Neither the Malaysian Ringgit, nor the Singapore Dollar count as major currencies, therefore the pair that they make is not a major either. The regional significance of the pair cannot be overlooked however.
While the economy of Malaysia is not a global player, its regional significance and weight is well reflected in the value and strength of the Ringgit.
The economy backing the MYR only recently transitioned from an agricultural commodities and minerals-based model to its current services and manufacturing-based format.
That said, the crises of the last few years have exacted quite a heavy toll on it. The capital investments sector bore the brunt of these problems, and that obviously had a major negative impact on the Ringgit too.
Ringgit is an actual Malay word, which means “jagged”. It is apparently a reference to the Spanish Dollar – a currency which preceded the MYR – which featured serrated edges.
Malaysia is one of the world’s top producers of LNG (Liquefied Natural Gas) and its presence on the Crude Oil market is considerable as well. Thus, the prices of these essential commodities obviously influence the value of the MYR too.
For a while, Malaysia was in a monetary union with Singapore and Brunei.
The Singapore Dollar is the official currency of the island nation of Singapore. The footings of the SGD are very solid, as are the fundamentals of the economy which underpins it.
The subdivision of the SGD is the cent. SGD denominations are: 1,5,10,20 and 50 cents, as well as a dollar.
Before the introduction of the SGD in its current form, the country used the Straits Dollar, the Malaysian Dollar and then the British Borneo Dollar.
The SGD was introduced after the monetary union between Brunei, Singapore and Malaysia broke down.
Every SGD is fully backed by the foreign reserves of the country. Singapore is renowned for its cautious and conservative monetary policies.
The strength of the SGD can be jotted down to several factors. Of these, the country’s highly urbanized and industrial nature, as well as its corruption-free, high GDP economy are major parts.
The MYR and the SGD are still closely correlated. As mentioned, the two countries used to be in a monetary union. Even after the dissolution of this union, the two currencies remained at par, up until 1973.
The SGD was later pegged to the GBP and the USD too.
MYR SGD Currency Converter
Other major currency pairs
BUY - rate is expected to increase, i.e. the first currency gains value against the second currency.
SELL - rate is expected to go down, i.e. the first currency is expected to lose value against the second currency.