Serious Remember 1997: A perfect storm is forming around the Malaysian ringgit

[AsiaDK]

A perfect storm is forming around the Malaysian ringgit, as its value remains at risk from a protracted economic slump aggravated by a domestic political scandal and the prospect of rising US interest rates.

But the distress does not stop there, as a currency sell-off in Malaysia could have a contagious financial spillover on neighbouring economies, sparking capital outflows and compounding financial volatility. http://www.bangkokpost.com/business/news/1180901/ringgit-rout

 

[AsiaDK]

The ringgit, which fell by 4.3% against the dollar last year following an 18.5% decline in 2015, has not posted an annual gain since 2012, according to Bloomberg. At 4.48 per dollar, the ringgit has touched its lowest level since the Asian financial crisis in 1998 and was Asia's worst-performing currency for emerging markets in 2016 http://www.bangkokpost.com/business/news/1180901/ringgit-rout

 

[AsiaDK]

Malaysia's economic fundamentals are among the weakest for emerging Asian economies because of low foreign reserves, weak public investment resulting from ebbing fiscal revenue, and a bearish outlook for domestic politics

"If the ringgit's value weakens to 5 versus the dollar, [Malaysia's central bank] could impose capital controls," said Dr Jitipol. Bank Negara Malaysia (BNM) in November requested foreign banks to stop trading ringgit in the offshore non-deliverable forwards market. Prior to that, it also confirmed that it had intervened in the market to defend the ringgit. These developments have spurred concerns over the central bank's foreign-exchange policies and raised the spectre of capital controls.

Malaysia last imposed capital controls two decades ago during the 1997-98 crisis by fixing the exchange rate and requiring the currency to be held for at least a year after the sale of Malaysian securities or assets in the country. http://www.bangkokpost.com/business/news/1180901/ringgit-rout

 

[AsiaDK]

The ringgit rout could induce financial volatility across the region as investors tend to link investments in emerging Asian economies into the same portfolio, he said. Regional currencies could depreciate sharply following an emerging market sell-off.

 

[winners]

Last month, I spoke to my banker and she told me that the Ringgit will not recover as long as Najib is still in government. My opinion is that Najib will remain because their Opposition parties are not only incapable but also grossly disunited among themselves (just like Sinkies' Opposition Parties) and furthermore, that Mahathir is just a hypocrite.

 

[AsiaDK]

Last month, I spoke to my banker and she told me that the Ringgit will not recover as long as Najib is still in government. My opinion is that Najib will remain because their Opposition parties are not only incapable but also grossly disunited among themselves (just like Sinkies' Opposition Parties) and furthermore, that Mahathir is just a hypocrite.

Yes sir, my friend ShentonDK also shared with me that Najib closed the 1MDB because he got a more lucrative target now - China investments. Najib will also win the next election with a stronger support from the Malaysian chinese this time because of his warming ties with China with benefited the Chinese communities in KL, PJ, Johor and Malacca. Only left with Penang and Ipoh chinese buay song him.

 

[winners]

Yes sir, my friend ShentonDK also shared with me that Najib closed the 1MDB because he got a more lucrative target now - China investments. Najib will also win the next election with a stronger support from the Malaysian chinese this time because of his warming ties with China with benefited the Chinese communities in KL, PJ, Johor and Malacca. Only left with Penang and Ipoh chinese buay song him.

That is why that old cock Mahathir is stirring again by saying that Najib is selling Malaysia to the Chinks. To some extent, I can't say he is wrong. Good luck to all the Bumis. They'll have lots of Tiongs in time to come, just like in Sinkie Land. I hope most of the Tiongs in Sinkie Land will eventually move to Malaysia.

 

[AsiaDK]

Ringgit is 3.13 against Singapore dollar now.

 

[Ebolar8SG]

This time round, it is SG52's turn to get screwed dead by China. More crazy measures coming soon because LHL played wrong game with Xijinping. China had not done such kind of destruction to any country before, and Pee Sai's non-compliance will only invite a bigger heavier hammer from China.

 

[AsiaDK]

This time round, it is SG52's turn to get screwed dead by China. More crazy measures coming soon because LHL played wrong game with Xijinping. China had not done such kind of destruction to any country before, and Pee Sai's non-compliance will only invite a bigger heavier hammer from China.

