KUALA LUMPUR, Jan 9: A light-hearted remark by a Singapore politician has sparked discussion on Malaysia’s improving economic fundamentals, with Prime Minister Datuk Seri Anwar Ibrahim praised for steering the ringgit higher and drawing a surge in foreign investment.
In a Facebook post, Derrick Sim of People’s Power Party (PPP) jokingly told Anwar to “lepak a bit” following the strengthening of the ringgit against the Singapore dollar.
Sim also shared an image showing the exchange rate improving from RM3.18 to RM3.15 to one Singapore dollar within two weeks.
“Dear PM Anwar, IMO (in my opinion), you’re genuinely one of the BEST Prime Ministers Malaysia has seen in a long, long time.
“I only have one small, very small request: maybe you lepak a bit. No need to work so hard lah.
“Just two weeks ago, SGD to Ringgit was RM 3.18, now already RM3.15. If too strong, later Singaporeans come in — only order roti canai kosong and go back liao. Many of us are still very budget-conscious.
“Take it easy, PM. Slow and steady win the race,” he wrote on Facebook.
The ringgit strengthened against the Singapore dollar to about RM3.16 on Jan. 9, compared with around RM3.29 on the same date last year.
In the comment section, Sim added that Malaysia’s foreign direct investment has jumped a whopping 47 per cent.
“We are talking about billions pouring into the country.
“This decade is very much Malaysia’s to lose,” he wrote.
Sim said large global corporations are quietly but decisively shifting their supply chains en masse out of China, with Malaysia emerging as a natural “sweet spot”.
“It (Malaysia) is not as costly as Singapore, yet more stable and institutionally reliable than Vietnam. Add to that a well-established semiconductor ecosystem, and Malaysia becomes a highly compelling destination,” he wrote.
Sim added that observers should not be surprised if the ringgit continues to strengthen against the Singapore dollar, potentially moving into the 3.0 range or even crossing the psychological threshold below 3 within the next 18 months.
At the same time, he noted that the Monetary Authority of Singapore (MAS) is easing monetary policy, adding further downward pressure on the Singapore dollar and increasing the likelihood of additional ringgit gains.
As a point of reference, Sim said that as recently as September last year, the exchange rate was still hovering around 3.3 to one.
He added that exchange rates are not static, citing historical precedents, including the 1990s when the British pound traded at around three times the Singapore dollar, similar to the SGD–ringgit.
“Exchange rates are not static. When fundamentals shift, so do currencies,” he said.
— BERNAMA