Running a country based on a stable ringgit has never been easy

Phar, Kim Beng and Hamzah, Luthfy (2026) Running a country based on a stable ringgit has never been easy. Awani International, NA (NA). pp. 1-4.

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Abstract

This article examines the complexities of maintaining a stable Malaysian ringgit amid an increasingly volatile global economic environment. It argues that currency stability cannot be understood solely through short-term exchange-rate movements, monetary interventions, or comparisons with the United States dollar, but must instead be situated within the broader structural foundations of national economic governance. The performance of the ringgit reflects the interaction between external forces, including global interest rates, geopolitical uncertainty, trade disruptions, and shifting capital flows, and domestic factors such as fiscal discipline, export competitiveness, institutional credibility, and political consistency. The article contends that a firmer ringgit provides important economic advantages by moderating imported inflation, supporting business confidence, and strengthening Malaysia's position as a trade-dependent economy. However, currency appreciation should not be interpreted as a permanent achievement or as justification for economic complacency. Sustained monetary resilience requires prudent debt management, diversified exports, credible policy implementation, and continued investment in the productive capacity of the Malaysian economy. The article further emphasises that investor confidence remains closely connected to perceptions of governance and policy predictability. Ultimately, it argues that maintaining a stable ringgit is a continuous process of economic discipline rather than a singular policy success, and that Malaysia's long-term currency resilience will depend on its ability to strengthen domestic fundamentals while adapting to an increasingly fragmented and uncertain global economic order.

Item Type:	Article (Electronic Media)
Uncontrolled Keywords:	Malaysian ringgit; currency stability; macroeconomic governance; investor confidence; fiscal discipline; exchange rates; economic resilience; monetary policy; export competitiveness; institutional credibility; Malaysia; global economic uncertainty
Subjects:	J Political Science > JZ International relations
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	International Institute of Islamic Thought and Civilization (ISTAC) Office of the Rector
Depositing User:	Mr Muhammad Syameer Luthfy Bin Hamzah
Date Deposited:	21 Jul 2026 16:41
Last Update:	21 Jul 2026 16:41
Queue Number:	2026-07-Q4199
URI:	http://irep.iium.edu.my/id/eprint/130101

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