KUALA LUMPUR: The ringgit remained broadly stable against the currencies of major trading partners in the second quarter (2Q) of 2026, amid evolving global financial conditions, particularly the shift in market expectations due to the direction of United States monetary policy, said Bank Negara Malaysia (BNM).
The central bank said the local note’s nominal effective exchange rate (NEER) stood at -0.8 per cent in 2Q 2026 compared to 1.4 per cent in 1Q 2026.
"On a year-to-date basis (as at Aug 12, 2026), the ringgit recorded a relatively stable performance against the US dollar (-0.9 per cent) and the currencies of major trading partners (NEER: -1 per cent),” it said in a statement today.
The NEER considers movements of the ringgit against a basket of currencies.
It said the ringgit continued to be supported by Malaysia’s strong domestic fundamentals and sustained growth momentum.
Moving forward, BNM said that while external factors will continue to drive exchange rate movements, Malaysia’s firm economic prospects and ongoing structural reforms are expected to provide enduring support to the ringgit.
Meanwhile, the central bank said credit growth was driven by expansion in both outstanding corporate bonds and business loans.
It said financing remained available to support economic activity and business needs.
"Credit to the private non-financial sector grew by 6.4 per cent during 2Q 2026 from 5.6 per cent in 1Q 2026. Outstanding corporate bonds expanded by 8.1 per cent from 5.9 per cent in 1Q 2026.
"It reflected higher bond issuances, mainly in the utilities sector and for working capital purposes,” it said.
Similarly, the central bank said outstanding business loans grew by 7.2 per cent in 2Q 2026 from 5.7 per cent in 1Q 2026 across both working capital and investment-related purposes.
By segment, the growth was driven mainly by loans to non-small and medium enterprises (SME), it said.
Meanwhile, BNM said SME loans grew by 4.2 per cent (1Q 2026: 5.2 per cent) amid sustained demand for working capital.
"For households, loans expanded by 5.3 per cent (1Q 2026: 5.4 per cent) amid stable loan growth for the purchase of houses,” it said.
The central bank highlighted that financial institutions continue to support SMEs facing temporary financial difficulties.
"Repayment assistance, financing restructuring and tailored advisory services remain available to affected SMEs.
"They may also obtain assistance through the Small Debt Resolution Scheme administered by Agensi Kaunseling dan Pengurusan Kredit,” it said, adding that targeted support is also available for viable SMEs affected by disruptions arising from the conflict in West Asia via the SME Stabilisation Relief Facility.
BNM said that as of Aug 7, 2026, RM2.8 billion in financing has been approved, benefiting more than 4,900 SME accounts.
In addition, SMEs can make use of the RM10 billion BNM-CGC Guarantee Scheme to strengthen resilience and competitiveness for the future, it added. - Bernama
