Kuala lumpur: Malaysia needs to remain open to a broader range of international trade agreements beyond its traditional markets, particularly the United States and China, to support the stability and further strengthening of the ringgit. Center for Market Education chief executive officer Dr. Carmelo Ferlito emphasized the importance of pursuing international free trade agreements, highlighting that freer trade ultimately benefits the public.

According to BERNAMA News Agency, Ferlito stated on Bernama World that Malaysia needs to be more aggressive in understanding the benefits of free trade for its population. He acknowledged that the government was generally on the right track but suggested that more could be done, particularly in rationalizing public spending.

Ferlito pointed out that while some measures had already been taken on the revenue side, fiscal discipline would be crucial for the government to build future credibility. He also noted that the recent government reshuffle has helped build confidence, with key positions filled by individuals positively viewed by the investment community.

Moreover, Ferlito stressed the need for structural reforms to reduce excessive government intervention in the economy, including recalibrating the role of government-linked companies. He suggested that addressing structural issues, such as the fragmentation of small and medium enterprises through reforms encouraging consolidation, could help create stronger private sector players, allowing the private sector to play a larger role in driving economic growth.

In discussing the ringgit's performance, Ferlito noted that the Malaysian currency's performance in 2024 and 2025 has been marked by trading volatility due to external factors and speculative pressures. He emphasized that for investors and market observers, stability matters more than the currency's value, as a stable ringgit provides greater certainty for investment planning and economic decision-making.

On December 26, the ringgit surged to 4.0410/0495 against the US dollar, its highest level in nearly five years. Previously, the ringgit hit 4.0450/0443 on February 26, 2021.