Malaysia: MYR's Appreciation Trend Is Intact

MUFG maintains a positive outlook on the Malaysian Ringgit, forecasting USDMYR to reach 3.70 by Q1 2027. The currency is supported by Malaysia's status as a gas exporter and robust domestic growth of 4.8%.

Key Takeaways

• 1.MUFG remains constructive on the Malaysian Ringgit (MYR), projecting appreciation over the next 12 months despite Middle East geopolitical risks.
• 2.Malaysia's role as an oil producer and net gas exporter provides a natural hedge against energy cost shocks, unlike regional peers like Thailand and the Philippines.
• 3.Domestic macro fundamentals are strong, with 2026 GDP growth forecast at 4.8% and inflation managed through policy buffers and fuel subsidies.

Table of Contents

• Key Points
• MALAYSIA FX AND RATES OUTLOOK
• CHART 4: RON95 FUEL SUBSIDY INCREASE MAY BE OFFSET BY PETROLEUM-LINKED REVENUES
• CHARTS: MALAYSIA'S SLOW INFLATION ASCENT RELATIVE TO PEERS
• Disclaimer

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