Kuala lumpur: Global asset manager Manulife Investment Management (Manulife IM) anticipates the ringgit will gain strength against the US dollar in the latter half of 2025, driven by progress in Asian markets.

According to BERNAMA News Agency, Murray Collis, the Asia Head of Asia ex-Japan Fixed Income at Manulife IM, indicated that this positive outlook is due to central banks in the region reducing interest rates and the general decline of the US dollar. Collis noted the ongoing weakening of the US dollar and predicted that the Federal Reserve will likely cut rates later in the year. Additionally, he observed an outflow from the US dollar into local markets in the region, which could benefit Malaysia.

Manulife IM’s Global Head of Multi-Asset Solutions, Luke Browne, mentioned the possibility of the ringgit appreciating against the US dollar either later in the year or in the first quarter of 2026. He attributed this potential appreciation primarily to the sustained weakness of the US dollar, which could support the ringgit.

Charlie Dutton, Head of Emerging Market Equities at Manulife IM, addressed concerns about Malaysia’s challenges amid global trade tensions and shifting alliances. He responded to questions about Malaysia’s alignment with the BRICS bloc and the potential imposition of a 10 percent tariff by the Donald Trump administration on countries aligned with the bloc. Despite these challenges, Dutton expressed confidence in Malaysia’s ability to navigate a middle path.

Dutton highlighted the significance of foreign direct investment (FDI) in Malaysia, noting its positive impact on the country’s gross domestic product (GDP) growth. He projected an acceleration in GDP growth entering the second half of 2025 and into the following year, buoyed by an uptick in consumption and retail sales in recent months.