BANK Negara Malaysia (BNM) remains confident in the ringgit’s trajectory, citing strong economic fundamentals, structural reforms and robust private-sector investments as key drivers of support amid a challenging global landscape.
Governor Datuk Seri Abdul Rasheed Ghaffour said the ringgit has appreciated by 5.8 per cent against the US dollar year-to-date, despite ongoing global uncertainties.
“While we do not target any level for the ringgit, we remain committed to ensuring the foreign exchange market remains resilient and stable,” he said in response to a Bernama query on Tuesday.
Abdul Rasheed previously stated at the Global Islamic Finance Forum (GIFF) that the ringgit could strengthen to RM4 against the dollar by year-end, given the improving economic outlook.
“Over the longer horizon, our continued structural reforms, such as in labour markets and social protection, which are key to driving improvements in our productivity and competitiveness, will further unlock growth and provide enduring support to the ringgit.”
He added that Malaysia is seeing encouraging progress in attracting quality investments, particularly in higher value-added activities within the manufacturing and services sectors, including automation, digitalisation and data centres.
“Compared to previous investment upcycles, the current upcycle has been more private-sector driven,” he said.
The central bank also noted the government’s commitment to fiscal consolidation, including its goal to reduce the budget deficit to 3.5 per cent of GDP by 2026, alongside ongoing subsidy rationalisation efforts.
“To further drive and sustain the ringgit’s trajectory, we will need to work hard to continue to strengthen our economic fundamentals,” said Abdul Rasheed.
He stressed the importance of executing long-term national plans such as the 13th Malaysia Plan, the New Industrial Master Plan 2030, the National Energy Transition Roadmap, and the National Semiconductor Strategy. - October 15, 2025
