Since the currency peg on the Malaysian ringgit was released, we’ve seen the ringgit rise by around 4.8 percent to its current status of US$1 = MYR3.60. While this is predominantly a good thing given its adherence to the free market principles our Government desperately hopes will propel Malaysia’s future development, it hasn’t really helped Malaysian students aiming to go overseas to study as much as we’ve hoped.

Why? Well, the two traditional tertiary education hotspots overseas, i.e. the United Kingdom and United States, have held their own on the foreign exchange market pretty well - especially in recent weeks. The Pound Sterling has recovered much of its strength in the past month, and is now close to returning to the RM 7.00 = 1 Pound threshold UK-bound students know and fear.

But there is hope for the future, at least analysts think so. Recently, it was announced by the ANZ Bank (plus some other organisations) that it is likely that the Malaysian ringgit will appreciate further over 2006 and 2007 due to strong economic prospects, and of course, a weak US dollar. Expectations of higher interest rates have also assisted the ringgit’s rise, and will help underpin a stronger ringgit.

But if the Pound Sterling continues displaying its remarkable strength… urghh, a British education will continue to be hell to pay for. At least students bound for the US have a better outlook given the strong belief that the US Dollar will continue its fall in the medium to long term.