The exchange rate forecast for the Malaysian Ringgit (MYR) to New Taiwan Dollar (TWD) reflects a complicated interplay of economic factors impacting both currencies in recent months. As of December 4, 2025, the MYR has strengthened to 7.6110 TWD, which is approximately 3.6% above its three-month average of 7.3432. This increase is attributed to several underlying factors enhancing the MYR's value.
Analysts have observed that the MYR's appreciation is largely driven by Malaysia's robust economic growth outlook and a favorable trade balance, particularly in electronics and commodities. The recent trade agreements secured during the ASEAN Summit 2025, including tariff exemptions for over 1,700 products with the US, have further buoyed investor confidence in the Malaysian economy. The government’s fiscal consolidation efforts in reducing deficits have also played a crucial role in supporting the MYR's upward momentum.
On the other hand, the New Taiwan Dollar has been influenced primarily by Taiwan's economic expansion. Taiwan's GDP growth forecast has been raised to an impressive 7.37%, the fastest pace in 15 years, driven significantly by global demand for AI technologies. However, ongoing trade negotiations with the United States, aiming to reduce tariffs on Taiwan's exports, and increased defense spending in response to regional tensions present potential volatility factors for the TWD.
Further complicating the outlook, the MYR's performance may be impacted by fluctuations in oil prices. Currently, oil prices are trading near a 14-day high of approximately $63.75, though they remain 1.5% below their three-month average. The volatility in oil prices, which has ranged from $60.96 to $70.13, is particularly relevant given Malaysia's status as a major crude exporter.
In summary, the MYR is poised for continued strength against the TWD due to positive domestic economic signals and strategic trade agreements, while the TWD benefits from robust economic growth but faces uncertainties from international negotiations and regional defense strategies. Stakeholders should monitor these developments closely, as they could present opportunities or challenges for international transactions involving the MYR and TWD.
