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KUALA LUMPUR, Jan 9 \u2014 A light-hearted remark by a Singapore politician has sparked discussion on Malaysia\u2019s improving economic fundamentals, with Prime Minister Datuk Seri Anwar Ibrahim praised for steering the ringgit higher and drawing a surge in foreign investment.<\/p>\n
In a Facebook post, Derrick Sim of People\u2019s Power Party (PPP) jokingly told Anwar to \u201clepak a bit\u201d following the strengthening of the ringgit against the Singapore dollar.<\/p>\n
Sim also shared an image showing the exchange rate improving from RM3.18 to RM3.15 to one Singapore dollar within two weeks.<\/p>\n
\u201cDear PM Anwar, IMO (in my opinion), you\u2019re genuinely one of the BEST Prime Ministers Malaysia has seen in a long, long time.<\/p>\n
\u201cI only have one small, very small request: maybe you lepak a bit. No need to work so hard lah.<\/p>\n
\u201cJust two weeks ago, SGD to Ringgit was RM 3.18, now already RM3.15. If too strong, later Singaporeans come in \u2014 only order roti canai kosong and go back liao. Many of us are still very budget-conscious.<\/p>\n
\u201cTake it easy, PM. Slow and steady win the race,\u201d he wrote on Facebook.<\/p>\n
The ringgit strengthened against the Singapore dollar to about RM3.16 on January 9, compared with around RM3.29 on the same date last year.<\/p>\n
In the comment section, Sim added that Malaysia\u2019s foreign direct investment has jumped a whopping 47 per cent.<\/p>\n
\u201cWe are talking about billions pouring into the country.<\/p>\n
\u201cThis decade is very much Malaysia\u2019s to lose,\u201d he wrote.<\/p>\n
Sim said large global corporations are quietly but decisively shifting their supply chains en masse out of China, with Malaysia emerging as a natural \u201csweet spot\u201d.<\/p>\n
\u201cIt (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,\u201d he wrote.<\/p>\n
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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
\u201cExchange rates are not static. When fundamentals shift, so do currencies,\u201d he said. \u2014 Bernama<\/p>\n
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