Interesting bond sale appears in BNM's website.

Parti Amanah Negara vice-president Husam Musa, citing Bank Negara records, had yesterday (Thursday) raised suspicion over the timing of the RM2.5 billion bond because the opening date was Aug 1, a day after the deadline for 1MDB to meet its US$602 million (RM2.57 billion) obligation to IPIC.

ye
standard of living in Mal is getting higher n higher if compare to Spore

"The recent introduction of the ringgit futures at the Singapore Stock Exchange (SGX) and the Intercontinental Exchange (ICE) or ICE Futures Singapore is inconsistent with Malaysia's foreign exchange administration policy and rules," BNM said on Wednesday.

Taming of Asia's Most Volatile Currencies Creates New Danger
https://www.bloomberg.com/news/articles/201...ting-new-danger

4.50 very soon......

But everyday, I see the RM sliding down bit by bit and its not looking good.

I was initially planning to buy another 1 or 2 apartment in MK with my retirement fund when i go back but a lot of my KL friends have advised me not to. I am now in 2 minds whether to leave my retirement fund in Aust (tax-free once we retire after 55) since the rental return on our 2 MK units are only averaging 3.8% per annum (used to be a lot higher but we had to cut rent last year to keep the Japanese tenants). My superfund gives me roughly 5-6%pa average over the last 10 years. What would you advise - to move money back or not?

For Clues on Where the Dollar Is Heading Next, Look to Beijing

The greenback has done a stunning about turn, with the Bloomberg Dollar Spot Index climbing 2.5 percent from its low on Sept. 8. While a more hawkish Federal Reserve, planned tax reforms and selling fatigue no doubt played a part, the rebound coincided with a dramatic move by China’s central bank to weaken its currency.
https://www.bloomberg.com/news/articles/201...look-to-beijing

Malaysia’s debt risks accelerate before polls

COMMENT | Malaysia has a problem with debt. Government debt is about 53 percent of GDP, just below the already increased 55 percent debt-to-GDP ratio threshold. The big jump in such government debt from 41 percent in 2008 to 53 percent in 2009 followed the last change of prime ministers.

Recently, the government has been borrowing from abroad at an unprecedented pace. The latest level has been attributed to the increased domestic debt of RM15.8 billion and additional foreign debt of RM2.2 billion last year.

Also, by encouraging Malaysian investors, both private and public, to invest abroad, and by sharply increasing borrowings and portfolio investments from abroad, the country has unnecessarily become much more vulnerable to international financial volatility and instability.

Contingent liabilities

Contingent liabilities refer to debt commitments related to government guaranteed loans. With contingent liabilities growing rapidly, the overall consolidated public sector debt-to-GDP ratio has risen to 68 percent of GDP.

These have risen sharply, with government-guaranteed liabilities rising to RM195.7 billion, or 15.2 percent of GDP in 2016, from 12.8 percent in 2011, an increase by almost a fifth. Observers are concerned that pre-election ‘projects’ are causing a new debt spike in 2017.

An unexpected shock to growth, an increased interest rate in the West (e.g., with the end of ‘quantitative easing’ [QE]) or the sudden exit of foreign portfolio investments would all threaten the Malaysian economy due to its greater self-induced vulnerability.

Most current contingent liabilities abroad have been accrued after the last prime minister’s tenure. Abdullah’s reduction of the budget deficit bolstered the country’s debt ratings, making it cheaper for the federal government and government-linked companies (GLCs) to borrow overseas at a time of QE-induced low-interest rates in the OECD economies.

Such debt has more than doubled since Prime Minister Najib Abdul Razak took office in 2009, as government-related entities borrow abroad to fund infrastructure projects and ventures such as 1MDB. This is quite unprecedented as most new foreign borrowings have not been invested in ways likely to generate foreign exchange earnings.

Such government spending is needed to sustain growth, but all too often, has been abused to fund large-scale projects for crony companies (‘jobs for the boys’) with ‘kickbacks’ for key decisionmakers. The growing burden of such debt is inevitably borne by taxpayers.

PPPs: Public risk, private gain

Malaysia’s relatively high contingent liabilities include those due to public-private partnerships (PPP) where the government or GLCs bear the bulk of the risk, while the lion’s share of profits typically goes to the crony private partner.

DanaInfra Nasional Bhd (MRT), the company created to fund infrastructure projects, recently recorded a 43 percent spike in such liabilities!

Meanwhile, contingent liabilities associated with 1MDB’s default in August have been estimated at 2.5 percent of gross domestic product (GDP). According to Moody’s Ratings Services Vice-President Christian de Guzman, 1MDB, which defaulted after missing a bond repayment deadline, raised the risk for contingent liabilities the government is exposed to, increasing the cost of government debt from abroad.

