Last year, the Ringgit was the star performer in Asia, appreciating nearly 10% against the US$, ahead of the Thai Baht, S$, Taiwanese $, and the Renminbi. The Ringgit also rose against other major currencies like the Pound Sterling, S$, Yen, and the Renminbi. The strong performance was due to many factors, including weakness of the US$, Malaysia’s political stability, and the country’s improving economic fundamentals.

In 2026, the outlook of the Ringgit remains positive. With the opposition parties in disarray and opposing forces within the unity government weak, the Anwar government is expected to remain stable until the next election. In addition, the government’s fiscal deficit is on track to fall to the target of 3% of GDP in the medium term. The amount of new debt issuance is also declining, falling from RM100 bln in 2021 to around RM75 bln presently. Supported by firm private consumption due to a strong labour market, the Malaysian economy is expected to continue its stable expansion in 2026. 

The bullish medium-term and long-term target of i Capital for the KLCI at 2,500 – 3,000 points is not without solid support.