Malaysian Ringgit Hits Lowest Level Since 1998. Malaysia’s ringgit currency has continued its decline to its lowest level since the 1998 Asian financial crisis as China’s sluggish economy weighs on the neighboring country. The ringgit currency slipped past the level of 4.8 against the US dollar on Tuesday, the weakest level since reaching an all-time low of 4.8850 in 1998.
Meanwhile, the ringgit has decreased by more than 4% in 2024. For your information, Malaysia’s economic growth has grown slower than expected in the third quarter of 2023. This is due to a decrease in exports to China.
Malaysian manufacturing activity was recorded as still contracting with the January 2024 Purchasing Managers Index reaching 49.0. This indicates that Malaysia’s manufacturing activity has been below the contraction threshold at level 50 for 17 consecutive months.
Meanwhile, Malaysia’s growth trajectory this year is still full of risks, both externally and internally. The ringgit also came under pressure after Malaysia recorded its largest outflow of foreign bonds in the last five months in January 2024 amounting to US$382 million or around IDR 5.9 trillion.
Previously, Australia & New Zealand Banking Group analyst Khoon Goh said that there was the potential that the ringgit would reach a new all-time low. He saw that Malaysia’s exports had not yet recovered compared to the economies of other Asian countries. The projected economic growth of the neighboring country is projected to remain sluggish.
Malaysian Ringgit Hits Lowest Level Since 1998. However, most analysts predict that by the end of 2024 the ringgit will strengthen again. This is because Malaysia’s economic growth is gaining momentum.
