Shan Saeed, Global Chief Economist at Juwai IQI
Economist projects MYR 3.90–4.25 per USD corridor amid investment supercycle and disciplined policy framework
BY TENGKU NOOR SHAMSIAH TENGKU ABDULLAH
KUALA LUMPUR , Dec 8– The Malaysian Ringgit enters 2026 positioned for sustained stability, underpinned by sound macroeconomic fundamentals, disciplined policy stewardship, and a deepening investment supercycle that continues to draw both foreign and domestic capital.
Following its appreciation in 2025—supported by Bank Negara Malaysia’s calibrated monetary posture and well-anchored policy framework—the Ringgit is poised to maintain structural stability within the MYR 3.90–4.25 per USD corridor in the coming year, according to leading economic analysts.
“Malaysia’s macroeconomic architecture remains resolute amid an increasingly volatile global landscape,” said Shan Saeed, Global Chief Economist at Juwai IQI, in an interview with TNS News. “The Ringgit is not merely stable—it is structurally fortified for 2026 and beyond.”
Robust Growth Trajectory
Shan projects Malaysia’s GDP growth will reach 4.5% to 5.5% in 2026, driven by resilient domestic demand, accelerating private-sector capital formation, and the ongoing rollout of high-impact industrial and digital-economy projects.
“Meanwhile, inflation anchored between 1.5% and 2.2% will safeguard purchasing power and reinforce the credibility of Malaysia’s monetary framework at the macro level,” he added.
Five Structural Pillars Supporting the Ringgit
According to Shan, a constellation of structural forces will underpin Ringgit stability throughout 2026:
1. Strong External Position
“Malaysia continues to leverage its diversified export engine—electronics and electrical products, liquefied natural gas, palm oil, medical devices, information and communications technology, and high-value manufacturing—preserving robust trade surpluses and insulating the foreign exchange market from external shocks,” Shan told TNS News.
2. Strengthening Investment Momentum
Approved investments surpassed RM378.5 billion in 2024, with RM285.2 billion recorded in the first nine months of 2025, signalling unwavering confidence from both foreign and domestic investors.
“The industrial deepening underway reinforces Malaysia’s long-term economic durability,” Shan emphasized.
3. Disciplined Fiscal Trajectory
“Measured fiscal consolidation, prudent expenditure management, and stable debt dynamics continue to enhance sovereign credibility—an essential pillar supporting foreign exchange resilience,” he said.
4. Commodity Tailwinds
Shan pointed to favorable commodity dynamics as an additional support factor.
“Prospects of firmer oil prices in 2026, underpinned by tightening global supply and resilient LNG demand, provide an additional macro buffer and uplift for the Ringgit,” he noted.
5. Policy Coherence and Central Bank Credibility
The economist highlighted Bank Negara Malaysia’s consistent and transparent policy approach as a critical confidence factor for investors navigating uncertain global markets.
A Beacon of Stability
In an era punctuated by geopolitical tensions, trade fragmentation, and monetary policy divergence among major economies, Malaysia’s macro fundamentals stand out for their clarity and predictability.
“Investors searching for macro stability will find the Ringgit anchored by policy coherence, credible central-bank stewardship, and an increasingly sophisticated economic ecosystem,” Shan told TNS News.
He concluded: “In an era punctuated by uncertainty, Malaysia’s macro fundamentals stand as a bastion of clarity and predictability. The Ringgit is not merely stable—it is structurally fortified for 2026 and beyond.”
Investment Confidence Remains High
The sustained investment momentum reflects growing international confidence in Malaysia’s economic trajectory. The country has emerged as a preferred destination for technology manufacturing, data centers, and advanced industrial projects, particularly as companies pursue supply chain diversification strategies.
With its stable currency outlook, disciplined fiscal management, and robust external position, Malaysia enters 2026 well-positioned to navigate global economic headwinds while continuing to attract high-value investments that will drive long-term prosperity.
About the Expert: Shan Saeed is Global Chief Economist at Juwai IQI, a leading property technology group operating across Asia, the Middle East, and beyond. He specializes in macroeconomic analysis, monetary policy, and emerging market dynamics. – TNS NEWS