Malaysia Markets — KLCI Slips While the Ringgit Remains Firm

Malaysia presented a different picture compared with the broader regional rally. While markets elsewhere were largely upbeat, Bursa Malaysia’s benchmark index edged lower, closing at 1,672.35 points. Sector performance was mixed: technology and property stocks advanced, while industrial production, healthcare, and financial services faced selling pressure. Despite the softer equity market, the Malaysian ringgit continued to show strong momentum. The latest data shows USD/MYR falling to around 4.0460. Over the past year, the ringgit has appreciated by approximately 9.84% against the U.S. dollar, firmly positioning it as one of Asia’s top-performing currencies. Some analysts have gone a step further, suggesting that amid ongoing de-dollarisation trends and sustained ringgit strength, the currency could break below 4.00 against the U.S. dollar in the second half of the year, potentially marking a seven-year high.