Malaysian Ringgit Won't Remain Weak

Bank Negara Malaysia is confident that the ringgit’s recent slide won’t last.

The central bank assured it’s ready to manage any excessive volatility and emphasized the importance of looking beyond “short-term currency dynamics.” Despite a 5.8% dip against the dollar in October—the ringgit’s largest monthly drop in eight years—Malaysia’s strong economic fundamentals and ongoing structural reforms are expected to support the currency.

This year, the ringgit has been the best performer among emerging markets, buoyed by domestic demand and tech investments.

Policymakers have also urged companies to repatriate overseas earnings to help stabilize the currency, which rebounded from a historic low in February.

Bank Negara added that while global market shifts impact the ringgit, its goal is to ensure stable market conditions and curb extreme fluctuations.