The Monetary Authority of Sgp (MAS) uses the exchange rate to ctrl inflation. It is a bit technical, but what we need to be concerned with is tht MAS meets twice every year, and most of the time, they will either let the SGD appreciate gradually or hold. Seldom will the MAS want to force the SGD down.

Whn the Sgp gomen gives stimulus, it comes in the form of bank interest rates, not by printing more SGD.

I hav always said - we must always go with a currency tht has a high tendency to appreciate in the long term, not a currency tht is supposedly strong, but can go up or down vs the RM. And I cant see any better currency than the SGD.

Create more jobs for the people - everything else will fall in place after tht. All-in-all, job creation is the key to everything. Ths is what I believe in. If I run the gomen, this is the first thing I will do.

In economics theory, in an inflation, wages shld rise in tandem too with the good economy. In a deflaton, there will be job cuts. Hence, in theory, inflation SHLD BE better than deflation. But not in the real world.

Again, in economics theory, we call it Structural and Fiscal Reforms. But realy,... in bolehland,... it will take lots of bloodshed to do this.

I feel ther is a lot of noise beng created by the mkt. As an invstor, for the RM currency, I wouldn't play if ther is too much noise suroundng it. Othr instrumnts - maybe, for mkt is not perfect.

But too dangerous for invstors like us whn it comes to the RM.

When is the official ann't date of the Actual 2015 Budget Deficit result ?

BNM wil not have sufficient ammo. BNM is unble to print money as and when she likes.

Somehw I just cant belief tht our local goods will become cheaper after the BNM cuts the OPR by 25bps.

Only applicable for those with assets of, say USD and/or SGD stocks with regular dividends and bond funds with monthly dividends. But then, not really 'fully-lucky', becos many items in Msia have also increased in prices, and GST has been imposed recently, hnce, balancing up the incremental incme.

Why not plese ?

Agreed for most of the currencies in the world (incl the mighty USD), HOWVER, in my many years of chasng passve income, I have come to realise that the SGD has NEVER failed me. In the long run, it has always been up, up and up against the RM. The MAS has always advocated a gradual appewciation of the SGD.

Nexona, thank you....

This post has been edited by Hansel: Jun 12 2015, 06:40 PM

Hav not counted the above personally, but I wld not doubt the calcultions which said that over a longer period of, as per eg abov, almost 20 years, the RM wld win,... why ? Becos back in the 'earlier yrs', the spread in the SGD-RM exchange rate was not as wide as what we have today. I recalld the SGD startd to 'run further and faster' away from the RM frm around the mid-range of 2000-2010.

I do not invst in only currencies, yes, I do diversify, into SG stocks and north amercan stocks as well. Not forgetig some othr instruments too. I chase passive income, with a strong focus on fixed income and cashflow-generating instrumnts.

IF it's me, I wld not change back my SGD and USD. I wld go for SGD-based and USD-based investments to generate more SGD and USD. I will only convert back the cashflow that I managd to generate.

Okay - in laymen terms as blow :-

When we 'play' currencies, we look at a pair. Strong Buy on the SGD/MYR pair means this pair will RISE IN VALUE. When the SGD/MYR rises in value, it means 1 SGD CAN BUY MORE MYR, which in turn means the MYR is WEAKENING against the SGD, because the amount of MYR that an SGD can buy increases.

Tech Indicators - 5 different Tech Indicators are used here to predict the turnaround points. Turnaround around points are indicators for taking prfit. Howevr, these pints are not necessarily accurate.

I will not sell, I am not a trder. I accumulate and invst more into the USD and SGD mkts. But that's me,.. and my stregy. Others may be good traders, so they can go in and out.

Yes, look at title first. YES, Strong Buy would mean different things between SGD/MYR and MYR/SGD.

If a pair is, say, XXX/YYY, then always look at it as 1 unit of XXX is able buy how many units of YYY. Just carry this visualization in mind.

If it can buy more YYY, then XXX is strengthening OR in other words, YYY is weakening.

If it can buy LESS YYY, then XXX is weakening OR in other words, YYY is strengthening.

In the beginning, this may sound cofusing, but as you practise this mindset movng forward, you will become more familiar with it !

This post has been edited by Hansel: Jun 15 2015, 12:49 PM

Glad to be able to help...

Well, I wouldn't want to be an individual in the above scenarios. Even if I'm an exporter or hotel operatr, I would still suffer higher prices of goods and services that I spend on in-country.

Sure, Surplus might exceed Deficit after some mths, giving a nice CA Balance and TRade Data, however, the 'surplus funds' wil be used to save 1MDB. Fitch wil soon re-evaluate by end-June,... analysts out there are predicting Downgrade.

I am not depending on 'ASSUMTION' comments. I do my own research and analyes. And I commnt based on what I have done m hoework on. Furthermore, my comments are also based on what I have experienced earlier in my invstments, or are currently investing on and holding onto. Hence, these are real-life happenngs.

Don't wish to comment abt being guilty or not when putting fwd opinons in Social Media tools.

Ratings agency reviews,... see below :-

Fitch Ratings said in March that there’s more than a 50 percent chance it will downgrade Malaysia’s A- credit rating at a review due before the end of June. The company cited falling energy prices, pressure on the current account and state investment company 1Malaysia Development Bhd.’s debt as factors.

Above extracted from : http://www.bloomberg.com/news/articles/201...mism-not-shared

We'll see whn the review comes along, whether dropped to a lower rating from ct rating or elevatd. SnP and Moody's are not due for rating rebiew till later in the yr.

This post has been edited by Hansel: Jun 15 2015, 07:28 PM

Lets wait and see,... no point speculating now. Fitch, and the main ratings agencies take into account ALL factrs before assigning a debt ratng or an outlook rting.

Wehave a divergnce here:-

For a possible UP-RATNG from Fitch, the following factors can be considred :-

Surplus from Tourism, export of commodities and electronic sectors from weak currency that also contributing a lot % in country GDP.

And for a possible DOWN-RATING frm Fitch, the following factors accordingly :-

GDP for 2nd Q is highly to be weak, poor consumer sentiment, poor sales recorded in most company (can be seen on many listed company turnover), as well as both import and export figure shrinking.

Fitch has a forward-looking policy, hence wht happens in future wil also be takn into account. Lets see.

Hoping all forummers here can help to keep track on the result from Fitch too. Lets see how this ratng moves the RM vs the SGD and the USD.

As I write this now, the RM remains the same and is rangebound against the SGD and the USD compared to yesterday.

-markd-