My research question is 「Why has the Malaysian ringgit appreciated against the Japanese yen in recent years, and what economic factors may explain this trend?」
Background
I began to question this topic based on my personal experience living in Malaysia since 2022. When I first moved, 1 Malaysian ringgit was worth approximately 25 Japanese yen. Recently, this has changed to around 35 yen per ringgit.
This noticeable shift made me wonder whether differences in the economic conditions of Malaysia and Japan might be related to the currency movement. While I often encounter news suggesting that Malaysia’s economy is growing and that Japan faces economic challenges, I recognize that exchange rate movements are unlikely to be explained by a single factor. As a beginner in economics, this gap between my initial assumptions and the complexity of the issue motivated my research question.
Approach
To investigate this question, I plan to proceed step by step, beginning with foundational economic concepts. First, I will study basic explanations of inflation and exchange rates using A-level textbooks and reliable introductory academic resources to clarify key mechanisms.
Next, I will examine publicly available data, including exchange rate statistics and consumer price indices published by official institutions in Malaysia and Japan. Using simple visualizations and comparisons, I aim to identify broad patterns rather than establish precise causal relationships.
Throughout this process, I will document how my understanding develops by recording questions, assumptions, and revisions in a project log. This approach allows me to recognize gaps in my knowledge and refine my analysis as I continue learning.
Limitations
Exchange rates are affected by many factors, so it is difficult to explain their movements with one clear cause. In addition, currency changes alone do not fully represent the overall economic condition of a country. Given my current level of economic knowledge, this research focuses on developing understanding rather than reaching final conclusions.
Date started: 25 January 2026