We are wrapping up September on a high note with the announcement of the Malaysian Ringgit (MYR) strengthening!
In an exciting turn of events, the ringgit has not only outperformed the US Dollar (USD), Singapore Dollar (SGD), and Thai Baht (THB), but it has also been recognised as one of the best-performing currencies last week, according to MIDF Research’s weekly money flow report.
This rebound underscores the strength of Malaysia’s economy and boosts the purchasing power of its citizens.
The positive momentum is also driven by favourable macroeconomic conditions and Bank Negara Malaysia’s (BNM) decision to keep the Overnight Policy Rate (OPR) steady at 3.00 percent.
As the ringgit gains ground, it simultaneously paves the way for increased foreign investment and tourism, positioning Malaysia as an appealing destination for international stakeholders.
Kashif Ansari, co-founder and group CEO of Juwai IQI, pointed out that BNM’s choice to maintain the OPR, along with the possibility of a rate cut at the upcoming Federal Open Market Committee (FOMC) meeting, is advantageous for property values and transaction activity.
Speaking to Business Times, Kashif noted that stable interest rates ensure predictable borrowing costs for mortgages and development financing.
Existing loans with floating interest rates won’t see significant changes, keeping monthly repayments steady. That’s good for household finances and for the industry.”
Kashif Ansari
On September 6, BNM decided to maintain the OPR at 3.00 percent, and analysts predict it will stay unchanged through the end of 2024 and into 2025.
Kashif pointed out that over time, lower interest rates usually cause property prices to increase.
This gives homeowners and buyers hope that their monthly costs could decrease in the future.
“We expect demand to continue to grow at sustainable levels. The stable interest rate environment is positive for property without causing irrational exuberance in the market,” concluded Kashif.
Juwai IQI was featured in Business Times.
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