Malaysia's Ringgit plunges to a 26 year low

The Ringgit is now at levels last seen in the late 1990's and the Asian Financial Crisis. Here's the chart:

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The reason is that Malaysia's manufacturing has contracted for 17 consecutive months. This in turn has spooked foreign investors; foreign bond outflows in January were the largest in five months. That selling pressure in turn caused the Ringgit to fall.

The deeper cause of all the problems is China's struggling economy. Malaysia normally exports a lot to China, but in the three months to Dec 2023, exports to China fell.

It's not clear when things will get better, especially as Malaysia's neighbours such as Thailand are also struggling.