In fact, it's quite tough n challenging for ntity or individual (M'sia resident) to open a basic CASA in S'pore with local M'sia Banks
Those M'sia Banks in S'pore insist supporting docs plus reference Letter from local M'sia Bank

Err,... I just thought of this. Which is right ? For individuals with RM borrowings, is it;

1) cannot own more than RM1Mil of assets outside Msia in foreign currencies, OR

2) cannot SEND MORE THAN RM1Mil out of Msia in ONE YEAR period ?

i would think the bigger listed and private exporting cos. have prepared well.

their mgmt would have foreseen some of these things.

in fact, some glove/condom makers have been gradually shifting their some of their production base elsewhere over the last decade.

GLC's... no idea...

The cost of doing biz for exporters will increase:-
a. Local banks will impose charges (usually flat in USD) for each transaction
b. Forex risk by converting proceeds (75%) to MYR
c. Forex risk by converting from MYR (same proceeds from [b]) to foreign currencies

hmm seems like hawala only

TT is the only way the bigger you are. U dunt expect them to go through money changers ? Do you?

He doesn't know yet, bros,... I think now okay,...

Please give opinions and insights to my questions in the above, bros,....

how could they do that..

now also I feels like inflation already high..
higher rate means more suffering for the common people

i have to ask tough question here, in the midst of weakening ringgit, what are the arising opportunities for those who has ringgit capital in the form of cash?

My understanding so far...

It is about at anytime after dec5, not one year period.

According to item 51 in the FAQ, aggregate is rm1 mil for individual.

It means if u have rm500k loan outstanding, u r allowed to invest balance rm500k in foreign, whether local or abroad.

If u have rm1 mil or more in loan, not allowed at all.

But that is for new fx TOTAL from dec 5 onwards, what u already hv in fx now is fine.

No loan, free to do anything, local or abroad, anytime.

The motive behind is to stop individuals from borrowing in RM and put in FX.

In large nos., this can be very damaging, as seen in the tomyumgung crisis in 1997.



*** edit...

sorry, above is deemed incorrect, please read others' correct posts.


This post has been edited by AVFAN: Dec 3 2016, 08:51 PM

RM expected to trade between 4.45 and 4.46 against USD next week
http://www.nst.com.my/news/2016/12/194046/...t-usd-next-week

Lets c whether any knee-jerk reaction on 5/12

For me, I just hope for stability, if it cannot gain strength, at least to stay at current region. Till early Jan when I need to TT USD.

BNM officials r confident the latest rulings will calm n stabilize d market
Thus, your wish may come true

I just hope the wish of some or prediction of those with crystal balls did not come true. The dreaded 4.8, or 5.0 ...................

V can't discount RM5 mark yet as m not sure how trader/investor will react to the new rulings whem mkt open next Mon

I am preparing to spring up for action if RM made sudden moves within next few weeks.

Actually, how it works is that as long as you have any form of MYR borrowings regardless of amount, you are subjected to that MYR 1 mio limit. It is not calculated anything like what you've mentioned.

Now I'm no expert when it comes to individuals (I handle corps instead), but I believe there are exceptions to what qualifies as MYR borrowings. Credit card might be excluded, as well as housing/car loans (first 2 of those loans I think). The loaded forumers here might be able to give more solid sharing.

BNM's move is smart. Now that they have closed the loophole on NDF, they are tackling those "speculation" done by exporters who never convert back to RM and always receive USD causing BNM to lose foreign reserves. These exporters are hoarding USD. Now they are forced to convert to RM. Not bad for them also as they get to realise forex gains. BNM aim is not to strengthen RM. It is to preserve their foreign currency reserves by increasing demand of RM. Think about it, Malaysia has trade and current account surplus for years. By right, RM should strengthen. The reason it weakened was because of perception that RM is weak. This perception of weakness encourages hoarding of USD by exporters and also exacerbated by RM speculation via NDF. Once these 2 causes of RM weakness are removed, RM will stabilise. It might or might not go up but it will stop falling and that is good enough for BNM. Once RM stabilises and confidence return and Perception of RM weakness is no longer there, RM will then strengthen. It is all about perception. Somebody mentioned why BNM never increase interest rate. The reason is it will not effectively tackle the RM perception of weakness problem. A 0.5 to 1% hike in interest will not suddenly increase demand of RM. Not only that, such moves only serve to weaken the local economy further fuelling the speculation that the economy is headed for recession. I think the BNM move is brilliant. It addresses the root cause of RM weakness and remove them from the market. Without NDF, speculators can't do shit. They have nothing to speculate on as price is determined onshore. Once speculation dies down, confidence in RM improves and foreign investment will continue to invest directly and also indirectly via MGS because they know there is ample liquidity onshore for them to liquidate their RM once the MGS matures. I foresee a stabilisation and then later strengthening of RM but it will not strengthen by much. BNM wants RM to remain weak . In fact there is a conpetitive devaluation of currency going on among emerging economies. It is in the government interest that RM remain stable and relatively underpriced so that Malaysia remains competitive internationally in terms of pricing. What they do not want is excessive speculation and volatility.

From what I see, seems like market has stabilized..
But next week we shall know how true it will be after the new measures by bnm..
People take as positive or negative