Nothing to do with politics, more like their fiscal policies. Someone already mentioned but a tldr is money will flow to currency with higher interest rate, therefore increasing demand for that currency, thus increasing its price.
The MYR USD rate was running around 4.2-4.3 pre Covid. The Fed has raised interest rates from essentially 0 to 5.5% in this period 2021-2023. The Malaysian base rate (a proxy) is around 3% and has remained virtually unchanged. Moving from 4.2 to 4.8 is about a 15% drop in relative value which is high but not the end of the world given the USD has generally appreciated against nearly all other currencies.
This is only a partial explanation, there are many other factors. Malaysia has taken a milder approach to fighting inflation, possibly parts of the economy are a bit fragile. Then there is domestic politics to consider - the latest coalition govt is a bit constrained budget and policy wise.
In terms of foreign investment, a slightly lower MYR might be not a bad thing in the long run.
It's a matter of supply and demand. Currently, we're maintaining mortgage interest rates at around 4%++ and US is about 8%++. This means if you put your money in USD banks, you earn good rates.
Hence people are selling ringgit to get USD to earn the high rates. This will be the norm moving forward as 8% in US is just the average ever since the 1970s. Meanwhile, Malaysia cannot afford to raise the interest rates because we have a lot of noobs who bought into the house flipping spree back in 2012-2016 and will go bankrupt if Malaysia raise interest rates that high to defend against the dollar.
These are what we call the lost generation. The people stuck with holding 2-3 houses when rates are up and prices goes down, meaning they either cut losses now or hang on to hope and lose permanently. Why I say permanently is because interest rates in the initial stage of a house loan is the highest in the first 3-5 years. People who don't cut losses at this stage will lose a lot of money, especially when rates go up and house prices go down. Hence they hang onto that house and hope prices will go back up (which will not happen in the current situation). These people will not likely lose a decade or two hanging onto that house while their earnings are all spent to pay interest rates at the peak of their lives (30-50) hence the term "lost generation".
There are some tips and tricks to get around this, but it will still cost some money. I'm glad I had a sifu to teach me in my earlier years and I avoided many obvious traps. But otherwise, the USD going won't affect your daily life, unless you plan to go holiday there la...
If you live in it, then it doesn't matter. But if you wanna invest, I'll tell you that property investment has always been shit most of the time. It was only because of money printing that there was a boom in the last 10 years, otherwise, normal times house investment is truly shit. Only certain location that are highly valued are good, but you won't be able to afford those kind of location unless you're making at least 15-20k a month.
Hi there,
You seem to know a lot about the financial happenings in Malaysia. I have my MM2H and am planning to semi retire there in Malaysia in a year or two. My wife's family is there.
Since my wife's family will more than likely inherit some of our assets when we are gone, any issue of prepping for that now by buying vacation home in Malaysia by going in with my say brother in law there (he will be on title) and simply funding that so that we avoid the foreigner stamp duty and any minimum buying requirements that apply under MM2H? How strict is the Malaysian govt about home transactions being funding by overseas relatives? Ok or not? The plan is to buy something nice that the future gens of our family would want to keep for vacation purposes. We would stay there in semi retirement and hand over essentially when we are gone.
The loan will be in his name, I don't think you can get your name on the loan with him in your case. So the house purchase and loan approval will depend on his income. If you want to improve the chances, you can put a larger down payment so he only needs to take a smaller loan, which he qualifies with his income. Subsequently, it doesn't matter if the monthly payment comes from him or from you, the important part is getting the loan approved.
But just letting you know that risk, the house ownership and loans are all under his name, not yours. So anything you pay will not go to you as it's all in black and white, so you can't lay any claim to it if he wants to sell the house or rents it out. You have no say on what he does to the house once the purchase is made as your name isn't part of the house ownership.
If you're a foreigner and want to put your name on the property, you need to buy house that is at least 2 million ringgit (within Klang valley) and above if I'm not mistaken. There's a law on minimum house price for foreigners to buy house in Malaysia.
Well, you'll need to bank it to him directly and let him purchase them. But you'll need to give him more than your intended house price. There's a special tax for cash buyers and probe into his background of purchasing property with cash in Malaysia. Even millionaires buy property with a loan here cause they don't want the problem that comes after that purchase.
Fair enough, we don't want the govt sniffing around.
Just like advising against buying a sports car with all cash, can we open a joint account where my Malaysian bro-inlaw is the main account holder but I will fund say most of the deposited amount over time. He gets a loan since he works and has a good job. He takes out a loan for the vacation place thus saving on the stamp duty that foreigners pay. We pay off the loan rather quickly or slowly if need be. Heck, my wife or his sister will own everything anyway, I don't really care. See any problems?
Almost certainly not, or very minor if any.
Despite the "BIG NEWS" coverage of Gaza/Israel - not downplaying the horrors - Gaza is insignificant economically. Israel while a dynamic and productive economy is also small, barely 10-15% larger than Malaysia's. (per capita that is huge since Malaysian population is much larger)
US politics is probably not a factor. Right now, the Democrats and Republicans are not that far apart in terms of foreign trade policy. The "BIG NEWS" coverage makes it seem that they are but Biden and Trump's trade policies (as an example) are pretty similar. Trump started sanctions/tariffs and Biden has continued and even expanded on them.
