KUALA LUMPUR: Malaysia’s ringgit is making headlines as Asia’s best-performing currency this year, a feat Prime Minister Datuk Seri Anwar Ibrahim attributes to disciplined fiscal management, improved governance, and a series of thoughtful policy reforms.
Speaking in the Dewan Rakyat during Minister’s Question Time, Anwar highlighted a milestone many Malaysians may not have realized: for the first time in 14 years, Malaysia has moved out of a services account deficit.
“One figure really stands out,” he said. “Our deficit had always been a concern. But in the third quarter of 2025, we recorded a surplus of RM0.7 billion. That’s the result of careful planning, and our current account balance was also positive at 12.2%.”
Anwar was responding to a question from Jimmy Puah (PH-Tebrau) about why the ringgit has been strengthening—it now sits at its highest level against the US dollar in nearly four years. As of November 14, the ringgit had gained 8.21% against the US dollar, 5.66% against the Australian dollar, and 5.26% against the Taiwan dollar, while also climbing against the Chinese yuan and Singapore dollar.
“The increase is significant and very encouraging. It shows that investors have confidence in Malaysia,” he said, noting that targeted policy decisions, particularly subsidy rationalisation, played a big role.
“By focusing subsidies on those who need them most, and phasing out those that don’t directly help lower-income groups, we’ve made government resources more effective,” he explained. “Adjustments, including for RON95 petrol, have been generally well received. On my recent visit to Sabah, people were genuinely pleased with the lower petrol prices.”
Anwar also touched on ongoing efforts to strengthen Malaysia’s institutions. Key reforms, including the Ombudsman Bill, Freedom of Information (FOI) Bill, and Political Financing Bill, are currently being reviewed and refined with input from various stakeholders before being tabled in Parliament.
“The ministers involved have presented their proposals to the Cabinet. Some of these Bills could be tabled early next year, while others may come mid-year,” he said.
But the Prime Minister stressed that laws alone aren’t enough—implementation is what really counts. Citing the government’s recent recovery of RM15.5 billion, he credited agencies such as the Malaysian Anti-Corruption Commission, the Inland Revenue Board, police, and Customs for their determination and effectiveness.
“You can have laws and regulations, but without political will, none of this would happen. The results speak for themselves,” he said.
Anwar’s remarks paint a picture of a nation steadily building economic resilience and stronger governance, signaling optimism for investors and Malaysians alike as the country looks toward sustainable growth in the years ahead.
