PDA

View Full Version : Why is the RM so weak???



USJ27Resident
30-12-2009, 11:14 PM
seriously... when you sit and think - Malaysia with all her riches and natural resources, started at par currency with Singapore... now our currency is 2.5 times weaker... when it shud be 2.5 more stronger that the Singapore dollar... why why tell me why...??? :mad:

whose at fault?

manufacturers... wanting their exports to be cheaper...??? or warped policies that purposely depresses our real value?

bslee
30-12-2009, 11:23 PM
whose at fault?


I believe its being mucked around ON PURPOSE to the benefit of the regime, NOT to the benefit (DISAPPOINTMENT IN FACT) of the larger majority of rakyat. This ploy may last for a long time to come.

This article further reinforce their strategy on only hints of their blooming games. Its under valued.

http://www.dailyexpress.com.my/news.cfm?NewsID=24304
There's more reports of this can be googled.

So you still wanna think this land is a dream?.. its a bloomin nightmare still yet to be fully unfolded.

cinasami
31-12-2009, 11:11 AM
i doubt its undervalued. To benefit from an under valued currency, exporters in aggregate should be more than importers to see any postive benefit. Of course being more complex than just sums. One should compare the ringgit to the weak US dollar and also Euro in which I believe the ringgit is indeed at par value, meaning its reflecting its actual value in the market.

fadhly.indra
31-12-2009, 12:47 PM
seriously... when you sit and think - Malaysia with all her riches and natural resources, started at par currency with Singapore... now our currency is 2.5 times weaker... when it shud be 2.5 more stronger that the Singapore dollar... why why tell me why...??? :mad:

whose at fault?

manufacturers... wanting their exports to be cheaper...??? or warped policies that purposely depresses our real value?


maybe since Singapore is one of the major ports in South east Asia where major businesses do trading, so the demand for their currency is a lot higher...

jan tomaswaki
31-12-2009, 02:42 PM
Was in S'pore last week,although i often take note on food essentials,i think the profit margin in malaysia is DAMN high,eg kopi O sells at 60cent,sports shoe (nike) sells for SGD$169 lagi less 20% whereas Malysia RM399(no discount) LCD 42" SGD$799. don't talk about exchange rate as their income is same as us

zinglicious
31-12-2009, 02:52 PM
MacDonald value meals is USD1.00 whereas Malaysia is???
Laptop is USD499 whereas Malaysia is RM1999 or 12,999 for MP ??? :eek: :p :eek:

currymee
31-12-2009, 02:54 PM
RM is weak when you go overseas on holidy or do international trade ... within Boleh, RM value is "controlled" through the "controlled" items ....

bslee
31-12-2009, 03:01 PM
Whatever it is, bottomline is anyone have to be reasonably wealthy to enjoy whatever this country may offer on goods and services, thats it! Otherwise life can sux trying to keep up! Thats how it is in a nutshell.
Again, my view is not fact.

tupai
31-12-2009, 03:03 PM
dollar4dollar: bolehland has the highest cost of living versus many many countries in europe, americas, far east and even down under.

dont believe everything u read from the gomen...

if can, go out there (i dont mean m'sia lah!) , see the world, spend your hardearned ca$h and then compare....but then again, we got the best char-koay tiau, rojak, bnnleaf, curries, popiah, YTF dll yg enak! Life's a bitchy beach. So its a compromise lah. :D

Yang Beachbumming latotupai :p

p/s back to the thread. The RM is weak (and devalued) cos its tied to the USD,made worst by not being amgst the top exporters to the world mkt...

jan tomaswaki
31-12-2009, 03:09 PM
[QUOTE=tupai],....but then again, we got the best char-koay tiau, rojak, bnnleaf, curries, popiah, YTF dll yg enak! Life's a bitchy beach. So its a compromise lah.
Ya-lor we also can get to eat pangolins,biawak,turtle,toatise,dogs,cats,croc's,k ancil,not to forget also can get china dolls,H1N1,denggi,chloroe,banjir,traffic jams,tolls but NOT earthquake :D :D :D

bslee
31-12-2009, 03:16 PM
pangolins,biawak,turtle,toatise,dogs,cats,croc's,k ancil,not to forget also can get china dolls,H1N1,denggi,chloroe,banjir,traffic jams,tolls but NOT earthquake :D :D :D