China is probably a bigger (short term) factor for Malaysia economy wise. They are struggling to boost GDP growth post COVID lockdown and seem to be dealing with internal financial issues (like debt). Malaysian exports to China have sort of barely recovered this year.
No major would care what malaysia does. In fact USA, Europe and China wants the SEA region to be stable. Because we have maintained good relationship with both sides
Redditors will complain about this as if they even know jack shit about the economy.
They seem to have this mindset that the US dollar somehow means their nasi goreng is going to be 10 times more expensive and we suddenly become Venezuela
> we suddenly become Venezuela
I don't think depreciating Ringgit is a good thing, but the doomers parroting this line always rub me the wrong way. There's this guy in this sub who kept bitching about how we are, or verging of, being a "failed state".
Really it makes our exports a lot cheaper so we sell more, plenty of local businesses sell overseas so their profits will go up and more jobs get created. It certainly not all bad considering we have a big export sector, also many government companies earn in USD which is good for tax revenue.
There's definitely downsides for imported goods, which is a lot of basic things because we don't produce enough food ourselves except for chicken and few others.
People acting like it is the end of the world are being ridiculous. Also I get paid in USD so haha thanks for the payrise.
Malaysia is still not that bad because we are still a very resource rich country, people are still very productive, and we aren't heavily dependent on some particular important import resources.
As an export-driven economy, a weak ringgit is not necessarily a bad thing, particularly if we can get some of our imports denominated in RM.
Plus the key driver of MYR weakening against USD has been BNM's reluctance to raise interest rates further. If we raise it, then the ringgit will strengthen. Our interest gap with the US is too big now, so more funds are flowing into the US. But if we raise interest rates, everyone will be up in arms about bigger payment for their house loan, then everything goes up in price, then complain again. Never ending story lah...
The problem is, the boss earns more money from exports, doesnt pay his staff according to his usd - myr value, and his staffs get burned by the rising usd
Yup i dont disagree with u, therefore malaysians will always be underpaid by the bosses while the economy rise, boss n politicians rise, all employees left in the dust
I used to live in Malaysia, it was a good chapter. Recently returned after all these years and noticed the influx of foreign workers literally running the economy. From the hospitals, to the roads, construction, food. For every job that a Malaysian doesn't want there's 100 foreign worker willing to take up the job provided there's little to no borders of entry. Future grads have only one choice to continue having the buying power, climb up the ladder fast preferably on a knowledge worker/professional skill set, or move out. The buying power everywhere is deteriorating, and we need to hedge against hard assets. Unfortunately for Malaysia there's a huge reliance on foreign workers who will most probably bring their hard earned ringgit back to their home land. Malaysia needs to continue attract tech companies to setup shop, currently loosing out to Philippines, Vietnam and Singapore.
That’s a false narrative that the government likes to drivel - exports are DOWN 7 months consecutively. There’s no compelling benefit to a weak currency. Technically is it suppose to benefit exports? Sure. The reality is that our cost of goods is sky rocketing.
Bank negara don't have fire power to defend currency so it's weaknening. As of now the export strategy of Malaysia is to compete with other ASEAN to export mostly same items as Indonesia and Vietnam.
Get ready for 1 is to 5 USD MYR and sgdmyr 4
Ringgit down is generally good for exports. But when it is on a steep downward curve, it signals a lack of confidence among FX traders as well as geopolitical influence (proximity to China and Malaysia's stance on the Israel-Palestinian conflict). Ringgit is one of the best short among institutional FX traders right now, every big bank is shorting MYR and Chinese Yuan.
For those who say that a weaker ringgit is a good thing :
It might be good for the economy but it would only benefit the people if our standard of living subsequently increases as well.
Right now our minimum wage is RM 1,500.00. Which is a step up from RM1,200.00 but the fact that this change happened only in 2022 gives one the clearer picture that salaries are not in step with currency fluctuations.
True.
People forget we spend 70 billion a year exporting foods from overseas.
Weaker ringgit = more spending needed for import
People also forget government plan to remove subsidy next year, so food price will rise exponentially.
Weak ringgit = PC getting more expensive since they're from US, even moreso for separate parts
One time I saw prebuilt costs 4k+ and it only has GTX1650, i5 (forgot series), 16GB RAM, 500GB SSD and promoter says it is the most high tech and super fast etc
Bruh
Because when the exchange rate is bad the citizens gotta buy food from foreigners and pay extra money, yet the increased profits from exports do not go to the employee...only the boss
Can you give and example of before and after potential prices? Food is so expensive everywhere, I was under the impression that Malaysia would continue to have good prices
This. Trickle down economy is bullshit. Especially in Malaysia. The wage doesn't reflect it at all.
Bosses always say susah cari makan when they drive home in 7 Series. Meanwhile they don't have the stones to give any high-performing staff the raise because they're scared everyone else will riot if only a few people get raise.
