Why Malaysia’s Currency Has Been Falling: Can The Ringgit Recover? | Insight | Full Episode
425,263
Published 2024-05-07
This has caused a strain on the country’s key industries - from the airlines to manufacturing - due to higher fuel prices and cost of raw materials. It has shaken investor confidence and accelerated outward migration.
Why has the ringgit lost so much of its value? Could the depreciating ringgit spell trouble for Prime Minister Anwar Ibrahim? As the government projects a recovery, is a turnaround in sight?
0:00 Introduction
1:13 Impact of falling ringgit
04:59 Why the ringgit has fallen
10:11 How a lower ringgit affects trade
15:23 Depreciation of ringgit compared to S'pore dollar
17:50 Fall of ringgit: brain drain?
25:48 Impact of low ringgit on overseas students
28:14 Advantages of a weak ringgit
34:37 Does the falling ringgit echo the 1998 Asian financial crisis?
39:38 Will the ringgit slide rattle PM Anwar's government?
42:14 Will the ringgit recover?
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ABOUT THE SHOW: Insight investigates and analyses topical issues that impact Asia and the rest of the world.
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All Comments (21)
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15:01 the Malaysian container driver says he’s bought 2 houses in Malaysia due to his working in Singapore, and if his motorcycle breaks down, he’s able to buy a new motorcycle with his one month salary. It’s no surprise why many Malaysians are willing to endure the hours of traveling to and fro, between Malaysia and Singapore everyday because they’ll be able to give their families a better life.
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As an Indonesian, i am looking forward to see Malaysia being close to Singapore. Drop racial and religious segregation, Indonesia has the same symptoms and it's detrimental to it's growth, the future of Indonesia are not that bright too. We'll see.
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It is interesting to see common Malaysians complaining about rising prices in the beginning, followed by comments by experts of Malaysia’s inflation is low/well controlled.
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Malaysia needs to shift its focus to merit.
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Oil revenue from East Malaysia for 60+ years all went missing. Malaysia really boleh. 😂😂😂😂
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The biggest problem with this currency issue is that they have got it totally wrong. Stop focusing on weak currency, instead, focus on the elephant in the room = low wages
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Malaysian Ringgit’s value is a reflection of its policies that prevents the economy to move up the value chain. Subsidies might help the people but in the long run, it will bankrupt the government which also affects the ringgit so it’s a vicious cycle!
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Najib is a great role model on how to grow money out of thin air. Perhaps everyone in Malaysia could emulate him.
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Ya know....I should indirectly thank the government for this one. I graduated from a top tier government high school in Malaysia and many of our bright minded students who are from rich families left for Australia right after SPM and didn't bother to waste 2 more years of STPM to decide their fate. All end up being doctors and engineers. I was in limbo for a few years before my golden opportunity to study overseas in US came. 30 years later, here I am working and living in TX, looking to retire in a few years and I never looked back. I remember during the early years of my engineering career, my parents told me about how the government is using cash to entice Malaysians with technical backgrounds to return home. I laughed. They really need to ask themselves whatever happened to those they sent overseas with full scholarships and I think I know the answer to that.
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In Malaysia, the weakening Ringgit is largely due to the heightening extremism, racism and discrimination that has led to loss of confidence amongst investors, businesses and consumers. It is not fighting corruption at war footing. It seems to have rewarded the inefficient civil service with a 13% undeserved increase in salary. The government better learn from the failed states such as Pakistan and Sri Langka lest it is sliding down the same road!
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Before in the 60s and 70s, our Ringgit is the same value as Singapore and Brunei dollar.I remembered we can use Ringgit, Singapore and Brunei dollar being circulated Now, Singapore and Brunei still stay as it is but Malaysian ringgit value is dropping over the past few decades. What have the Malaysian government done
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everybody is laughing and mocking at Ringgit now 😣...it's a sad and heartbroken moment for Malaysia, especially for those normal citizen who are innocent and endure the shame on daily basis...I wish a speedy recovery for Malaysia and hopefully in the future there will be a cheerful moment for the people... should stop the tears and may justice prevail... ❤️🇲🇾❤️
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Dude. Politicians stating inflation is due to the war in Ukraine are driving me crazy. Do Malaysians only eat potatoes and bread? Central banks around the world are increasing their balance sheets to crazy levels. What did you think would happen?
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This is why I keep all my net worth in anything BUT the ringgit lol. I am ready and hedged against Malaysia's eventual collapse. The majority malays would rather sink the ship than to change its race based policies that is ailing the nation's competitiveness on the world stage.
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Malaysians are obsessed with people like Akmal. Of course huge problem.
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continue with race based policies and i wont be surprised SGD 1 = RM 4. favouring not the best, but the skin colour will drive more capable malaysians overseas.
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Singaporeans should be more concerned about rising living cost on our home turf and rising local unemployment that's being taken over by the very manpower that we're commenting on. Many Malaysians are so lucky because Singapore is only a stone's throw away to be able to earn better incomes and live better lives for themselves. While Singaporeans can't return the favour but have to travel far and wide.
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Some bankers are telling me that they are projecting the rate of exchange might hit 1:5 in the next 10years if MY continue the way they run their finances.
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It's sad that Malaysia is getting poorer. Lots of Chinese Malaysians moved to Singapore, causing a brain drain in Malaysia.
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Malaysia exports a lot of oil and gas. It received the monies in usd as oil and gas are priced in usd. The government have lots of myr when the oil and gas usd monies are exchanged into myr. The big issue in mal is that there are too many subsidies in the economy. There are lots of subsidies to government servants, poor , race based etc. The government should force the people to work harder by cutting down the subsidies during the good times not during the bad times. The government sector is too big. Too much expenditure. Too much oil subsidies as well. Malaysia have wisely chosen to keep a low interest rate instead of following the feds. Ringgit would naturally fall as the int rate in Malaysia is lower. Housing loans is only 3.8%. Singapore is 4-5%. US is 7%.