Kuala lumpur: Companies must actively manage currency risks through appropriate hedging and business strategies, said Investment, Trade and Industry Minister Datuk Seri Johari Abdul Ghani. He noted that fluctuations in the ringgit are a normal market occurrence and part of the broader economic cycle, with their impact differing across sectors depending on business models and market exposure.

According to BERNAMA News Agency, Johari remarked that while currency movements may create challenges for some, they also present opportunities for others. "What is important is for businesses to manage currency risks effectively by adopting appropriate strategies such as hedging, supply chain protection and customer management," he stated. He made these comments during a press event concerning the ringgit's recent strengthening, which for the first time in seven years reached the 3.9 level against the US dollar.

Johari explained that the impact of currency movements varies depending on the type of business. He noted that commodities and consumer-related businesses require different approaches to managing currency risks. Additionally, Johari discussed Malaysia's decision to sign the United States' trade deal under the Agreement on Reciprocal Trade (ART), describing it as a pragmatic step to avoid higher tariffs and safeguard the country's economic interests.

Signing the agreement, Johari noted, allows Malaysia time to negotiate terms without immediate tariff hikes that could affect exports and the broader economy. He emphasized that the government had carefully weighed the costs and benefits before signing and highlighted the inclusion of an exit clause should the agreement cease to serve Malaysia's interests. The priority, he added, is to ensure that businesses operating in Malaysia are protected and that the economy remains resilient.

Meanwhile, GDEX Bhd managing director Teong Teck Lean expressed that the stronger ringgit is generally positive for the group. He noted that a stronger ringgit helps reduce costs for services priced in the US dollar, such as software licences and technology subscriptions, making them more affordable compared with periods when the ringgit was weaker. From a talent perspective, a firmer ringgit could also help with retention by narrowing the wage gap between Malaysia and neighbouring markets, thereby reducing the incentive for talent to move abroad.

Teong added that a stronger ringgit supports cost efficiency, particularly on the technology side, with no major downside to the group's core operations. Also present at the launch was GDEX chairman Tan Sri Muhammad Ibrahim. GD Xchange represents GDEX's transformation from a conventional courier and logistics provider into a fully integrated, technology-driven logistics and distribution ecosystem, bringing together global technology principals and partners across various sectors such as supply chain, commerce, and the electric vehicle ecosystem.