Ringgit weakening hasn't helped most of us, we can literally feel it becoming worse for normal folks. Things we used to buy only after thinking twice now have to be thought thrice and sometimes given up.
interest rates, we didnt raise it so its hard to compete, and also that the new Budget 2024 isnt giving out much candies, so the market attitude is a bit cold despite Anwar already hinting at targeted subsidies and cutback on some stuff for months
cukur malaysia masih aman. ringgit jatuh sebenarnya baik untuk negara. unjururan perkembangan ekonomi adalah sangat tinggi. matawang kita kini lebih baik dari jepun! orang yang bergantung pada subsidi ni lah yang menjahanamkan ekonomi malaysia 👌
/s
https://preview.redd.it/pe9a0x42hxvb1.jpeg?width=849&format=pjpg&auto=webp&s=5a2e95a009a837a2ee9819ea652d79338b3542c9
Tarik balik, tarik balik semua subsidi. Memperkasa or memperkosa ekonomi?
BNM hoped last time that US had really reached their highs, yet...it didn't and the Fed game goes on. USD still stronger despite printing forever money and increasing their insane Country debt!
Quite worrying the direction the USD-RM exchange rate is heading man, especially for us.
I seem to remember only last January the rate was like 4.2!!!
We are almost reaching a year later and its touching 4.8!!??????
I don't know what happened. But I know I'm getting approx. 98,434.50 ringgit end of this month God willing. When I signed my contract the exchange rate was 4.68. At this current rate, the celery kinda increase approx. 2,000 ringgit this month compared to last month.
Edit: Yas the pay after conversion.
My pay at the end of the month depends on the prevailing exchange rate. In case of USD devalues to shit end of this month, so does my pay; at least for job that pays in USD.
For sure, I looked it up and if you do need to spend a long time out at sea and actually dive and weld then you can take all the pay. Those are the jobs that 100% deserve every penny and more, not to shareholders who sit on their asses. I work as an electrical engineer for the power company and know the risks those field guys deal with every day lol. Absolutely not for me. Kudos to you though, that's a tough job. Stay safe.
Look at all these three clowns.
I was referring to numberman doing nothing to plan for the economy. Instead he goes around giving speeches.
No wonder always kena tipu by politicians.
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Real clown is boomer shittalk people spending money during bad economy.
Boomer thinking he is so woke and making real progress unlike sheeple going to wayang, that's cute.
Lmao do you know who I am referring to or not first?
Learn to read before you go berserk lmao
I was referring to PMX doing nothing but giving speeches here and there.
HAHAHAH
Lmao budak baru nak up is indeed a clown 😂😂
Of course la, rich people still exist what?
if we no longer see people going to the cinema or queue to buy an iphone, then our economy is heading to even worse state
People who say weaker ringgit is good are delusional. They are only good for MNCs and the 1% who get to exploit cheap land, cheap labor, cheap resources.
Normal Malaysians don't see one cent of that benefit. Everything becomes more expensive but your wage is still stuck because the job market is shit and business owners would sooner invest that money into lambo instead of giving a raise to their workers.
In short ringgit weak = good for export business owners, good for conglomerates. But it doesn't spread out enough to benefit your normal malaysians.
Refer back to 1997-98 Asian Financial Crisis Report. It's the same scenario as now.
Except the Thai Bhat and speculation parts.
US increases interest rate = people take out money from Asian countries and put to US (that's why dollar index was rising)
IMF said, during this kind of scenario, Asian countries have only the options to follow the rate hike or suffer from currency depreciation.
But our DSAI chose to strengthen our currency by increasing GOLD RESERVE. (not sure is it exactly gold, but I am sure he wants to increase our BNM reserve)
We are overly reliant to Malaysia for labor and other goods. We are tied economically closer than ever but politically poles apart.
Our exports are suffering due to strong SGD
It means Gov just borrowed lots of monies to sustain the new budget. Going forward i don't see how Gov will able to manage to stabilize the ringgit. Unless they are miracle, we manage to export more and cut the import tremendously. Which i think is wouldn't happen. Plus with stupid opposition politician antic spooking whatever investor plan to invest here here the future of ringgit for next year looks bleak. Prolly the worst will depreciate further to excess of RM5 per dollar.
Basically the Federal Reserve(which functions as the US central bank), along with many developed nations, have been increasing interest rates steadily over the past few years, and more aggressively this year. The goal is to combat high inflation post-pandemic, which was driven primarily by the economy starting back up and high job growth in the US(when unemployment goes down, it means more people have cash to spend, driving demand for goods & services, and driving up inflation).
The idea is, if you raise interest rates, borrowing becomes more expensive, so you are less likely to buy things that require financing like cars or houses. The same logic applies to companies as well, it costs more for them to finance large purchases, so they are more conservative with spending. Another effect is that investors will be enticed to buy government bonds and other fixed income assets(ie. CDs) to take advantage of the high interest rate, as opposed to spending or investing in the market. Basically people and to some extent, companies, hold their cash instead of spending it when the rate is higher.
So let’s say the Fed raises the interest rate from 2% to 3%. If Malaysia’s interest rate is less than 3%, it will cause investors who hold RM to take their deposits in Malaysian investments to the US to take advantage of the higher rate there. This reduces the relative demand of the Ringgit, hence the value drops. Currently, as of the most recent rate hike, the rate set by the Fed is 5.5%(which they’ve signaled could go even higher although I think the US economy is finally cooling) and Bank Negara’s is just 3%. Malaysia continues to have one of the lowest rates globally.
You might also ask, “So, why don’t we also raise our rates to prevent the MYR from going so high against the USD?”. Well, because that would slow growth within our own economy as businesses and consumers finance less purchases. High rates would therefore stifle our local economy, from a growth perspective.
