Believe the gomen need as much myr out from petronas US$ income fot is expenditure, will allow myr to slide further.

As current inflation rate is low, is acceptable to rise. Bnm is unlikely to take any action I.e increase opr until inflation rate is high. By then increased in opr will kill 2 birds with 1 stone.

About 30% of gomen budget is from petronas.

Greed is the root of all evils not money.

Economic long term equilibrium always prevail. Most people have half understanding of economic and often the wrong half e.g the effect and fallout of US QE on gold price, kv property price, US interest rate, etc; China economy data on commodities price, etc.

Current onslaught on commodities and MYR started in 2014 and most people chose to ignore. US$ is expected to remain strong and stable in the medium term.

Unless one intend to trade US$ forex, need not hold US$ in cash. If one is unfamiliar with US stock, can consider ETF like DIA, SPY and IYR.

This post has been edited by icemanfx: Sep 11 2015, 10:55 AM

Fed is responsible to the US, unless the aftermath of international reaction has negative impact on the US economy, it is not Fed's concern.

Petronas report directly to the pm. There is nothing to prevent something similar to 1ndb happening at Petronas.

This post has been edited by icemanfx: Sep 13 2015, 06:13 AM

Greed.

Those PLC tycoons that have pledged their shares must be celebrating.

Whatever the gomen like to claim, the country is heavily relied on commodities (O&G and palm oil), hence MYR forex rate is tracking commodities price. Every country will go through the up, down, survive and won't bankrupt like a company or individual person as the gomen could print RM (inflation is another matter).

Given current gomen financial discipline, bloating opex and leakage, expect more and more tax will be imposed on the people. Effectively, businesses and employees will be working for the benefit of the gomen. Except those at the very top, few people on the street will have excess funds.

GDP growth in the last few years was partly fuelled by easy credit, a fallout of US QE. Given gomen austerity is unlikely, banks will be directed to buy more gomen bonds and consequently a reduction in market liquidity is not unexpected.

Gomen borrowing is currently limited by laws to % of GDP, GDP growth could be determined by gomen budget, and GDP will growth with gomen borrowing regardless.

Believe the country economic model is changing and will be different from now in a few years time.

Property is seen resilient because it is illiquid, price could take years to adjust.

Gomen budget is in myr, petronas income is in us$, over 30% gomen budget is depending on petronas. To compensate for falling oil price, the gomen allowed myr to depreciate to meet budget. as oil price is unlikely to rise in the medium term, gomen is likely to allow myr to depreciate further,

Anyone invested overseas for over a year gained in myr, be it stocks, property, etc.

Baby boomers in sg may be ageing, this is a reason sg is accepting more young migrants from mys, chn, Idn and Ind to maintain the momentum.

Sg is probably the only country that the west could rely on, hence MNC, banks, etc will continue to have their regional HQ there.

With current political party in power, more Malaysian will keep their saving in sg like indon during Suharto era. Myr Forex rate with SGD will continued to slide until there is a change of gomen.

Country identity is dynamic and adaptive. Unlike foreign workers, migrants will buy property and settle down in sg.

U.s is one of the few countries in the world that is self sustaining in natural resources. Many countries include China, Japan, e.u are heavily depending on export to the u.s

Despite trillions of US$ was printed during q.e, US$ is stronger than a few years ago and likely to remain strong in the medium term.

Fiat money is certain won't about to end. More like gold price will stay depressed for many years.

Malaysia may have recovered from 1997 financial crisis but previous compatriot like Korea and Taiwan pulled ahead.

Current gomen have a habit of pledging one policy but practicing another, is likely to leave the country further behind.

Before 1997, USD was 2.5 to myr, it won't be a surprise myr will maintain at myr 5 to USD in a year time.

This post has been edited by icemanfx: Sep 21 2015, 03:52 AM

Most malaysian are influenced by herd behaviour, blind by greed, trapped and refused to listen to alternative opinion.

Oil revenue will increase eventually, the issue with our gomen is expenditure will increase much faster than revenue. More and more gomen borrowing, guarantee will be off budget.

Malaysia will certainly recovered to pre crisis status but falling behind neighborhood countries.

This post has been edited by icemanfx: Sep 21 2015, 10:21 AM

Oil is a commodity, commodity price is cyclic. It seems o&g reserve off Sabah is very substantial, the gomen is keeping it close lip as don't want sabahan to ask for higher loyalty payment.

Believe one can count number of supply vessels based in Sabah.

Ice cream stall assistant and student.

Free topping is possible.