Currently, the Malaysian Ringgit (MYR) is trading at 0.3115 against the Singapore Dollar (SGD), reflecting a 1.8% increase above its three-month average of 0.3061. This strength is attributed to several key developments influencing the MYR.
Analysts note that the Federal Reserve's recent rate cuts have weakened the U.S. dollar, providing a supportive backdrop for the MYR. Additionally, Malaysia's strong economic fundamentals—characterized by consistent GDP growth and rising foreign direct investment—are bolstering investor confidence in the currency. Furthermore, Malaysia's trade surplus of MYR 16.1 billion in August highlighted increased exports and successful diversification into emerging markets.
Monetary policy plays a significant role as well. Bank Negara Malaysia's decision to maintain the Overnight Policy Rate at 3.00% reflects a cautious yet stable approach to manage external uncertainties. Economists predict that these factors combined will contribute to a continued strengthening of the MYR against the SGD.
On the other hand, the Singapore Dollar remains stable, with the Monetary Authority of Singapore (MAS) opting to keep its monetary policy unchanged amid economic resilience. Singapore's GDP growth of 2.9% in Q3 2025 exceeded expectations, indicating robust economic performance. Although MAS has revised its core inflation forecast downward, potential U.S. tariffs on significant exports like pharmaceuticals and semiconductors may exert pressure on the SGD, leading to expectations of possible adjustments in exchange-rate policy.
In terms of oil prices, the current price of Brent Crude oil at USD 63.63 is 3.4% below its three-month average, having shown recent volatility. Since Malaysia is a significant oil producer, fluctuations in oil prices can impact the MYR, further influencing its performance against the SGD.
Overall, while the MYR shows signs of strengthening due to favorable economic indicators and supportive monetary policy, the SGD's stability reflects a different economic landscape. Market participants should watch for any shifts in policy or external trade conditions that could affect these dynamics.
