Finance Minister II Amir Hamzah says the ringgit gained 4.31% to RM3.89, driven by strong GDP growth and global interest rate trends.
KUALA LUMPUR: The ringgit has strengthened significantly against the US dollar, gaining 4.31% to reach RM3.89 as of March 1, 2026.
Finance Minister II Datuk Seri Amir Hamzah Azizan attributed this rise to robust domestic economic fundamentals and favourable global conditions.
He stated that the currency’s performance reflects Malaysia’s strong economic growth, which exceeded official projections.
The nation’s gross domestic product grew by 5.2% in 2025, surpassing the government’s initial forecast of between 4.0% and 4.8%.
“This growth is supported by expansion across sectors, particularly services and manufacturing with domestic demand remaining the main driver of the economy,” he said during a Dewan Negara session.
Amir Hamzah highlighted that global factors also contributed to the ringgit’s appreciation.
He cited the lowering of interest rates in the United States and expectations of a lower rate environment among major world economies.
“This situation was also driven by positive investor sentiment, an expanding global trade environment and continued portfolio investment and foreign direct investment flows,” he explained.
The minister emphasised the government’s reform agenda as a key factor in building investor confidence.
He noted that GDP growth in the fourth quarter of 2025 hit 6.3%, the highest rate recorded in three years.
This strong quarterly performance pushed the full-year 2025 growth figure to 5.2%, up from 5.1% in 2024.
“Clearly, with stable politics, economic policies can be implemented clearly and sustainably,” he added.