SINGAPORE: The Malaysian ringgit has been on an upward trend over the past six months, gaining strength against the Singapore dollar and the US dollar from the positive growth of the Malaysian economy and the recent US Federal Reserve interest rate cut.
“Clearly it is a matter of concern for both Malaysians and Singaporeans,” says 1M65 founder, technopreneur and investor Loo Cheng Chuan, adding that people are closely watching the ringgit’s direction.
According to Mr Loo, this rise is expected to continue into next year, potentially bringing the ringgit to 2.90 against the Singapore dollar.
The currency has strengthened due to two reasons. “The Federal Reserve has lowered the interest rate… so we now have a lot of hot money that generally flowed from Malaysia to the US now coming back to Malaysia, so the ringgit is appreciating,” Mr Loo explained.
In addition, Malaysia’s economy has been performing well under Prime Minister Anwar Ibrahim’s leadership, with new policies that have …