Indonesia unveils measures aimed to stabilise rupiah
http://www.thestar.com.my/Business/Busines...piah/?style=biz

Will M'sia follow suit?

Indonesia seeks immunity from Malaysia ‘contagion’
Published: 30 September 2015 9:13 PM | Updated: 30 September 2015 10:43 PM

Speaking to Reuters today, Indonesia's finance minister Bambang Brodjonegoro says his country is worried about the contagion effect that the drastic drop in the Malaysian ringgit could have on the rupiah, which is also at a 17-year low against the US dollar currently. – Reuters pic, September 30, 2015.

Indonesia will seek to shield itself from the spread of any financial contagion from Malaysia by improving market sentiment and using government borrowing to boost dollar inflows, the finance minister said today.

Twin declines in the rupiah and reserves have revived memories of the Asian financial crisis of the late 1990s, and concern about contagion from Malaysia, which is in the grips of an escalating political and financial crisis linked to a struggling state investment fund, are at the front of investors' minds.

"We are worried about the contagion effect," Bambang Brodjonegoro told Reuters in an interview.

The rupiah is one of Asia's worst-performing currencies this year, down by 15.44%, and is trading at 17-year lows against the US dollar. The finance ministry is working with the central bank to replenish reserves by prioritising foreign-currency borrowing, Brodjonegoro said. "There are a lot of outflows, so we need to somehow cover with inflows, and of course inflows will depend on government bonds and our borrowing strategy," the minister said, adding that the government has secured commitments from the World Bank, Asian Development Bank and KfW Development Bank. Finance ministry officials have said Indonesia has secured US$4.2 billion (RM18.52 billion) loans from the multilateral lenders to finance its budget deficit this year.

http://www.themalaysianinsider.com/malaysi...h.s6UtInHq.dpuf

If this tactic is coming from another economy, I would have no doubt that there is a good shot at this. But from INdon, I'll stay aside.

The periodic coupon servicing in the USD will start to kill them slowly before they can even start to take actions to reform the economy and to prop up the rupiah.

the government has secured commitments from the World Bank, Asian Development Bank and KfW Development Bank. Finance ministry officials have said Indonesia has secured US$4.2 billion (RM18.52 billion) loans from the multilateral lenders to finance its budget deficit this year.
http://www.themalaysianinsider.com/malaysi...aysia-contagion

Malaysia will not return to pegging the ringgit or any other form of capital control, Datuk Seri Najib Razak told fund managers and businessmen in New York, as the currency sees its worst performance in 17 years against the US dollar.

The prime minister instead said the government would revise its projections downwards to cope with weakening oil and commodity prices, the New Straits Times reported him as saying.

“We are committed to achieve a balanced budget by 2020 but I have to be frank with you that we may not achieve a fully balanced budget but may be a slight deficit in the region of negative 1% from the current deficit of 3.2%,” he was quoted as saying at a breakfast meeting attended by US fund managers and Malaysian businessmen.

While “internal adjustment” would be made, he added, “I would like to reiterate that we will not impose capital control measures or peg the ringgit,” NST quoted him as saying.

- See more at: http://www.themalaysianinsider.com/malaysi...h.kmhr37nE.dpuf

The statement said, instead of previous targeting a balance budget by 2020, now with current situation, the target would be probably around -1%.

It doesn't say 2016 deficit in -1%.
Unrealistic to see 2016 to have a deficit -1%.
A reduction of deficit compared to previous year is already a very good news.

If the 2016 budget deficit is indeed -1%, it will provide a lot of catalyst for RM to the upside.

1.00 USD  =  4.40 MYR

1.00 SGD  =  3.08 MYR

1.00 GBP  =  6.66 MYR

yup. price hike is confirm

I suspect the full effect of the RM depreciation has not trickled down fully into all aspects of our society yet. Wait for a few more months....

ala... you guys already know this...but i'll write again.

prices will increase as long as no seller wants to decrease it.
Look at what happened since the petrol price floating.
When oil price increase, everything increase.
When oil price decrease, how many items' price decrease?

It is all up to the people.

wa, so negative, I want to get out.
The budget shortfall may be "in the region" of 1% of gross domestic product at the end of the decade compared with a current deficit of 3.2%, the New Straits Times reported, citing Najib’s comments to fund managers and investors in New York. - See more at: http://www.themalaysianinsider.com/malaysi...h.BtJ4wTvd.dpuf

Good. Let's see how such people adjust. I bet with you they will have a hard time. Imagine drinking starbucks everyday and suddenly starbucks increase.

Even if such a miracle can happen to the RM, do you think the sellers outside will lower back their prices to the time when the USD was = 3.8 RM ? After prices have gone up, do you think sellers will lower back down so easily ?

http://www.themalaysianinsider.com/malaysi...s-fund-managers
<< “We are committed to achieve a balanced budget by 2020 but I have to be frank with you that we may not achieve a fully balanced budget but may be a slight deficit in the region of negative 1% from the current deficit of 3.2%,” he was quoted as saying at a breakfast meeting attended by US fund managers and Malaysian businessmen.>>
- See more at: http://www.themalaysianinsider.com/malaysi...E.Vz3Q9Dwq.dpuf

AVFAN,

Read carefully.  He is targeting budget deficit of 1% at 2020.  That also means that it will be business as usual of 3.X% or more budget deficit from now until 2020.

Dreamer

it's all about whether you are willing to spend or not. most who go starbucks probably middle income and above. compare it to cigarettes, as expensive as they are, the lower income fellas spend a lot on them per month - and they dare to say they have no money. it's all about your priority

Najib signals delay in balancing budget in address to investors - See more at: http://www.themalaysianinsider.com/malaysi...d.a2wbsovv.dpuf

Is this the mother of all warnings on EMs?
http://www.cnbc.com/2015/10/01/emerging-ma...since-1988.html

Heads Dollar Wins, Tails It Rises: It's All Good for Greenback
http://www.bloomberg.com/news/articles/201...d-for-greenback

The USD is strengthening against the SGD as we speak.

http://finance.yahoo.com/echarts?s=USDSGD%...ing":true}

My USD funds parked in the bank is gaining strength, as I predicted. But since I am not ready to buy any SGX assets yet, I will continue to let the USD stay as it is until the prices of REITs and dividend stocks cannot be refused anymore.

Then I will fire !

MGS hit badly by fund outflows
http://www.focusmalaysia.my/Markets/MGS%20...fund%20outflows

If RM remains at 4.40, then who is the dummy ? 

The US job data announced today is pretty weak, that could send in the new trend for currency market for short term as well.

Treasuries is below 2% after the job data, that investors bet there may no hike at all for this year.

The slowdown global economy is starting taking its toll.

This is why I keep on emphasis that history has showed us, there is always unpredictable event may occur.

Hansel aiming for long term. So more units /SGD that he can buy.

Job market no good --> economy no good --> US stock market down --> SGX down