Budget 2027 gives ringgit fresh momentum, with RM4.07 in sight

KUALA LUMPUR, Oct 11 — The Malaysian ringgit is anticipated to strengthen against the US dollar next week, settling within the RM4.07 to RM4.08 range as market participants process the Budget 2027 announcements for insight into the nation's economic trajectory. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid highlighted that the focus will remain on Budget 2027, with economists and analysts set to delve into the finer details and consequences in the days ahead.

Dr Afzanizam noted that several measures, including a tax cut for the M40 income group and additional support for SMEs through entities like Syarikat Jaminan Pembiayaan Perniagaan Bhd (SJPP) and Credit Guarantee Corporation (CGC), have been introduced to maintain a thriving business environment. In the Budget 2027 presentation to the Dewan Rakyat, Prime Minister Datuk Seri Anwar Ibrahim announced a tax relief limit of RM12,000 from RM9,000 for the middle-income group (M40) and pledged up to RM32 billion in financing guarantees from SJPP and CGC for the upcoming year.

However, market players are wary of external concerns, particularly fluctuating US interest rates. Conversely, the ringgit weakened against the greenback by 0.0010 points to 4.0830/0875 on a Friday-to-Friday basis, down from 4.0820/0870 the previous week. It faced mixed performances against various major currencies, strengthening against the euro to 4.5807/5858 from 4.5927/5983, rising against the Japanese yen to 2.5791/5821 from 2.5906/5941, but weakening against the British pound to 5.4063/4123 from 5.3927/3993.

The local currency demonstrated resilience against Asean currencies, appreciating versus the Singapore dollar to 3.1896/1934 from 3.1908/1952, and climbing against the Indonesian rupiah to 228.1/228.4 from 228.2/228.6. However, it faltered against the Thai baht, falling to 12.1735/1909 from 12.1579/1778.