INVESTMENT, Trade and Industry Minister Datuk Seri Johari Abdul Ghani has called on Malaysian companies to take a more proactive approach in managing currency volatility, stressing that exchange rate movements are a normal feature of economic cycles and should be addressed through sound business strategies rather than short-term reactions.
Speaking at the launch of the GD Xchange Experience Centre on Tuesday, Johari said fluctuations in the ringgit affect sectors differently, depending on their business models, supply chains and market exposure.
While a stronger or weaker currency may pose challenges for some firms, it can also create advantages for others.
Commenting on the recent strengthening of the ringgit, which climbed to 3.9 against the US dollar for the first time in seven years, he said, “What is important is for businesses to manage currency risks effectively by adopting appropriate strategies such as hedging, supply chain protection and customer management.”
Johari added that the impact of currency movements varies across industries, noting that commodity-based businesses and consumer-related sectors require different approaches when responding to exchange rate changes.
Economist Dr Geoffrey Williams told New Straits Times that the stronger ringgit as a double-edged sword for the Malaysian economy, benefiting importers while placing pressure on exporters.
He said importers gain from lower costs when purchasing in US dollars, but exporters face reduced competitiveness as Malaysian goods and services become more expensive in overseas markets.
“This is a big issue because the ringgit is almost 12 per cent stronger since last year and 18 per cent stronger since it was at RM4.80 in mid-2024,” he told Business Times.
Williams cautioned that despite public optimism over the currency’s performance, exporters are confronting real difficulties, while consumers may see little relief from cheaper imports.
“So, few truly benefit,” he said.
He added that Johari’s remarks reflected the government’s broader position that businesses adversely affected by the strong ringgit should not expect extensive intervention or support.
According to Williams, this stance is consistent with Bank Negara Malaysia’s policy that the ringgit is market-determined, with no fixed target level, and that central bank intervention is limited to ensuring sufficient liquidity and orderly market conditions.
Williams also highlighted two major risks associated with the ringgit’s recent strength.
“There’s two big risks for the Malaysian economy. The first is a sharp correction bringing it down to RM4.20 to RM4.40 or lower. The second risk is political instability from manoeuvring with the Unity Government coalition parties,” he said.
From the corporate perspective, GDEX Bhd managing director Teong Teck Lean said the stronger ringgit has been largely positive for the group, particularly in terms of cost efficiency.
He said the appreciation of the ringgit has helped reduce expenses related to US dollar-denominated services such as software licences and technology subscriptions, without affecting GDEX’s core operations.
“From a talent perspective, a firmer ringgit could also help with retention, as the wage gap between Malaysia and neighbouring markets narrows slightly, reducing the incentive for talent to move abroad,” he said.
As the ringgit continues to test new highs, policymakers and industry players alike appear aligned on one message: currency strength alone is neither a guarantee of economic gain nor a crisis in itself, but a reality that businesses must actively manage. - February 4, 2026
