Malaysian ringgit and stocks hit highest levels since 2018 on AI, growth optimism
The ringgit strengthened to its highest level since May 2018 and Malaysian stocks climbed to levels last seen in 2018 as global funds bought US$256 million of local shares in January.
Source: Free Malaysia Today · August 8, 2026 at 3:29 PM · AI-assisted report
Corroborated
SINGAPORE, 8 AUGUST 2026 —
The ringgit strengthened to its highest level since May 2018 and Malaysian stocks climbed to levels last seen in 2018 as global funds bought US$256 million of local shares in January.
Market Impact
The currency advanced as much as 1% to RM3.9678 per US dollar on Monday, according to Refinitiv data. The FTSE Bursa Malaysia KLCI Index (FBM KLCI) rose as much as 1.2% to a level last seen in 2018.
Analysts attributed the gains to rising confidence in Malaysia’s role in artificial-intelligence supply chains and a domestic growth outlook that includes resilient consumer demand, a surge in tourism and rapid expansion of data centres. The ringgit is Asia’s top-performing currency so far in January after two years in which it led the region, according to data.
T Rowe Price fund manager Leonard Kwan in Hong Kong said Malaysia was a “destination for data centres with ample energy resources and is doing well in terms of tourism,” making it the most constructive emerging-Asia FX pick in his portfolio.
Oversea-Chinese Banking Corp strategists said the ringgit could strengthen toward RM3.9650, citing momentum in the yuan and yen. Gama Asset Management SA expects the currency to reach RM3.9 per dollar by the end of March.
Goldman Sachs strategists including Danny Suwanapruti wrote on Saturday that tech exports, foreign direct investment and Bank Negara Malaysia’s likely steady policy rate in 2025 would let the ringgit outperform regional peers again in 2026. The central bank left its overnight policy rate unchanged last week.
Foreign investors have returned in force: net purchases of Malaysian stocks totalled US$256 million in January, the largest inflow among regional emerging markets tracked by Maybank Securities. The inflows helped push the FBM KLCI to its highest since 2018, Maybank Securities’ Tareck Horchani said.
“Steady fiscal trajectory and stable economic growth have positioned Malaysia as an attractive destination for foreign investment, particularly in infrastructure, financial services and renewable energy,” Horchani said.
He added that local banking stocks were the main driver of Monday’s gain, lifted by bargain-hunting. The Bursa Malaysia Finance Index climbed as much as 1.7% to a fresh record.
The rally follows broader emerging-market strength triggered by a broad dollar selloff amid speculation about coordinated currency intervention. Malaysia’s tourism rebound and data-centre build-out are expected to keep supporting growth this year.
This week’s regional data slate includes Singapore’s industrial production, China’s industrial profits, the Philippines’ trade data, Australia’s fourth-quarter consumer-price index and producer-price index, Taiwan’s fourth-quarter GDP, Thailand’s trade data and China’s manufacturing purchasing managers’ index.
Related: Maybank · Bank Negara Malaysia · Singapore