Source: Foundation for Economic Education
by Jake Scott
“In the last month, the small nation of Malaysia has risen in the views of global investors. Drawn by the country’s political stability and economic growth, investors increasingly consider Malaysia a safe method for diversification in the Pacific region amid a softening US dollar and a tumultuous global economy. In 2025 alone, investors poured over $5 billion into local currency debt—the highest in the region — leading to the Malaysian currency, the Ringgit, reaching its highest point since 2018. … This resurgence from the 1MDB scandal of 2020, that saw billions of government money disappear, should not be read as accidental or a mere coincidence of location, though that’s part of it: Malaysia sits in a ‘sweet spot between low-yielders, such as Singapore, Thailand, and South Korea, and high-yielders such as Indonesia and India, which come with their own set of risks,’ according to portfolio manager at Eastspring Investments, Rong Ren Goh.” (03/19/26)