Bayan baru: The strengthening of the ringgit against the US dollar is seen as a positive development for the Malaysian economy, offering direct benefits to the people and the country's business and investment sectors. Deputy Investment, Trade and Industry Minister Sim Tze Tzin stated that the performance of the local currency, which has returned to a stronger level, reflects foreign investors' confidence in Malaysia's economic stability.
According to BERNAMA News Agency, during the early part of Prime Minister Datuk Seri Anwar Ibrahim's administration, the ringgit traded around 4.50 against the US dollar before appreciating to its current level of approximately 3.89. Sim noted that the stronger ringgit is indicative of rising foreign investment inflow, alongside increased international tourist arrivals that continue to contribute to domestic economic growth. He expressed hope that the currency's strengthening would bring benefits to the people.
Sim made these remarks at the Penang Parti Keadilan Rakyat (PKR) Chinese New Year MADANI Open House at Wisma PKR in Bayan Baru. The event was attended by Penang Chief Minister Chow Kon Yeow, Education Minister Fadhlina Sidek, PKR state leadership council chairman Datuk Mohamad Abdul Hamid, who is also Deputy Chief Minister I, and other party leaders.
Sim highlighted that a stronger ringgit benefits individuals in the agriculture and manufacturing sectors through increased purchasing power, as the prices of imported goods such as fertilisers, machinery, and raw materials become more stable. This stability in import costs helps regulate food prices and reduces the pressure of rising living costs.
He further explained that the manufacturing sector benefits from competitive pricing when purchasing machinery and technology from abroad, thereby boosting the productivity of local industries. Sim also emphasized that currency stability contributes to a more robust economic environment, ensuring consumer goods prices do not rise dramatically.
Looking ahead, Sim anticipates the ringgit to maintain its stable level without sudden fluctuations throughout the year. He noted that excessive currency gains could pressure the export sector, so the current level is considered balanced for economic growth. Improved investor confidence and increased tourist arrivals are expected to continue stimulating GDP growth, particularly in the tourism, manufacturing, and small and medium enterprises sectors.
Sim concluded by stating that the Ministry of Investment, Trade and Industry (MITI) will intensify promotional efforts to attract more investors to Malaysia, aligning with its role as the lead agency in driving investment and trade.