Strengthening Of Ringgit Reflects Strong Economic Fundamentals
KUALA LUMPUR, July 23 (Bernama) -- The strengthening of the ringgit to RM4.0905 on July 20, 2026, reflects strong economic fundamentals, supported by resilient export performance and a sustained trade surplus, according to the Ministry of Economy.
The ministry said that the ringgit's appreciation is also supported by sustained high external demand for Malaysian goods and services.
“The strengthening of the ringgit does not have a direct impact on the country's export performance and trade balance.
“Despite volatility in the ringgit exchange rate, the country's export competitiveness has not been significantly affected,” it said in a written reply to the Dewan Negara published on the Parliament website yesterday.
According to the Ministry of Economy, Malaysia's trade remains stable, underpinned by a Current Account Balance (CAB) position that has consistently recorded a surplus since 1998, driven primarily by a sustained surplus in the trade of goods. The positive momentum in the country's trade balance has continued to the present day, it added.
“The current trade position continues to show encouraging performance, with total exports rising by 27.5 per cent to RM971.6 billion for the January to June 2026 period, compared to RM761.8 billion in the previous year."
“Overall, the trade balance increased by 159.8 per cent to RM147.1 billion for the same period, indicating that the country’s trade position remains strong,” he said.
The Ministry of Economy said the government through the 13th Malaysia Plan (13MP) will emphasise strategies including increasing economic resilience; intensifying Malaysia’s international engagement; expanding global trade networks in new markets; and strengthening strategic cooperation with existing trading partners and regional economies.
The emphasis of the strategy is to ensure that Malaysia’s export performance and trade surplus can be maintained sustainably.
“The implementation of all the initiatives and strategic measures stated is expected to support efforts to maintain the trade surplus and subsequently achieve the export growth target of 5.8 percent per year during the 13MP period,” he said.
The ringgit has strengthened by 9.5 per cent against the US dollar, from RM4.4785 on Jan 2, 2025 to RM4.0905 on July 20, 2026, in addition to recording better performance compared to several other ASEAN currencies, such as the rupiah (Indonesia), baht (Thailand), peso (Philippines) and Singapore dollar.
The Ministry of Economy said this in response to a question from Senator Datuk Bobbey Suan on the impact of the strengthening of the ringgit on the country's exports and trade balance.
-- BERNAMA