00:00Economists warned that an outflow of funds could weaken the ringgit after Malaysians
00:06spent 130 million ringgit in southern Thailand over a recent long weekend.
00:12University of Malaya's Golim Tai said that while this spending reflects increased purchasing
00:16power, doing so overseas may harm the local economy.
00:20He added that as Malaysians exchange ringgit for foreign currencies like the Thai baht,
00:24the supply of ringgit in the market rises, potentially causing its depreciation.
00:29Go said a weaker ringgit raises the cost of imports, adding inflationary pressures.
00:34Ahmad Razman Abdul Latif of Putra Business School suggested countering this outflow by
00:39attracting foreign tourists to Malaysia and encouraging them to spend more than Malaysians
00:43do abroad.
00:45Both economists agreed that redirecting spending to the local economy could boost business
00:49growth, productivity and job creation.
00:53It was previously reported that nearly 100,000 Malaysian tourists spent over 1 billion baht
00:58in southern Thailand during the Malaysia Day weekend.
01:01Danish Raja Reza, FMT News.
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