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> Brunei economy crumbling? Oil exports down 25.7%!, currency peg with Singapore traps Brunei

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SUSleonhart88
post May 2 2014, 02:40 PM

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QUOTE(t3arsCulprit @ May 2 2014, 02:33 PM)
Say properly.. Sipadan and Ligitan is belongs to Malaysia.. Not stealing from Indonesia.. Okay?
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If prabowo become president in 2014, Indonesia will attack Malaysia to get back Ambalat, sipadan and ligitan

http://politik.kompasiana.com/2013/03/03/p...bah-538755.html
SUSryanliew87
post May 2 2014, 02:41 PM

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risau apa ??? langit nanti jatuh duit ma...u tak percaya ??
K.I.T.T
post May 2 2014, 02:42 PM

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QUOTE(Artus @ May 2 2014, 02:39 PM)
When economy is in trouble, currency devaluation is the price to pay to get back up again. It's a good tool anyway. Countries that don't have this tool (example: Greece and Brunei) would have to suffer for a considerably longer time compared to countries that control over their own currencies (example: Thailand and Malaysia).
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things hapend to negara brunei will hapend to pengeluar minyak lain?
SUSleonhart88
post May 2 2014, 02:42 PM

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QUOTE(Artus @ May 2 2014, 02:32 PM)
If Brunei change the pegging from Singapore dollar to the Malaysian ringgit then, in theory,it would benefit Sarawak and Sabah because trade between Singapore and Brunei would go down due to currency conversion costs between Singapore dollar and Brunei dollar.
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what benefit?so brunei will import from sabah and sarawak? sabah and sarawak have what? what I know Singapore will find it cheaper to import from Brunei
teehk_tee
post May 2 2014, 02:44 PM

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QUOTE(Artus @ May 2 2014, 02:39 PM)
When economy is in trouble, currency devaluation is the price to pay to get back up again. It's a good tool anyway. Countries that don't have this tool (example: Greece and Brunei) would have to suffer for a considerably longer time compared to countries that control over their own currencies (example: Thailand and Malaysia).
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it'll be better for them to peg against myr as a devaluation tool rather than a free float / managed float without significant capital controls
better as in less negative shocks in the system.

either way, malaysia is inclined to benefit on the increasing trade dependence on neighbors, that includes import of primary goods, and export of talent.
feynman
post May 2 2014, 02:51 PM

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QUOTE(rivost @ May 2 2014, 02:08 PM)
pb is nothing? they are awarded the block despite not having the technical expertise. either dependent on petronas or project stuck.

that is the thing, shell has good motivation to stay but no longer so confident or determine to make big investment. this can also partly be attributed to brunei's political issue. therefore you have brunei's negative oil and gas stats now. the sultan will not change his stance i can tell you.
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Are you in Brunei?

This is where you have absolutely no idea how things are in Brunei. But it really doesn't matter, because even if you knew more, it won't change a thing.

Due to confidentiality requirements. I can't divulge more than what I have shared.
Artus
post May 2 2014, 02:52 PM

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QUOTE(leonhart88 @ May 2 2014, 02:42 PM)
what benefit?so brunei will import from sabah and sarawak? sabah and sarawak have what? what I know Singapore will find it cheaper to import from Brunei
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If you ask Sabah and Sarawak have what, then you should ask Singapore have what? It's all about trade. If a merchant in Johor finds if cheaper to buy from Singapore than Kuala Lumpur, it would buy from Singapore. What are the considerations involved? Transportation costs and currency conversion costs. Sabah and Sarawak are nearer to Brunei than Singapore, so the transportation costs can be lower and with a lower currency conversion costs due to the pegging of the Brunei dollar to the Malaysian ringgit, then the change may benefit Sabah and Sarawak. The only problem standing in the way of better trade is our current cabotage policy.

http://www.sapp.org.my/economy/110113_fmt_...tage_policy.asp


Hamsapguy
post May 2 2014, 02:53 PM

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QUOTE(feynman @ May 2 2014, 02:51 PM)
Are you in Brunei?

This is where you have absolutely no idea how things are in Brunei. But it really doesn't matter, because even if you knew more, it won't change a thing.

Due to confidentiality requirements. I can't divulge more than what I have shared.
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baik tak cakap anything at all, waste time reading this only
feynman
post May 2 2014, 02:55 PM

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QUOTE(Hamsapguy @ May 2 2014, 02:53 PM)
baik tak cakap anything at all, waste time reading this only
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Tak suka jangan baca lah. I'm paid enough to not engage in unsubstantiated talks.

