Today's Ringgit closed increased against the USD. Many attribute this to the success of Anwar Ibrahim, the 10th Malaysian politician, prime minister, and the banks operating in Malaysia. However, what are their roles in this sector?

The Ringgit closed today and has increased against the US Dollar as the rise in the greenback seemed to be capped amidst improving risk appetites among market participants. And then the market expectation accelerated as its preparation for a full reopening.

"China's exit from zero-Covid will be highly beneficial for Asia's exporters of consumer goods and tourism services to China so that the Ringgit and Thai Baht stand out,”

This will be the key theme that drives Asia's foreign exchange performance in 2023," said an economist to Bernama. On the other note, he noted that Ringgit still has a sensitive performance. 

This will be something positive for local traders. However, the appointment of Anwar Ibrahim as Malaysia's new prime minister immediately impacted the country's economy.

Anwar's Cabinet Approves 20% Pay Cut Until Malaysia's Economy Recovers and in Moments Search for Malaysia Economy's Champion

"From a technical point of view, the US Dollar I still shows a relative strength index (RSI) below 30 against the Ringgit. So that in an oversold situation like today, the bullish move could start over, most likely it will start over the next few days,' said one Malaysian politician.

Malaysia's economy has recovered strongly from a pandemic-induced slump. This risk is still a global slowdown that is clouding the outlook. Inflation in Malaysia is also considered to have decreased, so price control is still relatively stable and can also be measured.

In addition, Malaysia's economy also posted double-digit growth for the first time in over a year in Q3, right before Anwar Ibrahim took office. Boosted by rising domestic demand and strong exports, the central bank said there would be further steps for settlement.

Bank Negara Malaysia (BNM) is also said to be jumping to the firm recovery era. Especially for the labor market, robust exports, and ongoing policy support. 

Healthy growth outturn this year is also projected to surpass 7%, meaning its recovery. On the other hand, Anwar Ibrahim is still having difficulties stabilizing the country. He needs to find a finance minister to steer the economy and help him hold onto power. 

Moreover, the economic sector is crucial because Malaysia is currently recovering. Added to this are concerns about a global slowdown next year, rising inflation, and a still-weak currency exacerbating household income. 

Anwar's cabinet members agreed to take a 20% pay cut so that the decision of the cabinet members would assist Malaysia's economy recovers. Speaking at a press conference after an extraordinary Cabinet Meeting on December 6, they said that the government's concern for the plight of the people. 

The newly announced Cabinet consists of 28 ministers. In that meeting, new rules and bribery prevention were also discussed. And 20% pay cut can be something that increase the economy of Malaysia.

Malaysian Economy Relatively Resilient in 2023, Banks in Malaysia Remain at Forefront

However, news regarding Malaysia's economy is now highlighting a resilient movement. It is not only about the Malaysian economy, but Asian economies are expected to start gloomy in 2023. They have also warned of the sharp decline in consumer demand in history.

Malaysian banks are at the forefront of supporting economic recovery. Economic activity also continued to support banks lending activities. The credit rating agency says that the average economic growth is at 4.5%, and financial stability is the target.

Monetary tightening likely put a strain on household loans before suppressed. Economic stabilization will provide a higher rate of profitability—the industry-wide boons of rising rates. Ringgit closes higher against USD, Anwar Ibrahim and Bank are the most successful.