I like it!! Cheaper to shop and eat out in Malaysia despite GST.

I hope BNM don't intervene.
Cheaper Ringgit is actually good for Malaysia.

Yes.. unfortunately local folks who earn Ringgit will see their purchasing power diminished because they're paying
higher exchange rate. Maybe more local trips for them. No oversea trips.. (unfortunately, including Singapore for them).

Last year was bad already.. this year also bad meh?

Well, it took approx 4-5 weeks. It's not just the weakening Ringgit but also Oil prices are lowering because of stronger Dollar.
The foreign funds gradually are pulling their money out because of the uncertainty of Malaysia bonds. But, they'll be back if it gets cheap enough.

BNM still got that interest rate ammo but I don't they want to intervene.
Lower Ringgit is good for the Malaysia (as exporters of manufactured products).
But, unfortunately, Malaysia consumers will suffer more.

The strange thing about weakening Ringgit, I thought I would see imported stuff from Malaysia will go down in prices but I haven't seen that yet. For example, no drop in Durians price in Singapore.

I think middle men pocket the difference. That's why sometimes, better for me to take weekend trip to JB.
I can get more Ringgit from SGD or USD and buy the same stuff cheaper than way.

Father Day in two weeks time, another feast out coming.

That's good... I can buy more treats for family members. Can get cheaper grouper dish every weekend from across the straits!

Unfortunately, that's one of the bad things about rising foreign currencies. Your foreign education also became more expensive and this could be additional hardship for more families. Unfortunately, higher education is not becoming cheaper either.
Even for local people (at foreign countries), they are expensive too and they rise 4-5% every year.

For example, I've figured my kids would need at least $25-$30k USD (for In-State) per year (tuition/room/food) at decent State own University back in US by the time they get to college. 4 years will take up $100K. Out of state/Private can easily double that amount. That's why I am socking away some college fund for them.. just to help along in case.

Back in my college days.. .$10K can kow tiam. I know those days are long gone...

Hmm... almost 10% drop within a month. Not only RM weak against USD and SGD but also GBP?

I'm still amazed how the Cambodians able to use USD as their local currency together with the Riel.
Dollar Dollar Dollar....

In that case, we can see RM falling even more until it get past 3.80... zoom up to 4.00 and go beyond.
Once it gets past 4.0, there will be panic. The politicians will come out and start blaming others for speculation and currency attacks. Maybe even start blaming G.Soros again.. for same stupid reason., just like 18 years ago but do not dare to look at own backyard.

This post has been edited by danmooncake: Jul 5 2015, 10:21 PM

BNM could fire their interest rate weapon shore up the Ringgit but also scare because running risk of stagnating the economic growth and goes into recession that's because the heavy debt of many household (also businesses) could explode if interest rate rises another percent.

Also, why would Obama interested in Malaysia Oil? One Bakken production site in USA can drown entire Malaysia.
USA got their own oil now, that's why world market for oil price so cheap now. The cost of production in Malaysia (at deep sea) is quite high and as price of oil goes down, the Msia govt could be losing money just to get oil out.
That's probably why the only way for govt to get more money is thru GST - to tax those who are getting away without paying forms of income tax.

This post has been edited by danmooncake: Jul 5 2015, 11:32 PM

It's so darn odd..you know.. the US Fed just "hinting" they want to raise interest rate by end of this year, it's only at 25bps.
Imaging if US rate at same level at Malaysia OPR @ 3.25%. People will shit in their pants because they borrow too much..

hey hey hey... whatca know.

We're back to 1998-2005 pegged value again. One big circle in ten years time.

Come 'mon.. let it happen. 3.95 3.97... bam 4.0 then let's cover.

It was 3 years ago, around end of 2011, some M'sian politicians were boasting how strong the Ringgit were (1 USD = RM2.95), and people are dumping their foreign assets to invest in Malaysia, Malaysia has the strongest economy among ASEAN countries, they were pissing at US Fed for QE and saying US is heading into 2nd dip worst than 2009 because Obama's policy isn't work, millions of Americans are out of jobs, many Malaysians were returning to Malaysia - blah - blah.

Fast forward today... now they realized they were wrong.

I'm waiting for 4.25 to get on the extra long side of the trade.
Big purchase coming - I will try to help the Johor economy. Mari Mari.. almost there.


The only thing that I'm topping up is my next meals and shopping trips to JB.. loving this low rate of the Ringgit!





This post has been edited by danmooncake: Aug 23 2015, 09:47 PM

How about essentials like food?

I think Malaysia still import a lot of rice (maybe 40%) from everywhere - Thailand, Indian, Indonesia, Vietnam? Fruits (Apples, Oranges, Grapefruits etc... except local Durians or Rambutans, Langsat, Mangosteens), Vegetables (except Kangkung ), fresh Tuna (for sushi), processed food, etc..

Hmm.. .didn't think about those ingredients..like onions. Even carrots and bananas also must import meh? Not enough from Cameron Highlands?