The Malaysian ringgit is expected to maintain its recent outperformance in 2026, fueled by accelerating investments in artificial intelligence and digital infrastructure across key sectors. Analysts project sustained capital inflows and improved trade balances as AI adoption boosts productivity and exports.
- Ringgit strengthened to 4.72 against the US dollar in December 2025, its strongest level since 2022.
- Over RM12 billion in AI and digital infrastructure investments announced by major telecom firms by mid-2026.
- Trade surplus reached RM28.4 billion in the first three quarters of 2025, the highest since 2019.
- AI integration in manufacturing is reducing production costs by an estimated 14%.
- Portfolio inflows into Malaysian equities totaled RM47.3 billion in 2025.
- Tech hubs in Penang and Selangor reported 22% year-on-year growth in high-skill AI and data science jobs.
The Malaysian ringgit has emerged as one of Asia’s top-performing currencies in 2025, and market analysts anticipate this trend will persist into 2026. A surge in technology-related investments, particularly in AI-driven automation and data center development, is strengthening investor confidence and underpinning the currency’s resilience. Domestic tech firms, including Telekom Malaysia and Maxis, have announced plans to allocate over RM12 billion toward AI integration and next-generation network upgrades by mid-2026. The strengthening ringgit is being driven by a combination of robust foreign direct investment (FDI) and increased export competitiveness. In the first three quarters of 2025, Malaysia recorded a trade surplus of RM28.4 billion, the highest for the period since 2019, with electronics and high-tech manufacturing contributing significantly. AI-enabled manufacturing processes are helping reduce production costs by an estimated 14% in key export sectors, enhancing margins and demand from global buyers. Capital market flows are also supporting the ringgit. Portfolio inflows into Malaysian equities reached RM47.3 billion in 2025, with foreign investors showing strong interest in AI-focused tech stocks and green energy infrastructure. The central bank has maintained a policy of gradual rate normalization, with interest rates at 3.5% as of December 2025, balancing growth and inflation control. This stability has helped maintain the ringgit’s value against the US dollar, which traded at 4.72 in late December 2025—its strongest level since 2022. The impact extends beyond the financial sector. Upstream industries such as semiconductor packaging and cloud services are experiencing accelerated growth, with the Penang and Selangor tech hubs reporting 22% year-on-year job growth in high-skill roles related to AI and data science. As Malaysia positions itself as a regional AI hub, the ringgit’s appreciation is seen as a signal of sustainable economic transformation.