However, he said, Malaysia is currently at a point of strength, with strong growth prospects as seen in the country’s third quarter this year.

“Some of the elements that supported growth in Malaysia are trade, investment and tourism spending.

“These factors will continue to be there throughout next year and also 2026. Malaysia’s economy will remain positive,” Rasheed said after announcing that the economy grew by 5.3% at a press conference here today.

Rasheed said everyone is waiting to see what policies the US will implement, based on Trump’s campaign promises in the recent elections.

He said BNM does not want to speculate at the moment, and will do a more accurate assessment when the time comes.

Rasheed also said the central bank’s decision to encourage Malaysian businesses to repatriate their earnings from abroad and convert them to ringgit has seen the local currency appreciate against the US dollar.

“This decision has shown a positive outcome. The ringgit appreciated by almost 10% in the third quarter of this year. This shows that the ringgit has remained competitive in the market.

“Meanwhile, Malaysia’s favourable macroeconomic outlook and ongoing structural reforms support the ringgit over the medium term,” he said.

Rasheed also welcomed Malaysia’s removal from a US currency manipulation watch list, affirming the ringgit’s market-driven status.

He stressed that Malaysia has never used its exchange rate to gain a competitive advantage in the market, Bernama reported.

“As such, this is something that affirms our belief and position on this matter. It’s a welcome development,” he said.

The US treasury department’s semi-annual report monitors countries with large trade surpluses with respect to the US that also actively intervene in foreign exchange markets to gain a competitive advantage.