The RM foreign exchange rates had appreciated to 4.7565 against the US dollar and 3.510 against Singapore dollar (www.bnm.com.my). The fundamental issue of ringgit's value, especially in relation to the US dollar, has attracted much discourse. However, on the advantage side, a lower-value ringgit is seen as good for Malaysian exports, domestic and rural tourism.
The US raised its rates as part of measures to bring down inflation. Since the dollar is widely used in international trade, all currencies are impacted. That outflow of funds from other countries contributed to the depreciation of curries around the world, Malaysia included. Though our inflation level was manageable, Bank Negara Malaysia (BNM) went ahead with an upward revision of the overnight policy rate to minimise the outflow of external funds and the foreign exchange, which can worsen swiftly the ringgit's position.
Evidently, my wife, Zarina and I recently went back home to our home state to meet our best friend, Faroque in Batu Gajah which coincides with Visit Perak 2024. I found the food imports, for example about 60% of our food is imported. Billions of ringgit flow out every year to buy not just food as beef, but also feed for livestock, aquaculture and fertiliser. It is not that the Government has not created policies to improve our food security, Ministry of Agriculture and Food Security has invested in projects to increase the supply of beef.
One good example was the project to expand cultivation of grain corn. The global price of grain rose because the supply disruption brought about by the Ukrainian-Russian War.
In my humbled opinion all the State Governments should invest more in tourism promotion to bring in more foreign exchange earnings. The world tourism market is predicted to be massive after the end of the pandemic. This is where the government together with local community need to review our domestic tourism in order to sustain the rural economy.
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