The recent outlook for the MYR to SGD exchange rate is influenced by a combination of geopolitical factors, trade dynamics, and economic indicators. The Malaysian ringgit (MYR) is currently under pressure due to U.S. President Donald Trump’s announcement of a 24% tariff on imports from Malaysia, which aligns with a broader context of escalating trade tensions. Analysts note that Malaysia’s response has been one of engagement rather than retaliation, with Prime Minister Anwar Ibrahim leading regional efforts for a coordinated response in Southeast Asia. However, these developments have contributed to a decrease in risk appetite across emerging Asian currencies, with regional peers also facing declines.
In contrast, the Singapore dollar (SGD) has shown resilience, holding near a decade high, largely due to a weakening U.S. dollar. The SGD remains supported by safe-haven demand and stable capital inflows, despite recent contractions in non-oil exports and a downgraded GDP growth forecast from the government. The SGD/USD exchange rate has been stable around 1.27–1.28. Market experts suggest that unless a decisive dovish shift from the Federal Reserve occurs, further downside in the SGD is limited, especially with technical support near 1.27.
The MYR to SGD exchange rate, currently at 0.3016, reflects a stable trading range of 2.6% over the previous months, with potential impacts from oil prices also in play. The recent rise in oil prices, currently at 69.67 USD, is slightly above its 3-month average, which could support the MYR due to Malaysia's significant oil exports. Nevertheless, the overall sentiment for emerging Asian currencies remains cautious due to potential escalation in trade conflicts and regional economic pressures.
Overall, while the SGD may continue to experience strength owing to its robust trade relations with the U.S. and favorable capital flows, the MYR faces challenges from tariff-induced pressures and regional economic instability. Market observers recommend keeping an eye on upcoming U.S. economic data and the Federal Open Market Committee meeting as indicators that may influence future exchange rate movements.