STRONGER RINGGIT TIMELY FOR NEW TECHNOLOGY ADOPTION -- FMM

KUALA LUMPUR, Feb 26 (Bernama) -- The ringgit’s roughly 10 per cent appreciation against the US dollar in 2025 has lowered the cost of imported technology and equipment, making it an opportune time to adopt new software and machinery, said Federation of Malaysian Manufacturing (FMM) president Jacob Lee Chor Kok.

He said this presents an opportunity for manufacturers, especially small and medium enterprises (SMEs), to accelerate their technological transformation.

“The machines that we use are now about 10 per cent cheaper. Even software and other technology adopted from overseas are relatively more affordable. This is timely as we want to move up the value chain.

“Time is not waiting for us. We have to seize this opportunity to accelerate the adoption of technology and equipment,” he told reporters after the FMM Council Swearing-In Ceremony here today.

Asked about the impact of the strengthening ringgit on the manufacturing sector, Lee said the situation has a balanced impact on the industry, as it reflects foreign investors’ confidence that the Malaysian economy is on the right track.

“Our government has embarked on economic rationalisation measures, such as subsidy reforms. We have a strong blueprint for building an inclusive and modern economy.

“However, there is some pressure on export-oriented businesses, as buyers may have to pay slightly more for Malaysian products,” he added.

Yesterday, Finance Minister II Datuk Seri Amir Hamzah Azizan said the ringgit had strengthened by 10.1 per cent against the US dollar in 2025 and appreciated between 1.5 and 13.9 per cent against other major and regional currencies.

Amir Hamzah clarified that, despite the ringgit’s appreciation, Malaysia’s export value continues to grow.

He said the country’s export performance does not rely solely on cost factors or currency movements but is supported by strong production capacity and deep integration into global supply chains.

Commenting on uncertainties surrounding US tariffs and their potential impact on Malaysia, Lee said the tariffs have created significant market uncertainty over the past year, and it is best for the industry to wait for greater clarity.

“We have been facing these uncertainties. There is not much we can do for now, and there is no need to panic. We should wait until the situation becomes clearer before deciding on the appropriate response.

“There are still many uncertain factors. On Friday, the Investment, Trade and Industry Ministry will likely make an announcement, and after that, we will see how we can align with the government,” he added.

-- BERNAMA