Why should we be so afraid of China? It is quite obvious that they want to treat us like their vassal state. If we give in and exit Taiwan, our neighbours will perceive us as pushovers. Besides, we have 100-200billion worth of offshore yuan deposits held in Singapore, if we force all these positions to unwind by removing the rmb settlement facility, China gotta pump the equivalents in foreign currencies from their reserves to support their FX rate.

 

[WW3Concert]

SGP is an egg of weakest shell in the world.

Put a tiny attack on it, even just make it looked like an ISIS job. Killing 500 only. It will fall completely apart.

 

[Ebolar8SG]

Why should we be so afraid of China? It is quite obvious that they want to treat us like their vassal state. If we give in and exit Taiwan, our neighbours will perceive us as pushovers. Besides, we have 100-200billion worth of offshore yuan deposits held in Singapore, if we force all these positions to unwind by removing the rmb settlement facility, China gotta pump the equivalents in foreign currencies from their reserves to support their FX rate.

To nicely bring new world order, China should just do the usual USA trick, export wars, economic chaos, coups, assassination, terror attacks, financial crisis etc, to vanish Pee Sai islands LEEgime, die and suffer it's people, make it's currency and finances bankrupted. All that to show the world who is boss. And why should the whole world comply with the new superpower.

Businesses is always the same. Players changed only.

 

[virus]

stop worrying abt bolehland better worry about zikabore, zikabore is farked.

 

[AsiaDK]

Singapore dollar rises to new record high against ringgit
http://www.todayonline.com/singapore/singapore-dollar-rises-new-record-high-against-ringgit

 

[johnny333]

Yes sir, my friend ShentonDK also shared with me that Najib closed the 1MDB because he got a more lucrative target now - China investments. Najib will also win the next election with a stronger support from the Malaysian chinese this time because of his warming ties with China with benefited the Chinese communities in KL, PJ, Johor and Malacca. Only left with Penang and Ipoh chinese buay song him.

Najib would probably win the GE, if the elections are held now but ..... in a years time ???

If the ringgit continues to depreciates further, the "lesser mortals" of Malaysia will feel the pain. They may think twice about voting for Najib.

 

[mojito]

Najib would probably win the GE, if the elections are held now but ..... in a years time ???

If the ringgit continues to depreciates further, the "lesser mortals" of Malaysia will feel the pain. They may think twice about voting for Najib.

No no no... it is all the damn sinkies crawling into JB pushing up prices of everything. I am sure Malaysians are glad the government did something to discourage singaporeans from going in.

 

[johnny333]

No no no... it is all the damn sinkies crawling into JB pushing up prices of everything. I am sure Malaysians are glad the government did something to discourage singaporeans from going in.

Actually if Sporeans go to JB to shop they would need to get ringgit and thereby prop up the ringgit. So Sporeans visitors would be a positive to the Malaysian economy

 

[AsiaDK]

Yes sir, my friend ShentonDK also shared with me that Najib closed the 1MDB because he got a more lucrative target now - China investments. Najib will also win the next election with a stronger support from the Malaysian chinese this time because of his warming ties with China with benefited the Chinese communities in KL, PJ, Johor and Malacca. Only left with Penang and Ipoh chinese buay song him.

Latest from South China Morning Post: HOW CHINESE INVESTMENT COULD SWAY MALAYSIAN ELECTION
http://www.scmp.com/week-asia/polit...rsus-sultan-how-chinese-investment-could-sway

 

[congo9]

No no no... it is all the damn sinkies crawling into JB pushing up prices of everything. I am sure Malaysians are glad the government did something to discourage singaporeans from going in.

I seriously don't think Singkie can push up the cost of JB so much. It is the fault of greedy landlord who wanted lots of rental that keep the price pressure up.

 

[mojito]

I seriously don't think Singkie can push up the cost of JB so much. It is the fault of greedy landlord who wanted lots of rental that keep the price pressure up.

No no no. High consumer imports mean when ringgit is weak, each import costs more ringgit. Nothing to do with Singaporeans going into JB push up prices although truth is it will push up even more but not main reason. Sinkies are simply convenient scapegoats. It is just like PAP have jobsbank e2i upgrade courses because sinkies got no skills or wrong skills. Pay money attend course still no jobs you know why? It is just a diversion, a diversion from the real reason why jobs no longer go to sinkies any more. And that reason is because it is good for Singapore. Or more accurately the people who rule Singapore. What a time to be alive!