Bank Negara Malaysia (BNM) said the strengthening ringgit, Asia’s best-performing currency in 2025, has not negatively impacted the country’s exports.
BNM governor Abdul Rasheed Ghaffour said despite the strong ringgit, Malaysia still registered a higher gross export growth of 6.7% in the third quarter (Q3 2025).
He pointed out this was significantly higher than the gross export growth of 3.3% in Q2 2025.
The central bank has never used the ringgit to support the country’s export competitiveness, Rasheed said in response to a question at a news conference today.
He added BNM does not seek to influence the direction of the local currency and that its key consideration was to ensure a stable ringgit.
“We don’t set any number or forecast for the currency. Our role is to ensure there is no excessive volatility,” he stressed.
Rasheed said the US Federal Reserve’s monetary policy easing in September, coupled with expectations of further US rate cuts and reduction in tariff-related uncertainties, has helped support the ringgit.
“Malaysia’s positive economic prospects together with the government’s commitments to structural reforms and fiscal sustainability have become more visible,” he noted, adding this will continue to provide medium-term support to the ringgit.
Downside of a strong currency
Currency exchange rates can have a profound impact on a country’s international trade.
When the value of a country’s currency strengthens against other currencies, its products and services become more expensive for foreign buyers and may result in a drop in exports. On the flipside, imports become relatively cheaper for domestic consumers.
While a strong ringgit lowers import costs and supports price stability, it can also compress profit margins for exporters, especially those in sectors such as electrical and electronics (E&E), palm oil, and petrochemicals.
Year to date as of Nov 12, the ringgit has appreciated 8.2% against the US dollar. The ringgit has rallied not just against the greenback but also its regional peers.
It recently climbed to the highest since September 2022 versus the Singapore dollar and hit a new high against the Indonesian rupiah, which has fallen about 12% against the ringgit this year.
The ringgit opened higher against the US dollar for a 10th straight session this morning, strengthening to 4.12 against the greenback.
