Why Malaysia’s Currency Has Been Falling: Can The Ringgit Recover? | Insight | Full Episode
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- Опубліковано 28 тра 2024
- In February this year, the Malaysian currency, the ringgit, suffered its steepest decline in 26 years. It briefly slipped past MYR 4.8 against the US dollar, its weakest since reaching an all-time low of 4.88 during the 1998 Asian Financial Crisis.
This has caused a strain on the country’s key industries - from the airlines to manufacturing - due to higher fuel prices and cost of raw materials. It has shaken investor confidence and accelerated outward migration.
Why has the ringgit lost so much of its value? Could the depreciating ringgit spell trouble for Prime Minister Anwar Ibrahim? As the government projects a recovery, is a turnaround in sight?
0:00 Introduction
1:13 Impact of falling ringgit
04:59 Why the ringgit has fallen
10:11 How a lower ringgit affects trade
15:23 Depreciation of ringgit compared to S'pore dollar
17:50 Fall of ringgit: brain drain?
25:48 Impact of low ringgit on overseas students
28:14 Advantages of a weak ringgit
34:37 Does the falling ringgit echo the 1998 Asian financial crisis?
39:38 Will the ringgit slide rattle PM Anwar's government?
42:14 Will the ringgit recover?
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15:01 the Malaysian container driver says he’s bought 2 houses in Malaysia due to his working in Singapore, and if his motorcycle breaks down, he’s able to buy a new motorcycle with his one month salary. It’s no surprise why many Malaysians are willing to endure the hours of traveling to and fro, between Malaysia and Singapore everyday because they’ll be able to give their families a better life.
Good for both countries. Hope he spends his salary in Malaysia though.
If things are so great in Singapore, why didn't he buy a house in Singapore?
@@eugenearokiasamy5662 working for salary is better in SG.....buying house in Malaysia is cheaper....hence buy in Malaysia la....aiyoyo
Singapore tiny island no land. That's why houses are expensive.
But this Made inflasi in rest of Malaysia
It is interesting to see common Malaysians complaining about rising prices in the beginning, followed by comments by experts of Malaysia’s inflation is low/well controlled.
Malaysia needs to shift its focus to merit.
Agree...
It needs to do away with mixing religion with politics too... everything now is seen as challenging their religion and once it comes to that all open logical discussions ends there ... how to argue with something mythical
Dream on
If by MERIT, the majority race is afraid they cannot compete with the minorities!
The problem is, saying this out loud in Malaysia can get you killed.
Oil revenue from East Malaysia for 60+ years all went missing. Malaysia really boleh. 😂😂😂😂
into najib"'S account.
@@eugeneteo9664 More to Jho Low’s account imho
Not missing, went into developing KL, Penang and Johor
@@Jaguar0xf Developing Johor, Penang, KL? lol. boy boy i am old enough to remember Multimedia Super Corridor. talk less nonsense. [to build the Petronas Towers to show off is not developing KL.]
Malaysia boleh.....rasuah.
Again seeing CNA trying to deflecting Singapore’s own problem of sky high cost of living especially on rent by showcasing its neighbour problems. If Singapore is doing very well, I bet they will just keep quiet and while enjoying the advantage of low MYR. Thus I believe their government are seeing huge foreign investments and jobs are taken up by Malaysia as depreciating Ringgit is value for their money, they now doing propaganda to pacify the populace that loses job to Malaysian that command less pay. Similar trick like how US is doing to China. So good sign for Malaysia.
Indeed. The most funny part is that CNA chose to interview mat jargon (Wan Ahmad Fayhsal) who previously said “ just print more money to tackle the issue of Malaysia’s economy”. And CNA just focus on the negative side of the whole “story”.
@@Alessandrodel7 Peterson Institute has made a study about the word distribution of dollar reserve. The study was made in Dec 2023. On its finding
1. Asia held USD 5 T of USD reserve where Japan as one of the biggest USD reserve holder cannot use its own currency as its reserve while Europe can.
2. Europe held USD 1 T of USD reserve. This is 1/5 of what Asian held.
3. Middle East held USD 809 Billion of USD reserve
4. Africa only held USD 85 billion of USD reserve.
Why are you so happy about Singapore buying up and owning more and more of Malaysia's assets?
continue with race based policies and i wont be surprised SGD 1 = RM 4. favouring not the best, but the skin colour will drive more capable malaysians overseas.
soon 1 USD = RM5
It's good for us.. Let them keep it
I'm Malaysian and even I feel SGD 1 RM4 is too little. Many of us Malaysian working in Singapore is hoping for SGD1 RM 10 soon! 🙂
@@schadenfreude6274 That would not be good for Malaysia. Probably will end up like USSR.
@@schadenfreude6274 lol malaysian workers don't know what they are asking for. you might as well stay in singapore then. at 1:10, malaysia will collapse, all too poor to afford. more singaporeans will go over and drive the prices up even crazier for your own people to afford. don't wish what you are asking for.
