KUALA LUMPUR, Jan 22 — The Malaysian ringgit is experiencing its most active trading period in years as global investors pour capital into the country, betting that its market-beating rally has further room to run.
The average daily trading volume for the ringgit surged to RM19.8 billion in 2025, the highest in six years, according to Bank Negara Malaysia data, Bloomberg reported.
This momentum has continued into 2026, with daily volumes remaining elevated at around RM18.5 billion.
The surge is being driven by strong international interest in Malaysian assets, particularly government bonds.
Global funds poured a net US$6 billion (RM24 billion) into ringgit bonds last year, the most since 2021, propelling a Bloomberg index of Malaysian bonds to the top of Asia’s rankings with a nearly 17 per cent return for dollar-based investors in 2025.
“International investors have had more interest in Malaysia’s markets, and that increased participation has kept volumes elevated,” said Fesa Wibawa, an investment analyst at Aberdeen Group, which remains overweight on the currency.
Analysts say this confidence stems from Malaysia’s economic stability and policy predictability, even as it navigates 19 per cent US tariffs.
The nation's stock index is trading near a seven-year high, and a top treasury official recently signalled that the fiscal deficit may have shrunk faster than projected last year.
The rally is also being fuelled by a boom in foreign direct investment, especially from the construction of major data centres by companies like Microsoft Corp. and Amazon.com Inc.
According to the central bank, export services for data centres jumped to RM10.7 billion in the first nine months of 2025, a massive increase from RM1.2 billion in the same period of 2024.
With institutional appetite high, attention now shifts to Bank Negara Malaysia’s policy decision on Thursday for the next market catalyst, though economists widely expect the central bank to hold interest rates steady.
