and The Malaysian Insider, vehemently denied allegations that he had short the ringgit to the tune of US$1.4bil (about RM5bil) through a proxy.
“I vehemently and absolutely deny the accusations. I did not at any time short the Malaysian ringgit.
“I am an equity analyst, besides being an established entrepreneur. I am a value investor. I have never shorted currencies or equities. I acquire and build companies, create value for shareholders and create employment through ideas and innovation. My track record speaks for itself,” he said in a statement yesterday.
Tong said that Bank Negara had not contacted him and he pledged to cooperate fully with the central bank if his assistance was needed at any time.
He added that as a Malaysian, he too was against economic saboteurs.
“I support the Prime Minister’s call that those who sabotage the country’s economy must be brought to justice,” he said.
The blogs, in articles that surfaced last week, alleged that sources within Bank Negara revealed that Tong had taken a US$1.4bil short position on the ringgit through a proxy.
The articles that were written by unidentified authors alleged that the first transaction took place in August 2014 and subsequent short positions led up to January this year.
By taking a short position, a person effectively sells the ringgit and buys US dollars in anticipation of the ringgit weakening against the dollar.
Later they square off the position by selling the US dollar and buying the ringgit, making a profit from the depreciation.
Tong said personally, he did not believe it was even remotely possible to break Bank Negara or crash the ringgit, given that the foreign exchange reserves of the country were in excess of US$110bil.
“The current account of the country is in surplus. Non-ringgit borrowings are very low. I have gone on record with the above statement, both in my speeches and in the articles I wrote,” he added.
Tong said the facts were that almost every currency in the world was currently falling against the US dollar, due in part to the strengthening of the US economy and the expectations of an interest rate hike, following the end of the US quantitative easing since October 2014.
Many countries in the region and in Europe are depreciating their currencies and lowering their interest rates to promote growth.
Tong said he was currently unable to ascertain the individual(s) responsible for the malicious lies against him, and what their intentions were but vouched to pursue legal course of action once he was able to identify those responsible.
“Making up such lies is beneath human decency,” Tong said.
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