Explainer: Why the Malaysian ringgit has stayed weak and the wider effect on Singapore

The continued weakening of the Malaysian ringgit has driven some Malaysians to Singapore for work. Assoc Prof Chia Wai Mun, an NTU economics lecturer, said that factors such as political uncertainty, policy inconsistency and geopolitical tensions could affect investors’ confidence and in turn affect the currency. External factors such as changes in commodity prices may also cause the ringgit to weaken. She added that a divergence in interest rates between Malaysia and other major economies may affect financial flows. Higher interest rates abroad would attract foreign investors seeking better returns, leading to financial outflows from Malaysia, thereby weakening the ringgit.

- Similar story in Berita Mediacorp online, 3 Sep

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