Firmer ringgit could make shopping trips across Causeway costlier for S’poreans

Analysts expect exchange rate to stay near current levels through the rest of 2025

- Kang Wan Chern Deputy Business Editor

The Malaysian ringgit has strengthened against the Singapore dollar in recent months, with one Singapore dollar now buying RM3.19, down from above RM3.30 for most of 2025.

While the shift gives Malaysians more spending power here, the weaker rate may prompt some Singaporeans to think twice before crossing the Causeway for cheaper groceries, goods or weekend getaways.

This could be the case for a while to come, with analysts expecting the exchange rate to stay near current levels through the rest of 2025 before weakening slightly in 2026.

Maybank Securities expects the ringgit to trade between RM3.20 and RM3.30 per Singdollar by the end of 2025, before strengthening further in 2026.

WHAT'S DRIVING THE RINGGIT'S APPRECIATION?

The ringgit has appreciated mainly because more money is expected to flow into Malaysia as US interest rates come down and as Malaysia’s economy picks up with new government reforms and stronger growth, explained Maybank head of foreign exchange (FX) research Saktiandi Supaat.

More capital is leaving the US after the Federal Reserve cut its policy rate twice in 2025, and this is finding its way into other markets like Malaysia, resulting in the strengthening of the ringgit versus the US dollar and other currencies.