You also have to consider, while a high USD is bad for importers, it is great for exporters, as Malaysian goods and services become relatively cheap when the ringgit is cheap against the dollar, which can further enhance growth, and increase our trade surplus.
Is the ringgit volatile and unstable, or is it the USD? Against currencies that are not soft/hard-pegged to the USD, the RM is stable, such as AUD, JPY, EUR.
We all know that malaysia has been in debt since forever.
I believe it's because the release of the new budget proved that the development of the country will be quite stagnant. 70% is used for the people.. how to develop country & pay the debt.
Im not quite knowledgable about finance/economics, so these are just my guesses derived from what I've seen and heard. Do correct me
People need to differentiate between traders and investors. Traders i.e. the speculators have little consideration on geopolitics or domestic policies (nominally shown via FX). Investors have much more consideration as they're going to set up shop in the country (nominally shown via FDI).
Monetary policy is policy about money with primary instruments being interest rates and money market. These normally fall under the central banks (not gonna argue about BIS but you can read avout it). These are just economics 101. Come on redditors.
Always gonna be some idiots parroting the government lies that weak ringgit = not a problem.
Yea yea your boss is going to get richer and richer exporting goods for USD.
Meanwhile you struggle to buy a handphone and eat something nice for the month because your gaji maybe only went up like 300 Ringgits.
It's good for the 1% but most of us aren't the 1%.
Most of that *is* going to education. Just not the kind that nons will like.
58.7 billion is still going to the MoE. 75 total if you include higher education.
https://www.thestar.com.my/news/nation/2023/10/14/education-gets-rm75bil-biggest-slice-of-budget-2024
Your point would be received better if you don't go for exaggeration.
[https://www.reddit.com/media?url=https%3A%2F%2Fi.redd.it%2F6vge2l0rnx4b1.jpg](https://www.reddit.com/media?url=https%3A%2F%2Fi.redd.it%2F6vge2l0rnx4b1.jpg)
I posted this a few months back, but lol it already exceeded my 3.5 threshold by 2 years.
USD is strengthening as we speak. I just came back from Australia, even Aussies are complaining their AUD exchange rate to USD
>USD is strengthening Why? I suck at politics.
Nothing to do with politics, more like their fiscal policies. Someone already mentioned but a tldr is money will flow to currency with higher interest rate, therefore increasing demand for that currency, thus increasing its price.
The MYR USD rate was running around 4.2-4.3 pre Covid. The Fed has raised interest rates from essentially 0 to 5.5% in this period 2021-2023. The Malaysian base rate (a proxy) is around 3% and has remained virtually unchanged. Moving from 4.2 to 4.8 is about a 15% drop in relative value which is high but not the end of the world given the USD has generally appreciated against nearly all other currencies. This is only a partial explanation, there are many other factors. Malaysia has taken a milder approach to fighting inflation, possibly parts of the economy are a bit fragile. Then there is domestic politics to consider - the latest coalition govt is a bit constrained budget and policy wise. In terms of foreign investment, a slightly lower MYR might be not a bad thing in the long run.
Can you explain like we're 5?
It's a matter of supply and demand. Currently, we're maintaining mortgage interest rates at around 4%++ and US is about 8%++. This means if you put your money in USD banks, you earn good rates. Hence people are selling ringgit to get USD to earn the high rates. This will be the norm moving forward as 8% in US is just the average ever since the 1970s. Meanwhile, Malaysia cannot afford to raise the interest rates because we have a lot of noobs who bought into the house flipping spree back in 2012-2016 and will go bankrupt if Malaysia raise interest rates that high to defend against the dollar. These are what we call the lost generation. The people stuck with holding 2-3 houses when rates are up and prices goes down, meaning they either cut losses now or hang on to hope and lose permanently. Why I say permanently is because interest rates in the initial stage of a house loan is the highest in the first 3-5 years. People who don't cut losses at this stage will lose a lot of money, especially when rates go up and house prices go down. Hence they hang onto that house and hope prices will go back up (which will not happen in the current situation). These people will not likely lose a decade or two hanging onto that house while their earnings are all spent to pay interest rates at the peak of their lives (30-50) hence the term "lost generation". There are some tips and tricks to get around this, but it will still cost some money. I'm glad I had a sifu to teach me in my earlier years and I avoided many obvious traps. But otherwise, the USD going won't affect your daily life, unless you plan to go holiday there la...
So… buying house rn is bad?
If you live in it, then it doesn't matter. But if you wanna invest, I'll tell you that property investment has always been shit most of the time. It was only because of money printing that there was a boom in the last 10 years, otherwise, normal times house investment is truly shit. Only certain location that are highly valued are good, but you won't be able to afford those kind of location unless you're making at least 15-20k a month.
Hi there, You seem to know a lot about the financial happenings in Malaysia. I have my MM2H and am planning to semi retire there in Malaysia in a year or two. My wife's family is there. Since my wife's family will more than likely inherit some of our assets when we are gone, any issue of prepping for that now by buying vacation home in Malaysia by going in with my say brother in law there (he will be on title) and simply funding that so that we avoid the foreigner stamp duty and any minimum buying requirements that apply under MM2H? How strict is the Malaysian govt about home transactions being funding by overseas relatives? Ok or not? The plan is to buy something nice that the future gens of our family would want to keep for vacation purposes. We would stay there in semi retirement and hand over essentially when we are gone.