Ya know....I should indirectly thank the government for this one. I graduated from a top tier government high school in Malaysia and many of our bright minded students who are from rich families left for Australia right after SPM and didn't bother to waste 2 more years of STPM to decide their fate. All end up being doctors and engineers. I was in limbo for a few years before my golden opportunity to study overseas in US came. 30 years later, here I am working and living in TX, looking to retire in a few years and I never looked back. I remember during the early years of my engineering career, my parents told me about how the government is using cash to entice Malaysians with technical backgrounds to return home. I laughed. They really need to ask themselves whatever happened to those they sent overseas with full scholarships and I think I know the answer to that.
you might have done better in Malaysia and retired a few years back. Don't always paint such a bleak picture of the path not taken....You won't really know.
@MultiCklee - oh no. I chose to work a few more years here. I have more than enough to retire now so im not too worried. Unlike my high school friend who was forced to retire from Intel 1 year ago when they had a huge layoff at his plant. I believe it is in Kulim, Kedah. The whole quality assurance engineering team is done, including his own boss. They also had layoffs in US.
Australia is the dumbest country on Earth...been living there 25 years...I wont even go back to apply for my 3 years overdue pension.
@@richlandzee8686 Ha ha ha, nothing to argue. Your success is undeniable! Malaysia is not moving forward due to race based management : a FACT
of course.. typical immigrant.. take what ever you can get and ran away overseas.. and start blabbering about the country.. and how you've made it on your own all this while.. puuiii
It's time to vacation to Malaysia, to stimulate its economy 😊
Don’t visit PAS controlled states , anyone can be penalized for wearing shorts
sorry..cant wear bikini in beach area.. need to cover up in hot day.. cant go pub for beer sesh....they religion leader call for ban on alcohol! cant order yummy pork or bacon without offending again their religion leader...
Have Heard
" When in Rome, do as the Romans do "
If u gonna talk about fines, I can give u a tons of list Fined in Singapore..
All country have Pro and Cons
If u can't wearing Modesty, What the difference between u and Prostitute ?
In Malaysia, the weakening Ringgit is largely due to the heightening extremism, racism and discrimination that has led to loss of confidence amongst investors, businesses and consumers. It is not fighting corruption at war footing. It seems to have rewarded the inefficient civil service with a 13% undeserved increase in salary. The government better learn from the failed states such as Pakistan and Sri Langka lest it is sliding down the same road!
Are you drunk or something
That has little to do with the ringgit. You didnt even mention anything economic related.
in malaysia , too many indonesian ilegal workers makes ringgit down.
@@putinia3411
Ya, easiest way to deflect accountability is to blame others!
Pakistan and Sri Lanka failed due to it unstable politics, extremism and corruption.
Najib is a great role model on how to grow money out of thin air. Perhaps everyone in Malaysia could emulate him.
You people talk about Najib too much. He has been sentenced now so shut up. Please don’t forget about Jho Low (the biggest culprit of all time), who is still out there at…God knows where!
Malik is even more brainy than Najib for that matter.
He gadai asset negara sesuka hati adalah, apa makes money from thin air. Bapa hutang.
Most govs make money out of thin air, hence the inflation exists
😮 is my. @@jeremyxu8155
This is why I keep all my net worth in anything BUT the ringgit lol. I am ready and hedged against Malaysia's eventual collapse. The majority malays would rather sink the ship than to change its race based policies that is ailing the nation's competitiveness on the world stage.
How do you do it? Do share with us here. I’m struggling
Our country just enjoy living in its own bubble of racism. Our racism is really in the other level on the world stage
@@Jaguar0xf hang in there bro. I own US stocks and crypto. You can use Rakuten and Luno
@@lambolim2178 Malaysia is one of five countries that refuse to sign International Convention on the Elimination of All Forms of Racial Discrimination (ICERD) alongside with North Korea. Crazy man.
@@Jaguar0xf Peterson Institute has made a study about the word distribution of dollar reserve. The study was made in Dec 2023. On its finding
1. Asia held USD 5 T of USD reserve where Japan as one of the biggest USD reserve holder cannot use its own currency as its reserve while Europe can.
2. Europe held USD 1 T of USD reserve. This is 1/5 of what Asian held.
3. Middle East held USD 809 Billion of USD reserve
4. Africa only held USD 85 billion of USD reserve.
It's more important than ever to support each other. Buying local helps all of us in Singapore thrive. Let’s do this together! 🌟
Nothing feels better than knowing your purchase supports a local business. Let's keep our dollars in Singapore and help our city shine!
Buy local? So you can only eat some eggs some fishes and veggies only. Like that you ok?
Let's champion our local entrepreneurs! Every purchase we make locally is a step towards a stronger Singapore.
@@leehyunsong7001 Encouraging our local businesses is crucial, especially now. Every small effort counts in making a big difference. Go local!
@@leehyunsong7001 Such high-quality products made right here in our city! It’s awesome to see and even better to support. 🌟
Malaysian Ringgit’s value is a reflection of its policies that prevents the economy to move up the value chain. Subsidies might help the people but in the long run, it will bankrupt the government which also affects the ringgit so it’s a vicious cycle!
dont forget , the gov need to feed and maintain all the royal family lifestyle... msia got alot of states ..each states have their own royal family..
where did you copy this phrase? from a text book Econ 101? tell that to other countries that has zero subsidies like the Philippines and Thailand. Did they turned first world country with high income peoples? they send their citizens to work overseas. see world from reality ground not from econ text books.
😂england dint have subsidies? commonwealth country's dint have subsidies?
Malaysia has a lot of room to grow.
Overall experience was good when I visited Malaysia last year.
