Every time the end-of-year holiday season enters, the average Malaysian has a habit of traveling to regional destinations in Southeast Asia, especially Indonesia and Thailand, which offer cheaper holiday packages and are close to local culture and tastes.
These two countries are not only the top choices due to their diverse tourist attractions, but also drive increased demand for the rupiah and baht, making them both among the most active foreign exchange for Malaysians by the end of 2025.
Indonesian Rupiah Affected by Domestic Political Uncertainty
The Malaysian Ringgit (MYR) has strengthened against the Indonesian Rupiah (IDR) throughout 2025, driven by the stability of Malaysia's domestic economy compared to the internal challenges facing Indonesia.
The rupiah has been affected by political uncertainty after the election, including a series of protests and riots that have affected foreign investor confidence. This factor has caused fund outflows and weakened the rupiah, thus making the ringgit more competitive for Malaysian tourists vacationing in Indonesia.
Despite this, Indonesia remains a top destination due to its cultural richness, natural beauty such as Bali, Bandung and Lombok, and relatively low cost of living.
Thailand is More Tourist-Friendly & Cheap Shopping Costs
Compared to the rupiah, the position of the ringgit against the Thai baht (THB) throughout 2025 is quite different when the Thai currency is more stable and does not show a major drop. Although the ringgit is slightly weaker against the baht, this factor has not stopped Malaysians from continuing to make Thailand their top destination of choice.
The cost of a holiday to Thailand is still considered affordable, especially for food, accommodation and shopping activities, compared to destinations outside Asia.
Thailand also maintains its status as one of the world's tourist attractions in Southeast Asia with iconic destinations such as Bangkok, Phuket, Chiang Mai and Krabi offering a combination of modern entertainment, local culture and tropical beaches.
This situation makes MYR–THB continue to be active in the currency exchange market, especially towards the end of the year when the number of tourists surges.
