The Malaysian Ringgit (MYR) has been on a promising upward trajectory, steadily strengthening against the US Dollar (USD). This recent appreciation has sparked discussions about its future, particularly in relation to other regional currencies like the Singapore Dollar (SGD).
In a recent YouTube video titled "Will the Ringgit hit 2.90 to 1 SGD?,” Singaporean finance platform 1M65 shared its insights on whether the Ringgit could dip below RM3 against the SGD. They attributed the Ringgit's gains to two major factors. Firstly, the US Federal Reserve has been lowering interest rates, which has encouraged the return of capital previously flowing from Malaysia to the US. Secondly, Malaysia’s economy has been performing relatively well, boosting the Ringgit’s strength.
Over the past six months, the MYR has climbed from RM3.50 to RM3.20 against the SGD, marking a substantial improvement. The video host remarked on the significance of this rise, highlighting how it could have a broader impact on consumers in both Malaysia and Singapore.
While the Ringgit's appreciation benefits Malaysians, particularly consumers, the situation might not be as favourable for Singaporeans who have enjoyed the stronger SGD in recent years. "When the Ringgit was at 3.50, people rushed to buy houses, groceries, and enjoy holidays in Malaysia," they noted. However, they cautioned that those opportunities might become less frequent as the exchange rate stabilises.
Looking ahead, 1M65 predicted that the Ringgit could potentially reach RM2.90 against the SGD, though they advised not to expect this too soon. "A rate of 3.00 seems more realistic for next year," they suggested, leaving room for cautious optimism.
1M65, founded by Singaporean financial expert Loo Cheng Chuan, aims to help Singaporeans become millionaires upon retirement through strategic investments using the Central Provident Fund (CPF). While their predictions on the MYR-SGD exchange rate may not be set in stone, they provide an interesting perspective on the financial outlook for both countries.
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