If you buy raw materials with USD in-hand, and then sell and collect USD and in-turn park it somewhere in the USD, you don't have a problem. If you do not convert and perform your acct'g treatments in RM, you don't have a problem. It is all about the acct'g treatment.

I have SME clients doing this, and they are not as badly affected as the others who delve into the RM.

Hence MNCs will not be affected so much in terms of raw material costing.

GST issue IS AN ISSUE, though not directly, but the indirect effects should not be ignored too. If the execution of the GST taxation process is not good, it will bring hardships to good operations which, as claimed (though I wouldn't concur is limited to this) have 'razor-thin profit margins'. Why should a strong cashflow company prosper and a company with lower cashflow capability suffer because of the GST ? If an SME operation is able to sell at a lower profit margin so that entities down the 'food-chain' can enjoy better cost savings, and finally benefitting the end-consumer, it will be good for the end-consumers. Furthermore, the percentage of GST charged against the end-consumer will be lower because of the lower pricing.

If the problem here is an entity which is not paying taxes or evading taxes, hence not respecting the law and the courts, that would be a problem. But if the problem resides with the tax-collection authorities, then it is not fair to eliminate the smaller guy which is trying to follow the rule-of-law.

There is a hiccup in the claiming process..., but it will soon be ironed out ? How long will it take to iron out, when we have a few tsunamis hitting us now in the face along with this GST thing ? Do we, then blame it on the timing of these issues coming together at the same time ? No,... blaming won't help the smaller guy who will be wiped out before the problems external to him are erased.

If we are going to go with the concept put up here, then many SMEs should close down, and MNCs alone will survive and prosper. Perhaps a few 'stronger' SMEs might survive too, and they will have the luxury of raising prices. We, as the end-consumers, will bear the brunt of this effect in the end. Perhaps we are already feeling that now, with the rising prices of 'everything' around us.

If your MNC (with good cashflow and dealing in the USD alone in and out) can suffer a revenue drop of approx. 30%-40% in these times, how do you think an SME (with razor-thin margins and not able to deal entirely in the USD) will be affected ? Is it fair to let the little guy go ? Is it fair for the end-consumers to pay more for products and services later on ?

Is it fair to let only MNCs survive ?

All should be given a chance to survive.

So no reports of speculators fooling around with our RM. ...

If SMEs fail, the primary negative effects will be : job losses, more expensive goods for us end-consumers, less tax collection for lembaga, and more motion of no-confidence against the administrators (whose jobs and functions are to create jobs and opportunities for the people).

The above will trickle down to further secondary effects such as drop in GDP, drop in sentiment, etc, etc,.. countless...

Hello guys, I am interest in converting some of my savings into other currencies in case of ringgit going into a continuous bad fall. Does local bank still offer multi-currency accounts that allow me to convert my ringgit into another currency. It is not for business use or tuition or anything, just for savings. Is it possible now?

If the % of SMEs falling is huge enough at the country level, then everybody is impacted in his/her livelihood in this country. Furthermore, if this weakening of the RM does not stop, the negative effects will croach into the 'stronger' SMEs too.

' Whatever you posted the spiralling effect down is as same as what many had been posted during 1986, 1998, 2002, 2008 or even the 2011 Euro debt crisis. '

Reply similar to immediate previous reply to yourself - This is not the first time we are going through this.

I'll give an eg here here, a very simpl one - an SME company which purchases its products and buys in the RM locally, exports the finished product overseas and parks the sales return in an overseas account in the USD. The RM has 'been converted' into the USD indirectly.

Who say min 250k?

I'm using these now https://www.alliancebank.com.my/AllianceXChange#overview-tab

Only 500USD min to open account

Is there a thread dedicated to Msian Structured Investments or Msian DCIs ? Can discuss there too.

The last I check, that guy is not selling gold like Peter shriff.

This one is about coincidence that happen every 7 years 

I check Amazon website search for "shimitah", his name does not appear

Maybe he is paid by the gold traders to promote the fear

With such hazy condition, tourism is going to have a hard time. Every year same problem. MYR drop good for tourism? What tourism?