The only thing that needs to improve is immigration. I had to queue for almost 3 hours to go through immigration and the immigration staff were not friendly at all.
I hope they can be improved over time.
I think you have not learned to pay for convenience, especially for a place like Malaysia. I think you can engage runners as they call it to run errands for you when getting your paperwork to be done, much like engaging a proxy.
Your one off little anecdote is meaningless.
Excellent show . tkx
everybody is laughing and mocking at Ringgit now 😣...it's a sad and heartbroken moment for Malaysia, especially for those normal citizen who are innocent and endure the shame on daily basis...I wish a speedy recovery for Malaysia and hopefully in the future there will be a cheerful moment for the people... should stop the tears and may justice prevail...
❤️🇲🇾❤️
Malaysia will not recover to its former glory if the thinking of its quota system and its wrong policy ...it been proven that the system of Malaysia has failed badly ...
@@benjaminchong82 Peterson Institute has made a study about the word distribution of dollar reserve. The study was made in Dec 2023. On its finding
1. Asia held USD 5 T of USD reserve where Japan as one of the biggest USD reserve holder cannot use its own currency as its reserve while Europe can.
2. Europe held USD 1 T of USD reserve. This is 1/5 of what Asian held.
3. Middle East held USD 809 Billion of USD reserve
4. Africa only held USD 85 billion of USD reserve.
should all fiat soon devalue into nothing, the cycle would repeat. one's that not learn history surely doomed to repeat it
dont worry be happy.... china come to the rescue!
There is no hope for Malaysia due to the discriminatory policy. It is going to get worse. The policy has created the incompetence and lazy Malay.
As an Indonesian, i am looking forward to see Malaysia being close to Singapore.
Drop racial and religious segregation, Indonesia has the same symptoms and it's detrimental to it's growth, the future of Indonesia are not that bright too. We'll see.
I think Indonesia is a lot more likely to do better than Malaysia over the next decade or so. The middle class is booming and Indonesia is in a long period of political stability. In comparison, Malaysia still struggles with growth and is still somewhat politically unstable.
Some bankers are telling me that they are projecting the rate of exchange might hit 1:5 in the next 10years if MY continue the way they run their finances.
nope. when it hits 4.5, malaysia will invade and conquer SG
LKY SGD 1 = RM 1
GCT SGD 1 = RM 2
LHL SGD 1 = RM 3
Lawrence W SGD 1 = RM 4
S'pore 5th PM SGD 1 = RM 5
And I don't need a banker to tell me this.
@@CLXH agree! Lawrence is more capable than lhl. Waiting for my sgd reserve to go up hahaha
RM already start strengthening.
@@leealex24 of course it will strengthen. The depreciation will not follow a straight line. I feel, in the long run, the country is not going to be as prosperous as before given the state of the demographics, education etc...My view is that MYR will eventually worsen as other nations continue to pull forward.
Thank you for such a detailed analysis, everything became clear.
I hope Ringgit will go up and SGD will go higher.
It's sad that Malaysia is getting poorer. Lots of Chinese Malaysians moved to Singapore, causing a brain drain in Malaysia.
Include Indians
This happens all over the world but Malaysia is experiencing it a lot more than others
We don't need type c
@@theMiaowPAS don't need Chinese. That why negeri PAS is mundur.
The non-malay move here due to the race policies in Malaysia. Doesn't help that Malaysia is getting more and more religious and extreme.
Singaporeans should be more concerned about rising living cost on our home turf and rising local unemployment that's being taken over by the very manpower that we're commenting on. Many Malaysians are so lucky because Singapore is only a stone's throw away to be able to earn better incomes and live better lives for themselves. While Singaporeans can't return the favour but have to travel far and wide.
Singapore can always draw High Nett Individual to pump their money there.
It benefits business owners in SG because overall wages are suppressed, at the expense of the average Singaporean. If you are unhappy, remember that in the elections this year hahahahahaha
As Indonesian we had the same problem. The economy is not doing well, not great of course but certainly not moving downward. But yet somehow the currency is going weaker. And somehow the only reason we can found is the strengthening of the US dollar. Every economic problem in SEA is always start in the USA. 1998, 2008, and now. Perhaps its the time we need to consider dedollarization more seriously. Maybe not completely, but at least we can made our economy not too depend on the US.
countries with no samesex marriage legalized are primitive: expect the worse, since there is no rationality, only hate and superstition.
You aren't wrong. The US manipulation of its currency using it currency reserve status impacts all countries. Their continual interest rate increases to support the burgeoning US govt debt is causing havoc to financial markets. The sooner De-dollarization happens the better.
You had Suharto, Sukarno and Mega… of course la
Bpk. Indo has agricultural and industrial resources. Investors from 360* are interested to put money. and a sizeable population to create and sustain the economy. In Asia , after China and India, it is IA which will shine
The only way forward is to de-dollarize as soon as possible, U$ is busy exporting inflation to other nations.
its making sarawak and sabah to reconsidered to not unify with malaysia now since all the profit are being taken by the federal
Malaysia exports a lot of oil and gas.
It received the monies in usd as oil and gas are priced in usd.
The government have lots of myr when the oil and gas usd monies are exchanged into myr.
The big issue in mal is that there are too many subsidies in the economy.
There are lots of subsidies to government servants, poor , race based etc.
