A silver lining in a weaker ringgit
July 12, 2023 @ 12:03am
On the flipside, the falling ringgit is an incentive for foreign markets to buy Malaysian-made goods. -NSTP File/EFFENDY RASHID
LETTERS: THE ringgit has shrunk in value to RM4.67 per United States dollar. A former minister said he would not be surprised if it hit RM5.
The low exchange rate means the ringgit has a lower purchasing value when we convert it to foreign currencies.
Students abroad are struggling to make ends meet.
On the flipside, the falling ringgit is an incentive for foreign markets to buy Malaysian-made goods.
t will also generate more profit for certain export-oriented businesses, such as the manufacturing sector, whose sales volumes will likely soar.
A weak ringgit will be an impetus for foreigners to invest in Malaysia as it is cheaper to operate and buy stocks and bonds in Malaysia.
In this respect, Aramco (officially the Saudi Arabian Oil Group), one of the largest companies in the world by revenue, will set up business here, creating many jobs for locals.
And thanks also to billionaire Elon Musk, who has agreed to set up a business base in Malaysia, opening the pathway to job opportunities.
Foreign tourists, especially from Singapore, will benefit from a weaker ringgit.
Most importantly, the prime minister has said that there will be no compromise when it comes to eliminating corruption in governance.
If that agenda is pursued, it will shore up our currency.
DR A. SOORIAN
Seremban, Negri Sembilan
Source: https://www.nst.com.my/opinion/letters/2023...-weaker-ringgit
