Manulife IM Expects Ringgit To Strengthen On Asian Market Gains
KUALA LUMPUR, July 10 (Bernama) -- Global asset manager Manulife Investment Management (Manulife IM) expects the ringgit to strengthen against the US dollar in the second half of 2025 (2H2025), supported by gains in Asian markets.
Its Asia Head of Asia ex-Japan Fixed Income, Murray Collis, said this positive momentum comes amid central banks in the region implementing rate cuts and a general weakening of the US dollar.
“We are expecting the US dollar weakness to continue for the rest of the year, and we do think that the Federal Reserve will cut rates in the second half of the year.
“We have also been seeing outflows from the US dollar into local markets in the region, and we believe Malaysia can continue to be a beneficiary of that,” he told a virtual media briefing on the 2025 Mid-Year Regional Market Outlook today.
Meanwhile, Manulife IM Global Head of Multi-Asset Solutions Luke Browne said there is potential for the ringgit to appreciate against the US dollar later this year or in the first quarter of 2026 (1Q 2026).
He said the primary driver for this appreciation is the ongoing weakness of the US dollar, which acts as an anchor benefiting the ringgit.
“Malaysia’s economy itself is interesting to see, with that sort of moderation in terms of expectation of rate cuts,” he said.
Manulife IM Head of Emerging Market Equities Charlie Dutton said Malaysia might face a challenging position amid global trade tensions and shifting alliances.
He said this in response to questions about the implications of Malaysia’s alignment with the BRICS bloc, as well as threats by the Donald Trump administration to impose a 10 per cent tariff on countries aligned with the bloc.
However, Dutton said there is a middle ground that can be navigated, and he believes Malaysia will manage to do so.
“When you look at foreign direct investment (FDI), which has been going into Malaysia over the last number of years, it has been significant. Big impact and a big positive in terms of gross domestic product (GDP) growth.
“When you're looking at GDP growth for 2025, we would expect to see some of the acceleration going into 2H2025 and into next year,” he said, adding that Malaysia has recorded a positive uptick in terms of consumption and retail sales coming through in the last couple of months.
-- BERNAMA