Malaysian ringgit expected to weaken further against Singdollar in 2026

The ringgit has weakened by 0.2 per cent against the Singdollar so far in 2026 after strengthening by 4 per cent in 2025.

SINGAPORE – Yaw Poh Ling, an administrative worker based in Singapore, sends money to her ageing parents in Malaysia every month. But as the exchange rate between the Singapore dollar and the Malaysian ringgit has become more volatile, she has become more strategic about when she makes her transfers.

“I always check the exchange rate on my CIMB Bank app before making a transfer,” said the 52-year-old.

When the exchange rate is more favourable, she exchanges a larger amount of Singapore dollars for the Malaysian currency before transferring, so that it can last her parents several months.

“If the rate is too low, I will continue to monitor it and wait for a better rate. But if I urgently need Malaysian ringgit, then I have no choice but to still exchange the money,” she added.

Yaw and her parents could enjoy more ringgit in the second half of 2026, with the currency expected to weaken further against the Singapore dollar, analysts said.

The ringgit has weakened by 0.2 per cent against the Singdollar so far in 2026 after strengthening by 4 per cent in 2025. It was trading at 3.17 ringgit per Singdollar on June 26, close to its six-month low of 3.21 recorded on June 22.

The volatility comes as Bank Negara Malaysia said on June 24 that it would step up measures to support the ringgit, including encouraging companies to bring home and convert more of their overseas earnings into the local currency amid expectations of a stronger US dollar.

The central bank added that the ringgit’s recent weakness is mainly due to global factors, and not problems with the country’s economy.

“While geopolitical uncertainties have partially eased following an interim peace deal signed by the US and Iran, global financial markets have remained focused on the prospects of higher policy rates in the US amid elevated inflation risks,” said Bank Negara Malaysia’s Financial Markets Committee.

It added that foreign investors have adopted a wait-and-see stance towards Malaysian assets ahead of the upcoming state elections in Johor and Negeri Sembilan, which has contributed to the currency’s pullback in June.

OCBC Bank foreign exchange strategist Christopher Wong said Bank Negara Malaysia’s latest measures could provide some support to the ringgit.