Malaysian Government Bonds in Focus: Ringgit Shines as Asia's Leader

International investors are showing increased interest in Malaysian government bonds, driving an impressive appreciation of the national currency. The Malaysian Ringgit ranks as the top performer among Asian currencies this year. In August, global funds invested a total of 8.1 billion Ringgit (equivalent to 1.9 billion US dollars) in Malaysian government bonds and securities. According to Bloomberg calculations based on data from Bank Negara Malaysia, these are the largest inflows since July 2023. This development was facilitated by the decline in the profitability of hedged investments, which led to a significant six percent increase in the Ringgit last month.