Ringgit Malaysia Climbs as U.S. Dollar Weakens, Why It Matters for HR Planning

The Malaysian ringgit recently climbed to RM4.23–RM4.24 against the US dollar, marking one of its strongest positions in recent months.

For most HR professionals, news like this might seem distant, something for economists or finance teams to deal with. But behind this currency shift are real opportunities (and challenges) that can affect hiring plans, payroll strategy, and even employee benefits.

The change was triggered by the U.S. Federal Reserve holding off on interest rate cuts, despite growing political pressure from President Donald Trump. This made the US dollar weaker, which gave emerging market currencies like the ringgit a chance to strengthen.

So, what does this all mean for HR teams and employers in Malaysia? A lot, actually. From cost savings to renegotiating contracts, this shift can be a window to rethink how you manage people, platforms, and payments, especially if your business uses international tools or employs foreign workers.

Let’s break it down.

What’s Behind the Ringgit’s Climb

The ringgit has become stronger recently, and this didn’t happen overnight. It started when the United States Federal Reserve, America’s central bank, decided not to lower interest rates.

Some people, including Donald Trump, wanted the Fed to cut rates to help the U.S. economy, but the Fed chose to hold off because of concerns about inflation and political concerns.

This decision made the U.S. dollar weaker in global markets. As the dollar dropped, investors started looking for better places to put their money. Many turned to Asia, including Malaysia. That shift in interest helped strengthen the ringgit.

In short, less investor confidence in the U.S. dollar led to more money flowing into Asian countries, which pushed the ringgit higher.

This is good news for HR and employers in Malaysia. A stronger ringgit can lead to lower costs in some areas, especially if your company pays for things in U.S. dollars, like foreign workers, global software tools, or training platforms. We’ll explain how this can impact your HR planning next.

Why HR Teams Should Pay Attention

A stronger ringgit provides several valuable opportunities for HR and employers. What is its impact?

Lower Cost for Hiring or Managing Foreign Workers

If your company hires foreign workers or uses services priced in U.S. dollars, the stronger ringgit means you're spending less now compared to before. This is because the exchange rate is more in your favour.

For example, if you subscribe to a global HR tool or pay for international training programs, these may now cost less in ringgit.

Savings on Global HR Platforms and Learning Tools

HR systems, recruitment software, and training programs priced in foreign currencies may now be more affordable than ever. This is a good opportunity to reassess your subscriptions and consider upgrading tools that may have previously been out of reach.

As mentioned before, you might save a lot of money on paying staff who work overseas and on the digital tools your HR team uses. Using these savings can help you put money into other employee programs or start new projects that improve how your team works and feels. Take this chance to make the most of your resources and boost your HR skills!

Chance to Renegotiate Contracts Priced in USD

If you have contracts that were signed when the ringgit was weaker, now might be a good time to review the contracts and talk to your vendors if there’s a better option. You may be able to get better rates or renew deals under improved terms.

More Flexibility for HR Programs and Benefits

With potential cost savings, you might have more budget space to offer staff benefits, rewards, or run new internal programs. It’s also a chance to test new ideas without overspending.

Better Planning for Payroll and Employee Support

If some parts of your payroll or benefits are tied to currency exchange (especially for expats or outsourced teams), take this time to adjust and plan ahead. You could also explore cost-friendly changes without reducing value for employees.

What Employers Should Do Now

If you want to take advantage of the stronger ringgit, we provide a few practical steps your HR team can start with:

Review HR Costs Tied to Foreign Currency

Check your current spending, especially if you're using overseas software, payroll services for remote teams, or global benefits platforms. Look at what’s charged in USD or other foreign currencies and see how much you're actually saving with the stronger ringgit.

Re-evaluate Employee Benefits and Compensation

Think about whether your current salary packages or benefits need to be adjusted, especially if they were designed when the ringgit was weaker. This could include allowances for expats, remote workers, or outsourced roles.

Watch Exchange Rate Trends before Making New Purchases

If you’re planning to buy new HR tools, run international training, or renew global subscriptions, keep an eye on the currency. Timing your purchases right could help you save more.

Work Closely with Your Finance Team

Coordinate with finance to forecast possible cost savings. If you’re saving money on foreign-based tools or staffing, you may be able to shift some of that budget into new HR programs or employee development.

Communicate with Employees about Potential Changes

If the currency shift affects things like benefits, international transfers, or salary packages, it’s good to keep your team informed, especially for expats or those involved in overseas operations.

What to Monitor Next

While the ringgit is strong now, currency values can shift quickly, so it’s important for HR and business teams to stay updated.

One key area to watch is the U.S. Federal Reserve. Their decisions on interest rates have a direct impact on the strength of the U.S. dollar. If they decide to raise or cut rates again, it could reverse the current trend, which may affect your costs for anything priced in USD.

At the same time, keep an eye on policy updates from Bank Negara Malaysia. As the central bank, its statements and decisions influence how investors feel about the ringgit. Changes in Malaysia’s interest rates, inflation outlook, or market confidence can all affect currency performance.

It’s also worth paying attention to political and economic changes overseas, especially in the U.S. that could shift investor behaviour. For example, a major election or a sudden economic crisis could quickly weaken or strengthen the dollar.

Don’t forget, HR teams should consider how this all affects salary competitiveness. If the ringgit stays strong, it might change how appealing Malaysian salaries are compared to other countries, especially for industries that rely on regional or remote hiring. Keeping track of these trends helps you stay ahead and adjust your strategies as needed.

Now’s the Time to Reevaluate Your HR Strategy

Take advantage of favourable exchange rates to invest in better people, tools, and planning. Start hiring today on Maukerja, Ricebowl, and Epicareer with AJobThin.