Weak ringgit situation needs fresh initiatives

SHAH ALAM - The performance of the national ringgit is currently in the spotlight as it recorded a decline against the United States (US) dollar.

As of 9am Tuesday, the local currency recorded a weak performance with the ringgit decreasing to 4.787/7930 against the US dollar from 4.785/7890 when the market closed on Monday.

At about 5pm, the media reported that the value of the ringgit continued to decline significantly on Tuesday when it reached a low of 4.795 against the US dollar.

The latest development also surpassed the daily low recorded on Oct 23 last year which was 4.7925.

The situation is concerning among the public including economists and stakeholders regarding the state of the country's economy in the future.

Bank Negara Governor Datuk Abdul Rasheed Ghaffour said the performance of ringgit does not reflect the positive prospects of the Malaysian economy in the future and is believed to continue to rise this year.

He said the growth in 2024 would be driven by an increase in external demand and strong domestic spending.

He said the tourism sector has recovered strongly with the arrival of tourists in 2024 expected to exceed the pre-pandemic level of 26 million.

The serious ringgit situation at the moment requires the injection of new and urgent initiatives from all parties.

Therefore, the government plays an important role to formulate an effective strategy in dealing with the current depreciation of the ringgit either in terms of national policy, economy or relations with foreign investors.

Of course, the brainstorming or sharing of ideas from economic experts and non-governmental organisations (NGOs) can also help the government channel important inputs towards improving the national economy.

Certainly, the political party did not miss the opportunity to voice out issue.

However, what is important is that efforts towards developing the national economy must be prioritised.