Ramjade is too pre-occupied with his "opening a bank account in Sg" until every time a new question comes out, he is blinded with his own situation and requirement.

Contrary to what Ram said, of course you can open a foreign currency bank account in malaysia. You can send, receive, convert your forex with this account in malaysia

What Ramjade meant was you cannot deposit foreign cash notes into this account. He is a bit sore with this restriction as he compares to the local money changer rates vs the bank board rate

So, go ahead and open a USD account with maybank. And bring back your funds in USD from overseas. But just remember if you want to cash it out in malaysia bank, the only choice is convert the USD to RM. Along with that conversion, you get bad conversion rate. Also don't forget there is the usual bank charges for receiving and sending funds.

After bring back, if you keep it in USD, you can always resend it out overseas. Or transfer your US$ into your local trading platform and buy US shares.

Hope Ramjade didn't confuse you too much

In my experience, those RM20k-RM50k is too small for bank to give you good rates. 6 figures will be better, and 7 figures is close to XE quoted rate with bank's small spread

Exactly. Bro Ramjade often look at other people's question and recommend according to his own priority


"A lot of restriction" is a misconception. Since the last AFC, BNM has never imposed capital control for individual. There is just a few rules which was introduced long time ago. Nothing new. This is in accordance with the international SOP adopted by other countries's central banks too.

Bringing money from overseas just need to satisfy the bank that the money is legit. Otherwise, no "restriction" at all. Just need to give them the documents to show the source of your money and no problem. And this is not a new thing. It has been the same way required by BNM years ago. Just that for small amount, the banks never implement BNM's rules.

Even bringing money out of the country for individual, there is only one restriction. Ie the RM1m limit per annum if you have more than 1 loan. If no loan, feel free to transfer your money out of the country. Be it RM100m. BNM will not stop you.

From this thread, I sense that people are very afraid of forex transfer. Many thought that malaysia has a lot of restrictions. Until many has to resort to open accounts in Singapore. What the hassle if we are only talking about 4-5 figures....

I guess that is the reason why Sg banks impose more restrictions to open account for malaysian. To keep these small depositors away

This post has been edited by Showtime747: Apr 21 2017, 08:30 PM

Dips below 4.400 at 4.399.

Looks like many here are vested in USD

I think every malaysian loves his country. But not the administrators. The country and the administrators are 2 different entities

Why do you think the RM is at this state ? It didn't happen overnight. The value of RM deteriorated over the decades

If you are a patriot, think deeply who caused the RM worth so little after 60 years since independence....it didn't happen by chance. It is the result of bad administration of the economy

Just to give you another perspective contrary from the pessimistic view of bro ramjade that seems to imply capital control is on the BNM's discussion table now

Capital control is the very last resort a country would take. In the AFC in 1998, Mahathir was forced to impose capital control to stabilise the currency attack by George Soros (purportedly). Malaysia's currency reserves was very low at that time, so he has not much choice to fight Soros. The reserve level is different now so it is way more risky for a speculator to repeat the same thing and be successful like AFC.

During capital control at that time, business (import and export) are still on going. It doesn't mean no inflow or outflow of forex during that period. Just that BNM required the banks for stricter documentation. In fact, after the peg of 3.80, all import and export businesses got a relief and resume businesses with more certainty. So, capital control doesn't mean a stop to forex transfer. It just means for business, more documentation has to be provided to the banks for scrutiny. If capital control means no forex movement, then you cannot buy stuff like BMW, Iphone, grapes/apples, Hollywood movies, petrol for our cars and what not. Exporter cannot sell their good overseas...It is a big misconception capital control means no forex transfer.

For individual, same applies. Eg. Money used for education were still allowed. Like businesses also, the banks required strict documentations from individuals. So, necessary personal expenses were permitted during that time

Investment activities will be curbed though. Just like in 1998, share market trading activities, investment money in and out of the country are restricted (not banned, but need strict review and approval by BNM)

Reading bro ramjade's comment, it seems to me that capital control is a possibility now. Not saying it is impossible, but If you feel it is a possibility, then increase in GST would most probably precede capital control. Instead of the rhetoric in Ramjade's comment, you should see signs and numbers in deterioration of GDP growth, inflation, unemployment, debt level, Malaysia' current account turns deficit, interest rate hike at unusual quantum, the big 3 international rating agencies downgrading Malaysia's economic position....all these signs will give you some warning before BNM take the drastic and emergency action on capital control.

