With the devalue of Malaysia currency vs major currencies, RM 3.35 = USD 1
RM 2.63 = SGD 1

Price hikes for many things, eg. petrol, electricity, food etc... High inflation..
Some said "foreign sell off " and "exit of foreign fund" (investment ), further weaken us. (If Malaysia fundamental is strong, why they will sell off ?)

1. Is Malaysia economy still fine ?
2. Has Our politician doing their job well to ensure our economy remain competitive ?
3. Why RM currency kept drop in value ? And it's more than 10% within months... Is this bad ? Reduce our citizen purchasing power ?
4. What measures our leader can do to make our economy better ?


Thanks

This post has been edited by Irresistible: Jan 31 2014, 07:01 PM

This page lists sources for data on the Malaysian economy , listed by category,.....

http://econsmalaysia.blogspot.com/p/where-...nomic-data.html

my view on the current economy....when one is in doubt of the accuracy of the provided data,....just go with the flow and keep one assets growing as fast and as much as possible with the risk that one can take.

Please give some input, or specific issue.

There is no focal point of discussion issue by asking such a general question.
Ty.

+1

economy doesnt lie...gomen can cover allthey want... a sliding composite index n weaker currency is clear indication of whats going on...

Well, sometimes the numbers published by the govt can lie but what cannot be false is what you see with your own eyes daily.


Best gauge is to ask oneself.

Are you feeling more hardships? How about you and your family or your friends?

Do you see your own purchasing power gone down or up? Is the govt policy helping you or crushing you?

Is your salary enough to justify your living expenses?


If 2013 is difficult year, do you think 2014 will be better or worse?


Sometimes, this is all relative.

For the top 10%, it's all blue skies!
For the bottom 20%, some money will come from govt.

For the middle class - BEND OVER!!

time to go singapore and work for those who lived near there...

Here's a very good explanation about the high Singapore dollar:

Why Singapore Dollars have NO CHOICE but to continually Appreciate in value

Looking at current trend, i think we are going downtrend..

Cheaper currency is actually good for Malaysia exporters. Good for tourism.

Unfortunately, consumers in Malaysia will have to suffer because imports will be come more expensive.
Yup, that means you cannot eat broccoli but continue your diet with kangkung.

Don't worry.. there will be a floor. RM is unlikely to fall below 1USD=RM 3.80.

This is the magic number that the Mahathir has set during his era and this is the number
where BNM will step in the stop the slide, should there be another currency crisis later.

This post has been edited by danmooncake: Feb 2 2014, 11:21 PM

Its a cycle....I'll avoid msia equities market for now n only revisit It in the next 6 month...

Interesting indeed.

This was from the property thread I believe more suitable in this thread:

RM drop bcoz of foreign investors dumping Msian stock, bonds and currency (RM). 'Hot money' as they are known.
Especially on the bond side, interest rate should rise. Hence OPR, BLR, KLIBOR should rise in tandem. Theoretically, this give burden to borrowers with higher monthly installment and squeeze them to dump their property.... price drop.

However, Pn Zeti maintain OPR. Meaning they have the foreign reserves to buy back the bonds to maintain the rates. Hence BLR will maintain and property will be fine. BNM probably focus more on bond buying that RM because it's link to lending rate thus business, properties etc that are on loan will not be badly affected. That's why RM decreases in value. However, in currency war the objective is to have weaker currency to improve export. On the bad side, inflation will affect the Rakyat.

Other emerging markets are feeling the pressure on hot money leaving their countries, Argentina, South Africa, India, Indonesia etc... had increase rate.

1 USD = RM 3.80
1 SGD = RM 3.00

Now, a singapore koptiam helper, let's said getting SGD 2000 , equivalent to a assistant manager/manager of Malaysia RM 6000

Believe companies profit, employees bonus and pay rise are reliable measurement of economy performance.

Beside developers, how many businesses are making extraordinary profit?

This year bonus compare with last year?

Salary increment higher than last year?

Cannot compare like that lar, the helper also have to spend in SGD mah.
Better way to compare is convert the net savings, not the gross income.

RM weak is very good for exports and tourism.. With good exports and tourism,
more Msians got jobs/employment + OT, pay more taxes, less Msians will travel aboard oversea,
Demand / Purchasing Power for Luxury gadget/peripherals will be less , less outflow of RM and
economy trade will be surplus rather than deficit. However, inflation will be pressure to control.
High inflation fenomena is affecting worldwide now[, Turkey, Argentina, India ..etc..etc ..
Luckily Our basic necessities food(rice, chicken, flour, salt, ..etc) are control items and if you hike
the sellable price, with policy Act and ppls will boycott traders and cook/eat at home..

Before and After CNY 2014, many firecrackers/fireworks spent and light up, many ppls ate at restaurants,
many new cars on the road, many ppls bought new smartphone/gadgets ..
DO you think Msia current economy is bad ?? International Reserves

This post has been edited by netmask8: Feb 5 2014, 03:20 PM

Can only say that if the kopitiam helper earns RM6000 if he lives in JB and works in SG. But if work and live in SG, then he earns SGD2000, which is pretty lousy pay in SG.

That's why I said the smart Malaysian would work in SG and live in JB.

Yes, weak RM is good for exports and tourism. The only worry of a weak RM is inflation. Weak RM is also good for accumulating foreign currency reserves. In the 1990s, our ringgit was very strong, but as a consequence, our currency reserves went down to very low levels, because we imported a lot of luxury goods as well as spent a lot on vacations overseas.

Singapore, on the other hand, must maintain a very strong dollar all the time or else their inflation would be very high because they have to import practically everything.

During world equity market downturn commodity value will increase... Commodity based fund gain the most this last few weeks...

This post has been edited by max_cavalera: Feb 5 2014, 04:47 PM