Recent forecasts regarding the SGD to MYR exchange rate reflect a blend of domestic monetary policies and external economic pressures. The Singapore dollar (SGD) is experiencing a bearish outlook, as the Monetary Authority of Singapore (MAS) initiated a series of monetary policy adjustments beginning in January 2025. The easing of the S$NEER appreciation rate, coupled with a downgrade in GDP growth expectations to a range of 0% to 2%, has undermined the Singapore dollar's strength. The economic slowdown is further exacerbated by the adverse effects of U.S. tariffs on key sectors, posing challenges to Singapore's growth trajectory.
Conversely, the Malaysian ringgit (MYR) is underpinned by recent monetary policy shifts. In July 2025, Bank Negara Malaysia (BNM) cut the Overnight Policy Rate for the first time in five years to 2.75%, aiming to bolster economic resilience amid global uncertainties. Despite concerns over U.S. tariffs on exports, analysts remain optimistic about the MYR's strength against the U.S. dollar, driven by resilient economic fundamentals and anticipated U.S. Federal Reserve rate cuts.
Currently, the SGD to MYR exchange rate is trading near 3.2626, representing a 7-day low and approximately 0.8% below its 3-month average of 3.2902. This stability indicates a tight trading range of 1.9%, suggesting limited volatility in the near term. Meanwhile, fluctuations in oil prices, with OIL to USD currently at 64.53—5.0% below its 3-month average—could also play a significant role in impacting the MYR due to Malaysia's dependence on oil exports.
Investors and businesses engaging in international transactions should closely monitor these dynamics, as both SGD and MYR are currently under the influence of shifting economic conditions and monetary policy adjustments.
