Kuala lumpur: The ringgit's approximately 10 per cent increase in value against the US dollar in 2025 has significantly reduced the cost of imported technology and equipment, presenting a timely opportunity for the adoption of new software and machinery, stated Federation of Malaysian Manufacturing (FMM) president Jacob Lee Chor Kok. He highlighted that this currency appreciation could particularly benefit manufacturers, including small and medium enterprises (SMEs), by speeding up their technological transformation.
According to BERNAMA News Agency, Jacob Lee noted that the reduction in technology costs could help businesses move up the value chain. He emphasized the urgency of the situation, urging manufacturers to take advantage of the financial benefits provided by the stronger ringgit to expedite their adoption of new technologies and equipment. He made these remarks during a press conference following the FMM Council Swearing-In Ceremony.
Discussing the overall impact of the ringgit's appreciation on the manufacturing sector, Lee pointed out that while it indicates foreign investors' confidence in Malaysia's economic trajectory, it also exerts pressure on export-oriented businesses. These businesses may experience challenges as buyers might face increased costs for Malaysian products. Lee attributed part of the currency's strength to the government's economic rationalisation efforts, including subsidy reforms and a strategic blueprint aimed at fostering an inclusive and modern economy.
Finance Minister II Datuk Seri Amir Hamzah Azizan recently remarked that the ringgit had appreciated by 10.1 per cent against the US dollar and by 1.5 to 13.9 per cent against other key and regional currencies. Despite this appreciation, Amir Hamzah clarified that Malaysia's export value continues to grow due to robust production capabilities and strong integration into global supply chains, rather than solely relying on currency movements or cost factors.
Addressing concerns about US tariffs and their possible effects on Malaysia, Lee mentioned that the tariffs have introduced considerable market uncertainty over the past year. He advised the industry to remain patient until more information is available, suggesting that a clearer understanding of the situation would aid in making informed decisions. Lee also noted that the Investment, Trade and Industry Ministry is expected to make an announcement soon, which could further guide the industry's alignment with government strategies.