The Malaysian Ringgit (MYR) has recently shown resilience, appreciating to a 13-month high against the Singapore Dollar (SGD), currently trading at 0.3140, which is 2.3% above its three-month average of 0.3069. This strong performance can be attributed to several factors, including optimistic growth projections with Malaysia reporting a 5.2% GDP growth in Q3 2025. Analysts anticipate that this growth, alongside stable interest rates maintained by Bank Negara Malaysia, will bolster investor confidence and further support the MYR.
Significant developments in regional trade also underpin this strength. Following the ASEAN Summit in October 2025, Malaysia secured important trade agreements with the United States. These agreements include tariff exemptions on over 1,700 products, which enhance Malaysia's export prospects and are expected to inject additional support into the Ringgit.
On the other hand, the Singapore Dollar faces challenges despite showing some safe-haven characteristics amid global uncertainties. Singapore's central bank, the Monetary Authority of Singapore (MAS), has adjusted its monetary policy, opting for a more cautious stance in light of uncertainties in global trade and a recently downgraded GDP growth forecast. Although Singapore's GDP grew by 2.9% year-on-year in Q3 2025, the overall economic outlook remains cautious, with forecasts now set between 1.5% and 2.5% for 2025. This context could weigh on the SGD as ongoing trade tensions, including tariff implications, continue to exert pressure on Singapore's export markets.
Furthermore, the price of Brent Crude oil, a key factor influencing the Malaysian economy, is currently trading at $64.29, which is 2.1% below its three-month average of $65.67. This volatile oil market, which has fluctuated within a 15% range from $60.96 to $70.13, could impact the MYR depending on future price movements.
In summary, while the MYR stands strong with supportive economic fundamentals and strategic trade agreements, the SGD's performance is tempered by cautious monetary policy and external trade pressures. Analysts will be closely monitoring how these factors develop, particularly concerning oil prices, which continue to play a vital role in determining the outlook for the MYR and its exchange rate against the SGD.
