A stronger ringgit promises cheaper imports and economic optimism, but experts warn price cuts will take months to materialise for consumers.
KUALA LUMPUR: The ringgit’s recent surge to a seven-year high against the US dollar is being hailed as a major boost for Malaysia’s economic outlook and a benefit for the public.
Experts say the currency’s strength reflects effective governance, political stability and growing investor confidence in the nation’s prospects.
While consumers and import-dependent businesses stand to gain significantly, the full impact on retail prices will not be immediate.
Distinguished Professor Datuk Shamsul Amri Baharuddin explained that the delay is due to existing inventories of goods imported when the ringgit was weaker.
“When the ringgit strengthens, imported goods such as smartphones, vehicles, medicines, wheat and milk become cheaper,” he said.
He noted that price reductions generally take two to four months to filter through, especially for high-value items.
Shamsul Amri, Director of the Institute of Ethnic Studies at Universiti Kebangsaan Malaysia, identified four main beneficiary groups.
These are consumers, import-reliant businesses, the government and Malaysians travelling or living overseas.
He stressed that the public should not misinterpret the delayed impact as a policy failure.
On essential goods, items with faster turnover like fresh food may reflect changes earlier than durable goods.
From a business perspective, a stronger ringgit allows importers to gradually reduce operating costs.
The extent to which savings are passed on depends on pricing structures and supply chains.
Shamsul Amri added that strict enforcement and price monitoring are crucial to ensure fairer prices for consumers.
Economist Prof Dr Ahmed Razman Abdul Latiff described the ringgit’s strength as a “positive signal” for the national economy.
He said it enhances foreign investor confidence and brings long-term benefits like job creation.
The impact extends beyond macroeconomics into daily life, with sectors like livestock farming set to benefit early.
“Malaysia’s chicken farming industry depends almost entirely on imported animal feed,” Ahmed Razman said.
He explained that cheaper feed imports could contribute to lower chicken prices in the market.
The stronger ringgit also increases the purchasing power of Malaysians wishing to travel overseas.
Addressing scepticism, Ahmed Razman said the performance is driven by both external and internal factors.
“Compared with other Asian currencies, the ringgit recorded among the strongest performances,” he stated.
Domestic economic stability and accommodative monetary policy support more robust growth.
However, the government must monitor the impact on the export sector and domestic tourism.
Export goods risk becoming more expensive overseas, which could weaken demand.
“It is important for Malaysia to continue maintaining competitiveness through the production of high-value-added products,” Ahmed Razman added.
He believes the stronger ringgit will not adversely affect Visit Malaysia Year 2026.
