I think BNM is in catch 22.

last dec is 2.95~3.0........ but compare first time i go is 3.6 still a lot lower la
cukurrrrrrrrrr

GDP growth over 4.5%, kV property price setting new high, people queued over night for new launch, luxury cars sales double digit growth; what weak indicator?

This post has been edited by icemanfx: Aug 12 2015, 01:03 AM

I wish the ringgit increase significant after the big issue solved. There is a lot of impact to my deal in between local and oversea....

Maybe difficult to find business with >90% COGS local components because business now is global it may be cheaper to get imports. But there are companies which are mainly export oriented in USD like CPO, O&G, agri base like fruits, manufacturing like IT service, electronics.

Economics fundamental shows we have a current account surplus. So, export > import and RM should appreciate gradually as demand of RM > supply. But the real situation is

Zeti also give up already

This post has been edited by Showtime747: Aug 12 2015, 06:42 AM

It will... and not due to big issue solve but external factor...
Currency war is otw... and started by china (devaluation of yuan), to boost their export figure..
US fed in delima on the rate hike this sept..
UK still hold their rate despite good recovery they made...

Wonder how about the bank loan in ringgit. Will it remain the same let say one morning.Your RM500K loan you buy the house can only buy a lunch as happen in Africa country. Will the bank still ask you to pay that RM500K when it still got 10 years to settle? or ask you to pay higher as they adjusted it value? In Venezuela, the driver say he pay for the taxi and a last two year inflation, he pay the same amount of money just to repair his car air-con.

The amount do not adjust itself.. the interest and/or base lending rate will adjust accordingly. That is determined by the central bank.

Big impact on making more money also not happy

Could the gomen allowed myr devaluation on purpose to lead to inflation so that elevated household debt could be reduced?

This post has been edited by icemanfx: Aug 12 2015, 09:43 AM

How the heck is the debt going to reduced when debt is at all time high?

Double poat

This post has been edited by Ramjade: Aug 12 2015, 09:48 AM

They keep on saying nowadays we are well prepared with better knowledge and policy to keep this kind of financial crisis as vs 1998 from happening but the end result speak otherwise. Just like the one in jolokia on the other forum on KV property. Sure I live in the era of 1998 that lock up my money when I bought the shoplot but I ride over it. This time, it look worse.

If a person keeping few properties looking for buyer, sure will die die says the market are good

There was one rich fellow who gone gila after 1998 crisis. One can still see him around hawker center with a funny hat around Ipoh. He lost big in stock during the 1997 crisis. Hope those flipper in KV learn from it.

yes, i am aware of o&g and cpo exporters - it's really only petronas and the large plantations. usd yes, but falling prices and demand... net earnings in rm also drop badly. if not, petronas won't be cutting dividends to putrajaya.

others... i think all very small. so, there really is little joy in the statement "exporters are happy".

current/trade account surplus - primarily driven by bigger reductions in imports. this can become a problem later - shortage of certain goods.


zeti will speak tmrw. i doubt she has much to say except the usual, "undervalued".
https://www.malaysiakini.com/news/308181

This post has been edited by AVFAN: Aug 12 2015, 10:24 AM

1.00 USD = 4.01015 MYR
Biz as usual for Ppl as MYR4 mark is a fact for all M'sian
Hope the rate stays within range of 4.00 to 4.10 till end of Q3

Ya, if you talk about the whole of malaysia, only the selected few lucky ones benefit from the RM depreciation.

Minister talks about tourism, which only benefit the bosses in the tourism business if more tourists visit malaysia. They don't sell stuff based on US$, but still in RM. If tourist number don't increase, they don't gain anything. We have to wait for the tourist number statistics to come out to prove lower RM actually benefits tourism

For business, yes you are right. RM depreciate but at the same time crude oil and CPO price drop also, so what benefit is there for the big companies ?

I have a business which export to china. Initially late last year beginning this year we gain on weak ringgit. Profit doubled. But the last few months, the sales really slow down and we were only gaining on the exchange rate. Sales volume has come down. Still ok, but not as good as before when china market is still good.

I am sure there are businesses which enjoy the RM depreciation like those glove, electronics etc companies, but I feel that would be the minority.

Whereas for the average malaysian, their standard of living will be lowered. RM will buy less things in the near future. Wawasan 2020 need another 5-10 years only can achieve

Inflation reduce real value of money.

Don't underestimate our gomen capability, their strategy could be unconventional like capital control in 1997.

Drop in RM that prompt more earning in USD cannot be offset by drop in commodities price.
While Petronas may export oil in USD, but its capex also in USD, aka equipment, tanker rate, all quoted in USD price one.

So does some plantation company that may be hurt by USD appreciation, as there are some large plantation company borrowing are in USD denominated.
At the meantime, CPO traded in RM doesn't rise, but down, despite with RM depreciation which in term of foreign buyers pov it has become cheaper.

The one benefit the most are those MNC set up here for cheaper production cost.
Last time, hiring engineer locally pay in RM (let say RM6K, which equivalent USD2K, from MNC they view in USD), now with RM4.00 vs USD, suddenly, they only need to pay USD1500.

While MNC import semi-processed goods (eg, chips) to produce into finished goods and export(eg, processor etc), all in USD, no impact at all.

For MNCs, goods in and out no effect from the RM, but massive saving in cost related here.