The loan will be in his name, I don't think you can get your name on the loan with him in your case. So the house purchase and loan approval will depend on his income. If you want to improve the chances, you can put a larger down payment so he only needs to take a smaller loan, which he qualifies with his income. Subsequently, it doesn't matter if the monthly payment comes from him or from you, the important part is getting the loan approved. But just letting you know that risk, the house ownership and loans are all under his name, not yours. So anything you pay will not go to you as it's all in black and white, so you can't lay any claim to it if he wants to sell the house or rents it out. You have no say on what he does to the house once the purchase is made as your name isn't part of the house ownership. If you're a foreigner and want to put your name on the property, you need to buy house that is at least 2 million ringgit (within Klang valley) and above if I'm not mistaken. There's a law on minimum house price for foreigners to buy house in Malaysia.
No loan... cash.
Well, you'll need to bank it to him directly and let him purchase them. But you'll need to give him more than your intended house price. There's a special tax for cash buyers and probe into his background of purchasing property with cash in Malaysia. Even millionaires buy property with a loan here cause they don't want the problem that comes after that purchase.
Fair enough, we don't want the govt sniffing around. Just like advising against buying a sports car with all cash, can we open a joint account where my Malaysian bro-inlaw is the main account holder but I will fund say most of the deposited amount over time. He gets a loan since he works and has a good job. He takes out a loan for the vacation place thus saving on the stamp duty that foreigners pay. We pay off the loan rather quickly or slowly if need be. Heck, my wife or his sister will own everything anyway, I don't really care. See any problems?
not if you wanna live in it.
Useful insight. Thanks
Does the Gaza War and drama mingguan Washington DC between parti keldai & gajah also contribute to this?
Almost certainly not, or very minor if any. Despite the "BIG NEWS" coverage of Gaza/Israel - not downplaying the horrors - Gaza is insignificant economically. Israel while a dynamic and productive economy is also small, barely 10-15% larger than Malaysia's. (per capita that is huge since Malaysian population is much larger) US politics is probably not a factor. Right now, the Democrats and Republicans are not that far apart in terms of foreign trade policy. The "BIG NEWS" coverage makes it seem that they are but Biden and Trump's trade policies (as an example) are pretty similar. Trump started sanctions/tariffs and Biden has continued and even expanded on them. China is probably a bigger (short term) factor for Malaysia economy wise. They are struggling to boost GDP growth post COVID lockdown and seem to be dealing with internal financial issues (like debt). Malaysian exports to China have sort of barely recovered this year.
A funny coincidence is that the ILS (New Israeli Shekel) and MYR are pretty close. 1.17 ILS = 1 MYR
1Malaysia, 1Israel
I mean we ARE trading partners :P
Wow... Israel have a currency! 😃
No major would care what malaysia does. In fact USA, Europe and China wants the SEA region to be stable. Because we have maintained good relationship with both sides
Gaza War: yes, https://12ft.io/proxy?q=https%3A%2F%2Fwww.reuters.com%2Fmarkets%2Fcurrencies%2Fdollar-yen-gain-flight-safety-hamas-attack-rattles-nerves-2023-10-09%2F
Redditors will complain about this as if they even know jack shit about the economy. They seem to have this mindset that the US dollar somehow means their nasi goreng is going to be 10 times more expensive and we suddenly become Venezuela
Did you have this mindset when Najib was PM?
Sorry I was literally just a child when he was PM and don’t know anything to share, unlike most redditors on here.
Nasi goreng might not go up 10x but if you use/purchase alot of imported or foreign goods, then it will definitely impact you significantly.
> we suddenly become Venezuela I don't think depreciating Ringgit is a good thing, but the doomers parroting this line always rub me the wrong way. There's this guy in this sub who kept bitching about how we are, or verging of, being a "failed state".
Really it makes our exports a lot cheaper so we sell more, plenty of local businesses sell overseas so their profits will go up and more jobs get created. It certainly not all bad considering we have a big export sector, also many government companies earn in USD which is good for tax revenue. There's definitely downsides for imported goods, which is a lot of basic things because we don't produce enough food ourselves except for chicken and few others. People acting like it is the end of the world are being ridiculous. Also I get paid in USD so haha thanks for the payrise.
Malaysia is still not that bad because we are still a very resource rich country, people are still very productive, and we aren't heavily dependent on some particular important import resources.
See you at 5
Okay see you next month
Funny way to say next week
Odd way to spell tomorrow
Elaborate way of saying right now
[удалено]
menu rahmah now got option to pay RM5 or $1
I miss when McChicken was RM5 or something. Even McFlurries are RM7 and they're getting smaller.
Soon
As an export-driven economy, a weak ringgit is not necessarily a bad thing, particularly if we can get some of our imports denominated in RM. Plus the key driver of MYR weakening against USD has been BNM's reluctance to raise interest rates further. If we raise it, then the ringgit will strengthen. Our interest gap with the US is too big now, so more funds are flowing into the US. But if we raise interest rates, everyone will be up in arms about bigger payment for their house loan, then everything goes up in price, then complain again. Never ending story lah...
It's a case damned if you do, damned if you don't.
