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THE cheaper ringgit against major currencies will provide a windfall
for the services sector.
A cheaper ringgit means foreigners will have more spending power, which
translates into more opportunities for Malaysia's tourism, education and
health sectors.
The ringgit is currently pegged at RM3.80 to US$1, and its value
against other major currencies has depreciated along with the
depreciation of the greenback in the last several months.
Malaysia Association of Tour and Travel Agents president Datuk Seri
Tengku Iskandar Tengku Abdullah and the Malaysian Association of Hotels
vice-president Ivo R. Nekvapil said with a cheaper ringgit, Malaysia has
become a good value-for-money holiday destination, especially for
tourists from Australia and Europe.
"The Australian dollar and euro are moving up substantially. The
Australian dollar has appreciated 38 per cent, while 1 euro is now about
RM5," Nekvapil told Business Times.
However, Tengku Iskandar said the benefits from the cheaper ringgit on
the tourism sector will not be immediate.
"We can see the effects a few months later when more people (tourists)
realise that Malaysia offers better value for money," he said, adding
that tourists' shopping activities would be particularly enhanced
following the ringgit depreciation.
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