KUALA LUMPUR, 16 February 2026 – The Malaysian ringgit opened stronger against the US dollar, supported by improving domestic economic fundamentals and positive investor sentiment following robust fourth-quarter GDP growth, reinforcing confidence in Malaysia’s currency outlook.
At 8am, the ringgit strengthened to 3.8970/9190 against the US dollar, compared with 3.9060/9155 at last Friday’s close, reflecting continued appreciation momentum driven by Malaysia’s resilient economic performance.
The stronger opening highlights growing confidence among investors in Malaysia’s macroeconomic stability, as recent economic data signalled accelerating growth and improving capital inflows.
Economic Growth Momentum Strengthens Currency Outlook
The ringgit’s upward trajectory follows stronger-than-expected fourth-quarter economic performance, which reinforced Malaysia’s growth outlook and strengthened the country’s investment appeal.
Malaysia’s economy expanded 6.3% year-on-year in the fourth quarter of 2025, its fastest pace in three years—supported by strong domestic demand, investment activity, and export growth.Â
This robust performance has reinforced investor confidence in Malaysia’s economic trajectory, supporting increased demand for the local currency.
Malaysia’s improving macroeconomic fundamentals, including steady growth, rising investment inflows, and stable inflation, have contributed to sustained ringgit appreciation momentum.
Ringgit Strength Reflects Strong Economic Fundamentals and Capital Inflows
The ringgit has been one of Asia’s better-performing currencies recently, supported by rising foreign investment and strong domestic economic indicators.
Malaysia attracted US$6.5 billion in local currency debt inflows in 2025, while the ringgit appreciated approximately 17% since early 2024, reflecting growing investor confidence in Malaysia’s economic outlook.
Bank Negara Malaysia also reported that the ringgit gained significantly during the fourth quarter, reflecting strengthening economic conditions and improved investor sentiment.
Improved investor confidence has been driven by several key factors, including:
- Strong GDP growth momentum
- Rising foreign direct investment, particularly in technology and data centre sectors
- Stable inflation and monetary policy outlook
- Strengthening trade performance
These factors have enhanced Malaysia’s attractiveness as a regional investment destination.
Global Currency Dynamics Also Supporting Ringgit Strength
External factors, including expectations of US interest rate cuts and a weaker US dollar, have further supported the ringgit’s appreciation.
Currency markets globally have shifted in response to evolving monetary policy expectations, with investors reallocating capital into emerging markets offering stronger growth prospects.
Malaysia’s solid economic fundamentals and improving fiscal position have positioned the ringgit as a beneficiary of this capital rotation.
The Malaysian ringgit, which weakened significantly during 2023 and early 2024, has since recovered strongly as economic conditions improved and investor confidence returned.
Outlook: Ringgit Positioned for Continued Strength
Analysts expect the ringgit to maintain its strengthening trend, supported by continued economic expansion, rising investment inflows, and stable monetary policy.
Malaysia’s economic outlook remains constructive, with GDP growth supported by domestic consumption, infrastructure investment, and expanding technology-related sectors.
The currency’s strengthening trend also reflects broader structural improvements in Malaysia’s economic fundamentals, positioning the ringgit for continued stability in the coming months.
Investor Perspective: Strong Ringgit Reinforces Malaysia’s Investment Appeal
For investors, the ringgit’s appreciation signals growing confidence in Malaysia’s economic resilience and long-term growth potential.
A stronger currency enhances investor returns, improves purchasing power, and reflects positive macroeconomic stability.
Malaysia’s strengthening currency, robust economic growth, and rising investment inflows reinforce its position as one of Southeast Asia’s most attractive investment destinations.
As Malaysia’s economic momentum continues into 2026, the ringgit’s performance will remain a key indicator of investor confidence and macroeconomic strength.