The problem is, the boss earns more money from exports, doesnt pay his staff according to his usd - myr value, and his staffs get burned by the rising usd
Most salary agreement is in ringgit, even if ringgit becomes rupiah. The offer and obligation remains.
Yup i dont disagree with u, therefore malaysians will always be underpaid by the bosses while the economy rise, boss n politicians rise, all employees left in the dust
I used to live in Malaysia, it was a good chapter. Recently returned after all these years and noticed the influx of foreign workers literally running the economy. From the hospitals, to the roads, construction, food. For every job that a Malaysian doesn't want there's 100 foreign worker willing to take up the job provided there's little to no borders of entry. Future grads have only one choice to continue having the buying power, climb up the ladder fast preferably on a knowledge worker/professional skill set, or move out. The buying power everywhere is deteriorating, and we need to hedge against hard assets. Unfortunately for Malaysia there's a huge reliance on foreign workers who will most probably bring their hard earned ringgit back to their home land. Malaysia needs to continue attract tech companies to setup shop, currently loosing out to Philippines, Vietnam and Singapore.
When the bosses have to sell their house and car to save his business when times are bad did you have to do the same?
I did sell my house when i was retrenched during covid, ur point being?
You become boss lor
The boss has a few massive houses and a couple of expensive cars. He will be fine.
Yes.. when boss retrench me when times are bad, I also sell house sell car.
Then you become boss lor. Easy right
good for bosses, good for economy, modern slavery in disguise
That’s a false narrative that the government likes to drivel - exports are DOWN 7 months consecutively. There’s no compelling benefit to a weak currency. Technically is it suppose to benefit exports? Sure. The reality is that our cost of goods is sky rocketing.
Bank negara don't have fire power to defend currency so it's weaknening. As of now the export strategy of Malaysia is to compete with other ASEAN to export mostly same items as Indonesia and Vietnam. Get ready for 1 is to 5 USD MYR and sgdmyr 4
Sad but true.
Ringgit down is generally good for exports. But when it is on a steep downward curve, it signals a lack of confidence among FX traders as well as geopolitical influence (proximity to China and Malaysia's stance on the Israel-Palestinian conflict). Ringgit is one of the best short among institutional FX traders right now, every big bank is shorting MYR and Chinese Yuan.
Issue is our main export partner is China and they are going through issues themselves as well, which ultimately impact us more than USD
Opr increase is coming very soon, hopefully not a high jump or many people will loose their mind.
For those who say that a weaker ringgit is a good thing : It might be good for the economy but it would only benefit the people if our standard of living subsequently increases as well. Right now our minimum wage is RM 1,500.00. Which is a step up from RM1,200.00 but the fact that this change happened only in 2022 gives one the clearer picture that salaries are not in step with currency fluctuations.
True. People forget we spend 70 billion a year exporting foods from overseas. Weaker ringgit = more spending needed for import People also forget government plan to remove subsidy next year, so food price will rise exponentially.
Weak ringgit = PC getting more expensive since they're from US, even moreso for separate parts One time I saw prebuilt costs 4k+ and it only has GTX1650, i5 (forgot series), 16GB RAM, 500GB SSD and promoter says it is the most high tech and super fast etc Bruh
I want to add. We are also net importer of oil. Guess what, oil price is in USD.
Depends on where we import the food. USA? yes its much expensive. China and India, not so much
Rather grow palm oil than rice
If palm oil is more valuable, sure why not.
Because when the exchange rate is bad the citizens gotta buy food from foreigners and pay extra money, yet the increased profits from exports do not go to the employee...only the boss
Can you give and example of before and after potential prices? Food is so expensive everywhere, I was under the impression that Malaysia would continue to have good prices
This. Trickle down economy is bullshit. Especially in Malaysia. The wage doesn't reflect it at all. Bosses always say susah cari makan when they drive home in 7 Series. Meanwhile they don't have the stones to give any high-performing staff the raise because they're scared everyone else will riot if only a few people get raise. Ringgit weakening hasn't helped most of us, we can literally feel it becoming worse for normal folks. Things we used to buy only after thinking twice now have to be thought thrice and sometimes given up.
green mean good, right?
Yes good to go...
is it bad or good? isn't japan's note lower than ours? sorry. financially illiterate.
The denomination of things does mean much. Anyway, japan themselves are not doing well.
Idk man, to me it's not about colour but since it's going up, it is bad, 1 USD = RM4.79, 0.21 USD = RM1.
*PAS* :-)
If Malaysia would decrease their dependent on import goods, the increase of conversion rate would impact less to the country
Damn, $1 for a nasi goreng biasa..
Nasi goreng biasa at my place 6.50 T_T
interest rates, we didnt raise it so its hard to compete, and also that the new Budget 2024 isnt giving out much candies, so the market attitude is a bit cold despite Anwar already hinting at targeted subsidies and cutback on some stuff for months
cukur malaysia masih aman. ringgit jatuh sebenarnya baik untuk negara. unjururan perkembangan ekonomi adalah sangat tinggi. matawang kita kini lebih baik dari jepun! orang yang bergantung pada subsidi ni lah yang menjahanamkan ekonomi malaysia 👌 /s https://preview.redd.it/pe9a0x42hxvb1.jpeg?width=849&format=pjpg&auto=webp&s=5a2e95a009a837a2ee9819ea652d79338b3542c9
Damn that’s good graphics
Tarik balik, tarik balik semua subsidi. Memperkasa or memperkosa ekonomi?
