The Malaysian ringgit is set to maintain its position as Asia's top-performing currency through 2026, driven by the nation's expanding role in global technology and sustained economic stability.
After climbing over 9% against the US dollar this year, the currency's strength is expected to continue next year, with major financial institutions including Goldman Sachs projecting it could reach 3.95 per dollar—the strongest level in seven years—while Bank of Singapore and MUFG Bank forecast trading near the 4.00 mark.
According to Moh Siong Sim, FX strategist at Bank of Singapore, the outlook is supported by robust technology exports fueled by surging AI demand and increasing foreign direct investment, particularly in data centres.
Bank Negara Malaysia reported that data centre-related export services jumped dramatically to RM10.7 billion in the first nine months of this year, compared to just RM1.2 billion during the same period in 2024, highlighting Malaysia's emergence as a regional data centre hub.
Goldman Sachs strategists, including Danny Suwanapruti, noted that the ringgit remains significantly undervalued according to their FX valuation models, with overall market sentiment remaining bullish, while Bank Negara Malaysia's stance of not easing policy further could help narrow yield differentials despite the US Federal Reserve signaling additional rate cuts.
Lloyd Chan, FX strategist at MUFG Bank, emphasized that the ringgit's appreciation has been underpinned by domestic economic resilience and easing external pressures—supportive factors expected to persist into 2026.
