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Kuala Lumpur, June 28, 2026 – The Malaysian ringgit is expected to weaken further against the Singapore dollar in the second half of 2026, as global monetary conditions and domestic uncertainties weigh on investor sentiment.
Analysts project the currency could slip to between 3.20 and 3.25 per Singdollar by year-end, marking one of its softest performances in recent years.
At the close of trading on June 26, the ringgit stood at 3.17 against the Singdollar, hovering near its six‑month low of 3.21.
This comes after a modest 4 percent gain in 2025, which had briefly lifted confidence in Malaysia’s currency outlook.
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Year‑to‑date, however, the ringgit has lost 0.2 percent against its Singapore counterpart, underscoring the challenges ahead.
The primary driver of weakness lies in expectations of another Federal Reserve rate hike in September, which would make US assets more attractive and divert capital away from emerging markets.
Rising US bond yields have compounded the pressure, while softer oil prices have reduced Malaysia’s foreign currency inflows as a net energy exporter.
Bank Negara Malaysia (BNM) has introduced measures to stabilize the ringgit, including urging companies to repatriate and convert overseas earnings.
Yet analysts caution these steps may only provide temporary relief.
“BNM’s actions can calm markets in the short term, but they are unlikely to reverse the broader depreciation trend,” said Christopher Wong of OCBC Bank, who sees the ringgit sliding toward 3.20 by year‑end.
Political uncertainty adds another layer of volatility.
Foreign investors remain cautious ahead of state elections in Johor and Negeri Sembilan, with concerns that the outcomes could influence fiscal policy and investor confidence.
While geopolitical tensions between the US and Iran have eased, global markets remain focused on inflation risks and the trajectory of US interest rates.
Philip Wee of DBS Bank noted that Malaysia traditionally prefers a stronger ringgit to signal economic resilience, but warned that the currency remains vulnerable if the Fed tightens policy further.
CMC Markets strategist Oriano Lizza echoed this view, predicting the ringgit could weaken to 3.25 per Singdollar by December, barring major policy surprises.
The impact is already being felt on both sides of the Causeway.
Singaporean consumers are taking advantage of favorable rates to shop and dine in Johor Bahru, while Malaysian households face rising costs for imported goods.
Cross‑border workers are timing remittances strategically, with many waiting for peaks in the exchange rate to maximize value.
Looking ahead, the ringgit’s trajectory will hinge on global monetary policy, commodity prices, and domestic political stability.
For now, the consensus among analysts is clear the Malaysian currency is set for further weakness, with limited prospects for a sustained rebound in 2026.
