A stronger ringgit benefits Malaysia’s economy by boosting purchasing power, stabilising import costs and attracting foreign investment, says deputy minister
GEORGE TOWN: The ringgit’s recent strength against the US dollar is a positive development for Malaysia’s economy and its people.
Deputy Investment, Trade and Industry Minister Sim Tze Tzin said the performance reflects foreign investor confidence in the nation’s economic stability.
He noted the local currency has strengthened significantly from around 4.50 to the US dollar earlier in the prime minister’s administration. It is now trading at a more comfortable level of around 3.89.
“The firmer ringgit reflects the rising inflow of foreign investments, in addition to more international tourist arrivals,” Sim told reporters after a Chinese New Year event.
He said this continued inflow contributes directly to domestic economic growth.
The minister highlighted increased purchasing power as a key benefit for the public and businesses.
More stable import costs for items like fertiliser, machinery and raw materials help control living expenses.
This stability is particularly advantageous for the agriculture and manufacturing sectors.
Sim explained that better-controlled import costs help stabilise food prices and reduce pressure on the cost of living.
For manufacturers, competitively priced foreign machinery and technology can boost local industry productivity.
Currency stability contributes to a stronger overall economic environment and helps prevent dramatic consumer price increases.
Looking ahead, Sim anticipates the ringgit will remain stable without sudden fluctuations this year.
He cautioned that excessive gains could pressure the export sector, making the current level a comfortable balance for growth.
“Improving investor confidence and tourist arrivals are expected to continue to stimulate gross domestic product growth,” he said.
This stimulation will focus on tourism, manufacturing, and small and medium enterprises.
The Ministry of Investment, Trade and Industry will intensify promotional efforts to attract more investors.
Sim reaffirmed its role as the lead agency in driving national investment and trade.
