Global investors are betting on new 'rising star' Malaysia

Ringgit is at highest level since May 2018

- SAMEER MANEKAR

Malaysian assets are drawing global investors as a soft US dollar and rising geopolitical tensions spur diversification and the country's stability and growth are seen as an attractive alternative to stuttering regional rivals.

The increasing flow of foreign money illustrates a comeback for Malaysia, Southeast Asia's fourth-largest economy, after years of relative underperformance compared to its peers.

But analysts are now increasingly bullish about the country's blend of steady economic growth, stable government, and a strengthening currency that is back to near its 2018 high.

Foreign investors poured $6.5 billion into local currency debt in 2025, the largest annual inflow in four years and the highest in the region, with demand staying firm in January.

Malaysia stands in a “sweet spot between low-yielders, such as Singapore, Thailand, and South Korea, and high-yielders such as Indonesia and India, which come with their own set of risks,” said Rong Ren Goh, a fixed income portfolio manager at Eastspring Investments.