Ringgit set to strengthen through 2027 as growth and exports bolster outlook

RHB Research projects a measured appreciation of the Malaysian ringgit through 2027, citing stronger domestic growth and export performance as primary supports. Alexander Chia expects the ringgit to move toward US$ 4.05 by the close of 2026 and US$ 3.98 by the end of 2027, reflecting a gradual trend rather than a sharp rally. The forecast incorporates an anticipated single overnight policy-rate increase by Bank Negara Malaysia as it normalises monetary policy.

Although a broader US-Malaysia interest-rate gap may temper near-term gains, the currency benefits from a persistent current-account surplus projected above 2 % of GDP, buoyed by a sizable electronics trade surplus and rising tourism receipts. Export shipments rose sharply year-on-year to RM191 billion in August, driven by demand for semiconductors and data-centre equipment. Risks include a stronger US dollar, higher US yields, and potential fiscal pressures from energy subsidies and lower Petronas dividends.