The fluctuation of the ringgit against the U.S. dollar will have minimal impact on the local information and communications technology (ICT) industry, the country's national ICT association said on Friday.
"The fluctuation of the ringgit against the U.S. dollar is minimal and gradual hence the impact on imports of ICT products and services is not significant," said the Association of the Computer and Multimedia Industry of Malaysia (PIKOM).
The fluctuation of the currency should not cause any alarm if it continues to fluctuate within several percentage points as long as it is gradual, said PIKOM Chairman Lee Boon Kok.
As far the as pricing of imported products is concerned, currency is only one factor, he said.
Both manufacturers and importers may have some gains from the stronger ringgit when they buy from overseas suppliers but there are also other costs involved in their entire operations, Lee said.
Lee stressed that stronger ringgit does not surely make foreign products cheaper, but it would make Malaysian products and services more expensive on the world market.
One way that exporters could mitigate the influence of the fluctuation of the currency is to make the contract in the targeted market currency rather than in the U.S. dollar," Lee suggested.
PIKOM is the association representing the ICT industry in Malaysia. It consists of about 650 member companies, which provide a whole spectrum of ICT products and services and command about 80 percent of the total ICT industry in Malaysia.
Source: Xinhua
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