The MYR to SGD exchange rate outlook is currently range-bound, showing signs of stability.
Key drivers include the interest rate differential, which may favor the MYR as potential US rate cuts could narrow the gap between Malaysian and US rates. Additionally, Malaysia's strong economic fundamentals, including fiscal reforms and improved GDP growth, support the MYR’s position. Conversely, the SGD remains strong due to Singapore's robust economic growth forecast and consistent monetary policy, which has maintained stability amid global uncertainties.
Expect the MYR to trade within a stable range relative to its current level over the next few months. Recent data shows MYR at 0.3170, slightly above its 3-month average.
Upside risks for the MYR include continued foreign investment driven by global de-dollarization trends. However, a downside risk exists in the volatility of oil prices, which have recently dipped, potentially weighing on Malaysia's export revenues.