Companies in Malaysia are urged to actively manage currency risks by adopting appropriate hedging and business strategies, said Investment, Trade, and Industry Minister Datuk Seri Johari Abdul Ghani.

He explained that ringgit fluctuations are a normal part of the market cycle, and their effects vary depending on business models and sector exposure.

“While currency movements may pose challenges for some firms, they also create opportunities for others. Businesses must manage risks effectively using strategies such as hedging, supply chain protection, and customer management,” Johari said.

He made these remarks during the official launch of the GD XCHANGE Experience Centre on Tuesday, responding to questions about the ringgit strengthening to 3.9 against the US dollar last week, its highest level in seven years.

Impact of Ringgit Movements Varies by Sector

Johari noted that the effect of currency fluctuations depends on the type of business. For instance, commodity-based and consumer-focused companies may require different approaches to manage currency risks effectively.

The Minister also commented on Malaysia’s recent signing of the Agreement on Reciprocal Trade (ART) with the United States, describing it as a pragmatic step to protect the country’s economic interests and avoid higher tariffs.

“The agreement gives Malaysia time and space to negotiate terms, whereas not signing could have led to immediate tariff hikes, affecting exports and the broader economy. The government carefully weighed the costs and benefits, and the agreement includes an exit clause if it no longer serves national interests,” he added.

Johari emphasized that the government’s priority is to safeguard businesses in Malaysia and maintain economic resilience.

Stronger Ringgit Brings Opportunities for Businesses

GDEX Highlights Cost and Talent Benefits

Teong Teck Lean, Managing Director and Group CEO of GDEX Bhd, said a stronger ringgit generally benefits the group, particularly for services priced in US dollars, such as software licences and technology subscriptions.

“A firmer ringgit reduces costs, making services more affordable. It also supports talent retention, as the wage gap with neighboring countries narrows, reducing the incentive for employees to move abroad,” Teong said.

He added that the stronger currency supports cost efficiency, especially in technology, without major drawbacks to core operations.

GDEX Chairman Tan Sri Muhammad Ibrahim was also present at the launch.

GD XCHANGE: Transforming Logistics with Technology

GD XCHANGE is the technology arm of GDEX, representing its transformation from a traditional courier and logistics provider into a fully integrated, technology-driven ecosystem.

The platform connects global technology partners, resellers, and channel partners across key areas such as:

• Supply chain and commerce solutions

• Cybersecurity and cloud subscriptions

• Workspace solutions and smart devices

• Connectivity and electric vehicle ecosystem

Johari highlighted that initiatives like GD XCHANGE demonstrate how businesses can leverage technology to adapt to economic changes and manage market risks effectively.