KUALA LUMPUR: The Malaysian Ringgit surged past the 3.09 level against the Singapore dollar on Wednesday, hitting 3.0873—its strongest position since March 2022. Market data from Bloomberg shows that the currency initially opened weaker at 3.0949 but quickly rebounded in early trading.
By mid-afternoon, the Ringgit was trading around 3.0920, building on momentum from Tuesday’s close of 3.0924. Since the beginning of 2026, the Ringgit has shown a pronounced upward trajectory.
Starting from 3.1567 on 31 December 2025, the currency has appreciated by almost 2.25% in just over a month, signalling a robust recovery against its Singapore counterpart.
Factors Behind the Ringgit’s Strength
Analysts point to several key drivers behind the Ringgit’s performance. Sustained foreign investment and strong capital inflows have played a significant role, attracting attention from regional and international investors. Political stability and clear government directives have also boosted market confidence.
The Malaysian government’s commitment to reducing the fiscal deficit, combined with improved domestic growth indicators, has further strengthened the currency’s appeal. Comparatively, the Ringgit has outperformed several regional peers, enhancing its attractiveness in the forex markets.
Currency strategists note that these combined factors create a favourable environment for continued Ringgit appreciation, particularly if investor confidence remains high and regional economic conditions stay stable.
Market Outlook
Traders are closely monitoring global economic indicators and local policy updates for signs of sustained momentum. Some experts suggest the Ringgit may continue to see gradual gains if current trends persist, although external shocks or geopolitical tensions could temper growth.
The recent surge highlights Malaysia’s improving economic fundamentals and the effectiveness of government policies aimed at stabilising and strengthening the currency. Investors are likely to keep a keen eye on the Ringgit in the coming months as it maintains its four-year high.