MYR/SGD Outlook:
Slightly positive, but likely to move sideways, as the rate is above its recent average and supported by Malaysia's improved economic outlook.
Key drivers:
• Rate gap: The Bank Negara Malaysia maintains a more hawkish stance compared to the Monetary Authority of Singapore, supporting the MYR.
• Risk/commodities: With oil prices recently at highs, Malaysia’s economy benefits, enhancing support for the MYR.
• Economic performance: Malaysia’s robust GDP growth reflects strong domestic consumption and investment, contributing to the MYR's strength.
Range:
Expect MYR/SGD to hold within the recent trade range, with potential for slight upward movement but overall stability.
What could change it:
• Upside risk: A significant increase in oil prices could further boost the MYR.
• Downside risk: Any negative impact from external trade tensions affecting Malaysia could pressure the MYR lower.