Malaysia's ringgit retreated from its strongest level in five months on concern growth in Southeast Asia's third-biggest economy is slowing.

The currency snapped a two-day advance as economists predicted the government will report today that exports rose the least in seven months in December and growth in industrial output fell for a fourth month. The MSCI Asia-Pacific Index of stocks snapped a three-day rally after Greek leaders struggled to reach a full agreement on spending cuts needed to secure rescue funds.

The ringgit declined 0.2 per cent to 3.0150 per dollar as of 9:05 a.m. in Kuala Lumpur, according to data compiled by Bloomberg. The currency touched 2.9965 yesterday, its strongest level since Sept. 9.

"The issue in Greece and the slower economic data are weighing on the ringgit," said Calbert Loh, head of treasury at Bangkok Bank Bhd. in Kuala Lumpur. "I still think that the Malaysian currency will be well-supported at 2.98 to 3.04 to the dollar in the medium term."

Exports rose 6 per cent in December from a year earlier after increasing 8 per cent in November, according to the median forecast of 18 analysts in a Bloomberg survey before the data is released at 2 p.m. local time. Industrial output rose 1.7 per cent, the least since a contraction in July, according to economists in a separate poll.

Greek Prime Minister Lucas Papademos said political party leaders agreed on all measures to secure a second financing package except for one, according to an e-mailed statement from the premier's office in Athens. Antonis Samaras of the New Democracy party said talks on a new financing agreement for Greece stalled over a dispute on cutting pensions.

Malaysia's five-year government bonds rose yesterday. The yield on the 4.262 per cent notes due September 2016 declined one basis point, or 0.01 percentage point, to 3.15 per cent, according to Bursa Malaysia. That was the lowest level since the securities were sold in March. -- Bloomberg