The Malaysian ringgit is set to remain weak next week. This is primarily due to the ongoing uncertainties over US-China trade talks. Dr Mohd Afzanizam Abdul Rashid, a leading economist, sounded the alarm about the situation. Otherwise, new US tariffs would likely fuel further depreciation of the ringgit,” he cautioned.
Monthly news releases from China’s customs authority have shown extreme variation in the strength of China’s export success. For instance, in April, China’s exports to the United States dropped 21 percent. The country experienced an incredible 22.5 percent increase in exports to the ASEAN area. At the same time, it experienced an impressive 8.3 percent jump in exports to the European Union in July. These contrasting trends go to show just how complicated global trade dynamics can be.
As the value of the ringgit swung on the world market, the currency fell against a number of other regional currencies. It was quoted at 260.0/260.4 vs INDRP, down from 258.8/259.3. The ringgit declined against the Singapore dollar, weakening to 3.3095/3124 from 3.2862/2898. It fell against the Thai baht, now at 13.0082/0267 from 12.8697/8903 previously. The currency tumbled against the Philippine peso, euro, Japanese yen, and British pound.
Dr Afzanizam anticipates the ringgit to trade at between 4.30 and 4.33 next week against the greenback. Last week, dollar ended at 4.2970/3005.
Similarly, Malaysia will publish its Q1 2025 gross domestic product (GDP) on May 16, 2025. Dr. Afzanizam is predicting a growth rate of about 4.5 percent for this period.
“I am looking at 4.5 percent for Malaysia’s 1Q 2025 GDP, and I suppose the 1Q 2025 GDP is still going to be decent, with front-loading activities on international activities providing support, albeit momentarily.” – Dr Mohd Afzanizam Abdul Rashid
The Malaysia economic outlook looks bleak as ongoing trade negotiations drive currency values and defensive export growth. Then the second half of 2025 will be big. The outcomes of these negotiations — formally known as the Trans-Pacific Partnership — will profoundly determine Malaysia’s economic prospects for decades.
“The second half of 2025 would be crucial as this will depend on the outcome of the trade negotiations.” – Dr Mohd Afzanizam Abdul Rashid
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