Shan Saeed says disciplined policy, low inflation and steady growth will keep the ringgit resilient within ASEAN
BY TENGKU NOOR SHAMSIAH TENGKU ABDULLAH
KUALA LUMPUR, Jan 25 — As global investors look ahead to 2026, the Malaysian ringgit is increasingly being assessed through the lens of structural strength rather than short-term volatility.
According to Shan Saeed, Global Chief Economist at Juwai IQI and a seasoned global macroeconomist with over two decades of experience across emerging and developed markets, Malaysia’s currency is well-positioned to remain stable and competitive within the ASEAN region, underpinned by disciplined fiscal management, credible monetary policy, and sustained economic growth.
“In 2026, the ringgit is projected to trade within a range of approximately RM3.90 to RM4.25 against the US dollar,” Shan told TNS News, noting that the outlook reflects Malaysia’s commitment to structural reforms and macroeconomic stability.
He said Bank Negara Malaysia’s prudent monetary stance will continue to anchor inflation expectations, with inflation projected to remain below 1.5%, even as economic activity remains firm.
“Malaysia is in a favourable position where price stability and growth are aligned,” Shan said. “GDP growth in the 4.5% to 5.5% range provides a solid foundation for currency stability without generating inflationary pressure.”
In a regional context, Shan said the ringgit is expected to hold its ground against ASEAN peers, including the Indonesian rupiah, Thai baht, Singapore dollar, Philippine peso, and Vietnamese dong, supported by Malaysia’s balanced approach to growth and stability.
Shan Saeed, Global Chief Economist at Juwai IQI
“The ringgit’s resilience is rooted in consistency rather than speculation,” he said. “That structural discipline allows Malaysia to navigate regional currency cycles more effectively.”
The currency’s near-term performance has begun to reflect this structural confidence. On Friday, the ringgit broke through the key psychological 4.00 level against the US dollar, touching an over seven-year high of 3.9992 — its strongest level since June 18, 2018, when it was quoted at 3.9960/9990.
The ringgit opened near a five-year high following Bank Negara Malaysia’s decision to maintain the Overnight Policy Rate at 2.75 per cent, with the local currency trading around 4.02 per US dollar in early dealings.
Market participants remain constructive on the local note, with the ringgit likely to trade higher in the near term as investors continue to price in Malaysia’s policy credibility and macroeconomic stability, and potentially challenge the 4.00 level again in the coming sessions. – TNS NEWS