The Malaysian ringgit performed strongly in 2025 and has continued its positive trajectory into 2026, driven by solid domestic fundamentals and a favourable economic outlook, according to Bank Negara Malaysia (BNM).
BNM highlighted that the ringgit appreciated against a basket of major currencies last year, with the nominal effective exchange rate rising 6.3 per cent. It outperformed regional peers such as the Thai baht, which gained 1.3 per cent, and the Singapore dollar at 4 per cent, while maintaining resilience against the US dollar which strengthened by 10.2 per cent globally.
Year-to-date, the ringgit has continued to track positively, reflecting investor confidence in Malaysia’s macroeconomic stability.
The central bank identified key drivers supporting the ringgit in 2026, including positive economic prospects and robust domestic fundamentals. At the same time, BNM warned that global uncertainties and potential shifts in US monetary policy could create headwinds for the currency.
BNM’s annual review also noted that domestic economic activity remained broad-based in 2025, underpinned by sustained private sector demand, stable labour market conditions and resilient external trade. Financial system stability was reinforced by healthy capital buffers and liquidity positions, ensuring continued confidence in Malaysia’s banking and financial sectors.
