Bank Negara Malaysia (BNM) has reiterated that the Malaysian ringgit will remain market-determined and will not be used as a tool to boost the country’s export competitiveness, despite recent calls to evaluate its role amid shifting global conditions.
According to BNM’s statement on Friday, the central bank affirmed that the ringgit has “never been an instrument for export competitiveness” and that the value of the currency should be guided by market forces rather than policy intervention.
The remarks come at a time when the ringgit has outperformed many of its Asian peers in early 2026, rising about 3 per cent so far this year after a roughly 10 per cent increase in 2025 — underlining strong investor confidence in the currency’s trajectory.
Despite the stronger ringgit, Malaysia continues to experience robust export growth, with record shipments of manufactured goods recorded in December 2025. BNM noted that global demand plays a far larger role in driving export performance than currency movements.
BNM also emphasised that while it will continue to ensure orderly conditions in the foreign exchange market, it remains committed to a flexible exchange rate regime that reflects underlying economic fundamentals and global market dynamics.
On the economic outlook, the central bank highlighted that Malaysia’s gross domestic product (GDP) grew by 4.9 per cent in 2025, above official forecasts, supported by strong domestic demand and investment activity. External risks remain, but ongoing structural reforms are expected to continue providing enduring support for the ringgit.