KUALA LUMPUR (March 31): Bank Negara Malaysia (BNM) said the outlook for the ringgit is still positive despite external uncertainties from the Middle East war that continue to weigh on global currency markets.

Speaking to reporters after the launch of its 2025 annual report, BNM governor Datuk Seri Abdul Rasheed Ghaffour said the positive outlook stems from the country’s economic fundamentals, adding that the ringgit’s trajectory is supported by ongoing domestic reforms and sustained investor engagement.

Despite heightened geopolitical tensions, he views the current pressures as largely cyclical, as the central bank has observed healthy financial market flows with continued investor interest in Malaysian assets.

At Monday’s (March 30) closing, the ringgit stood at 4.0305 against the US dollar. At the time of writing on Tuesday, the ringgit was trading at 4.01922 against the dollar.

Abdul Rasheed outlined other factors including adequate reserves and a resilient external sector, which add to Malaysia’s economic prospects and provide support to the currency.

“We see a lot of stable investments coming into the country. In fact, we also see new names coming into the country thanks to the engagements that we have done when we meet investors overseas,” said the central bank governor.

To strengthen demand for the currency, deputy governor Adnan Zaylani Mohamad Zahid said BNM has been actively engaging investors, exporters, importers, and corporates to repatriate export proceeds and investment income back into Malaysia and convert them into ringgit.

Part of these initiatives was BNM’s qualified resident investor programme, which was launched last year, allowing companies a “green lane” to reinvest overseas while ensuring their ringgit conversions are smooth and efficient.

On top of that, Adnan added that there have been active engagements with both investors and corporates to deepen the use of ringgit when engaging with multinational corporations to adopt it as an operating currency, which is a currency companies can use for their day-to-day operations instead of relying on foreign currencies.

“Going forward, the ringgit will remain driven by market conditions and global forces. Towards this end, BNM remains committed to ensuring orderly markets,” said Abdul Rasheed during the presentation of the annual report.

Click here to read more stories on BNM Annual Report 2025.