Ringgit seen firmer next week after Malaysia’s 3Q GDP beats expectations

The Malaysian ringgit is anticipated to maintain a firm position next week, hovering between RM4.07 and RM4.09, following the Malaysian economy's surpassing of GDP growth expectations for the third quarter of 2026. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid revealed that the country's GDP growth, as per the advance estimate for 3Q 2026, exceeded expectations with a 5.3 per cent increase.

This resilience is likely to persist, with the full-year GDP growth potentially surpassing the current projection of 4.8 to 5.3 per cent, as the economy's growth for the first nine months of 2026 stands at 5.5 per cent. The Department of Statistics Malaysia (DOSM) reported Malaysia's economy expanded by 5.3 per cent in 3Q 2026, up from 6.0 per cent in the previous quarter.

All sectors, excluding mining and quarrying, contributed to the growth, while mining and quarrying experienced a contraction. The services sector drove the economic growth in 3Q 2026, with a 5.4 per cent increase, propelled by the wholesale and retail trade, information and communication, and finance and insurance sub-sectors. On a Friday-to-Friday basis, the ringgit appreciated against the US dollar, rising from 4.0830/0875 to 4.0795/0835.

However, the local currency weakened against other major currencies, falling from 4.5807/5858 to 4.5911/5956 against the euro, from 2.5791/5821 to 2.5831/5895 against the Japanese yen, and from 5.4063/4123 to 5.4396/4449 against the British pound. The ringgit demonstrated a stronger performance against ASEAN currencies, climbing against the Singapore dollar, Indonesian rupiah, and Thai baht.