The Malaysian ringgit’s strengthening reflects robust economic fundamentals and positive global sentiment, boosting investor confidence while exports remain resilient.
PETALING JAYA: The Malaysian ringgit is on the rise, reflecting strong economic fundamentals and boosting investor confidence, with exports holding steady despite the currency’s gains, the Dewan Negara was told yesterday.
Finance Minister II Datuk Seri Amir Hamzah Azizan said the ringgit’s recent performance signals improving global conditions and a resilient domestic economy.
Responding to Senator Datuk Bobbey Ah Fang Suan, he added that the ringgit recorded the strongest gains among regional peers in 2025.
“The recent strengthening of the ringgit reflects improvements in the external environment and Malaysia’s strong economic prospects.
“The currency appreciated between 1.5% and 13.9% against major and regional currencies while the nominal effective exchange rate rose 6.1% over the same period.
“As of Tuesday, it has further strengthened by 4.09% to RM3.89 against the US dollar.”
Amir Hamzah attributed the trend partly to global monetary developments.
“This strengthening was supported by declining US interest rates and expectations of a lower interest rate environment among major economies.
“Positive investor sentiment towards emerging markets, including Malaysia, along with continued inflows of foreign direct and portfolio investments, have contributed to the ringgit’s performance.”
He added that the currency’s resilience is underpinned by robust domestic fundamentals.
Malaysia’s GDP grew 5.2% in 2025, with fourth-quarter growth accelerating to 6.3%, the fastest in three years, driven mainly by the services and manufacturing sectors.
On export competitiveness, Amir Hamzah emphasised that trade remains strong.
Exports grew 6.5% in 2025, led by the electrical and electronics sector, which expanded 18.3% to RM711.6 billion.
“Major exporters are taking proactive steps, with many implementing hedging strategies to manage currency fluctuations,” he said, underlining that the trade sector remains resilient.
