Selangor Journal

SME, tourism companies expect gloomy year ahead

SHAH ALAM, DEC 6: Not only the local car manufacturers are expected to experience the gloom next year, in fact tourism companies and manufacturers in the small and medium enterprises (SME) category are expected to be similarly affected.
Former Bank Negara Malaysia (BNM) Deputy Director Dr Rosli Yaakob said this follows the continuous decline in the value of ringgit which is likely to affect the cost of business for them.
“Tourism companies sending tourists abroad now need to increase their prices due to the weak ringgit exchange rate and this affects the response from their customers.
“The same goes for manufacturers who rely on imported goods to make their products. They are also burdened and this includes SMEs,” he said when contacted by SelangorKini.
He said if the situation worsened and ringgit depreciation cannot be contained, these companies may have to close down.
He said the situation is aggravated by the economic outlook next year which is not very encouraging due to not only the depreciation in the ringgit value but also various scandals that had undermined foreign investors’ confidence.
However, Dr Rosli also said that the ringgit depreciation should be able to help boost domestic tourism.
He said that will happen if the responsible parties and industry players make good use of the opportunity.

Top Picks

Ringgit to trade around current level next week, OPR in focus

Editor Selangor Journal

MIDF Research cuts end-2022 target for FBM KLCI to 1,600 points

Malaysia’s PMI up in June, signalling improvement in manufacturing

Editor Selangor Journal