Ringgit Seen Firmer as Malaysia’s 3Q GDP Growth Beats Expectations

KUALA LUMPUR, Oct 18 – The ringgit is expected to trade with an upward bias next week following stronger-than-expected economic growth in the third quarter of 2026, signalling continued resilience in Malaysia’s economy.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the local currency could trade within the RM4.07 to RM4.09 range against the US dollar after advance estimates showed Malaysia’s gross domestic product (GDP) expanded by 5.3 per cent in the third quarter.

The growth figure exceeded expectations and highlighted the economy’s ability to maintain momentum despite a slower pace compared with the 6.0 per cent growth recorded in the previous quarter.

Ringgit firmer

According to the Department of Statistics Malaysia (DOSM), all major economic sectors contributed positively to growth except mining and quarrying, which contracted during the quarter. The services sector remained the key driver, expanding 5.4 per cent, supported by wholesale and retail trade, information and communication, and finance and insurance activities.

For the first nine months of 2026, Malaysia’s economy grew 5.5 per cent, surpassing the 4.8 per cent recorded during the same period last year.

Meanwhile, the ringgit strengthened slightly against the US dollar on a week-to-week basis, reflecting improved investor confidence following the encouraging economic data.

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