The government should force the people to work harder by cutting down the subsidies during the good times not during the bad times.
The government sector is too big. Too much expenditure.
Too much oil subsidies as well.
Malaysia have wisely chosen to keep a low interest rate instead of following the feds.
Ringgit would naturally fall as the int rate in Malaysia is lower.
Housing loans is only 3.8%.
Singapore is 4-5%.
US is 7%.
burden more to private worker..they do not get benefit like goverment servant e.g. housing allowance, pension allowance etc..if private worker with salary rm 2500 below..how they want make living withby car loan, house loan etc
in the long run, it’s not viable cause the government sector is too big and we have to pay the government retirees.
The money to pay them is the expense of the people and it’ll lead to the same problem as Argentina for relying on subsidies for too long
It’s mostly coming from the other 2 wilayah di Borneo (Sabah & Sarawak).
Let’s learns from Spore. They didn’t have much resources & yet they are the KING of Asia. Even Aus Dollars are lower then them
@@davidhee7661 singapore is not apple to apple to malaysia. Singapore strategic location, small land mass and kickstart by the brits to make it financial centre is the key to its success. governing malaysia is much more difficult than singapore.
Terima Kasih Anwar ibrahim "WE are in level 1998 Asean financial crisis" GOOD job
The Finance Minister should be sacked.
well said...that is a one sly chameleon.
Malaysia is doing fine, good economic growth and a low level of inflation. Currency fluctuations happens.
As a someone said..WHAT local brand? Even the LOCAL currry puff uses imported Flour.
Coffee is imported.. i dun think they grow coffee beans in Malaysia, so your local kopi is not so local.. the sugar in ur kopi-O is also imported.. so ur Roti Canai uses imported flour, ur kopi uses imported coffee powder and imported sugar..
wheat cannot grow in malaysia fyi.
We have home grown seafood and vegetables!
That is so true...
These are so true. These so called “experts” are sugarcoating and telling feel good story to protect their position and power and not telling the truth to prevent them from being in the wrong reasons. Rakyat is not stupid too.
A few benefits from currency devaluation , but majority 90% msians make lossess and bear the brunt of this .
Malaysia do have coffee farms fyi.
Tough luck for most malaysians. It will take a long long while for the ringgit to go up, if it ever happen.
On the bright side, our semiconductor industry is booming due to the depreciation of Ringgit. Thanks to that, the tech giant is able to hire more cheap engineers to grow their workforce in Malaysia. They are not shy of offering high wages for their employee since it will always be around the range of the salary of a US Walmart Employee.
It's fine, everything is fine, we're used to living like this in Malaysia, we know the meaning of ups and downs,instead of complaining it's better to try to survive in this crisis, complain not being able to do anything you still have to work even if you don't like it
And even though salary is not high, we can afford to own a house and car through loans at the moment, unlike our friends in the neighbor country. And that is also why Malaysia should not follow USA and increase its interest rates.
SG’s media. What else you can expect from them
@@kokovin6808 Peterson Institute has made a study about the word distribution of dollar reserve. The study was made in Dec 2023. On its finding
1. Asia held USD 5 T of USD reserve where Japan as one of the biggest USD reserve holder cannot use its own currency as its reserve while Europe can.
2. Europe held USD 1 T of USD reserve. This is 1/5 of what Asian held.
3. Middle East held USD 809 Billion of USD reserve
4. Africa only held USD 85 billion of USD reserve.
@@MSDGroup-ez6zk could you elaborate a bit more since you post it a lot
Weak govt. Arrogant ppl. Unstemmed korupsion.
Not arrogant, just ignorant.
@@starman1994 too Islamist.
@@davidivory3234 you can only make that statement once that country adopt full syariah laws. Malaysia is not.
@@davidivory3234U confused between Religion and Evil Man using Religion as tool of destruction ...
If we gonna use the same logic u have all religions do bad things, even atheist..
I can give u a list if u want ..
Your Choice
Malaysians are obsessed with people like Akmal. Of course huge problem.
Need to empowered more of local product development and informal sector while too much depend on formal sector will hurt if global economy is in uncertain situation
My real takeway is knowing there are MVPs like Mr. Barani Khrisnan who still have the Malaysian english accent even after 18 years in the States.
I was also surprised when we traveled to KL, 1 MYR is equivalent to 12 Pesos or even less in other exchange currency. It used to be 14 Pesos = 1 MYR for so many years.
To know where Ringgit's value is going in the next 50 Years, look back at its last 50 years as long as "things" remain the same on the ground..
excellent
A weaken currency can boost export numbers, but does it also represent increased profitability?
Cost of imported raw materials like fertilisers, animal feed, etc, drives up expenses for exporters.
The biggest problem with this currency issue is that they have got it totally wrong. Stop focusing on weak currency, instead, focus on the elephant in the room = low wages
the elephant is corruption lah. rm250+ billion in 5 years?!!!
After all the inflations thats happening. The salary is still kept below 2000. Which is utterly bullshit
@@ianchan3454if you ask me, what’s more important is to focus on leveraging the depressed currency exchange opportunities with the ever-attractive foreign trade. That way, the country can increase the value of its human resource which in turns grow wages…
Let's always do alot of good ❤️
It's interest rate difference between countries I believe. They need to live with this. It is not that bad. At least cheap currency spur Malaysian export. Look at Japan, Korea, Sweden. Low interest rate compared to USA causes deprecation of currency.
