The exchange rate between the Malaysian Ringgit (MYR) and the Singapore Dollar (SGD) has been influenced by several key developments in December 2025, reflecting broader economic trends and specific events impacting both currencies.
Analysts have noted a strengthening of the MYR, with the currency appreciating over 8% throughout 2025. This trend has been driven primarily by a weaker US dollar and robust economic performance in Malaysia, particularly after stronger-than-expected GDP growth in Q3 2025. The stability maintained in Malaysia's monetary policy, with the Overnight Policy Rate held steady at 3.00%, further enhances confidence among investors, effectively supporting the MYR. Additionally, the conclusion of a new trade agreement with the United States that includes significant tariff concessions has improved Malaysia's trade competitiveness, contributing positively to the MYR's upward movement.
Conversely, the SGD has faced challenges due to adjustments in Singapore's monetary policy aimed at supporting economic growth amid sluggish inflation projections. The Monetary Authority of Singapore (MAS) has eased its monetary policy several times throughout the year, reducing the rate of appreciation of the Singapore dollar nominal effective exchange rate (S$NEER) band. Despite signs of resilience in the Singapore economy, such as moderate GDP growth and a political environment bolstered by stable government post-general elections, the imposition of US tariffs on key Singaporean exports has exerted downward pressure on the SGD, complicating its outlook.
Current MYR to SGD exchange rates are trading at 90-day highs near 0.3172, which is approximately 1.8% above the three-month average of 0.3116. The MYR has remained relatively stable within a 3.7% range, reflecting ongoing economic stability in Malaysia. In contrast, the price of Brent Crude oil has been trending downwards at around $60.89, approximately 3.9% below its three-month average. The volatility of oil prices, which have fluctuated significantly, remains a critical factor impacting the MYR due to Malaysia's commodity-dependent economy.
Overall, the trajectory of the MYR is shaped positively by domestic economic factors while the SGD is subjected to a more complex set of influences, including external trade pressures and domestic policy changes. Investors and businesses engaged in international transactions should monitor these developments closely to navigate potential fluctuations in the MYR/SGD exchange rate.
