Policy reforms needed to reverse ringgit’s weakness, say industry observers

AS the Malaysian ringgit continued to slide against the US dollar in recent weeks, Hong Chee Meng, the president of the Federation of Sundry Goods Merchants Association of Malaysia, began to worry.

A stronger greenback hurts importers such as manufacturers and retailers, with some 80 per cent of Malaysia’s imports – including raw materials and food – invoiced in US dollars, according to World Bank data.

“Sundry shop owners need to allocate more cash to purchase the same amount of goods and this will affect their cash flow, especially for those new and smaller players,” he told The Business Times.