The ringgit had been depreciating against the US dollar since the 1990s. which is 30+ yrs. Difficult to be hopeful that our ringgit is going to appreciate against the USD and world's major currencies.
To my surprise the Rupiah led the drop followed by Philippine Peso among Asian currencies as per 26th April news. Japan ranked number 3 and Malaysian Ringgit is one of the most stable currencies where it ranked number 4 after Indian Rupee, Singapore Dollar and Chinese Renminbi. The strong Dollar wrecks everything not only the ringgit. Only within these few days the Dollar is falling.
Don't think anything can beat the depreciation of the Yen.
CNA wont explore this as it is not inline with their narrative.
hence you see the interest rates is among the highest in ASEAN Indonesia 6.25, and Phillipines 6.5
Stable in 4.8?
@@JonKino828 Peterson Institute has made a study about the word distribution of dollar reserve. The study was made in Dec 2023. On its finding
1. Asia held USD 5 T of USD reserve where Japan as one of the biggest USD reserve holder cannot use its own currency as its reserve while Europe can.
2. Europe held USD 1 T of USD reserve. This is 1/5 of what Asian held.
3. Middle East held USD 809 Billion of USD reserve
4. Africa only held USD 85 billion of USD reserve.
It will rebound! I pray South East ASIAN Market and Currency 💵 will Rebound ASAP!.
Borrow money from IMF or china. Can't pay back, mortgage land. 😊
missing critical and sensitive issues in the discussions
It's on broadcast, hence no further details are shared here
Easy for them to say “get MNCs to convert their foreign currencies to MYR”. Corporations need to strategize their reserves too bruh, no foreign currency obligations you think?
Very simple, when everything fails, just blame the "Type C".
Ironic because that same type-c contribute the most to economy.
When the time of type C is getting lower in population, the blame game will no longer work then
Malaysia has been dominated by policies that benefit the Malays for more than 50 years and still blame the Type C?? Maybe that would work during colonial times but how could that make sense now?
@@wst844 To your surprise, it is still working extremely well right now. Many Type C wonders too.
When we base our policies on race, religion, discrimination, and ketuanan, and we don't put the best based on merit in our administration, there's only one way we can go and that is spiralling downwards.
It's good actually since many of the MNC have start to move the production from Singapore to Malaysia due to cheap cost even Rafizi Ramli also said that RM depreciation is a good scenario....
Yeah so that they can pay their employees lesser too in terms of wage
somehow weak currency could boost export but bust import, in some sense it could be good for local producers of any kind of consumer items, but only a group or two rake it profit rather than everyone
That's what happens when a country prioritize something that's a few thousand of miles away from themselves instead of focusing on themselves
You mean it is better for Malaysia to support Genocide? 😂
Crude Oil is priced in USD, with rising USD..the cost of crude Oil to Malaysia has shot up . But to the people on the roads its still at a "cheap" rate for RON95 petrol.. but its because the govt pays more to cover the shortfall..so in the long run . A weak ringgit eats into the govt budget with more subsidys for energy... fuel and electricity.
Malaysia crude oil production has decreased over the years. Malaysia unable to afford to subsidize its own citizens and unproductive rakyat is going to suffer with rising cost of living
Don't worry, we have 90% oil Palm plantation and just 10% rubber plantation. Unfortunately oil palm price is lower than rubber. 😮
Peterson Institute has made a study about the word distribution of dollar reserve. The study was made in Dec 2023. On its finding
1. Asia held USD 5 T of USD reserve where Japan as one of the biggest USD reserve holder cannot use its own currency as its reserve while Europe can.
2. Europe held USD 1 T of USD reserve. This is 1/5 of what Asian held.
3. Middle East held USD 809 Billion of USD reserve
4. Africa only held USD 85 billion of USD reserve.
18:36 I literally spit out my drinks on this
This is fantastic for exports!! No one is talking about that!!
Ringgit will rise, but the most important things is the Malaysian national basic wage should be risen from 1500 to 2000 myr per month.
No point. You raise the basic pay then you pass back the expenses to the consumer. The only way is to strengthen & stabilise MYR and reduce unnecessary expenses especially in the civil dept.
@@vister6757no one dare to touch civil dept, is a large number of voters
I can already imagine eating a bowl of noodles in non-aircon stall for RM22.
@@Emkyinshanworldofenthusiasm Peterson Institute has made a study about the word distribution of dollar reserve. The study was made in Dec 2023. On its finding
1. Asia held USD 5 T of USD reserve where Japan as one of the biggest USD reserve holder cannot use its own currency as its reserve while Europe can.
2. Europe held USD 1 T of USD reserve. This is 1/5 of what Asian held.
3. Middle East held USD 809 Billion of USD reserve
4. Africa only held USD 85 billion of USD reserve.
I opined, it will not be a temporary drop but a continuous one in the long run if the current government policies do not change.
A weaker ringgit is beneficial for Malaysia because its a net exporter or if it wants a stable exchange malaysia central bank can move in lock step with FED similar to what the Philippines central bank but borrower has to pay the price.
A depreciating currency will generally be bad for the overall citizen. No way will it be good for the country.
