Analysts See Budget 2027 Supporting Ringgit and Bond Market

KUALA LUMPUR: Budget 2027 can support the ringgit and the Malaysian bond market by strengthening domestic demand and reinforcing fiscal discipline, analysts say, with the local currency expected to trade between RM4.07 and RM4.08 against the US dollar this week.

Bank Muamalat Malaysia chief economist Dr Mohd Afzanizam Abdul Rashid said market attention would stay on the budget details as economists and analysts study its implications in the coming days. On a Friday-to-Friday basis, the ringgit eased slightly to 4.0830/0875 from 4.0820/0870 a week earlier.

Bond Market

OCBC Malaysia’s head of interest rate derivatives global markets, Eric Lok, said the budget did not fundamentally change the direction of Bank Negara Malaysia’s monetary policy, but could strengthen the domestic economy and support the currency over the medium term. He expects the dollar-ringgit rate to gradually move below 4.0 in 2027, while initiatives to encourage domestic investment may create opportunities in the equity market.

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