The SGD to MYR exchange rate has shown stability recently, currently trading near 3.2730, which is close to 30-day lows and just 0.8% below its three-month average of 3.2994. The exchange rate has been contained within a narrow range of 2.2%, between 3.2697 and 3.3428, indicating a lack of volatility in the short term.
Recent developments in Singapore's economic landscape have had a stabilizing effect on the Singapore Dollar (SGD). On July 30, the Monetary Authority of Singapore (MAS) decided to maintain its monetary policy settings following a surprising 1.4% quarter-on-quarter GDP growth in Q2 2025, which helped the country avoid a technical recession. This policy stance is bolstered by a significant decline in core inflation, which dropped to 0.6% in June from a peak of 5.5% in early 2023. Despite these positive indicators, economists appear divided regarding future monetary policy adjustments, with half predicting no change and the other half anticipating further easing to address potential economic risks.
Turning to the Malaysian Ringgit (MYR), the Bank Negara Malaysia (BNM) kept the overnight policy rate steady at 2.75% on September 4, following its first rate cut in five years in July. This decision, influenced by stable inflation and resilient economic growth, comes amid challenges posed by recent U.S. tariffs that potentially impact Malaysia's export-driven economy. Analysts have projected a stronger MYR moving forward, with forecasts suggesting it could appreciate to between RM4.10 and RM4.15 against the U.S. dollar by December 2025.
Oil prices, closely linked to the Malaysian economy, have seen noteworthy fluctuations. Currently, oil prices are at $66.99, approximately 2.9% below their three-month average of $68.98. The volatility has been significant, with prices fluctuating between $65.50 and $78.85, which could further affect the MYR as Malaysia is a major oil exporter.
The interplay between Singapore's stable economic indicators and Malaysia's challenges, paired with global trade dynamics and oil price movements, will likely continue to influence the SGD to MYR exchange rate in the near future. Investors and individuals considering international transactions should monitor these developments closely to take advantage of potential fluctuations in the exchange rate.
