The ringgit exchange rate is expected to remain strong in 2026, with the Singapore dollar to ringgit reaching 3.1776 | Lianhe Zaobao

Malaysia's fiscal situation has improved, supporting investors' positive outlook on the ringgit. The ringgit opened higher at the level of 4.1 ringgit per US dollar, and the Singapore dollar to ringgit exchange rate rose again to 3.1674 on Friday morning (December 5). As of 10:25 AM, the Singapore dollar to ringgit reached 3.1776.

Economists forecast Malaysia's economic growth for 2026 to be between 3.8% and 5.2%, with Nomura Research recently raising its forecast for Malaysia's economic growth next year from 4% to 5.2%.

Nomura Research believes that domestic demand in Malaysia remains strong, particularly in terms of investment spending, which benefits from structural reforms and major infrastructure projects implemented by the government. The Thirteenth Malaysia Plan proposes strategic measures to support high-value-added industries, further reinforcing this trend.

Opinions among economists regarding Malaysia's economic outlook for next year are divided.

Further Reading

The Singapore dollar to ringgit briefly approached 3.16, hitting a new low in over three years Anwar: The ringgit is one of the best-performing currencies in Asia, the opposition avoids the topic

OCBC Bank's Global Markets Research predicts that due to reduced exports to the United States, weak external demand, and a slowdown in investment spending, Malaysia's economic growth will cyclically slow to 3.8% next year.

OCBC Bank believes that the slowdown in economic growth is mainly due to the fading pre-effect of exports to the United States in 2025 and a slight deceleration in the growth rate of investment spending.

The Federal Reserve's recent dovish interest rate policy is favorable for emerging markets, with the exchange rate against the US dollar reaching 4.11 ringgit per US dollar on Thursday (December 4), a new high in over a year