KUALA LUMPUR: Andrew Colquhoun, Fitch Ratings’ head of Asia Pacific sovereign ratings, believes the real risk in Malaysia was that the government would be forced into populist moves and thereby relax its fiscal discipline, according to Bloomberg News. Prime Minister Najib Abdul Razak has already been handing out cash handouts to the poor via BR1M (Bantuan Rakyat 1Malaysia).
Colquhoun thinks the government’s fiscal-deficit target, as one result, may be “a bit higher” than 3.1 per cent. Najib aims to cut the budget shortfall to 3.2 of GDP this year and 3.1 per cent in 2016.
The 29 per cent drop in Brent crude prices this year is the single biggest factor hitting the Malaysian economy as 22 per cent of the Federal Government’s revenue comes from oil-related sources.
http://www.freemalaysiatoday.com/category/...-risks-in-msia/

USD1 = 4.3022

“Malaysia is hardly out of the woods,” Nicholas Spiro, a London-based managing director at Spiro Sovereign Strategy, said in a Dec 9 e-mail interview. “The 1MDB asset sales will do little to help bolster growth given the bleak external backdrop of a rapidly slowing Chinese economy and the persistent weakness in commodity markets.”

“While the sale of assets by 1MDB should be viewed as a positive development, there remains uncertainty on the resolution of the 1MDB issue and political pressures for a leadership change,” said Ng Kheng Siang, head of Asia Pacific fixed income at State Street Global Advisors, the asset-management business of State Street Corp. overseeing US$2.2 trillion.

Five-year credit-default swaps on Malaysian government bonds have dropped 42 basis points since Sept 30 to 190, down from a six-year high of 247 in September, CMA prices show. 1MDB’s progress may help improve sentiment in the debt-insurance market but the key driver still remains risk aversion, especially for commodity exporters like Malaysia, according to AllianceBernstein LP.

I'm going to Europe for about 6months on the second half of next year. So yeah I'll need a lot of Euro. What should I do in order to hedge the currency exposure/MYR volatile movement?

if u r sure u will need euro, a dual currency account may fit yr needs.

i do not use it but i think it should be useful in yr case. not useful for speculation or have no intention to spend a particular foreign currency.

there is thread on that, search for it.

We needed to watch the movement next week.. Guess could even reach 4.50 if bad situation..

Reach 4.44 i will remit another USD10k back to malaysia. hopefully the FED will raise rate this week and this will pressure BNM to raise the OPR. Then we will have chance to see bank promo FD at 5%!

Reach 4.44 i will remit another USD10k back to malaysia. hopefully the FED will raise rate this week and this will pressure BNM to raise the OPR. Then we will have chance to see bank promo FD at 5%!

where the quote again in December 2015 will drop till 4.8?

We needed to watch the movement next week.. Guess could even reach 4.50 if bad situation..

  really... why you say so?