Flipside of ringgit’s strength


Petaling Jaya: While the recent sharp appreciation of the ringgit against a basket of other currencies has improved the mood of the Malaysian public, analysts caution that the movement of the local currency is a two-edged sword for businesses over the immediate term.

As of noon Nov 21, the ringgit had strengthened by 7.3% against the US dollar year-to-date, but with Malaysia being an export nation, concerns have arisen over companies and industries, such as rubber gloves and semiconductor, whose focus is on external markets.

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