The exchange rate between the Singapore Dollar (SGD) and the Malaysian Ringgit (MYR) has been influenced by a mix of domestic policies, economic indicators, and external market conditions. Analysts note that the SGD is currently trading at 90-day lows near 3.1524, which is 1.8% below its three-month average of 3.2094. The SGD has exhibited a relatively stable range, fluctuating between 3.1524 and 3.2684 over the past months.
In recent forecasts, the Monetary Authority of Singapore (MAS) has adjusted its monetary policy, easing the rate of SGD appreciation due to lower-than-expected core inflation and external trade pressures, particularly from U.S. tariffs. Recent revisions suggest that the continued resilience of Singapore's economy may not be sufficient to support a stronger SGD in the face of these external challenges. Economists forecast that these monetary policies may keep the SGD under pressure, especially given the softer economic indicators.
Conversely, the MYR has gained substantial ground, appreciating over 8% in 2025, driven primarily by a weaker US dollar and Malaysia's better-than-expected economic performance. Reports highlight that Malaysia's GDP growth in Q3 exceeded expectations and that Bank Negara Malaysia has maintained its Overnight Policy Rate at 3.00%, reflecting confidence in the economy. Moreover, the recent trade agreement with the U.S. has bolstered trade relations and competitiveness, further supporting the MYR.
Given these dynamics, forecasters anticipate a challenging outlook for the SGD against the MYR if current trends continue. The market observes that the MYR’s strength, coupled with easing SGD policies, could lead to further depreciation of the SGD in the near term. In addition, fluctuations in oil prices—currently at USD 60.89—could also impact the MYR, as Malaysia is a significant oil exporter. Oil prices are 3.9% below their three-month average and have been volatile, which may influence the trade balance and thus the MYR's performance.
Overall, moving forward, the interplay between MAS policies, Malaysia's economic stability, and global market conditions, including oil prices, will be critical in determining the SGD/MYR exchange rate trajectory.
