From the bustle of Kuala Lumpur to island hopping, to elephant spotting, Malaysia’s varied attractions now have added appeal thanks to the weak ringgit boosting tourists’ spending power. The currency recently briefly slipped past 4.8 against the US dollar – a level it last visited 26 years ago during the Asian financial crisis.

While Singaporeans are already piling across the border, keen to make the most of the Singapore dollar’s unprecedented strength against the ringgit, travellers from further afield are increasingly seeking out Malaysia’s numerous gems. Agency Intrepid Travel said it has seen a 15 per cent increase in bookings to the nation this year compared to the same time in 2023.

The ringgit has been buffeted by weaker exports, due to sluggish demand from China and Malaysia’s wide interest rate gap with the US. Years of equity capital outflows and political tumult have further dented sentiment.

Against the US dollar, the ringgit has fallen more than 4 per cent this year, adding to losses from the previous three years. The currency recently slumped to an all-time low against the Singapore dollar, and to the lowest level since 2016 against the British pound and the offshore yuan.

Still, most analysts are forecasting a stronger ringgit by the end of the year as Malaysia’s economic growth gains momentum. Oversea-Chinese Banking Corp sees the currency recovering to 4.60 per dollar, while ANZ predicts a level of 4.45. That’s going to dent overseas spending power.

The ringgit is up 0.1 per cent against the dollar at 4.7950 on Wednesday (Feb 21).

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South-east Asia has long been renowned as an inexpensive destination, said Scott Keyes founder of the airfare deals subscription service Going, and with the dollar’s current rally that’s even more true today. “The US dollar has strengthened more than 10 per cent against the Malaysian ringgit since early 2023, and that’s translating to big discounts for US travellers,” he said. 

When it comes to flights, Keyes said the pre-pandemic sub-US$600 roundtrip flights from the US to Kuala Lumpur have yet to fully return, but airfares across the Pacific have been coming down over the past 12 months. “With the strong dollar equating to cheaper hotels, meals, and activities, any higher flight costs are being offset once travellers arrive,” he said.

December to February is the best time to visit Malaysia’s west coast peninsular for beach getaways from Langkawi to Penang, according to Brett Mitchell, Intrepid’s managing director ANZ. March to May has the best weather across most of the country, with April being the ideal time to visit Sabah on the island of Borneo. 

Keep in mind that there’s currently unusually hot, dry weather enveloping most of the country, due to the final phase of the Northeast Monsoon season that’s set to last until the end of March, according to the Meteorological Department. It’s resulting in temperatures exceeding 35 deg Celsius, compared with the usual 23 deg Celsius to 32 deg Celsius. 

Malaysian schools are closed until around March 10, so popular attractions tend to be more crowded and prices may be higher. In March, the Muslim-majority nation will observe the fasting month Ramadan, which means fewer locals out and about during the day – but bustling night activity with plenty of food bazaars.

Bank Negara Malaysia Governor Abdul Rasheed Ghaffour said the number of tourists this year is likely to exceed the pre-pandemic level of 26 million. Tourist arrival numbers tend to be steady all year-round – between January 2023 and September 2023, monthly numbers ranged from a low of 1.3 million in February to a high of 1.8 million in July.

“The weakening of the ringgit has been a silver lining for Malaysia’s tourism sector, making it one of the most affordable destinations for travellers in the region,” Intrepid’s Mitchell said.

Buying ringgit before you travel locks in the current exchange rate, so if you think you’re getting a good deal, go for it. But be mindful of commission and fees on foreign exchange services and shop around for the best deal. And there’s always the possibility the currency may fall further still. BLOOMBERG