The ringgit surges — who stands to benefit the most?

(KUALA LUMPUR, 26th) As the ringgit continues to strengthen against the U.S. dollar—up about 2.3% year-to-date—analysts believe Malaysian equities could see clear winners. Export-oriented companies that source raw materials from overseas, as well as firms with significant U.S. dollar-denominated debt, are expected to be among the biggest beneficiaries.

An analyst at Public Investment Bank said investors are rotating funds out of developed markets into emerging economies with faster growth and stronger fiscal discipline, with Malaysia among the key beneficiaries. The analyst added that after the ringgit broke through the psychological 4.00 level and hit a more-than-seven-year high, foreign inflows into Malaysian markets are likely to become more pronounced.

The analyst also noted that Malaysia’s policy predictability and steady economic growth have attracted international investors into Malaysian financial assets, especially government bonds. Supported by foreign inflows, the ringgit gained more than 10% against the U.S. dollar in 2025 and has continued to extend its uptrend in 2026.

From a stock-picking perspective, the analyst favors two groups: companies that rely heavily on imported inputs, and companies with sizable U.S. dollar debt. A stronger ringgit improves purchasing power and reduces the local-currency cost of imported raw materials, potentially widening margins. At the same time, ringgit appreciation can ease the burden of servicing dollar-denominated liabilities.

Notably, the analyst observed that historically a stronger ringgit often coincided with a weaker FTSE Bursa Malaysia KLCI. Recently, however, rising foreign inflows have helped lift the index alongside the currency—marking a shift from past patterns.