MITI Calls on Malaysian Firms to Sharpen Currency Risk Strategies Amid Stronger Ringgit
KUALA LUMPUR — The Ministry of Investment, Trade and Industry (MITI) has urged Malaysian companies to strengthen their currency risk management frameworks as the ringgit continues to show signs of renewed strength.
Investment, Trade and Industry Minister Johari Abdul Ghani said currency fluctuations are part of normal economic cycles, but their impact varies depending on industry structure and market exposure.
He noted that the ringgit’s recent rise to the 3.9 level against the US dollar — its strongest in seven years — should be managed strategically rather than viewed solely as a short-term development.
“Currency movements create both risks and opportunities. What matters is how businesses respond through effective hedging, supply chain planning, and customer management,” he said.
Johari made the remarks at the launch of the GD Xchange Experience Centre in Kuala Lumpur.
He explained that sectors such as commodities, manufacturing, technology, and consumer services require tailored approaches due to differences in cost structures and revenue streams.
On Malaysia’s participation in the United States’ Agreement on Reciprocal Trade (ART), Johari described the decision as a pragmatic step to shield exporters and preserve economic stability.
“The agreement provides Malaysia with time and flexibility to negotiate favourable terms. Without it, higher tariffs could have been imposed immediately, affecting trade and investment,” he said.
He added that the government had carefully assessed the risks and benefits and ensured that exit provisions were included.
Meanwhile, GDEX Berhad Managing Director Teong Teck Lean said the stronger ringgit has helped improve the group’s cost efficiency.
He noted that many technology-related services are priced in US dollars, making them more affordable under current exchange rates.
“From a talent perspective, a firmer ringgit also helps narrow wage gaps with neighbouring countries, reducing outward migration of skilled workers,” he said.
Also present was GDEX chairman Muhammad Ibrahim.
GD Xchange serves as GDEX’s technology arm, supporting its transformation into a digitally driven logistics and distribution ecosystem.
Overall, MITI stressed that Malaysia’s economic resilience depends on how effectively companies adapt to currency volatility and integrate risk management into long-term business strategies.
-wilayah.com.my
