Kuala lumpur: The ringgit experienced a notable appreciation of 8.2 percent against the US dollar as of November 12, 2025, with a marginal 0.05 percent rise in the third quarter, according to Bank Negara Malaysia (BNM). BNM Governor Datuk Seri Abdul Rasheed Ghaffour attributed this movement to a mix of external and domestic factors.
According to BERNAMA News Agency, external influences such as the US Federal Reserve’s monetary policy easing in September played a significant role in supporting the ringgit during the quarter. Expectations of further rate cuts amid growing concerns regarding the US economy’s outlook further bolstered the Malaysian currency. The recent announcement of trade agreements between the US and several trading partners, including Malaysia, also helped alleviate tariff-related uncertainties, improving sentiment and supporting the ringgit’s performance.
On the domestic front, Malaysia’s positive economic growth prospects, driven by the government’s commitment to structural reforms and fiscal sustainability, are expected to continue providing support to the ringgit. BNM remains committed to ensuring the orderly functioning of the domestic foreign exchange market, as stated by Abdul Rasheed.
BNM reported that the ringgit’s nominal effective exchange rate (NEER) appreciated by 0.8 percent in the third quarter and 5.3 percent year-to-date against the currencies of Malaysia’s major trading partners. The central bank also noted an increase in credit to the private non-financial sector, which grew by 5.9 percent in the third quarter of 2025, compared to 5.2 percent in the previous quarter.
Outstanding corporate bonds expanded by 7.3 percent, up from 4.3 percent in the second quarter of 2025, while growth in outstanding loans remained steady at 5.6 percent. Business loans saw a growth of 5.4 percent, driven by higher growth in investment-related loans, particularly among non-small and medium enterprises (SMEs). SME loan growth also increased slightly, supported by growth in working capital loans amid a sustained level of applications for this purpose.
Household loan growth moderated slightly to 5.7 percent, down from 6 percent in the second quarter, due to slower growth in personal use loans. Despite this, household loan demand remained broadly steady across most purposes, supported by sustained approvals, according to BNM.