S&P predicts 9% rebound in ringgit by end 2024


PETALING JAYA: S&P Global Ratings forecast a 9% rebound in the Malaysian ringgit by the end of the year, and said the weak currency doesn’t pose a risk to the sovereign rating.

"We do not see the depreciating ringgit as a risk to the sovereign rating,” said YeeFarn Phua, sovereign analyst at S&P in Singapore.

"Malaysia’s external position remains strong, augmented by adequate foreign reserves and consistent current-account surpluses.”

The ringgit slid to the lowest level in 26 years this week as China’s sluggish economy hurts Malaysian exports, and some analysts have said there is a risk the currency will reach a new record low.

The currency, which traded at RM4.79 per US dollar on Thursday (Feb 22), is expected to climb to 4.40 by the end of the year and 4.30 by end-2025, Phua said in an email on Thursday.

S&P joins Moody’s Investors Service in highlighting the safety of the nation’s credit rating despite the ringgit’s weakness, as almost all the nation’s debt is denominated in the local currency.

The government’s foreign debt was about RM30bil (US$6.26bil) at the end of 2023, just under 3% of the total, S&P estimated.

Malaysia is rated A- at S&P since 2003, signifying its strong ability to pay debt. The credit score, the highest among peers in developing South-East Asia, has withstood the fallout from the 2008 global financial crisis as well as the turmoil caused by the pandemic. - Bloomberg

Follow us on our official WhatsApp channel for breaking news alerts and key updates!
Ringgit , S&P , Rebound

Next In Nation

Umno is now a local party in Sabah, says Ahmad Maslan
Over 4,400 workplace accidents reported nationwide from January to May
Family of girl who fell to death from Sentul condo lodges second police report, alleges foul play
Court of Appeal's Wan Ahmad Farid said to be front-runner for Chief Justice
RM35.4mil worth of frozen food seized from unlicensed premises, 29 held in Sabah-wide ops
MACC's apology insincere, says family of Teoh Beng Hock
Bomba to use drones in search for missing influencer
Share resources among Asean to offset Trump's tariff, says Perantim
National security, judicial appointments discussed at Conference of Rulers meeting
Singer Amy files police report against Shila Amzah

Others Also Read