Manufacturers want Putrajaya to help stabilise ringgit

The Federation of Malaysian Manufacturers (FMM) has asked Putrajaya to step in to stabilise the ringgit against foreign currencies, as the continued weakening of the local currency was unfavourable to the economy. Its president Datuk Seri Saw Choo Boon said manufacturers and the business sector faced difficulty in terms of planning due to the erratic depreciation of the ringgit. "We hope the government can help to maintain the currency. It is difficult as there are many factors involved, (including) factors that are beyond the government's control... but (we feel) some factors can still be adjusted. "If they (Putrajaya) can help to stabilise the ringgit, it will help a lot in boosting the situation for the manufacturers," he said at a press conference to present the FMM-MIER Business Conditions Survey for second half of 2015, jointly organised by the Malaysian Institute of Economic Research (MIER). The survey listed instability of the ringgit as among external factors faced by the manufacturing industry in the second half of last year. The other four factors were price competition, reduction in fuel price and crude palm oil price, competition from other countries in South East Asia as well as China, South Korea, Thailand and Vietnam and a bleak global economy especially China. The same report said the depreciation of the ringgit was among the main biggest challenges faced by 275 respondents in the survey. Also 63% of the respondents said they were able to maintain their workforce for the second half of 2015. The respondents also predicted costs and production levels to remain the same throughout the period. However, many faced reduced incentive and felt pressure to add value to their production while at the same time lacking in efforts to entice existing investors to re-invest towards diversification and development of business. – February 24, 2016.]]>