The recent performance and outlook for the Malaysian Ringgit (MYR) against the Singapore Dollar (SGD) indicate a favorable trend for the MYR, bolstered by a series of supportive economic developments. Analysts highlight the impact of the U.S. Federal Reserve's rate-cutting cycle initiated in September 2025, which has led to a weaker U.S. dollar and offered support for the MYR. Additionally, Malaysia's strong economic fundamentals, characterized by steady GDP growth and foreign direct investment, have enhanced investor confidence in the currency.
The MYR's strength is further supported by a notable trade surplus of MYR 16.1 billion recorded in August 2025, driven by increased exports and diversification into emerging markets. Bank Negara Malaysia's decision to maintain the Overnight Policy Rate at 3.00% reflects a cautious but stable monetary policy amid external uncertainties, contributing positively to the MYR's current performance.
In contrast, the Singapore Dollar is exhibiting resilience but facing challenges. The Monetary Authority of Singapore (MAS) has kept its monetary policy unchanged, signifying confidence in the country’s economic performance, which has surpassed expectations with a year-on-year GDP growth of 2.9% in Q3 2025. However, the revision of core inflation forecasts downwards could indicate potential economic pressures, and fears regarding U.S. tariffs on key exports add to the complexity of the SGD's outlook.
The MYR to SGD exchange rate currently stands at 0.3096, which is approximately 1.3% above its three-month average of 0.3055. This stability reflects a narrow trading range of 0.3013 to 0.3099 over the same period. On the other hand, recent movements in oil prices, where the oil price (OIL to USD) is currently at 65.07—1.7% below its three-month average, have introduced volatility. With oil prices having traded within a 15.0% range from 60.96 to 70.13, fluctuations in oil can considerably impact the MYR, given Malaysia's status as a net oil exporter.
In summary, the MYR is expected to maintain a favorable position against the SGD in the short term, driven by strong domestic fundamentals and external factors favoring a weaker USD. However, continued monitoring of oil prices and global economic conditions remains vital for assessing future exchange rate movements.
