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THE ringgit has surged to a five-year high against the Singapore dollar, supported by cautious global investor sentiment and rising commodity prices amid escalating geopolitical tensions in West Asia.
During morning trading, the local currency strengthened by 0.2 per cent to 3.0613 against the Singapore dollar, marking its strongest level since March 2021. It later stabilised at 3.0645 in afternoon trading.
The upward momentum was evident from the market open, with the ringgit trading firmer at 3.0621/0806 against the Singapore dollar, surpassing the previous day’s closing level of 3.0635/0673.
Analysts attribute the currency’s resilience to Malaysia’s position as a net exporter of oil and gas, which has provided a buffer against volatility in global energy markets.
"When conflict in West Asia drives up global crude oil prices, demand for currencies of commodity-producing countries like Malaysia also increases," an analyst said.
This dynamic has effectively created a “natural hedge” for the Malaysian economy, placing it in a stronger position compared with regional peers that rely heavily on energy imports.
The ringgit’s performance stands in contrast to several other Asian currencies, which have come under pressure due to heightened uncertainty in global markets.
For businesses engaged in cross-border trade with Singapore, the stronger ringgit offers immediate advantages, potentially improving cost efficiency and competitiveness.
It may also encourage increased tourism and spending from Singaporean visitors, who continue to view Malaysia as an attractive destination.
However, the currency movement presents a different reality for Malaysians earning income in Singapore.
A stronger ringgit reduces the value of their earnings when converted back into the local currency.
At a broader level, the ringgit’s appreciation signals strengthening economic fundamentals and growing investor confidence in Malaysia’s stability.
Despite a prevailing “wait-and-see” approach among global investors in response to geopolitical risks, the ringgit has emerged as one of the more resilient emerging market currencies in the region.
Market participants are now closely monitoring geopolitical developments and international monetary policy trends to assess the currency’s trajectory in the months ahead. - March 18, 2026