I suggest :

1) Do not hike interest rate.

2) Start to tighten flow of funds. Make it harder for funds to come out. Encourage inflow of funds by corporates etc.

3) Hike GST 1% to show sincerity in improving budget. Cut petrol subsidies for the same reason. Better allocation of resources.

4) Continue to raise money by issuing government bonds after the above steps.

5) Let the ringgit have a controlled slide to US4.5 to 4.80. Make exports competitive. Discourage overseas spending. Trade balance will improve and shore up forex reserves.

6) Do not increase corporate and personal income tax. Do not increase int rate. Not even 0.25%. That will send wrong signal.

7) Spend as little as possible on defending ringgit. Just spend enough for it to slide to 4.8. With fiscal prudence and improved trade balance, RM might even surprise ny strengthening. Do not fight the market. Is is futile.

That's irrelevant to everyone else really. It's impossible to not notice the "elephant in the room".

That's a good list. Number one on that though should really be : Plug the leakage in the government and illicit flow of funds.

2 is in conflict with 4.

if u restrict flow of funds, foreigners can't sell their rm denominated bonds (40% or so), they won't buy new bonds. unless u mean epf/tabung buys all of it which it doesn't hv enough funds.

gst will need to be hiked >5% to be meaningful.

dun forget we have almost rm 1 trillion debt. that won't go away with any magic move.


one thing, why nobody command those gomen agencies like mara to sell their pops in uk and australia, 1mdb "units" to bring back the money?

they can keep, why?

This post has been edited by AVFAN: Aug 27 2015, 08:09 PM

The fall stops when the buying stops. Simple as that.

When people ask why RM keep dropping, I'll point to these guys...


Sure there's a trigger for RM falling, but it only worsens because the public panics and further exacerbates the fall.

EXPORT > IMPORTS for many months. http://www.tradingeconomics.com/malaysia/balance-of-trade

http://www.tradingeconomics.com/currencies

This post has been edited by netmask8: Aug 27 2015, 08:26 PM

Folks,

Wake up!!!

It is going to get even worse in 2016. It is NOT going to get better.

It is VERY SIMPLE.

Petronas is going to contribute significantly less money to THE GOVERNMENT due to low oil price. So, THE GOVERNMENT has to borrow more and tax more. 200+ billions of THE GOVERNMENT's budget is operational. It cannot cut unless it layoff civil servants. It won't do that due to political reason. And, to stay in power and bride those MP, there will be more capital spending some where. For example, more allocation to BN MP next year.

A) Petronas going to give less money

B) THE GOVERNMENT is going to spend more.

C) There will be more taxes and price increase by GLCs.

Dreamer

Folks,

http://www.thestar.com.my/Business/Busines...ysia/?style=biz

<< LNG's adverse impact on Petronas and Malaysia

Not only would that have implications on Petronas earnings, but Petronas’ contributions to government revenue could be impacted. Petronas contribution had dropped to about 22%, from 30%.

In 2012 and 2013, when the going was still good and Brent crude stood above US$100 per barrel, Petronas had contributed RM80bil and RM73.4bil respectively to the Government.

For 2014, that contribution has been estimated to drop to around RM68bil with Brent averaging US$99 a barrel. The contribution for 2015 would decrease further with Brent oil now hovering at the US$60 level.>>

66 billions at US$99. If you follow the same ratio, it will be 40 billions at 2015. So, Petronas will contribute to THE GOVERNMENT (66 - 40) = 26 billions less.
>>

Enjoy the show!!!

Dreamer

http://www.malaysiakini.com/news/309078

<< KINIBIZ It looks like that the oil crisis is biting Malaysia’s energy giant Petronas harder than it thought it would.

Last week, during its financial results announcement for second quarter of financial year 2015 (2Q15), chief executive officer (CEO) Wan Zulkiflee Wan Ariffin admitted that the company is having cash flow problems that will force Petronas to dip into its RM126 billion cash reserves.

Could it be the final straw that breaks the camel’s back for Petronas’ controversial US$30 billion (RM123 billion) liquefied natural gas (LNG) venture in Canada?

Read more: https://www.malaysiakini.com/news/309078#ix...1JqojtJ>>

Folks,

Petronas only has RM126 billions in reserve.

As I had said before,

"Don't worry, be happy!!"

"Not too bad!!"

You can count on DUMMIES to top up ASx to bail out THE GOVERNMENT.

Dreamer

GST @ 11% is very Taxing

The so-called "dummies" are getting smart these days.. No more close eye / die2 top-up ASx funds to bail out Gomen

Better than BNM closing of 4.2325

USD/MYR will head South tmrw as both WTI n Brent Crude Oil up around 5%

This post has been edited by wil-i-am: Aug 27 2015, 11:01 PM

USD / MYR - 4.18

Bursa UP 21pts
http://news.yahoo.com/bursa-malaysia-close...-110938179.html

Crude Oil UP 4%
http://www.marketwatch.com/story/oil-rebou...over-2015-08-27
http://www.businessinsider.my/crude-oil-pr...Pc5mIrYtFdPf.97
http://www.ft.com/cms/s/0/914f2dec-4cbd-11...9722977189.html

maybe will close at 1st lane, might close at 2nd line also if good than expected

Both WTI n Brent Crude Oil up around 10%
USD/MYR is heading South n could hit 4.15 today

crude up another 1.5%.

still 4.211.

my last usd/rm-crude price correlation attempt, i concluded oil/gas prices is a factor but is only a minor one given other major ones.



This post has been edited by AVFAN: Aug 28 2015, 09:47 AM

USD/MYR close @ 4.2140 as per BNM during noon
Current quote around 4.2125
Today seems to b very calm ahead of Merdeka

I see people don't ever care about the 4.2 drop maybe if drop to 4.6 then people will start panic. Ringgit seem to have stabilized.