icemanfx,

It will not.  Malaysia had reached peak oil production a few years ago.  So, even if the oil price did not go down, Malaysia will have less oil money.

Dreamer

Nope. From what I have been following, he has migrated to the US. I could be wrong.

personally I think for the long term oil price will never approach 100 usd per barrel like last time.

reason is US has fracking. Saudi is pumping more supply to bankrupt the US fracking companies. below USD 30 fracking will not be profitable and those companies will go out of business. after 1 round of bankruptcies oil price will begin to rise again. but once oil has risen to a certain price (above usd 50) then fracking companies will re-emerge. they can always spin up their production because the tech already exists and is well-known (although production takes months at least to resume).

Are you predicting oil price will stay in the $40+ range forever ?

Iskandar is not an International Zone with tax-free status so not as attractive, thats why somebody is toying with this idea.

Are you predicting oil price will stay in the $40+ range forever ?

End of the day, there is no harm to diversify. Glad that we have been doing that before the depreciation. On hindsight, regret never did more 

diversify, spread yr risk u must!

do more... 20/80, 50/50 or 80/20?

Iskandar has no 'direct tax-free' status, but they are offsetting that by giving freebies at the sides. They're also trying to rope-in as many international entities as possible into the area.

Somehow, what they've been doing is not working as fast as they claimed it should have been.

I fully agrees with this. But I think oil prices will always be below usd30/barrel to suppress shale oil.

YES, after the earlier debates on yes or no for Msia's future, this is the way to go.. So, the balancing act will be between the USD50 and USD60, and probably can never breach USD60 for the long term because US fracking producers will start adding to worldwide supplies when the price can stay above USD50/bbl.

At USD50/bbl, will our govern't be able to cope from Petronas' earnings, and how much will this be able to support the MYR ? We are aware oil price is not the only factor presiing down the MYR.

No, I think he meant to say that Petrnas' oilwells are drying-up, and our E&P activities are not able to unearth more productive wells.

For me, this is highly classified. All news out there are just speculative. Even if no E&P agent is able to discover any oil now, they might dig 100m away from that analysed node and discover oil deep down there.

the federal gov really gave Singapore a slap in the face by imposing vehicle per-entry fee. singaporeans are the biggest investors/spenders in Johor.

I fully agrees with this. But I think oil prices will always be below usd30/barrel to suppress shale oil.

diversify, spread yr risk u must!

do more... 20/80, 50/50 or 80/20?

u forgot 2 things:
1. cost maybe also in USD
2. selling price of oil decline from USD 60 to USD 40 in past year.

I never counted to such details of ratio diversification. If I ever take the trouble to count, I'll have a headache. I just go by instincts only, when I see 'new' money in my accts, I will put here, or put there, or buy this or buy that. But of course, DD has been done earlier.

If nothing can be bought, then I just leave the money in the acct..

When RM depreciated 30%, it just indirectly means extra 40% income as earning of oil is always in USD term.
Last time selling at USD50 can get RM150 (at Rm3.00 vs USD), now selling at USD, can get RM212.50 (at RM4.25)

When currency depreciation, inflation follow suit.
Inflation - price of goods rise.
Price of goods rise, more GST collection, as GST is counted in % towards the price.

But this is at the expense of inflation impact, and this is why a country needs to have their own currency instead of a common currency like Euro.

I fully agrees with this. But I think oil prices will always be below usd30/barrel to suppress shale oil.

Still very very far from the ratio I wish