Malaysians struggle with weak ringgit, cancel overseas holidays

With the ringgit hitting new lows, Malaysians are anxious about what lies ahead.

With such a weak currency - the US dollar traded at RM4.77 on Feb 28 they said the upcoming Ramadan and Hari Raya celebration would be a challenge.

The increase in the sales and services tax (SST) from 6 per cent to 8 per cent will also make things worse.

Clothing store owner Zaleha Zaid, 46, said her family members had put off their yearly tradition of distributing dates during the Ramadan month.

"We usually get a truckload of dates to distribute to mosques, orphanages and people we know, but it will be too costly to do so this year. We will probably just invite them for buka puasa (breaking of fast) at our house. That is all we can afford this year.

"Business is not good either.

Usually, I would get a lot of customers two or three months before Ramadan, but this year, the store is almost empty, even with the fasting month only a couple of weeks away," she said.

A 36-year-old marketing manager at a local firm, Mr Danial Hashim, said he would have to break his promise of taking his children to Europe for a holiday in 2024.

"We simply cannot afford to spend our savings on a holiday in Europe. We need the savings for any eventuality.