HLB: MYR Hits Strongest Level Since Oct 2024 Amid Investment Inflows and Positive Trade Momentum
HLB: Malaysian Ringgit Hits Strongest Level Since October 2024 Amid Investment Inflows and Positive Trade Momentum
The MYR is projected to see steady appreciation, aiming for 4.05 by mid-2026, given that 2025 real GDP growth is anticipated to reach the upper range of official forecasts.
KUALA LUMPUR, 12 NOVEMBER 2025 - The Malaysian Ringgit (“MYR”) extended its robust rally today, strengthening against the US Dollar (“USD”) for the seventh consecutive trading day. The USDMYR pair traded as strong as 4.1217 in early Wednesday morning trade, marking its strongest level since October 2024.
The Ringgit has been the best-performing currency across the G10 and major Asian currency basket during this period, demonstrating broad-based gains. Against the Singapore Dollar (“SGD”), the MYR has maintained its strength, trading below the 3.20 mark for the third straight day, a level not seen since July 2022.
According to Hor Kwok Wai, HLB’s Managing Director of Global Markets, “The USDMYR pair trading at 4.1217, its strongest level since October 2024, is a direct reflection of Malaysia's significantly improved economic standing. Our bullish outlook is reinforced by the favorable catalysts, from the de-escalation of US-Malaysia trade tensions and successful conclusion of the ASEAN Summit to the continued commitment to fiscal discipline. We firmly believe the Ringgit has sufficient fundamental strength to continue its appreciation path.
“External confidence is soaring, driven primarily by the recent reciprocal trade agreement signed with the US, which has successfully de-escalated bilateral trade tensions. This positive sentiment, coupled with the successful conclusion of the ASEAN Summit hosted in Malaysia, is attracting robust Foreign Direct Investment (“FDI”) and portfolio inflows, particularly into Malaysian bond and equity markets. This stability is expected to contribute to a slower pace of foreign reserves accumulation by the central bank.”
“In addition, supporting the domestic narrative is a weaker USD outlook following soft weekly private survey labour data overnight. This reinforces expectations for the Federal Reserve's continued policy easing path, resulting in a crucial narrowing of the yield differential between the US and Malaysia. Domestically, confidence is further boosted by Prime Minister Datuk Seri Anwar Ibrahim’s recent comment, suggesting that the country’s 2025 GDP growth could exceed the official forecast range of 4.0–4.8%, cementing a robust economic trajectory.”
This upward momentum serves as market validation of Malaysia’s ongoing commitment to fiscal sustainability, anchored by the recently tabled Belanjawan 2026 (“Budget 2026”). The Budget reinforces disciplined economic management by targeting a fiscal deficit of 3.5% of GDP for 2026. Crucially, its focus on structural reforms, including the rationalization of subsidies and the strengthening of governance framework, is providing investors with confidence in the country's long-term financial resilience. Furthermore, targeted allocations towards High-Growth, High-Value (“HGHV”) sectors like semiconductors, AI, and renewable energy, leveraging significant investments from Government-Linked Investment Companies (“GLICs”) and Government-Linked Companies (“GLCs”), are accelerating the shift toward a more complex, resilient, and competitive national economy.
Hor added, “The Bank maintains a bullish outlook on the Malaysian Ringgit (MYR), driven by the previously mentioned catalysts, which are further supported by Malaysia's robust fundamentals and resilient growth prospects. Given that 2025 real GDP growth is anticipated to reach the upper range of official forecasts, the MYR is projected to see steady appreciation, aiming for 4.05 by mid-2026.”