Malaysia’s sovereign wealth fund Khazanah Nasional expects the ringgit to extend its gains after leading Asia’s currency performance last year. Managing Director Amirul Feisal Wan Zahir made the forecast as Malaysia’s stock index trades near a seven-year high and economic growth has consistently topped forecasts.

The currency’s strength defies pressure from higher U.S. tariffs, reflecting resilient domestic fundamentals. For investors, a stronger ringgit can lower import costs and curb inflation, but may challenge export competitiveness. Khazanah’s outlook signals confidence in Malaysia’s economic management amid global trade tensions.

Market watchers will monitor upcoming central bank decisions and inflation data for confirmation. Sustained ringgit strength could attract more foreign portfolio inflows into Malaysian equities, potentially lifting the benchmark index further. Khazanah’s stance adds a heavyweight voice to the bullish camp.