When 70% of the population have the option to make payment to their religion organisation ( and those money used exclusively for them and promotion of their religion while the civil servants and development budgets are from the balance of the population it is not difficult to see that the finance of the country will be a mess.
BINGO 😂 hooray to religion.
FK TYPE C, FK THE ECONOMY.
WE GONNA SEND OUR KIDS TO INDONESIA AS LABOURERS IN 10 YEARS. YAYY.
I've been wondering where all that collection has gone to! Building of mosques and paying the Imam's, etc, are from the kafirs'tax money. This collection need not be audited. How can Malaysia ever rise?
@@wongpohchan9485 Seems like Malaysia is running on non Muslim tax money.
If they would use the mosque as a tourist attraction as an example . Don't just follow the West template because right now these countries have been running out of steam due to the aging population and slower growth. The reason that warfare becomes a solution without saying it out loud. You see China has found a secret formula with BRI projects as alternative contributions for exports. .
So? Chinese Malaysians always have a problem with Muslim Malaysians, go back to China.
A bit of contradiction to what's experienced on the ground. Low inflation, but yet "local" food increase almost 3 times. Haven't finished watching the doco but what the fundamental cause in Ringgit against other currencies?
❤❤❤ According to the IMF Malaysia's Purchasing Power Parity GDP or PPPGDP for 2024 is $1,307 billion and is the 30th largest PPPGDP in the world. The nominal GDP is however only $445 billion.
What this means is that the RINGGIT is GROSSLY UNDERVALUED.
The purchasing power parity GDP is a much better indicator of a country's economy because what you can buy locally with your local currency is far more relevant than what you can get with the same amount of money in a distant foreign land. 😂
Malaysia Deficit -900,000,000,000.00 but Singapore Surplus +300,000,000,000.00
Tat the difference
if we don't have natural gas I think Malaysia will be the poorest country in this region lololol
Such a simple analysis. Lets see what happens to Singapore when the dollar crashes.
@@eugenearokiasamy5662 simple analysis that ringgit doesn’t peg to any currency tat y keep weakening and so many years of championed in corruption!!! Is sg dollar crash and u see Asian including yourself will he crash 🤣
@@eugenearokiasamy5662 go google how many tons of gold reserved does singapore has...if USD crash SGpore is the only country survive in this region. keep in mind sgpore runs of bunch of elite. on other hands Malaysia runs by pasar malam standard kind of politicians🤣🤣🤣
With high corruption it will some time
Before in the 60s and 70s, our Ringgit is the same value as Singapore and Brunei dollar.I remembered we can use Ringgit, Singapore and Brunei dollar being circulated Now, Singapore and Brunei still stay as it is but Malaysian ringgit value is dropping over the past few decades. What have the Malaysian government done
Simply put. The weakness of a currency against another is the net money flow of one against another. $$ is flowing out of malaysia to buy USD( bonds , goods etc) more than the other way round. I believe the worse of Rm depreciating against USD is over pinning hopes of USD cutting rates.
Change top management to the much hated Type C and things might improve a bit LOL
Big mistake for Malaysia to separate from parity with sing dollar and Brunei dollar.
Lucky for sing and brunsi
No. This decision is one of the better ones. The economies of Singapore, Malaysia and Brunei are running at different speeds. The currency strength is a reflection of that. Keeping the Ringgit artificially high invites speculators. The country will be exhausted defending a currency that is too strong for its economy.
@@fba90130 Unity is strength. Malaysia obviously made the wrong decision because of Dr Mahathir's bad intention.
Yes...big mistake
@@fba90130you must be stupid. If we didn’t get out of parity, we DONT HAVE TO go work in singapore now
I wonder if de-dollarization going further and further will malaysia ringgit falling down under
So in simple terms, the damage is too deep that it almost beyond recovery. All can hope is a superman who has like a master plan to guide it back to normal lol. Really boleh
This should be good for the tourism business
yes but tourism business is just one aspect. The country is facing a talent drain, and economic slow down
Just like Japan and Yen am I right?
Yup. I’m coming to Asia this summer because of this.
nothing special in Malaysia tbh
lol Com’on CNA, you’re losing your credibility by interviewing the clown who said the way to improve Malaysian economy is to print more money.
It affects that guy's credibility. It's not a bad thing to allow people to showcase their stupidity. If anything it adds value by demonstrating the scale of the problem.
@@jc2h228 Peterson Institute has made a study about the word distribution of dollar reserve. The study was made in Dec 2023. On its finding
1. Asia held USD 5 T of USD reserve where Japan as one of the biggest USD reserve holder cannot use its own currency as its reserve while Europe can.
2. Europe held USD 1 T of USD reserve. This is 1/5 of what Asian held.
3. Middle East held USD 809 Billion of USD reserve
4. Africa only held USD 85 billion of USD reserve.
@@MSDGroup-ez6zk Any connection to the subject or original comment?
Everyone know the problems but no one dare to address it. U know I know lah.
Malaysia just needs to produce its own food and some raw materials locally at least 30-50% of total imports then the price can go down.
The USD see-saw movement still shows the holding strength of the USD snd thr fesr that USD may move her towarfs the end of the year that Federsl Reservr may push interest rates higher to tame U.S. inflation, creating a bigger gap in the interest differential that will further depreciate RM
I still remember anwar said " why ringgit down so much?, because government dont know how to take care of the country". But now hes in power, the ringgit become even worse. LOLOL
😮
Not happy with Anwar administration, is it?? It's okay.. we can vote UMNO back to govern the country. Because PH is not better than UMNO
Only against USD, others have strengthened the past 1 year.
