Saturday 6 January 2018

Sectors That Benefit From Strengthening of RM

Sectors that benefit from strengthening of RM are those that generate RM revenue in domestic market while having input costs denominated in foreign currencies, or enjoying stronger purchasing power in buying commodities.

F&B players - Import raw materials, or enjoy better purchasing power in procurement of commodities, and generate revenue mainly in RM. Eg. Nestle, Amway, Dlady, Bjfood

Auto Players – Auto parts imported from overseas become cheaper and sell them locally in RM.

Airline – Derive income mainly from domestic market but having input costs and liabilities denominated in foreign currency, mainly G3 (USD, Yen, Euro Dollar). Eg. Airasia.

Media players – Newsprint cost is denominated in USD. For Astro, imported content is largely denominated in USD.

Steelmakers – Input costs such as iron ore, scrap metal and coal quoted mainly in USD. Mainly domestic sales. Eg. Annjoo.

Poultry players – Having raw materials corn and soybean denominated in USD.

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