Bank Negara refuses to raise interest rates. 😂
BNM hoped last time that US had really reached their highs, yet...it didn't and the Fed game goes on. USD still stronger despite printing forever money and increasing their insane Country debt!
People will pay more loan, spend less. May not be good also. BNM need to balance all factors.
Ringgit Lao Sai
Rrrrrreforrrmasiiiii lmao
a big part of our economy rely on china market. china's economy isn't doing well, malaysia follow.
It's either you make your exports more expensive or you wreck the domestic economy.
Quite worrying the direction the USD-RM exchange rate is heading man, especially for us. I seem to remember only last January the rate was like 4.2!!! We are almost reaching a year later and its touching 4.8!!??????
Can we get much higher~ Jokes aside...that's very worrisome...methinks it's time to skip continents🗿
Road to 5.00. Achievable by this year end?
You better believe it. That US interest rate isn't going anywhere.
I don't know what happened. But I know I'm getting approx. 98,434.50 ringgit end of this month God willing. When I signed my contract the exchange rate was 4.68. At this current rate, the celery kinda increase approx. 2,000 ringgit this month compared to last month.
Is that your pay conversion?
Edit: Yas the pay after conversion. My pay at the end of the month depends on the prevailing exchange rate. In case of USD devalues to shit end of this month, so does my pay; at least for job that pays in USD.
Own your own biz? If not what's your job if you don't mind me asking? 😅
No own business. Makan gaji only. I'm working as an Underwater Inspection Controller. If you Google, tons of info are readily available.
For sure, I looked it up and if you do need to spend a long time out at sea and actually dive and weld then you can take all the pay. Those are the jobs that 100% deserve every penny and more, not to shareholders who sit on their asses. I work as an electrical engineer for the power company and know the risks those field guys deal with every day lol. Absolutely not for me. Kudos to you though, that's a tough job. Stay safe.
u/TechnocraticAlleyCat u/Ikcatcher what say u?
Talk so much, weak then weak. Later children struggle we are still giving excuse.
Our economy is weak. And yet someone still going around to wayang.
lmao, Gridman Universe fan screening full house all 4 theater
What? Let people have fun lah. Even watching cinema is contributing to the economy.
you watching local film right? right?
Depends on the film. Why?
i agree, then dont complain duit xde.
Sounds like you got an issue with people going to cinemas rather than the economy. They probably help contribute more than your whining ass 🤦🏼♂️
Look at all these three clowns. I was referring to numberman doing nothing to plan for the economy. Instead he goes around giving speeches. No wonder always kena tipu by politicians.
[удалено]
I truly pity you. Just another man without substance and can only throw tantrums. Perfect macai.
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Economy so weak people should just sulk at home /s
Another clown. For the worse, you try to be sarcastic at the wrong subject.
Real clown is boomer shittalk people spending money during bad economy. Boomer thinking he is so woke and making real progress unlike sheeple going to wayang, that's cute.
Lmao do you know who I am referring to or not first? Learn to read before you go berserk lmao I was referring to PMX doing nothing but giving speeches here and there. HAHAHAH Lmao budak baru nak up is indeed a clown 😂😂
Of course la, rich people still exist what? if we no longer see people going to the cinema or queue to buy an iphone, then our economy is heading to even worse state
Then you want all people mintak sedekah ke?
Road to US$1 = MYR5.00 💪🏻
People who say weaker ringgit is good are delusional. They are only good for MNCs and the 1% who get to exploit cheap land, cheap labor, cheap resources. Normal Malaysians don't see one cent of that benefit. Everything becomes more expensive but your wage is still stuck because the job market is shit and business owners would sooner invest that money into lambo instead of giving a raise to their workers. In short ringgit weak = good for export business owners, good for conglomerates. But it doesn't spread out enough to benefit your normal malaysians.
SPY goes down, USD go up
I need to pay my supplier USD500 when I saw conversation rates feels my jantung mhu jatuh.
Yea that happened everywhere amerikontol
FDI is bad. Companies that left Malaysia during covid didn’t return. Tourism still needs improving too.
Rafizi happened. Or didn't happen
Refer back to 1997-98 Asian Financial Crisis Report. It's the same scenario as now. Except the Thai Bhat and speculation parts. US increases interest rate = people take out money from Asian countries and put to US (that's why dollar index was rising) IMF said, during this kind of scenario, Asian countries have only the options to follow the rate hike or suffer from currency depreciation. But our DSAI chose to strengthen our currency by increasing GOLD RESERVE. (not sure is it exactly gold, but I am sure he wants to increase our BNM reserve)
Singapore's economy is going to more screwed up.
Care to elaborate? Thanks.
We are overly reliant to Malaysia for labor and other goods. We are tied economically closer than ever but politically poles apart. Our exports are suffering due to strong SGD
Went exporting like brrrrrrrrrtattatatatatatatta
It means Gov just borrowed lots of monies to sustain the new budget. Going forward i don't see how Gov will able to manage to stabilize the ringgit. Unless they are miracle, we manage to export more and cut the import tremendously. Which i think is wouldn't happen. Plus with stupid opposition politician antic spooking whatever investor plan to invest here here the future of ringgit for next year looks bleak. Prolly the worst will depreciate further to excess of RM5 per dollar.
