Ringgit Surges as Malaysia's Economy Beats Expectations

The Malaysian ringgit strengthened against the US dollar on Friday due to stronger-than-expected GDP growth in the second quarter of 2026. According to Bank Negara Malaysia, the country's economy grew at a rate of 6.0% in Q2, surpassing the consensus estimates of 5.8%. This performance exceeded the 5.4% growth registered in Q1.

BNM attributed the growth to continued domestic demand and robust exports. Household spending was supported by steady income growth and ongoing policy support, while investment growth was underpinned by spending on structures and machinery and equipment. Exports also accelerated, driven mainly by the strength of electrical and electronics products and sustained expansion in services.

On the other hand, the local currency ended lower against a basket of major currencies. It fell against the Japanese yen to 2.5660/5690 from 2.5634/5660 at Thursday's close and eased vis-à-vis the British pound to 5.5232/5293 from 5.5119/5173 previously.