Malaysians to pay more for staples as weak ringgit enters ‘uncharted territory’ amid global slowdown
- Malaysia’s central bank has limited options to prop up the ringgit as its weakness is linked to external factors, economists say
- A cheaper ringgit, however, can benefit Malaysia’s economy in sectors such as exports and tourism
An imported vegetable widely used in Malaysian kitchens, the pungent bulb is now around 16 ringgit (US$3.34) a kilogram, almost double its 9 ringgit price just a month earlier, he said.
“It’s really expensive now, but there’s nothing we can do about it,” said Subramaniam, as he stacked onions in his sundry shop in Kuala Lumpur. “Our suppliers raised their prices and we have to do the same.”
The ringgit fell to 4.760 to the dollar on October 19, according to Bloomberg data, prompting concerns it may plunge to levels last seen in 1998 when regional currencies tanked due to aggressive foreign-exchange speculation that triggered the Asian financial crisis.
Malaysia’s central bank on Monday said the economy was “not in crisis” despite the ringgit hitting a record low, and that it would take all necessary measures to maintain a “smooth and controlled adjustment of the ringgit”.