I think local banks minimum is RM50k for DCI

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...

Mathematically, Recession is a Numerical Definition  : two consecutive quarters of negative GDP growth readings.

Fundamentally, you are RIGHT ! 

Sentimentally, you are RIGHT ! 

Market-emotions-wise, you are RIGHT again ! 

Hence, no need to measure mathematically anymore ! 

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?

MBAM: Weakening ringgit affects builders’ margins
http://www.theedgeproperty.com/my/content/...2%80%99-margins

Most Banks require min sum of RM250k for individuals with net assets < RM3 mil

which bank is that? 

Whether how account treatment or not, it doesn't matter, it is still the same.
This topic is not about GST benefit consumer or not, or how GST impact, but how MNCs and large export corporation are not being affected by the weak currency. 

Business is never fair.
Rich enjoyed the most when QE was at its height, but when QE being pulled back time, just like current situation, the poor and middle class suffer the most.

The worldwide trend currently is big eat small. Look at how giant retailers crushed traditional grocery stores is the best example.

That's why I said SME will be the one suffer the most.
There is no such thing of given chance to survive or not, you need to find your own space to survive in business world.
Cashflow is the basic of managing the business.
If a company be it large or small do not know to manage cashflow including in the difficult period, the company doesn't deserve to survive, as simple as that.
Anyway, we are deviated too far out from the currency issues. 

RM is not freely traded offshore, not like last time prior before 1997.

Not all SMEs will fail, only weak one.
This is not the first time economy difficulty that business needs to go through.

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.

Economy is not forever doom or boom one.

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

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.

By the way, officially, the RM CANNOT be traded directly offshore. An eg of an indirect way to trade the RM will be through transactions done by contracts or everyday dealings initiated by 'local-based' organizations - by definition ! The contracts need not be direct RM buy-an-sell contracts. These are slip-throughs which cannot be avoided in this globalised world.

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.

Edit : added final two paras..

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.

Most Banks require min sum of RM250k for individuals with net assets < RM3 mil

by bnm regulation, rm is not traded outside msia, traded only locally during normal hrs.

bnm figures are official, as of 5pm every working day; bloomberg follows bnm.

but there are other contracts involving rm traded in'tlly elsewhere.

gives a good indication what it will be the next msia trading day, can fluctuate a lot.
http://www.xe.com/currencycharts/?from=USD&to=MYR&view=12h
3 weeks ago, i know a fren opened a multi currency account.

best to speak to yr bank.

In summary, Malaysia may not recover from this at all.

Who say min 250k?

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

Only 500USD min to open account

If RM not traded outside Malaysia, why kind of contracts involving RM are traded outside of Malaysia that will give indication of RM exchange rate? 

DCI is not ordinary foreign currency current account or FD.

It is a structured investment, which normally need 250K as min.