Too far away.. Compare with China or Japan always low currency exchg trend to makes their export competitive and add more surplus trade / boost economy.

This post has been edited by netmask8: Jul 7 2015, 11:03 PM

the theory should be applicable to all countries. Why got exception?

1.00 USD = 3.83299 MYR
Heading to 3.85 tomorrow?

He and several others in RWI are well known cyber trooper. His job is to defend his master, not sharing opinion objectively

Sgd to rm :2.81 already.

Singapoleans happy now....malaysians now need to pay more for imported items

Jibbie: bahagia mu, deritaku

doesn't look like it.

bnm doing a good job for now.

3.81 it is.

Yea... The worst is still has yet to come.. Stay tune! Hope we won't end up like Greece

The perception problem is not going to be easy to overcome. Tougher job now to get foreign investors to come in, due to the political risk.

How sure are you that this is a perception problem and not fundamental?
Or is this the problem of your perception about the perception problem.

SO instead of drinking tap water for dinner, now we can eat plain porridge... and that constitute a "good job" huh?

Hi guys.

do you all bet on SGD or USD? any difference?

Hmm ok. I have a degree in Economics from a pretty good school, let's see if I can take a shot at it.

Let's look at that for a minute. A weak currency is not a reflection of a booming economy. The benefits to a weaker currency only apply if you're a primary exporter of goods and services. To be fair we do export a lot, mostly commodities. But the import costs are killing us too and everytime we have to pay debt in USD or any other currency we bleed money. Also, we can't travel anywhere, and cost push inflation due to expensive exports are going to raise prices (not incl. gst lol)

The reason our currency has declined is strongly correlated to the levels of capital outflows. Primarily due to 'perceived risk' by foreign investors. As they start selling our currency, we start bleeding money. Our currency hasn't been this weak since... 2005? Mainly it's because of systemic corruption so we're back to politics. So it's kind of hard to talk about this without getting the politics involved, considering it's one of the primary causes.

On the tourism portions with weak currency? China and Japan always keep their currency exchg to makes export competitive.
Our main GDP is semiconductor/electrical/electronic that contributing a third of GDP.

I think you're looking at this the wrong way. It is not a case of weak or strong currency = better, it is more a case of cause and effect. On the one hand you have a weak currency being one of the CAUSES why China is super competitive, combined with lower wages and standard of living, operating cost is cheaper despite exports of goods, therefore EFFECTING it's high growth. On the other hand, Japan's weak currency is an EFFECT of it's almost 0 inflation rate and 0% in gdp growth for the past decade, the cause of which is declining fertility rates and population growth.

Malaysia is currently facing something more like the Japanese problem but not exactly. The Chinese government PURPOSELY held down the currency, until the US government launched an investigation. But we are facing a fall in our currency due to a 'crisis of confidence'. No one trust our banks or government, so they RUN to safer currencies.

It doesn't matter if our semiconductor contributes to a 3rd of GDP or not. Unless you can tell me that it was 10% this year and GREW to 33% BECAUSE of a fall in currency, I don't really see the difference. I don't believe the growth in semiconductor manufacturing as a function of a GDP shows anything other than we have HISTORICALLY been a cheap producer.

If you want a good example of what is happening to Malaysia. Look at Russia over the last year, and it's currency. We look more like THAT than China.

I'd probably bet on SGD. USD is currently at a scary high, and the Central Bank just said they might not increase rates this year due to the uncertainty in Greece. It's more fundamental trading though and fairly long-term.

Tourism business will be get better, as tourists with greater currency exhg rate now got more $$ to spend here, while local ppls reluctant / delay their oversea, right?

SGD is good hedge when MYR depreciates

it is diff for diff periods.

for last 1 month, about same.
last 1-2 yrs, usd better.
last 5 yrs, about same.
http://www.xe.com/currencycharts/?from=USD&to=SGD&view=1M

so, it may depend on yr personal "logistics" which one suits u better.

This post has been edited by AVFAN: Jul 8 2015, 10:34 PM

Thinking of either buying bond with usd or sgd denomination. Anyway since it's long term i guess it really doesn't matter

You're absolutely right about that