Southeast Asia has been keeping a close eye on Malaysia lately, not for food, not for tourism, but for the unexpected rise of the Ringgit.
With the currency strengthening steadily, regional media have begun dissecting how Malaysia suddenly became the “teacher’s pet” of Asia’s economy.
Recently, CNBC Indonesia published an analysis breaking down the factors behind the Ringgit’s impressive momentum and interestingly, they claim Malaysia has three “secret weapons” powering the currency’s rise.
Strong exports, steady surpluses & record FDI
According to the report, Malaysia’s strengthening currency is largely supported by:
- Robust export performance
- Consistent financial surpluses
- Record-breaking foreign direct investment (FDI) inflows
Together, these elements have reinforced Malaysia’s economic fundamentals, giving the Ringgit a solid foundation to climb.
Stable fundamentals keep investors confident
CNBC Indonesia noted that Malaysia’s upward momentum stems from its stable economic structure, something that continues to draw investor interest even amid global uncertainty.
A major factor driving this confidence is Malaysia’s high labour productivity, which the report says is among the strongest in the region.
Malaysia seen as the region’s most efficient workforce
The outlet also highlighted that Malaysia is increasingly viewed as the most efficient country in Southeast Asia in terms of workforce productivity.
Citing World Bank data, Malaysia scored 10.13 in productivity; the highest in the region beating out China, Thailand, the Philippines and Indonesia, all of which posted 9.04.
This indicates that Malaysian workers are delivering higher output per hour, showcasing a stronger level of operational efficiency compared to neighbouring countries.
No surprise Malaysia remains a top pick for investors
Put together, these factors explain why investors still see Malaysia as a safe and surprisingly efficient bet in 2025. And if the Ringgit keeps performing like this, Malaysia might just continue being the overachiever of Southeast Asia for a while longer.
