Explaining Why SGD is Getting Much Weaker Against Ringgit So Even a Kid Will Understand скачать в хорошем качестве

Explaining Why SGD is Getting Much Weaker Against Ringgit So Even a Kid Will Understand

Business Enquiries: https://www.business.thebluecats.com.sg/ The Blue Cats' Instagram:   / singaporethebluecats   -------- In the last few years, the SGD/MYR rate moved away from its long-time “normal” of about RM3.00 to S$1. From around 2016 to 2021, it usually hovered between about RM2.95 and RM3.09. Then in early 2023, it shot up to around RM3.50 to S$1, which made it feel very “shiok” for Singaporeans going to Malaysia. Now, though, the rate has pulled back and is hovering closer to RM3.17 to S$1, suggesting it’s heading back toward that old 1-to-3 baseline. The earlier “1 to 3.5” period was mainly caused by two big factors that weakened the ringgit. First, the US aggressively raised interest rates, so investors shifted money into US assets, and Malaysia’s export earnings were also affected. These global shifts hurt Malaysia more than Singapore, so relatively, the SGD looked stronger. Second, Malaysia went through a messy political period with a hung parliament and uncertainty over who would be Prime Minister. That scared investors, hurt confidence, and further weakened the ringgit. From 2024 onwards, things started to reverse. Malaysia’s economy began improving, with GDP beating expectations, and the political situation stabilised under a more settled government. The country pushed ahead with big initiatives, such as the Johor-Singapore Special Economic Zone, and generally made a series of policy moves that restored confidence. On top of that, Malaysia hosting the 2025 ASEAN Summit and handling it well boosted its image further, attracting more interest and investment into the ringgit, especially as markets looked forward to strong GDP numbers. Putting everything together, the super-favourable 1-to-3.5 rate for Singaporeans was more like a temporary “honeymoon” than a new normal. As Malaysia stabilises and performs better, the exchange rate is correcting back towards around 1-to-3.