I think Hudud law be implemented and opposition wins the next GE is more likely to happen than BNM imposing capital control

Implementing capital control is like a doctor using defibrillator on a person whose heart stops beating. It is the only last hope trying to revive the crisis

It is the same thing why USA can have unlimited QE and print unlimited money. Because they are the biggest economies in the world.

Malaysia is a small fry. Other countries can disregard you without much reciprocal damage. But they cannot disregard USA and China

If malaysia implement capital control, or unlimited QE, what do you think would happen ? The rest of the world will flee Malaysia.

Don't take other countries' experience and apply faithfully. Understand the effect of capital control. And read up on a country's economic indicators that tells the health of a country like the GDP growth etc I talked about above. These indicators will provide you signs and symptoms before an economy needs capital control

This is a good place to start http://www.bnm.gov.my/index.php?ch=statistic_nsdp Try to understand the numbers. Capital control will not be implemented suddenly without considering these numbers

Third party's view on malaysia economy is also a good reference. Moody's, Standard and Poor's and Fitch most probably knows way sooner than you know...

Zeti was A+ governor for a few years.

If you think those numbers are faked, then you should be more worried for the Chinese numbers. Why do you think the Chinese numbers are real ? It could be faked that's why they have no choice but to implement capital control. Just applying your logic here I am not questioning their numbers

Anyway, when a person question the official numbers, that is when the discussion should stop. No point to continue

Hope you spend some time to understand economic indicators, how they are derived and what they means to BNM for them to implement capital control. I think you represent the ordinary man on the street who use news instead of numbers to make personal financial decision. That to me is an disadvantage in your investment journey

Malaysia is blessed with natural resources, regional peace, great geographic location and talented people. With all these favourable factors, our economy should be one of the top performers in the world. But sadly, it isn't.

RM as the indicator of malaysia's economic strength reflected the true state of affairs.

Market don't lie. The meagre improvement in the economic numbers is not good enough for the market. My guess is besides economic numbers, the market also prices in the mismanagement and lack of confidence in its future.

Market is most unbiased and merciless. If there is money to be made, they will not be hesitant to grab the opportunity. The fact that RM/USD depreciated >85% from 2.3 to 4.3 and RM/SGD depreciated >200% over the years shows that the market thinks there is structural problems in the economy/politics

Short term economic indicators may go up and down. But if the problems in the economy/politics are not rectified, RM performance is not expected to recover, but will further deteriorate instead, over the long term

Ok bro....

Back to topic, seems like BNM nowadays only concentrated on USD pegging, causing the ups and downs in other currencies. I think this is BNM's policy. Look at USD only, don't care about other currencies. They want USD/RM stability only

And it strikes me that actually what is BNM's duty and responsibility in relation to our currency ?

Is their scope only on USD and not other currencies ? Any laws or acts which spell out their terms of reference ?

How transparent is their policy, do they announce their intention to the public ?

When Zeti was still a governor, I can see her making public statements every now and then. But the new governor is like dozing off....Is the white hair fella still the governor or has he been replaced ?

Shows that BNM is tracking USD buy selling RM and collecting Forex now. JPY is doing similar

Brexit affects pound and euro. Trump's presidency affects USD

You expect malaysia politics has no effect on RM ?

In fact, the pitiful state of RM we have now is 100% caused by politics

I would rather this type of thread be closed if we cannot talk about political effect on a currency. This is censorship at its best.

After decades of free and open market operation in just about any commodities in the world, the world already knows eventually fundamentals determine a commodity's price. It is the most efficient way to determine the price, and the most efficient way for capital allocation (i.e. Money channels to the development of a commodity which will give best benefits to mankind).

The market "sees" how a commodity is valued. Without any controls from any party. In fact, when he market is big enough, nobody can control the price. This is the beauty of open and free markets. The system is a universal accepted mechanism of price determination. However, some may argue that punters may control or influence (like in gold/silver), but that is mostly opinion based. And most objection are from the interested party (like BNM here) where they don't like how the market "judge" their performance

So, what is the real reasons BNM objected to open market ? Wouldn't they believe RM can stands the fundamental test, where any market use any available fundamental facts and forward information to determine the price ? Why RM as a commodity will be any different to other commodities, in particular any other currencies in the world, where they are available in the open derivative market to determine its value ?

