The Malaysian government is increasingly confident of the ringgit's strength against regional currencies, as a result of the implementation of strict economic reforms.
Finance Minister II, Datuk Seri Amir Hamzah Azizan, stated that the Madani Economic Framework is the main pillar.
In addition, key policies such as the Public Finance and Fiscal Responsibility Act and targeted subsidies also have significant implications for needs such as electricity, water and diesel to strengthen the country's economy.
Supported by the New Industrial Master Plan 2030, Malaysia is now on the path to a more inclusive and sustainable prosperity.
These reforms have increased investors' interest in the ringgit, especially when major countries such as the United States lowered their interest rates, which caused the interest rate gap to narrow.
This leaves room for investors to find opportunities in emerging market currencies such as the ringgit.
More interestingly, Bank Negara Malaysia (BNM) and the government also encourage the repatriation of foreign investment income in the form of ringgit, making the domestic foreign exchange market more active and dynamic.
With this positive sentiment, the ringgit is expected to reach RM3.55 against the US dollar by the end of 2025.
