1. Among Malaysian companies, automakers are vulnerable to a weaker ringgit, because the cost of their yen-denominated car parts increases, crimping profit margins. 2. A weaker ringgit also discourages foreign investors because investments in Malaysian stocks lose value in foreign currency terms. 3. A weaker ringgit deters foreign investors from buying Malaysian stocks, as their investments stand to lose value in home currency terms. 4. A weaker ringgit makes imports more expensive, which can then push up prices. 5. A weaker ringgit will hurt companies with large foreign debt, such as Tenaga, as it makes it more expensive for them to service their foreign debt. 6. A weaker ringgit allows Malaysian exporters to lower their prices. 7. A weaker ringgit also makes foreign currency-denominated debt more expensive to pay off. 8. A weaker ringgit also makes imports more expensive, quickens the pace of inflation and forces interest rates higher, slowing the economy. 9. A weaker ringgit could prompt the central bank to raise interest rates, which would hurt corporate profits. 10. A weaker ringgit increases the cost of payments on foreign currency debt, which hurts large borrowers like Telekom and Tenaga. |