No job but prices drop good for you or not?

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.   

The ringgit is likely to remain weak in the near-term due to the large foreign holdings of fixed income instruments in Malaysia.

(May 11): Global holdings of Malaysian government bonds rose to a record in April, taking overseas ownership of the debt to 32 percent.

Foreign investors purchased a net 11 billion ringgit ($3 billion) from a month earlier, the biggest inflow since at least 2006 and bringing the holdings to 168 billion ringgit, according to central bank data. The figure includes both conventional and Islamic sovereign bonds. When corporate notes are taken into account, they bought a total of 2.9 billion ringgit for an overall 216.4 billion ringgit.
http://www.theedgemarkets.com/my/article/g...nds-rise-record

Ringgit depreciation unexplained, says expert

http://www.theedgemarkets.com/my/article/r...ned-says-expert

29 May 2015 01:00 PM   
Is it time for the government to peg the ringgit again?

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by Sonia Ramachandran
PETALING JAYA: Should the depreciating ringgit once again be pegged to the US dollar (USD)?

Considering its position as one of the worst performing currencies in Asia this year, there is speculation that it would be pegged.

- See more at: http://www.theantdaily.com/Main/Is-it-time...h.VnqFupap.dpuf

Malaysia’s inflation accelerates to 1.8% in April
By Chester Tay / theedgemarkets.com   | May 29, 2015 : 6:41 PM MYT  
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KUALA LUMPUR (May 29): Malaysia’s April consumer price index (CPI) grows twice as fast as at 1.8% in April compared with barely 0.9% in March, mainly due to the implementation of the goods and services tax (GST).

In a statement today, Bank Negara Malaysia said eleven out of twelve categories of consumer goods and services registered higher rate of inflation in April compared with March.

“These price increases were most evident in the food and non-alcoholic beverages, communication and miscellaneous goods and services categories,” the central bank stated.

The food and non-alcoholic beverages category represent the highest weightage of 30.3% among the twelve other categories in the CPI basket. The category’s inflation growth was 3.15% on-year in April, as compared with 2.27% in March, according Bank Negara today.

On the other hand, communication category’s inflation growth rate was 2.35% last month, in contrast to a retraction of 0.92% in March.

Meanwhile, miscellaneous goods and services category’s inflation topped at 4.08%, highest since January this year.
http://www.theedgemarkets.com/my/article/m...erates-18-april

KUALA LUMPUR: The rationalisation efforts of 1Malaysia Development Berhad’s (1MDB) assets is a restructuring exercise more than anything else, says second finance minister Ahmad Husni Hanadzlah who has insisted that said efforts are not meant to “save” the controversy-laden strategic development company or the government.
“In our context, the main thing is that we must solve the issue of debt so that the people do not have to worry,” he said in a live interview on national television channel TV1.
In the interview, Husni focused instead on the larger picture, saying that there was a need for the country to resolve the 1MDB debt issue to avoid sparking a negative chain of events.
He opined that Putrajaya’s being forced to take on the RM42 billion debt in addition to next year’s development expenditure of RM52 billion would cause it to fail to meet the targeted Budget 2015 deficit of 3.2 per cent and revert to over 4 per cent instead.
“What will happen? Our ratings will drop. When our ratings drop, our companies borrow from abroad, our currency value will drop like in 1998 then when our ringgit at one point was over RM4. How to pay debts?” was the rhetorical question.
The Malaysian currency dipped in value during the 1997-1998 Asian financial crisis, at one point going over RM4 against the US dollar.
http://www.freemalaysiatoday.com/category/...-restructuring/

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

The rupiah is the worst-performing Asian currency so far this year, dented by corporate demand for the dollar as well as concerns over Indonesia's economic slowdown and its chronic current account deficit.
http://www.theedgemarkets.com/my/article/r...fx-broadly-down

jokowi is pushing hard for some economic reform.. I guess it's not working 

About rm2000 each

Rm4 coming.

Breaking news...
1.00 USD = 3.76108 MYR

Yup got it from my bank too..its 3.76 now.
GST effect and 1MDB kicked in yo.

USD1.00 = MYR 3.76090     

3.80 is coming very soon... maybe on Monday 

take a look too at usd/myr:
http://www.xe.com/currencycharts/?from=USD&to=MYR&view=1W
myr/thb:
http://www.xe.com/currencycharts/?from=MYR&to=THB&view=1W
myr/idr:
http://www.xe.com/currencycharts/?from=IDR&to=MYR&view=1W
aud/myr:
http://www.xe.com/currencycharts/?from=AUD&to=MYR&view=1W

u will see that rm has lost ground to all of them in the last 1 week, incl rupiah, not just sgd.

Ya, it is broad base. Not only USD. For USD drop I understand. But the drop vs SGD is more than USD over the past week. That's why my "conspiracy theory" is that the business / rich people knew something is happening and taking quick steps to preserve their wealth. When I made my transfer over the last few weeks bit by bit, my bankers are telling me such transactions are getting more and more.

Just that the sudden surge over this week caught me by surprise. I am too slow my RM kena stucked that's why I butthurt 

Yes, very true I agree with you. But this sudden drop is not logically for me. In short term from 3.4 to 3.7 that's a huge difference.

At the height of the 1997/98 Asian financial crisis, the ringgit hit a high of 4.7125 against the US dollar on Sept 1, 1998

Malaysia must resolve 1Malaysia Development Berhad's (1MDB) debt issue or risk a negative chain of events, second finance minister Datuk Seri Ahmad Husni Hanadzlah had said on Wednesday.

If the country has to find RM42bn to pay back the troubled company's debt in addition to the budgeted RM52bn of development expenditure for next year, then the fiscal deficit will shoot up to 4% from the target of 3.2%, according to the minister.

The ringgit could fall to Asian crisis levels when the USD/MYR pair had risen above 4.0 and the country could face rating downgrades if the debt issue is not solved, he added.

The Malaysian currency has fallen 1.37% so far this month, adding to the 2.8% loss happened in May.

In April, the unit had made a good reversal, moving off the 6-year low in March, and had hit a 3-month high of 3.5315, but now these gains have been erased almost entirely.

Technically, the USD/MYR pair has strong resistance near the 3.75 area which it failed to break through in March. In 2009 too, the attempt to break above that region failed at 3.7550. So breaking that level will push the ringgit to its lowest since early 2006.

Charts also show that the chances for the ringgit plunging to a nine-year low remain technically strong as long as the USD/MYR pair holds above the 3.65 region.
http://www.ibtimes.co.uk/malaysian-ringgit...aunting-1504560

The Malaysian ringgit hit a nine-year low against the dollar on Monday after strong US employment data bolstered expectations for an interest rate hike by the Federal Reserve before year-end.

The ringgit hit 3.7510 versus the dollar, its lowest level since February 2006 according to Thomson Reuters data. The ringgit last stood at 3.7500, down about 0.8 percent on the day.

who knows end of the week reach that level