it's good, really. that's what free market capitalism is about - lowest cost producer wins, all consumers win.

let oil get to usd10/bbl!

whoever produces something at lowest cost wins - as long as it last.

f those who want to gouge and rob!

now... u get me upset with unifi.

Well, I wouldn't want to be an individual in the above scenarios. Even if I'm an exporter or hotel operatr, I would still suffer higher prices of goods and services that I spend on in-country.

Sure, Surplus might exceed Deficit after some mths, giving a nice CA Balance and TRade Data, however, the 'surplus funds' wil be used to save 1MDB. Fitch wil soon re-evaluate by end-June,... analysts out there are predicting Downgrade.

I am not depending on 'ASSUMTION' comments. I do my own research and analyes. And I commnt based on what I have done m hoework on. Furthermore, my comments are also based on what I have experienced earlier in my invstments, or are currently investing on and holding onto. Hence, these are real-life happenngs.

Don't wish to comment abt being guilty or not when putting fwd opinons in Social Media tools.

Ratings agency reviews,... see below :-

Fitch Ratings said in March that there’s more than a 50 percent chance it will downgrade Malaysia’s A- credit rating at a review due before the end of June. The company cited falling energy prices, pressure on the current account and state investment company 1Malaysia Development Bhd.’s debt as factors.

Above extracted from : http://www.bloomberg.com/news/articles/201...mism-not-shared

We'll see whn the review comes along, whether dropped to a lower rating from ct rating or elevatd. SnP and Moody's are not due for rating rebiew till later in the yr.

Wehave a divergnce here:-

For a possible UP-RATNG from Fitch, the following factors can be considred :-

Surplus from Tourism, export of commodities and electronic sectors from weak currency that also contributing a lot % in country GDP.

And for a possible DOWN-RATING frm Fitch, the following factors accordingly :-

GDP for 2nd Q is highly to be weak, poor consumer sentiment, poor sales recorded in most company (can be seen on many listed company turnover), as well as both import and export figure shrinking.

Fitch has a forward-looking policy, hence wht happens in future wil also be takn into account. Lets see.

Hoping all forummers here can help to keep track on the result from Fitch too. Lets see how this ratng moves the RM vs the SGD and the USD.

As I write this now, the RM remains the same and is rangebound against the SGD and the USD compared to yesterday.

rm drop lagi!!!! ho-seh la

Fitch is the smallest among the credit rating agencies.. https://en.wikipedia.org/wiki/Big_Three_(cr...ating_agencies)
What if Fitch downgrade while the other two maintain present rating.. No big impact .. minus a grade ( Marginal ) by Fitch
while another 2x big brothers holds it.

Normally, these figures understate the dominance of Moody's and S&P, since the norm for debt issuers is to obtain ratings from these two, and only occasionally turn to Fitch, for example if Moody's and S&P disagree ONLY. Fitch is plays certain role.
And not Very important role.

MALAYSIA CREDIT RATING STATUS ( Do not click me )

  Standard & Poors credit rating for Malaysia stands at A-. Moodys rating for Malaysia sovereign debt is A3. Fitchs credit rating for Malaysia is A-. In general, a credit rating is used by sovereign wealth funds, pension funds and other investors to gauge the credit worthiness of Malaysia thus having a big impact on the country's borrowing costs. 

didn't know Fitch is 3rd grade credit rating agency 

OKay,... news are starting to come out sayng the Ringit will topple over again. Lets see,.... 

that is why Zimbabwe is good. weak currency and come with a new slogan. Now everyone is a TRILLIONAIRE!
http://www.theguardian.com/world/2015/jun/...000-old-dollars

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.

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.