Ringgit's depreciation will lure more US investments - USABC

A weakening ringgit will lure more US investments into Malaysia's technology sector, says US-ASEAN Business Council (USABC) President and Chief Executive Officer Alexander C. Feldman.

He said the ringgit's depreciation against the US dollar has had a positive impact on foreign investors who were drawn to invest in Malaysia.

In view of this, the council was encouraging more US technology companies to look at Malaysia as a base for their operations.

"Malaysia is at the forefront of the technology sector," he told reporters on the sidelines of the 47th ASEAN Ministers' Meeting and Related Meetings, which opened here today.

The ringgit breached the 4.18 level against the greenback on Friday.

Feldman also pointed out that while public sentiment for the weakening ringgit was overly negative, the situation could in fact benefit the country in terms of exports.

"It will make exports from Malaysia stronger and price competitive," he said.

Feldman also noted that the Malaysian economy was tied to trade and ultimately, it would be of benefit to Malaysia.

On the whole, US businesses have invested over US$200 billion in the ten-member grouping compared with China, South Korea, Hong Kong, Taiwan and New Zealand.