A stronger ringgit: Impact on the people and investors

Are We OK? podcast co-hosts Peter Yong and Dr Ong Kian Ming pointed out some positive from the strengthening of ringgit.

The value of ringgit appreciated from RM4.8 to USD to 4.1 on Oct 1. This was an appreciation of 40 to 50 percent, Ong pointed out.

Co-host Peter Yong said that the stronger ringgit will likely to bring down the inflation as well.

“People who are importing likely to see a good margin Inflation is supposed to come in check if this ends up translating at consumer level. Kind of savings. Lower imported inflations. So I think we can see for i-Phone it wasn’t that expensive.
MNCs that have immediate retail control, I think those are the areas that we will see a lot of positivity

Ong added that those who are in the global supply chain too would gain some advantage.

As for investors, he said that it will boost investor confidence on the Malaysian government and economy.

“From investors standpoint this will be seen as vote of confidence to the Malaysian government and Malaysian economy. Investors won’t be afraid that the value of ringgit would continue to slide and value of investments go down.”