Plunging Ringgit Triggers Economic Crisis and Political Peril for Malaysian PM Anwar

The Malaysian ringgit has plunged to 26-year lows, hurting ordinary Malaysians as prices surge for imported goods. This poses a political problem for PM Anwar Ibrahim.

Unlike in 1997, this currency crisis hits regular people rather than just big corporations, with the shrinking value of the ringgit increasing costs of living.

Experts say structural economic problems are to blame, not just Anwar. More reforms needed to improve productivity and support long-term growth.

Quick fixes like raising interest rates could backfire and slow the economy. Long-standing issues like protectionism have scared away foreign investment.

Anwar faces political obstacles to reforms from opposition figures seizing on economic turmoil. Inaction also risky with Malaysians losing faith in the ringgit.