Kuala Lumpur: In recent days, the ringgit has been gaining ground against major currencies like the United States dollar and the Euro. At the same time, gold prices have been moving too, which has had a noticeable impact on businesses and everyday life. But as the ringgit strengthens, it's also natural to wonder how long this momentum can hold. For many, a stronger ringgit is good news. It means that imports, such as electronics or the raw materials that businesses use, cost less. This helps keep inflation in check, making it easier to manage daily expenses.
But there's another side to consider as well. Malaysia's economy relies a lot on exports, like electronic products. When the ringgit gets stronger, such goods become pricier for overseas buyers, which could hurt sales. The challenge is figuring out how to benefit from a strong currency without making our exports too expensive. Gold plays a part in this story. When the ringgit rises, the price of gold usually drops. This might make it a good time for people to buy gold. But if the ringgit keeps climbing, the returns on gold might not look as good, leading some to think about other investments.
Despite this, gold remains a popular choice. A lot of people may still see gold as a safe bet. To keep the economy healthy, Malaysia might need to look at broadening its export range to industries that can keep their value even when the currency is strong. One big reason behind the ring- git's recent strength is the government's Madani Economy framework. This policy aims to tackle corruption, ensure better governance and make systems more transparent.
These steps have boosted confidence in how the economy is managed, which contributes to an increase in foreign direct investments. Recent reports indicate that economic growth is continuing. In the second quarter of this year, gross domestic product grew 5.9 percent year-on-year, and 4.2 percent in the first quarter. This indicates optimism for the economy, supported by resilient consumer spending, sustained high business investments and improved exports.
These are strong reasons for foreign investors to see Malaysia as a stable and promising place for their money as such efforts help keep the ringgit strong and contribute to economic growth. For the ringgit to stay strong. Malaysia's economy should stay stable and resilient. That means keeping inflation under control, managing finances wisely and staying competitive internationally.
Political stability and good governance are also key to keeping investor confidence high and ensuring economic growth. While outside influences, like swings in global oil prices or shifts in US policy, could put pressure on the ringgit, careful management and continued focus on the Madani Economy, along with the ability to adapt to global changes will ensure the country stays on the right path.
AP DR MOHAMAD NIZAM JAAFAR
Arshard Ayub Graduate Business School, Universiti Teknologi Mara (UiTM)
But there's another side to consider as well. Malaysia's economy relies a lot on exports, like electronic products. When the ringgit gets stronger, such goods become pricier for overseas buyers, which could hurt sales. The challenge is figuring out how to benefit from a strong currency without making our exports too expensive. Gold plays a part in this story. When the ringgit rises, the price of gold usually drops. This might make it a good time for people to buy gold. But if the ringgit keeps climbing, the returns on gold might not look as good, leading some to think about other investments.
Despite this, gold remains a popular choice. A lot of people may still see gold as a safe bet. To keep the economy healthy, Malaysia might need to look at broadening its export range to industries that can keep their value even when the currency is strong. One big reason behind the ring- git's recent strength is the government's Madani Economy framework. This policy aims to tackle corruption, ensure better governance and make systems more transparent.
These steps have boosted confidence in how the economy is managed, which contributes to an increase in foreign direct investments. Recent reports indicate that economic growth is continuing. In the second quarter of this year, gross domestic product grew 5.9 percent year-on-year, and 4.2 percent in the first quarter. This indicates optimism for the economy, supported by resilient consumer spending, sustained high business investments and improved exports.
These are strong reasons for foreign investors to see Malaysia as a stable and promising place for their money as such efforts help keep the ringgit strong and contribute to economic growth. For the ringgit to stay strong. Malaysia's economy should stay stable and resilient. That means keeping inflation under control, managing finances wisely and staying competitive internationally.
Political stability and good governance are also key to keeping investor confidence high and ensuring economic growth. While outside influences, like swings in global oil prices or shifts in US policy, could put pressure on the ringgit, careful management and continued focus on the Madani Economy, along with the ability to adapt to global changes will ensure the country stays on the right path.
AP DR MOHAMAD NIZAM JAAFAR
Arshard Ayub Graduate Business School, Universiti Teknologi Mara (UiTM)
Source: News Straits Times, Malaysia
#aagbs
#UiTM
#NST
#news