@@azim-azmi3584They were all from UMNO in case you forgot😂, so no difference who you vote for
@@azim-azmi3584 Ironically we were better off under Najib (of all people). You still get RM5 chicken rice than the RM10 minimum that you have now.
nice documentary..but how can u missed Daim factor? does his offshore company own shares in cna too? btw, i see in comment section some chinese and indian complaining bout racism etc, but the fact is they choose this current gov, chinese thru dap is actually big part of PH gov under Anwar, still no satisfied? thats make one wonder bout ur intentions..chinese in malaysia will always wanted to leave at any chance given, its not about inequality i think it just simply payment is higher elsewhere same goes to malays as revealed in this doc large group of malays are actually migrating for better salary to Sg..some even dissatisfied with 13% hike in civil servant salary and somehow trying to relate wth this currency issue, when judging something with narrow minded mentality and malicious intentions of course it can take u to bad conclusion.
Honestly speaking, the inflation rate seems not reliable. The same mixed rice I ate has inflated almost double.
One of the reason is that Bank Negara Malaysia did not adjust the OPR rate …. If increase the Madani govt will be blamed by the B40 group n confirm gone in the next GE
This will only cause more Msian to wanna come SG to work...
Malaysia need to increase interest rates. We just need to float and stabilized to a new normal. If we can just maintain 3.3 to sgd or 4.5 to the dollar. We should be able to hit a comfortable line for export and cost of inflation.
If the central bank increase interest rates... the economy will be grow at a slower pace as the people has less money to grow the economy
@@yongkheankhoon6710 I feel here is a balance. Should meet in the middle as I feel.interest rates is too low. I think alot of companies need cheaper exchange rate to operate better than higher loans. For example, this will affect investment on machineries that is needed to up skill and modernize the economy productivity.
leave interest at first place, support entrepreneurship, spending and investment
Malaysia household debt to GDP 85%, even slight increase in interest rate will reduce disposable income and spending, lower growth lower taxation lower investment will not be good for the economy
RM will definitely strengthen in coming months as the number 1 reason for the depreciation is USD interest rate, this is happening in all currencies. In fact, the past few months, RM has strengthen against all regional currencies as economy picked up. I suspect USD -> MYR will be hit 4.5 by this year, hence, aligned with your statement.
Dude. Politicians stating inflation is due to the war in Ukraine are driving me crazy. Do Malaysians only eat potatoes and bread? Central banks around the world are increasing their balance sheets to crazy levels. What did you think would happen?
They label themselves as Unity Government. People of Malaysia believe this new government is leading them to a right direction. Good luck Malaysians!!!
The reeal impact of weaken RM is not fully felt due to high subsidies.
The region need to dedollarize. They should do what BRICS are doing trade in local currencies.
Malaysia top import country is China, and in fact China yuan vs ringgit has not changed much in the past 2 years.
Have a wider horizon, 5 yrs or 10 yrs and see again.
Yet over 80% of our international trade settlement is done in USD. Could this be a source of our high inflation as well ?
US FED is reaping Southeast Asia, Japan suffers the most, China & Malaysia trade using RMB or Malaysian currency might help a bit. Malaysia economy depends more on US therefore this causes a side effect, similar as 1996 economy crisis. Chinese RMB could be the strongest currency to upfront US dollar .
Malaysia is the next sri lanka. 😅
The discriminatory policy also has cause the Malay to be lazy due to lack of competition and privilege.
My ex-colleague owns 6 houses, 2 cars and 5 motorcycles. Another one owns 3 houses, 3 cars and 2 motorcycles. All from years of working hard in Singapore. FYI, they work as blue collar technicians here, not some cushy corporate job.
I work hard at the same job too but live only in a HDB flat and don't own any private vehicles.
The SGD convert to MYR is indeed mighty.
I think just from looking at the usd/ringgit chart it could go parabolic, USD1 to 6-7 ringgit
A weak RM makes Malaysian exports competitive & encourages tourism. Import substitution happens. In the long run its great for Malaysia as it creates jobs locally
someone like the guy who used Malaysia's money to study in Japan but then broke the bond after graduation is the main reason why the Malaysian government now is no longer keen to give scholarship to non-Bumiputras. I am also a Chinese and i understood why he did what he did but this is pure selfishness. if you want to study abroad, use your own money or your parent's money. don't use Malaysia's money and then ran away from your responsibilities. I am amongst the students who were denied a scholarship because of people like him despite having excellent grades. The university even blatantly told me the reason for rejection and did not deny that they will no longer give scholarships overseas to non-Bumiputras. Many argued I could question this decision but I know this is a waste of time.
What is non-Bumuputras? Non Malay?
@@jt6231 yes
@YommSem i am unsure of the undergrad degrees. Mine is for postgrad degree. in my case, i was told that a majority of these scholarship holders graduated and never returned to Malaysia. They never paid back the bond. I guessed the university did not take action or follow up with them. so, the scholarship is essentially forfeited. in the end, to avoid any complications, any future overseas scholarships are only for Bumiputra applicants. I am unsure if this is for all universities but it is the policy for mine. For the undergrad degrees, maybe some of the applicants did pay back the bond but i highly doubt it. the amount is astronomical, especially for a 5 year medical degree.
