Interest rates are high. That's bad for business. Companies have to pay more interest on their debts. Consumers hesitate to make any big-ticket purchases, further squeezing property developers, car makers, appliance dealers and almost everyone else. They also have to deter currency speculators by making it expensive for them to borrow the local currency to mount a renewed attack.
Inflation is another factor.
Because imports have become more expensive, too much buying abroad could wreak havoc on the consumer price index. True, Malaysia has not raised interest rates too much and it is still seeing a strengthening currency and moderate inflation. Other countries want rate cuts, but the IMF says undue haste can undermine the nascent investor confidence. That can be very costly because it means the credibility of policy is harmed the next time around. When interest rates are forced to rise again, it would be necessary to raise them somewhat higher than you would otherwise have had to do.