MONEY MASTER

Malaysia’s central bank is expected to  keep interest rates unchanged , as  inflation remains relatively muted  despite rising global energy prices linked to geopolitical tensions. Rate Pause Expected Amid Stable Inflation Bank Negara Malaysia  is widely expected to  hold the Overnight Policy Rate (OPR) at 2.75% , according to economists surveyed. Last rate move:  25bps cut in July 2025 Policy stance:  wait-and-see amid global uncertainty This contrasts with some regional peers that are considering  policy tightening  due to stronger inflation pressures. Inflation Still Within Manageable Range Malaysia’s inflation remains  contained compared to regional economies : CPI: 1.7% (March)  vs 1.4% in February Still within the central bank’s  2026 forecast range By comparison: Philippines:  7.2% inflation Vietnam:  5.46% inflation The relatively low inflation gives policymakers  room to delay tightening . Strong Ringgit...

Summary UBS expects the  ringgit to strengthen towards 3.80 against the US dollar by December , potentially reaching its strongest level in more than a decade. The outlook is supported by  strong capital inflows, AI-driven investments, a resilient trade surplus, and narrowing US–Malaysia interest rate differentials . Key Points Ringgit target: 3.80 per US dollar by December , last seen in 2015 Best-performing major Asian currency in early 2026 , up over  3% YTD More than 10% gain in 2025 , extending its recovery trend What’s Driving the Ringgit Higher Sustained foreign inflows  from multi-year investments into  data centres and the digital economy Global tech and AI demand  expected to remain strong into 2026, supporting Malaysia’s  trade surplus Narrowing interest rate gap  as the  US is expected to cut rates , while  Bank Negara Malaysia is likely to stay on hold This environment encourages  USD-to-ringgit conversions by corporate...

  Summary The Malaysian ringgit surged to its  strongest level in more than seven years , lifted by optimism around  AI-driven investments, resilient economic growth and steady monetary policy . Strong foreign inflows into equities and Malaysia’s positioning in the global AI supply chain have turned the currency into  Asia’s top performer  at the start of 2026. What’s Driving the Ringgit Higher The ringgit climbed as much as  0.8% to 3.9750 per US dollar , its strongest level since June 2018, beating most analyst expectations for the first quarter. Several factors are underpinning the move: AI and data-centre momentum : Malaysia’s rapid expansion in data centres is attracting foreign investment, supported by ample energy resources and strong infrastructure. Solid growth outlook : Domestic demand remains resilient, while tourism arrivals are expected to stay strong this year. Supportive policy backdrop : A steady stance from  Bank Negara Malaysia , comb...