Ringgit Bolstered as Malaysia's Economy Beats Expectations

The ringgit strengthened against the US dollar on August 14 as Malaysia's GDP growth for the second quarter of 2026 exceeded expectations. According to Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid, the country's economy remained resilient despite global uncertainties.

Bank Negara Malaysia (BNM) stated that the growth was driven by domestic demand and robust exports. Household spending was supported by steady income growth, while investment growth was underpinned by continued spending on structures and machinery and equipment.

The ringgit traded higher at 4.0840/0885 versus the US dollar, up from Thursday's close of 4.0850/0890. However, it fell against a basket of major currencies, including the Japanese yen, British pound, euro, Philippine peso, Thai baht, and Indonesian rupiah.

BNM added that export growth accelerated, driven mainly by continued strength in electrical and electronics products and sustained expansion in services, as well as a rebound in exports of liquefied natural gas and non-E&E manufacturing products.