This post has been edited by feynman: May 2 2014, 02:55 PM
SUSleonhart88
post May 2 2014, 02:55 PM

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QUOTE(Artus @ May 2 2014, 02:52 PM)
If you ask Sabah and Sarawak have what, then you should ask Singapore have what? It's all about trade. If a merchant in Johor finds if cheaper to buy from Singapore than Kuala Lumpur, it would buy from Singapore. What are the considerations involved? Transportation costs and currency conversion costs. Sabah and Sarawak are nearer to Brunei than Singapore, so the transportation costs can be lower and with a lower currency conversion costs due to the pegging of the Brunei dollar to the Malaysian ringgit, then the change may benefit Sabah and Sarawak. The only problem standing in the way of better trade is our current cabotage policy.

http://www.sapp.org.my/economy/110113_fmt_...tage_policy.asp
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Indonesia(Kalimantan) is even nearer to Brunei.
Artus
post May 2 2014, 02:56 PM

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QUOTE(teehk_tee @ May 2 2014, 02:44 PM)
it'll be better for them to peg against myr as a devaluation tool rather than a free float / managed float without significant capital controls
better as in less negative shocks in the system.

either way, malaysia is inclined to benefit on the increasing trade dependence on neighbors, that includes import of primary goods, and export of talent.
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Yes, it is better for Brunei to peg to the ringgit because Singapore is obsessed with keeping its dollar strong in order to combat inflation and therefore a further rise of the Singapore dollar may cause more misery for Brunei.


Frozen_Sun
post May 2 2014, 03:04 PM

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QUOTE(patheon17 @ May 2 2014, 12:15 PM)
hope their oil faster finish, wan to c hw a country depended so much on oil suddenly hav no oil n collapse
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Why so much negativity for Brunei? Hopefully, their economy will recover soon smile.gif
ashportal
post May 2 2014, 03:08 PM

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QUOTE(TheHitman47 @ May 2 2014, 02:11 PM)
lol, still see many cainis here.
shouldnt we pindah spore now?.
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Nothin to do with cainis la brother, it just these meleis know over there the Sultan will spoonfeed his rakyat, so these meleis worship him. Summore they have hudud. I know some of my frens who mati2 want migrate Brunei.

SUSrivost
post May 2 2014, 03:20 PM

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QUOTE(feynman @ May 2 2014, 02:51 PM)
Are you in Brunei?

This is where you have absolutely no idea how things are in Brunei. But it really doesn't matter, because even if you knew more, it won't change a thing.

Due to confidentiality requirements. I can't divulge more than what I have shared.
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hmm.gif

lol.

its ok, you keep your secret, mr. FBI agent. i'm not interested to hear.

This post has been edited by rivost: May 2 2014, 03:24 PM
SUSNismoConcept
post May 2 2014, 03:22 PM

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Timemuffin
post May 2 2014, 03:26 PM

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What Brunei have now is the wetdream Msia affirmative action policies wish to achieve.
SUSrivost
post May 2 2014, 03:35 PM

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QUOTE(Timemuffin @ May 2 2014, 03:26 PM)
What Brunei have now is the wetdream Msia affirmative action policies wish to achieve.
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msia sure is happy to have such lab rat laugh.gif

and boy, they are fast copier. suddenly all rules such as non-muslims banned from 35 words, non-muslims cannot drink in public overseas, etc coming out.
lilzany
post May 2 2014, 03:38 PM

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Brunei mampus gua sikit pun tak kisah. I think the Sultan might migrate and leave elsewhere with his money.
bl@ze
post May 2 2014, 03:44 PM

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Am i missing something? All the ppl bashing hudud enlighten me: if the sultan cancel hudud is it going to magically make the economy better? Or u guys just bashing your islamic boogeyman of the month?
SUSrivost
post May 2 2014, 03:51 PM

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QUOTE(Artus @ May 2 2014, 02:56 PM)
Yes, it is better for Brunei to peg to the ringgit because Singapore is obsessed with keeping its dollar strong in order to combat inflation and therefore a further rise of the Singapore dollar may cause more misery for Brunei.
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peg to ringgit won't work too. malaysia devalues its currency trying to make exports more competitive. imagine more expensive imports knock in for bruneians, who already suffer from economic stagnation?

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