Recently, Malaysian authorities established the Fiscal Risk and Contingent Liability Technical Committee to evaluate the government’s fiscal risks and to propose appropriate measures to address them. After failing to meet previous targets, the authorities have promised, yet again, to achieve ‘near-balance’ for the federal budget by 2020.

But such promises may not have renewed confidence, especially as the deployment of borrowed funds by 1MDB and some other GLCs has not convinced the market that public finance management in Malaysia is improving irreversibly.

JOMO KS and RAISA MUHTAR are Malaysian economic researchers.

The views expressed here are those of the author/contributor and do not necessarily represent the views of Malaysiakini.

Read more at https://www.malaysiakini.com/news/399229#21jAXFUX0G14JVbU.99

BANK NEGARA TO HIKE INTEREST RATES AS INVESTORS DUMP GOVT BONDS? RINGGIT RALLIES TO LATE SEPT HIGH AGAINST US$ ON TALK OF ‘HAWKISH SHIFT’
Business, Politics | November 9, 2017 by | 0 Comments

KUALA LUMPUR – The ringgit rallied against several key currencies including the US dollar after Bank Negara Malaysia (BNM) signalled a possible interest rate hike.

BNM said given the strength of the global and domestic macroeconomic conditions, the Monetary Policy Committee (MPS) “may consider reviewing the current degree of monetary accommodation”.

“This is to ensure the sustainability of the growth prospects of the Malaysian economy,” it said in a statement which was released at 3pm. This was the last meeting for 2017.

This was the strongest signal ever given by the MPS in recent months as it retained the Overnight Policy Rate at 3%.

The statement said for Malaysia, economic growth has become more entrenched. Both the domestic and external sectors continue to register strong performance.

“Moving into 2018, headline inflation is projected to moderate on expectations of a smaller effect from global cost factors. Nevertheless, the trend of headline inflation will be dependent on future global oil prices which remain highly uncertain. Underlying inflation, as measured by core inflation, will be sustained by robust domestic demand,” it said.

This saw the ringgit gaining strength against the currencies, climbing 0.37% against the US dollar to 4.2135 – the strongest since Sept 26.

The local unit jumped 0.43% against the pound sterling to 5.5302. It gained 0.18% versus the Singapore dollar at 3.0953 and advanced 0.33% against the euro at 4.8877.

Bloomberg reported the outflow from Malaysia’s sovereign bonds may be about to accelerate.

It reported the prospect of a  first hike since 2014 pushed down bonds, which have already been languishing as foreign funds have cut holdings in seven of the  first 10 months of the year.

“It is a hawkish shift, but the hike may not necessarily come as soon as the next meeting,” said Winson Phoon, a fixed-income analyst at Maybank Investment Bank Bhd in Kuala Lumpur.

“Yields will reprice higher, especially the front and belly sector of the curve.”

The yield on three-year government debt jumped five basis points to 3.54 percent after the statement.

– ANN

Bro,... they are not talking abt hiking this round, but in future rounds next year,... look at the last two paras,....

"On the policy rate today, it said that while the stance remains accommodative now, the central bank consider “reviewing the current degree of monetary accommodation”.

“This is to ensure the sustainability of the growth prospects of the Malaysian economy,” it said, without elaborating further."

Actually if hike, and the RM strengthens for awhile, it's good, right ? But of course, housing loans will jack-up,... but for those who are debt-free, shld be okay if everything paid-up already. Day to day things will definitely become more expensive too, I think,....

I have a lot USD at stake here, please maintain around RM4/$1 please!

endless possibilities...
previously maybe because of BN useless policies...
but looks like now could be different..... just saying only.. previously everyone die die say BN won't lose another 100 years.. but see what happen now...

Dr M suspects some Malaysian economic data ‘fake’
https://www.malaymail.com/s/1631988/dr-m-su...nomic-data-fake

Bro,... somehow,... I cannot agree with the words in bold above,... judging from what that's happening everyday now,... Things are moving very fast in Msia !! To me,... it's a real change from the previous gov't,.... 

GST abolishment, petrol price stability and toll charges removed,... wouldn't you call these changes happening as fast ? These are major fiscal structural changes, bro,.. what do you think ? Did we miss something ?

Or these are 'first-level' changes ?

National debt is 65% of GDP, says Mahathir
http://www.freemalaysiatoday.com/category/...-says-mahathir/

Emerging-Market Stress Just Begun as Record Debt Wall Looms
https://www.bloomberg.com/news/articles/201...debt-wall-looms

Bro... you left out barrel prices are on the upward trend. MYR may be saved after all, in the short term at least.

Its not too bad huh. I was expecting worse after a change of guards because that usually happens. But seems like the old guards managed to garner even better confidence with their new policies.

Im a bit baffled by LGE's statement regarding the revelation regarding the debts. He must understand he is no more a opposition member. Yes, he needs to be open to point out mistakes by the previous government but overdoing it will affect investor confidence in our country. We have been seeing red in the stock market for the whole day already since yesterday.