【Why the Malaysian Ringgit Is So Strong in 2025】

— A Practical Insight for Overseas Investors

In recent months, many overseas clients have asked me: “Wendy, why is the Malaysian ringgit performing so well this year? Is the economy really improving?”

As someone who advises cross-border buyers daily, I closely monitor Malaysia’s macro-economic trends, currency movement, and how these factors shape property investment decisions in Kuala Lumpur.

Here’s a clear and easy-to-understand breakdown of why the ringgit is strengthening in 2025, and what it means for foreign investors.

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1. Strong export performance is pushing the ringgit up

Malaysia‘s trade rose 9.8% year-on-year in Sept 2025 to RM257.51bil, reversing the previous month's contraction.

One of the biggest reasons behind the ringgit’s strong performance is Malaysia’s robust export sector. As global manufacturing and consumer demand recover in 2025, Malaysia is exporting more — from electronics to palm oil and

petroleum. Strong exports = higher foreign income = stronger currency.

2. Healthy fiscal position + strong FDI inflow

Malaysia has maintained a relatively stable financial position over recent years and

continues to attract high levels of foreign direct investment (FDI).

More foreign capital increases FX reserves, boosts investor confidence, and strengthens overall demand for ringgit.

Malaysia’s economic growth is poised to sustain last year’s momentum, with expectations to surpass 5% in 2025, supported by strong foreign direct investments and local funds.

Finance Minister II Datuk Seri Amir Hamzah Azizan highlighted that these factors are shielding the nation’s economy from global risks,

“We have a good base because foreign direct investments remain strong, and a lot of activity that’s generated is now playing out through the economy,”

3. Malaysia ranks among Southeast Asia’s most productive economies

Malaysia’s high labour productivity stands out in the region. World Bank data shows that Malaysia’s workforce efficiency outperforms many neighbouring economies. This makes Malaysia attractive for multinationals and supports currency appreciation.

Sectoral performance in productivity

Much of the productivity gains were driven by the construction sector, which saw a huge growth of 11.3% in labour productivity per hour worked.

The manufacturing sector also recorded solid productivity growth of 2.8%, fuelled by improvements in key subsectors such as:

• Vegetable and animal oils & fats and food processing (+9.3%)

• Beverages and tobacco products (+7.1%)

• Electrical, electronic and optical products (+6.6%)

  
  

Meanwhile, the services sector posted marginal growth of 0.5%, with mixed performances across its subsectors. Positive gains were observed in:

• Real estate and business services (+6.0%)

• Transportation and storage (+4.3%)

• Other services (+2.8%)

• Information and communication (+0.8%)

• Wholesale and retail trade (+0.6%)

（source: Humanresourceonline)

What this means for overseas property investors:

- A stronger ringgit reduces currency risk.

- Property assets gain more long-term stability and recognition.

- Overseas buyers gain more confidence when investing in KLCC, TRX, Bukit Bintang, Damansara Heights, Bangsar and Mont Kiara.

🌇 Wendy's thoughts：

If you’re considering investing in Kuala Lumpur — whether for rental yield, long-term diversification, or relocation — 2025 presents a promising window. A stronger currency, rising FDI, and solid economic fundamentals create a favourable environment for property investment.

If you’re also considering your next step—whether it’s time to secure your own “lifestyle asset” overseas—feel free to reach out. I’m happy to share my real experiences from viewing, comparing, and evaluating properties across different cities.

——Wendy嘉颐🇲🇾 Maxland Real Estate Sdn Bhd (REN 71091)

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