RM is strongest since 2018. What about before 2018?

RM is strongest since 2018. What about before 2018?

Ringgit was stronger than today, if we go back to 2012

“In 2012, the Malaysian Ringgit (MYR) experienced a strong year against the US Dollar (USD), with the strongest rate hitting roughly RM2.9957 to RM2.9982 per USD on February 29, 2012. Throughout the year, the exchange rate remained generally strong, with an average of approximately 3.08 MYR to 1 USD.” (source: poundsterlinglive.com)

Malaysia has yet to reach the levels we were in before 2018. We do not need to go even further but suffice to say, that I personally do believe countries which has trade surplus should have a stronger currency while countries with a big deficit should have a weaker currency. This is how the trade balance is remedied. When Malaysia is exporting, the country which is importing would pay us in RM. So, of course demand for RM should increase and this should support the value. I know, this sounds simple. Else, please tell me how and why do currencies fluctuate then? For the purpose of speculative investment? Hmm….

Below is the latest news about ringgit

Article in theedgemalaysia.com “(Jan 28): The Malaysian ringgit rose to its strongest in nearly eight years amid broad dollar weakness and signs the central bank may be comfortable with the currency’s level.

The ringgit strengthened as much as 0.9% to 3.9187 per dollar, the highest since April 2018. It is the best performer in Asia after the South Korean won on Wednesday.

Emerging Asian currencies got a boost as President Donald Trump’s embrace of a weaker dollar fuelled speculation of a longer-term decline in the greenback. Bank Negara Malaysia (BNM) Governor Datuk Seri Abdul Rasheed Ghaffour also said economic fundamentals will provide long-term support to the ringgit, along with ongoing government reforms.” Article in theedgemalaysia.com

Yes, it’s really a good time to travel

RM versus Rupiah?

Within the past 12 months, the weakest point for our ringgit was RM1 to Rupiah 3,468.32 in 3rd July 2025. Today, it’s RM1 to Rupiah4,255. This an increase of 22.6 percent in value for ringgit versus Rupiah. if everything is priced the same in Rupiah in Jakarta, for example the hotel rates, then traveling today meant that for every 4 nights of stay, we get close to one extra night free of charge.

RM versus Japanese Yen?

From RM1 to Yen32.34 in 16th April 2025, the latest rate is RM1 to Yen38.99. If we assume the cheapest bowl of beef rice in Japan is Yen390 as below price from Sukiyaki, then it used to be RM12.06 per bowl, Today, this same bowl, if it’s still the same at 390 Yen would be equal to just RM10 per bowl. Calculation wise, ff we eat 5 bowls, then the 6th bowl is free.

RM versus SGD?

SGD is still very strong yeah. RM may have gained versus SGD but the current rate is still showing a far stronger SGD. Take a look:

While it used to be SGD1 to RM3.33 it is today still at way above 3 at 3.10 rate. SGD1 to RM3.10 So, the Malaysian working professionals in Singapore are still able to save a lot and still can enjoy their life when they are back for holidays and start spending in Ringgit instead of SGD.

I favor stronger ringgit (but current level is not strong enough yet)

What are your thoughts? Do you also think ringgit should become stronger because our currency is still undervalued? Remember to take the right actions accordingly. If you believe ringgit is too strong, then perhaps you can hedge this by changing ringgit into some other currencies for now. When ringgit drops, you can then use that foreign currency to exchange it back to ringgit. All the best in doing this.

Just bear in mind that if foreign investors think that ringgit is still at a very attractive level, they will soon pour more money as it’s cheaper for them to expand now versus worrying about the exchange rate in the future. At the moment, I do think Malaysia is not in the radar because we are just too small a market versus many other Asian countries. Plus the fact that ringgit is not as well known as many other currencies including our neighbor down south too.

Do not wait to travel, just travel first. If ringgit goes ever stronger, you are happy that you have travelled. If ringgit goes weaker, then you are happy that you travelled when ringgit was strongest.

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