ah.. sorry about that.

that message was for dan with power foreign money.

This post has been edited by AVFAN: Jun 11 2015, 09:56 PM

veli lucky those with foreign income esp USD & SGD

Indirectly income increase month by month

yes...
just don't consider it as permanent income to be budgeted into the expenses....

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 ?

b'cos the upward movement can be down movement or no movement at all.
thus the gain may not continue...

well tat also valid point

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

true, sg's mas focus on sgd gradual appr against its major trading partners.

today, rm lost 0.44% with usd, sgd lost 0.3%. so, u gain, once again!

anyone got the data for this?
If
"A", placed in RM 1000 in FD with Malaysian bank in year 1985 till 2015 (or 10 years at least)
"B", placed in RM 1000 but converted to SGD and placed in FD with S'pore bank in year 1985 till 2015 (or 10 years at least)
which one got more now?

Singapore Malaysia (3 month FD rates)

1997 3.41% 7.35%
1998 5.17% 8.70%
1999 1.70% 6.45%
2000 1.68% 3.18%
2001 1.70% 3.25%
2002 1.00% 3.27%
2003 0.78% 3.13%
2004 0.40% 2.87%
2005 0.41% 2.80%
2006 0.56% 3.21%
2007 0.57% 3.61%
2008 0.48% 3.56%
2009 0.38% 3.30%
2010 0.22% 2.23%
2011 0.18% 2.94%
2012 0.13% 3.07%
2013 0.14% 3.11%
2014 0.15% 3.11%
2015 0.15% 3.78%

1997 forex RM:SGD 1.00:1.79

1. Put S$1000 in FD renew on maturity from 1997-2015 = S$1208.84

2. Put RM1790 in FD renew on maturity from 1997-2015 = RM3652.44

3. S$1208.84 x 2.78 (2015) = RM3360.57


RM wins. Malaysia Boleh. Bercukur ada Barisan Nasional

Based on the above data, is xuzen correct on Fisher Equilibrium / interest rate parity ?

This post has been edited by Showtime747: Jun 13 2015, 01:20 AM

differential of 8.7%...

an indication more rm depr towards 3.0 ex rate coming?

This post has been edited by AVFAN: Jun 13 2015, 02:20 AM

Shld b 3.80 rite?

thanks for the compiled data....appreciated it very much...it proved/showed some things.
btw, "Bercukur"...???

This post has been edited by T231H: Jun 13 2015, 08:08 AM

it's sgd/rm.

3.00 is not impossible in the next 24 months given all that we know at this time.

if that happens, usd/rm will be 4.0.

If a company has bad financial management, it's P&L will of course deteriorate further. Same as currency. It's a matter of time. But don't know when

It's the /k lingo for bersyukur, being sarcastic

Seriously, personally I don't think it is a conprehensive comparison. It may be true for fixed income investment based on interest rate, like a retiree who live on FD.

But investor may be investing in other vehicle like in stock market too. So, if we compare SGD+SGX vs RM+KLCI, the the winner is different, and in this case SGD will be a clear winner

But for all we know, there will be some politician who "memaslankan" the above calculation and sing praise for RM tomorrow

Based on my understanding, if nothing changes, then the Fisher Equilibrium states that the forex should move closer to SGD 1.00:RM 3.00 by end of this year.

Hence you may use this as a guide to know how the forex will move and plan ahead. For example, let's say your kid is going to study in SG "A" Level in June 2016 and if you know the average inflation rate of college education, the interest rate of both country, you can plan ahead to check whether it is better to keep RM or SG now.

Information + Knowledge = Better Planning.

Xuzen