Eventually, for a forex commodity, everything will come back to fundamentals. And the fundamentals is DIRECTLY influenced by the FUTURE of a country issuing the currency.

Since we cannot talk about politics here, this thread which talks about a currency is really meaningless.

How irony LYN is talking about BNM objecting to open market, when they themselves put controls on open discussion

cherroy is the decision to control the opinion in FBI yours, or se7en's ?

When and where to retire is just like marriage.

In a marriage, You get to date the girl first, see how much she spends, whether you like her character, whether she adds value in your life, whether you are happy with the sex life with her......etc. Only when you are comfortable with her, then comes the next decision when is the most comfortable timing to marry her

Likewise in retirement, it is not a blind marriage where you make a big gamble on your life without knowing her at all.

You can first test out whether Malaysia is suitable for you. And whether your nest egg is enough. To me, where to retire goes beyond money. Healthcare, safety, weather, food, friendliness of people, cleanliness, traffic, your house living environment.....so many uncertainties and difference between the 2 countries.

Your retirement concept is like whether to dump a girl you have been living with for the past 30 years and start a new marriage with a childhood sweetheart, which you are not sure whether the new girl is a good match for your next 30 years, and whether you have enough money to live with her.

You don't need to make that sort of "one-off" decision for migration. The beauty of migration is you have no moral issue to date 2 girls at once.

Leave everything as it is. Move back to Malaysia and test this "girl" first. Is this "girl" the same as what she was 30 years ago ? Can she still make you crazy on bed ? You can find out by living with "her" for 1-2 years, while still keep your current "marriage", then only make the decision for permanent.

I am sure your wife don't mind testing out her new "boyfriend" too

You actually have option to choose your place of retirement

Many here in Malaysia do not have the choice. Count your option as a blessing

Retirement is a long term plan. Which needs decades of planning. It's good you are thinking of it now since it is still about 20 years away...Recently there are 2 person here asking about retirement, and they have to make their hasty decision about where to retire and if they have enough to retire. That is really bad (or no) planning. Doubts and uncertainties about the future is the last thing they want just before retirement

Retirement is about living an easy and exciting life without the worry of finances and schedule. Doing things we cannot afford the money and time when we are still working. Without good planning, we will instead put ourselves into a stressful position in a stage where our age is not flexible enough to make quick changes.

Good to be young, and all the best to you in your planning !

Not expert, but speaking from experience

Now in my 50s, can retire, but still have business to pass my time. Have option living in my, sg, au, uk.

Of the 4 countries, I like au the best...and my is second

My personal opinion on where to retire : if you have money, anywhere is good

Bro I agree with you. USD has been depreciating against other currencies as well.

The current RM strength is artificial. So, when RM is "made" stronger against USD, it will also be stronger against other currencies. So called collateral damage

I was told there will be great opportunity windows coming for those who has cash to convert. The info I gathered was that RM still has a long way to go. "They" (you know who...) even target 3.80 (Dr M era figure) and the time frame given to the agencies is until Feb/Mar next year (for obvious reason). When it breaches 4.00, close to 3.9xx, then should consider converting. I am following the advice

If there is a 2/3 majority restored, then my feel is RM will be below 4.00 for some time. Until some other scandals happen then another round of history repeats itself.

*Caveat* readers please seek professional advice when making decision

So my source who told me last month is already half way correct

The strength is artificial. Those who wish to convert to Forex should do so in a few tranches gradually starting next week and finish it before opportunity fizzle out. Don’t be greedy to wait for 3.80. If I can get 3.90xx I am already very happy.

After converting, put the Forex into good use and make 10% investment return and in one year your $1 become $1.10. In original RM term at time of conversion one year ago it is already worth 3.55.

Don’t listen to those “fundermental, GDP, oil price etc” BS. Those are all empty political talks for your kopitiam blow water sessions with your buddies. Everybody has 20/20 vision after the event happens. Horse behind canon

At the end of the day, the “magicians” (you know who) behind the curtain set the prices they want so they benefit from their agenda. See through their motives, dance to their tune and take advantage while it is still available