Malaysia’s currency has climbed to its strongest level in years, but many Malaysians are now raising a familiar and pressing question: if the ringgit is strengthening so quickly, why are daily food prices still rising instead of easing?
The conversation gained momentum after a light-hearted post on Xiaohongshu questioned whether classic hawker meals might ever return to their pre-inflation prices. The user joked about wanton noodles costing RM4 or RM5 again now that the ringgit has surged, sparking a lively debate among hundreds of Malaysians who echoed the same frustration.
As of November 12, the ringgit traded at RM3.17 to 1 Singapore dollar and RM4.13 to 1 US dollar — its strongest position in nearly four years and one of the best performances among Asian currencies in 2025. Earlier this year, the currency had slumped to lows exceeding RM4.50 per USD and RM3.37 per SGD, making the current rebound a significant turnaround.
In theory, a stronger ringgit makes imported goods cheaper, which should ease costs for businesses and consumers. But for most Malaysians, especially those buying from hawker stalls and small eateries, prices have only continued to climb. Many noted that dishes once considered affordable — like bak kut teh priced at around RM14 — now cost roughly RM23, with no signs of returning to previous levels.
Several individuals identifying as stall operators weighed in, explaining that food prices are influenced by far more than currency movements. Many said that fixed costs such as rent, utilities, and labour remain stubbornly high. Some shared that stall rentals can exceed RM1,200 per month, leaving them with limited profit margins of only RM3 to RM4 per dish even at higher selling prices. Vendors insisted that price increases were not arbitrary but a reflection of rising operating pressure.
Although a stronger ringgit can reduce the cost of imported ingredients, business owners reportedly tend to retain the savings instead of lowering prices. Consumers are left with the perception that price hikes happen quickly when the ringgit weakens but fail to reverse when it rebounds.
Others in the discussion noted that essential expenses such as salaries and electricity tariffs do not decrease alongside currency improvements, leaving businesses with little incentive to revise prices downward. Some participants also pointed out that even if food prices dropped, overall wages remain too low for many Malaysians to feel any meaningful relief.
A few commenters suggested that declining prices could signal economic slowdown rather than prosperity, noting that moderate inflation is often associated with economic stability. For now, despite the ringgit’s impressive rally, Malaysians continue waiting for the strength of their currency to be reflected in their daily spending.
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