Qualampur: Ringit is estimated to be strengthened by the US dollar by the end of 2025, supported by Malaysia’s macroeconomic stability and ongoing reforms.
Kennanga Investment Bank BHD attributed this approach to investor rotation away from American assets and reforms of Malaysia. Forex deposits reached a record RM292.8 billion in July, while the qualified resident investor program created a strong adaptation incentive for firms.
The US dollar is expected to weaken over the next 9–12 months due to fiscal concerns and ease of the Federal Reserve, although the possibility of close-term rebellion is likely to normalize the market situation.
This potential dollar weakness provides an attractive entry point in emerging market assets, with Malaysia stands as a improvement market.
Bank Negara Malaysia is expected to maintain its current monetary policy trend 2.75% to preserve space for future economic shocks.
Flexible domestic demand, recovering the mining sector and expansion of stable services should cush out external weakness by managing inflation.
The risk of inflation is being created after a silent start for the year due to tax effects of sales and services, subsidy reforms and high minimum wages.
Despite the absence of additional demand, improvement in supply capacity and these emerging inflation factors in targeted fiscal support should help in price pressure. – Bernma
