Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
Yang Fatin Athirah Binti Zainuddin
IBM530 2015784701 NBM3A
Explain how issue of Malaysian ringgit could influence the appetite of foreign investors to do
business here in Malaysia.
Based on the article entitled ‘The Ringgit is Easily Asia’s Strongest Currency’ published on
Bloomberg dated 29th June 2017, It is amazingly to see how possible to see Malaysian Ringgit
would be strongest in a couple of years. Malaysian Ringgit was fall down for the past years as
compare to other currency. The article shown that there are a factors that affect Ringgit which one
of it is the scandal involved in 1Malaysia Development Berhad (1MDB). It is one of the reason
that weakening the Ringgit since 2015. However, it seems that Ringgit is getting stronger mostly
in the second quarter of 2017.
Foreign investors have taken an advantage to invest in Malaysia while local investor have losing
the market on their own countries. Malaysia as developing countries is received high benefit
through Foreign Direct Investment (FDI) made by overseas companies. From the article, election
of each countries playing as a main role nor a motivation for the foreign investor to gain profit. In
this particles matter, investor will decided on whom they will rely on either they gain something
or they will lose something. Why they rely on someone? It is because election will played a role
for Ringgit which provides significant advantages on the capital invested and since Malaysian
economy is forecasted to be much better for the years onward, the return of investment is
