Trade Competitiveness Stable Despite Stronger Ringgit – Amir Hamzah
KUALA LUMPUR, Feb 25 (Bernama) -- The overall impact of ringgit movements on Malaysia’s trade competitiveness is expected to remain manageable, Finance Minister II Datuk Seri Amir Hamzah Azizan said.
He noted that the ringgit strengthened by 10.1 per cent against the US dollar in 2025 and gained between 1.5 and 13.9 per cent against other major and regional currencies.
“In 2025, Malaysia recorded gross export growth of 6.5 per cent, up from 5.8 per cent in 2024.
“This growth was mainly driven by the electrical and electronics sector, which remained resilient,” he said in response to a supplementary question from Senator Datuk Bobbey Ah Fang Suan in the Dewan Negara today.
Senator Bobbey Suan asked whether the current strength of the ringgit could undermine the country’s export competitiveness and what measures had been taken to help exporters manage the impact of currency fluctuations.
Amir Hamzah further clarified that despite the ringgit’s appreciation, the value of Malaysia’s exports continued to show positive growth.
The minister said Malaysia’s export performance does not rely solely on cost factors or the ringgit’s movements, but is supported by strong production capacity and a high level of integration in global supply chains.
“Export growth is expected to continue benefiting from rising demand for technology-related products, including artificial intelligence (AI) technologies, as well as increased tourism activity following the launch of Visit Malaysia Year 2026, expanded air travel capacity, and extended visa-free travel facilities.
“While a stronger ringgit may affect the competitiveness of exports and exporters through the conversion of US dollar earnings into ringgit, the impact is expected to remain manageable, as leading exporters typically implement hedging measures to mitigate currency fluctuations,” he added.
Amir Hamzah also noted that the stronger ringgit has helped reduce the cost of imported goods.
However, he cautioned that its impact is not uniform and depends on commodity costs, which are influenced by supply and demand constraints.
“Fundamentally, the key is to maintain control, especially for essential controlled products, to ensure prices remain within reasonable ranges.
“We also ensure that the assistance provided is sufficiently broad to give the public access to available social protection support,” he said.
-- BERNAMA