SINGAPORE (Jan 28): The Malaysian ringgit has another reason to keep pace with any short-term advance for Asian currencies after the government announced a plan to terminate a $20b rail project with a Chinese contractor. The cancellation will help improve the outlook for Malaysia's financial position, which has been under scrutiny from credit rating companies since the general election in May 2018.

However, with the central bank likely to be looking for an opportunity to lower rates in the months ahead, the ringgit will run into domestic headwinds before long.