Go study in Sg, dun waste time regrets no poin, YOLO ❤❤
@@user-pc4wb6md6p Already did. went to UK instead on a full commonwealth scholarship and free as a bird.
Don't worry. Malaysia has a minister with all the formulas. That's what they proud of, ever since they were the opposition. Now they are holding power, surely all those formulas will serve as reminder how great they are with all solutions and formulas. So not a worry about the falling ringgit, as long as they have formulas, citizens can enjoy all the inflations.
Malaysia needs to purchase and hold Commodities in a debt & currency crisis. This will continue to decline so commodities will be stable or rise
thanks to PMX who cares for palestine than malaysia! the more he focus on palestine, the more malaysian suffer under PM palestine !
Hahah for the crappy job is he is doing, he probably needs Palestinian votes to stay in power .... for me he is like Palestine PM more than PM for Malaysia. When critical issues happen he is no where to be seen...
Huh? What's kinda comment is this? You guys mental?immoral comment..
Only you both are living a bad life? 😅
46:14 spot on
Malaysia is lacking on high Quality Investments
Malaysian policies are chasing investors away.
Countries with religious zealots don't tend to attractive to Investors...look at their recent ludicrous socks issue getting whole companies boycotted instigated by the politicians themselves.. very .few Investors want to take that risk
@@self..destroyer In fact a White ex AMerican living in Mal is advocating Mal as a country to migrate to . I asked him about this months ago. He is silent.Yet
As a decent Malaysian, the weakening of RM has made me to buy local products more, not to travel overseas anymore (my passport is full of empty pages), buy more 999 gold and reduce eating out (safer and cheaper).
what did you mean by "again" ?
8:50 The statement is not accurate. Malaysia can't raise its interest rate not simply because "it would lower the economic growth". The actual reason is because Malaysia has a drowning National debt at 1.5 trillion ringgit (1,500,000,000,000) and the domestic household debt is very high as well. If they raised the interest rate higher, the debts would become more unmanageable (harder to pay the interests incurred by the debts), and it would make Malaysia a few steps nearer to bankruptcy. There is NO future for the Ringgit as Malaysia's government has been running a budget deficit for more than 20 years continuously, the country is SO addicted to borrowing more & more money for various subsidies and to feed the largely incompetent bloated civil servants. Therefore, there is only one way for the ringgit to go, that's to continue going downward until a breaking point at which the country falls into bankruptcy when the debt becomes unbearable.
yes the damage has been done and no way to recover from this
Hey, stop bringing political propaganda from 6 years ago by PH. Our debt is currently at 65% of our GDP, which is still manageable. To compare, JAPAN, USA & SINGAPORE has a lot more debt, all are above 100% of their GDP, and japan has a whopping 255% debt compared to their GDP. If our national debt is critical, why PMX end up adding more than 100 million debt only within 1 year, since they’re the one who injected fear of national debt & ‘malaysia nak bankrap’ when they were in opposition?
@@namialus02 singapore hutang untuk invest asset luar negara sbb tu currency mereka kuat sbb rizab mereka besar. Malaysia hutang untuk tanggung kos operasi so tak ada return mcm Singapore. Hutang setiap tahun akan bertambah selagi kos operasi tak dikurangkan
@@namialus02 I regularly come across people like you who have very shallow knowledge about economy & finance. Singapore's "debt" is not real debt, their so-called "debt" is actually the investment monies that foreign investors deposited into the country due to the fact that Singapore is a regional financial hub. That investment money is deemed as a liability or debt owed to foreign investors. At the same time, that amount of money is registered as assets on the other side of the balance sheet. Hence the debt of Singapore is not something that has been borrowed and spent, the debt or liability can be offset immediately when the investors want to redeem their investments. They would sell the assets and return the investment monies to the investors. (Setting aside these investment monies, Singapore actually has got ZERO debt. That's why Singapore is so wealthy and SGD is so strong). Whereas for Malaysia, it has been borrowing money continuously for more than 2 decades and spent it immediately on the national budgets. The money has ALREADY been spent and is all GONE!! And then the country has to pay lots of interests due to the mounting national debt. At 3% interest rate with 1.5 trillion ringgit in debt, Malaysia needs to pay 45 billion ringgit annually to just to pay for the interests of the debt, that's not even repaying the principle. Are you able to understand these simple things or not? (Maybe I am just wasting time to explain to naive people like you who think it's okay to keep on borrowing without limit, and intent to selfishly pass down the debts to future generations and let them inherit a heavily devalued beaten-down currency.)
@@hindun9645 You are right.
Legends say that once upon a time Malaya cast out Singapore from the Malaysia Federation but today Malaysian what to be part of Singapore...moral of the story___________.
Singapore is city state and American bases. How can we compare with Malaysia. If Malaysia turn the water tap. 😂
Who tf want to part of sg lol.. We just want your money and live in Malaysia... With rts link this system will benefit us more😂😂
Nah not at all.We just want your money not stay in your country..
@@espadanirvo1156
m.ua-cam.com/video/Bzj3TIhzgU4/v-deo.html
Ringgit currently become weak. Food nowsday become expensive. Even rent house become expensive. Some malaysia travel to Singapore to work.