Ringgit’s rebound tests Malaysian exporters as Singdollar remains resilient

Businesses say the strengthening ringgit is starting to squeeze exporters’ margins, though SME importers get cost relief

[KUALA LUMPUR] Malaysia’s ringgit has surged to its strongest levels in years, but for businesses trading across the Johor Strait, the key question is how the currency will fare against the resilient Singapore dollar.

The ringgit’s rally, buoyed by improving domestic fundamentals and waning confidence in the US dollar, is lifting investor sentiment.

However, some businesses warn that the stronger currency is beginning to squeeze exporters’ margins, particularly for manufacturers selling into Singapore and global markets.

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