Malaysian businesses struggle with costs as ringgit weakens against greenback

Even as economic activities in Malaysia have largely resumed, companies big and small - from manufacturers to homebuilders and restaurants - are feeling the pinch of soaring operating costs due to the weakening ringgit. 

The ringgit has been trading lower against the US dollar since the start of this year as the hawkish stance by the US Federal Reserve boosted the greenback. On Tuesday evening (May 17), the ringgit strengthened slightly to RM4.39 to the dollar, from last Friday’s close of just under RM4.40. In the year-to-date, the ringgit has depreciated more than 5 per cent against the greenback.

The weakening ringgit has impacted the cost of construction in Malaysia due to escalating building material prices, said Bill Lee, president of the Building Materials Distributors Association.