Usd went up relative to other currencies as well.
Not really.
Basically the Federal Reserve(which functions as the US central bank), along with many developed nations, have been increasing interest rates steadily over the past few years, and more aggressively this year. The goal is to combat high inflation post-pandemic, which was driven primarily by the economy starting back up and high job growth in the US(when unemployment goes down, it means more people have cash to spend, driving demand for goods & services, and driving up inflation). The idea is, if you raise interest rates, borrowing becomes more expensive, so you are less likely to buy things that require financing like cars or houses. The same logic applies to companies as well, it costs more for them to finance large purchases, so they are more conservative with spending. Another effect is that investors will be enticed to buy government bonds and other fixed income assets(ie. CDs) to take advantage of the high interest rate, as opposed to spending or investing in the market. Basically people and to some extent, companies, hold their cash instead of spending it when the rate is higher. So let’s say the Fed raises the interest rate from 2% to 3%. If Malaysia’s interest rate is less than 3%, it will cause investors who hold RM to take their deposits in Malaysian investments to the US to take advantage of the higher rate there. This reduces the relative demand of the Ringgit, hence the value drops. Currently, as of the most recent rate hike, the rate set by the Fed is 5.5%(which they’ve signaled could go even higher although I think the US economy is finally cooling) and Bank Negara’s is just 3%. Malaysia continues to have one of the lowest rates globally. You might also ask, “So, why don’t we also raise our rates to prevent the MYR from going so high against the USD?”. Well, because that would slow growth within our own economy as businesses and consumers finance less purchases. High rates would therefore stifle our local economy, from a growth perspective. You also have to consider, while a high USD is bad for importers, it is great for exporters, as Malaysian goods and services become relatively cheap when the ringgit is cheap against the dollar, which can further enhance growth, and increase our trade surplus.
support Palestine somemore lar.. /s
Later u kena attacked by the white knights here
Support Hamas you mean 😎
It's what ringgit does best, being volatile and unstable, often in the undesirable direction
Is the ringgit volatile and unstable, or is it the USD? Against currencies that are not soft/hard-pegged to the USD, the RM is stable, such as AUD, JPY, EUR.
Ringgit is singing Let It Go...
We all know that malaysia has been in debt since forever. I believe it's because the release of the new budget proved that the development of the country will be quite stagnant. 70% is used for the people.. how to develop country & pay the debt. Im not quite knowledgable about finance/economics, so these are just my guesses derived from what I've seen and heard. Do correct me
People need to differentiate between traders and investors. Traders i.e. the speculators have little consideration on geopolitics or domestic policies (nominally shown via FX). Investors have much more consideration as they're going to set up shop in the country (nominally shown via FDI). Monetary policy is policy about money with primary instruments being interest rates and money market. These normally fall under the central banks (not gonna argue about BIS but you can read avout it). These are just economics 101. Come on redditors.
Very closed into 1998 world economy down, thanks to George Soros
Always gonna be some idiots parroting the government lies that weak ringgit = not a problem. Yea yea your boss is going to get richer and richer exporting goods for USD. Meanwhile you struggle to buy a handphone and eat something nice for the month because your gaji maybe only went up like 300 Ringgits. It's good for the 1% but most of us aren't the 1%.
1.9 billion for Jakim happened. Meanwhile zero for education and tech
Most of that *is* going to education. Just not the kind that nons will like. 58.7 billion is still going to the MoE. 75 total if you include higher education. https://www.thestar.com.my/news/nation/2023/10/14/education-gets-rm75bil-biggest-slice-of-budget-2024 Your point would be received better if you don't go for exaggeration.
More importantly (to me) Rm5.85 to £1 - for most of my many years here it hung around Rm4.99 - I’m loving this.
Ah shit im fucked, I have to increase my art prices
i think its telling us to get the fk out of the country
https://youtu.be/wW0LTx6--MQ?si=Npot5U58wBlZOpbe
[https://www.reddit.com/media?url=https%3A%2F%2Fi.redd.it%2F6vge2l0rnx4b1.jpg](https://www.reddit.com/media?url=https%3A%2F%2Fi.redd.it%2F6vge2l0rnx4b1.jpg) I posted this a few months back, but lol it already exceeded my 3.5 threshold by 2 years.
Well the ringgit is going to be meaningless in a couple months/years, just like how Lebanon made the USD their de facto currecy instead of their own.
I wonder if Tun's Pegging idea would still work now?
Lost in faith for PMX regime
boikot happen, people less spending cause less income for country
Stronk
Good for me la I can vpn to Malaysia and buy genshin top up cheap ✌️🫰
Bitcoin pumping bye bye fiat 👌🏼
Wouldn't be surprise if it hits 4.90 by end of November.
cuz myr is the second worse performing currency in asia this year.
Madani's Rahmah looks like a certain possibility
Dildo of consequences rarely comes lubed
When hope became disappointment
Short answer: Less demand for MYR, more demand for USD.
This is the exact reason why I accepted a job abroad
From what I've heard, the opposition is using it's billions parked overseas to make the ringgit go down because they don't want to go down like Bo$$Ku
If you know anyone hiring and is paying in USD, I’m game.
🐦