The ringgit has risen - so?

We’ve seen the ringgit steadily improve over the past few weeks. At RM4.20 to the US dollar, It is at a high right now. At its worst, the ringgit value fell to 4.79, back in February. So I guess this is something for us to celebrate after several years of poor economy.

Four days ago, the local note was even declared the best-performing currency in Asia when it was trading at 4.09 to the greenback, the highest in three years.

Some people are even saying that the ringgit will continue to improve and could even reach a high of 3.55, as I have read in reports everywhere. This is so different from last year when they were saying that it could hit 5.00.

I had never been this excited to launch the XE currency exchange app on my smartphone before, and I was doing it almost every hour. I almost wanted to head out and withdraw all my money from the ATM and buy some foreign currency at the money changer down the street.

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For a second there, I kind of knew how it felt to be George Soros. Oh, our former prime minister Dr Mahathir Mohamad would have been so upset indeed!

After going through what people have been claiming to be a ‘bad economy’ for so long, many Malaysians probably see this as an indicator that things might be looking up soon.

Media have reported economic and financial experts saying this is due to good economic growth, current account surplus, fiscal improvement and sustained foreign inflows.

According to news reports, Bank Negara Malaysia says that export is expected to expand and this would lead to an increase of inflow. The efforts of the government in trying to attract foreign tourism are also making an impact.

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Visa exemptions for China and India have significantly increased arrivals this year, and this is only going to continue to increase in the near future.

It also looks like foreign investors are starting to enter Malaysia again as stated in a report by Reuters. According to the article, this is due to how the country is showing improving growth, a more stable government, and yes, our improving currency.

This could also be because neighbours like Thailand and Indonesia are or were facing either political problems or a change of government.

Will things finally start to look up?

So what does this actually mean for us Malaysians living in the country? Will a stronger ringgit mean that the cost of living will go down? Does it mean that we can now afford to go on overseas holidays? Does it mean that the job market will improve and starting salaries for the many sectors will also be raised? Does this mean that our small- and medium-sized enterprises will be able to sustain and grow again?

Well, it could just well be so. The inflation rate has decreased from two percent to 1.9 percent and it is expected to drop even more. The number of jobs this year has increased too, by 1.5 percent, which equates to about 8.94 million new jobs.

These are small improvements but they are better than nothing. Also, whether it improves further or gets worse will depend on what the government does next.

As someone who runs a mom-and-pop business while raising a family, I would assume my feelings are more or less representative of most Malaysians. I don’t want to feel like I’m surviving hand-to-mouth every month.

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I also would like to be able to save a little bit more for rainy days or for my old age. With what is appearing in the news now, I am feeling somewhat better and a little hopeful.

As I mentioned, what the government does next is going to determine if Malaysia continues to do better or slide back down. Our leaders should continue travelling around the world, convincing foreign investors that we are a stable environment to invest in. Bank Negara Malaysia should continue what they are doing. Economy Minister Rafizi Ramli should also continue whatever, err, he is doing.

Also, October has begun and that means that Budget 2025 is just around the corner. Hopefully, the government has taken everything into consideration.

In June, I wrote an article titled “If economy is doing well, why don’t Malaysians feel it?” In it, I gripe about how 68 percent of Malaysians feel that the country is in a recession, even though government data shows that the economy has actually grown. Well, I don’t want to feel that anymore and let’s hope the data is correct. - Mkini

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ZAN AZLEE is a writer, documentary filmmaker, journalist and academic. Visit fatbidin.com to view his work.

The views expressed here are those of the author/contributor and do not necessarily represent the views of MMKtT.