THE ringgit has emerged as one of Asia’s strongest-performing currencies, driven by a combination of solid domestic growth, favourable global conditions and strategic economic policies, according to the Finance Ministry.
In a written reply to a question in the Dewan Negara on Wednesday, Senator Datuk Bobbey Ah Fang Bin Suan asked the Finance Minister to explain the factors behind the ringgit’s recent strength and its status as one of the top-performing currencies in the region.
Finance Minister II Datuk Seri Amir Hamzah attributed the currency’s resilience to both external and domestic developments.
Globally, the US Federal Reserve’s easing of interest rate expectations and the shift towards lower rates in other major economies, along with positive investor sentiment, have supported the ringgit.
Domestically, Malaysia recorded a robust gross domestic product (GDP) growth of 5.2 per cent in 2025, exceeding initial forecasts of 4.0–4.8 per cent, with a particularly strong fourth-quarter expansion of 6.3 per cent led by the services and manufacturing sectors.
“The strengthening of the ringgit reflects both improving external conditions and Malaysia’s strong economic fundamentals,” the ministry said, noting that the ringgit appreciated 10.1 per cent against the US dollar in 2025 and showed gains of between 1.5 and 13.9 per cent against major regional currencies.
As of 24 February 2026, the currency continued to rise, reaching 3.89 against the US dollar, a 4.09 per cent gain for the year to date.
The ministry highlighted the resilience of Malaysia’s export sector, which grew 6.5 per cent in 2025, particularly supported by the electrical and electronics industry, which accounted for 44.3 per cent of exports with sales of RM711.6 billion.
“Overall, the strengthening of the ringgit has not undermined export performance, supported by robust production capacity and integration into global supply chains,” it said.
On concerns that a stronger ringgit might affect the competitiveness of Malaysian exports, the ministry assured that the impact would be manageable, citing widespread hedging measures by exporters.
It also outlined several government initiatives to support exporters, including targeted financing via EXIM Bank, the RM500 million Export Incentive Scheme, and MATRADE programmes such as the Market Development Grant and Malaysia Go Global, aimed particularly at SMEs and high-value sectors like halal products, E&E, and green technologies.
The ministry emphasised that Malaysia’s diversified trade structure reduces exposure to any single market, allowing the country to leverage the stronger ringgit to explore new markets while encouraging exporters to enhance productivity and optimise costs to maintain competitiveness.
“The government remains committed to structural reforms, fiscal sustainability and measures that attract both domestic and international investment, which are expected to continue supporting the ringgit in the medium term,” the minister said. - February 25, 2026
