Expect significant new tariffs on Chinese imports and moderate levies on goods from other nations , as President-elect Donald Trump rolls out his protectionist agenda. However, with his preference for chaotic policymaking and sudden shifts , there’s uncertainty on how soon these import taxes will actually hit. Dubbed “ Tariff Man ,” Trump aims to use tariffs both strategically and tactically . He’s mentioned taxing all Chinese goods up to 60% and potentially setting 10%-20% tariffs on imports globally , but details on these plans remain vague . Key players within Trump’s team are divided: Robert Lighthizer , a staunch tariff advocate, sees permanent duties as crucial to balance US trade , while others, like billionaires John Paulson and Scott Bessent , view tariffs as temporary leverage. Trump’s previous administration had mixed feelings, especially on national security-related trade limits , which he sometimes dismissed, favoring an “open for business” approach. High-profile busin
The rally in Malaysia’s ringgit, which reached a three-year high this week, is expected to persist due to the nation’s favorable economic conditions and ongoing reforms, according to Bank Negara Malaysia (BNM).
“Malaysia’s positive economic prospects and structural reforms, supported by initiatives to encourage capital flows, will continue to provide enduring support for the ringgit,” BNM said in an emailed response to Bloomberg News on Wednesday.
Despite the 14% surge in the ringgit this quarter, making it the top performer among emerging markets, BNM officials are not overly concerned. The currency's strength has been buoyed by a rebound in exports and foreign inflows of about US$3.6 billion into Malaysian bonds and equities this quarter.
The ringgit slipped slightly by 0.3% to 4.1427 per dollar on Thursday, after reaching a high of 4.1080 per dollar earlier in the week, its strongest level since June 2021.
Potential for a Pause in Gains
Following the ringgit’s sharp gains, the currency may take a pause, noted Lloyd Chan, a currency strategist at MUFG Bank Ltd. The appreciation of the ringgit was also attributed to “greater clarity on the interest-rate path of developed countries, particularly the US Federal Reserve,” according to BNM Deputy Governor Adnan Zaylani Mohamad Zahid.
Zaylani highlighted that the narrowing of interest-rate differentials between Malaysia and the US could continue to attract portfolio inflows, enhancing investor interest in the country.
BNM kept interest rates unchanged in its September meeting, and the deputy governor indicated that the benchmark rate is expected to remain stable throughout the year.
Government Reforms to Bolster Confidence
Prime Minister Datuk Seri Anwar Ibrahim's government has implemented reforms aimed at strengthening investor confidence by broadening the country’s revenue base and reducing subsidies. One such move was the removal of diesel price controls in June, which is part of the broader effort to improve Malaysia’s financial health.
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