Commerzbank strategists report that the USD/MYR currency pair has remained stable within a 3.90–4.05 range since the onset of the Middle East conflict, reflecting reduced volatility compared to other regional currencies. This stability is attributed to Malaysia's status as a net energy exporter, which has helped buffer the Ringgit against external shocks [1].
Malaysia's March industrial production grew by 3.1% year-on-year, slightly below the Bloomberg consensus of 3.5%, and matching February's reading. This marks the softest growth since May 2025, primarily due to weaker mining output. However, manufacturing output accelerated to 5.5% year-on-year from 4.2% in February, driven by export-oriented manufacturing, which rose 6.7% compared to 5.0% in February. The electronics sector contributed significantly, with electronic production up 20.5% year-on-year, though slightly lower than the previous 22.5% increase. Plant and animal oil manufacturing output surged 13.5% versus 0.3% in February, while domestic-oriented manufacturing grew 2.8% compared to 2.7% previously [1].
The mining sector experienced a notable decline, with output falling 6.5% year-on-year versus a 2.0% drop previously. This decrease is attributed to planned maintenance activities at several oil and gas facilities. Despite the lower productivity, the mining sector benefited from higher prices, as evidenced by the producer price index for mining, which surged 26.5% year-on-year in March. Electricity output also increased, rising 4.9% compared to 4.6% in February [1].
MYR has emerged as the best-performing Asian currency this year, appreciating 3.5% against the USD, while the average for Asian currencies excluding Japan is down 1.2%. The Ringgit's resilience is supported by firm AI-related demand for semiconductors and higher global crude palm oil prices, which rose more than 19% in March. Commerzbank notes that the mining sector may continue to face headwinds in the coming months due to supply chain disruptions and lower productivity in maturing oil fields [1].
CONCLUSION
The Malaysian Ringgit has demonstrated notable strength and stability, outperforming its Asian peers amid global uncertainties. Robust manufacturing and electronics growth, coupled with Malaysia's net energy exporter status, have supported MYR's resilience. While mining faces challenges, the overall outlook remains positive for the Ringgit in the near term.