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The Malaysian Ringgit's depreciation relates to a long-term decrease in the country's competitiveness since the Asian Financial Crisis and an over-reliance on foreign direct investment that faces diminishing returns. To address this, Malaysia will need to re-evaluate its dependence on unproductive FDI, revitalise its productive structure through major reforms, target FDI which contributes to domestic capability building and implement crucial meso-level policy shifts outlined in recent master plans. Although these reforms may be painful in the short run, they are necessary for Malaysia's long-term economic health and competitiveness.
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In March 2024, the Bank of Japan shifted its monetary policy by raising interest rates from negative 0.1 per cent to 0–0.1 per cent and halting its quantitative and qualitative easing (QQE) measures, marking the first policy change towards tightening credit in seventeen years. While the Bank of Japan's previous measures under QQE were unable to stimulate demand and inflation, adjustments in interest rates, despite being minimal, have the potential to impact firms' and households' behaviour. Future policy adjustments will be dependent on the outlook of future inflation.