The 4 seasons, very dry, very rainy, floods and THE HAZE!

currymee
31-12-2009, 03:36 PM
And with the latest catchy slogan for everything: 1-this, 1-that, 1-here, 1-there, 1-Boleh, ..... :D :D

I think the 1- is not ONE- .... but WANT ..... (since we all know who is the greedy ONE .... :rolleyes: )

CS Chua
31-12-2009, 03:38 PM
dollar4dollar: bolehland has the highest cost of living versus many many countries in europe, americas, far east and even down under.

dont believe everything u read from the gomen...

if can, go out there (i dont mean m'sia lah!) , see the world, spend your hardearned ca$h and then compare....but then again, we got the best char-koay tiau, rojak, bnnleaf, curries, popiah, YTF dll yg enak! Life's a bitchy beach. So its a compromise lah. :D

Yang Beachbumming latotupai :p

p/s back to the thread. The RM is weak (and devalued) cos its tied to the USD,made worst by not being amgst the top exporters to the world mkt...
I agree that the costs of living here is very high compare to certain countries. And I think hawker food should not be taken into consideration when we talk about decent meals. Hawker food is not a decent meal. We cannot be expected to live on hawker food alone. Take away the hawker food and one will have an idea how expensive it is to live in Malaysia. Try buying some fish in Carrefour or Tesco and most of them are RM15 - RM30 a kilo.

currymee
31-12-2009, 03:41 PM
I agree that the costs of living here is very high compare to certain countries. And I think hawker food should not be taken into consideration when we talk about decent meals. Hawker food is not a decent meal. We cannot be expected to live on hawker food alone. Take away the hawker food and one will have an idea how expensive it is to live in Malaysia. Try buying some fish in Carrefour or Tesco and most of them are RM15 - RM30 a kilo.

I don't know about the rest of the forumers but in my younger salad days and when I was just starting work and bachelor - I live on hawker food and chap-fun for almost 10 years and it seems all the young ones are also doing the same thing at the age ...

patrick
31-12-2009, 03:43 PM
dollar4dollar: bolehland has the highest cost of living versus many many countries in europe, americas, far east and even down under.

dont believe everything u read from the gomen...


Agree. The worst thing is compared to 1st world, we are high. Compared to 3rd world countries like thailand & Indo, we also appear to be high. So how??? No wonder tourists flock to places like Thailand, Bali, etc. Soon...there will be hardly any tourists here too. Some more tourists also scared off by all our snatch thieves. Now world famous!!

bslee
31-12-2009, 03:45 PM
Take away the hawker food and one will have an idea how expensive it is to live in Malaysia. Try buying some fish in Carrefour or Tesco and most of them are RM15 - RM30 a kilo.

I may be wrong or stand corrected, neither am I able to fully explain in a paragraph but I damn the gahmen for having a hand in EVERYTHING and actually messing it up. I don't think they use their brains nor have any.
Rice is controlled, many other essentials are price controlled. Imports are strictly regulated or controlled. High taxes are slammed as deterrants.
In short there's not much competitiveness in these areas. WHen you put a CEILING PRICE, the distributor just follows it and it may stagnate or rise for no logical or justified reason. There should be some free market economy and encourage stiff competition where prices could come down. Not an easy subject to tackle.
Whatever lah..the gahmen doesn't give a damn and let current market forces rule the day. They still collect taxes anyhow and are unaffected by any circumstances.

jan tomaswaki
31-12-2009, 03:46 PM
I don't know about the rest of the forumers but in my younger salad days and when I was just starting work and bachelor - I live on hawker food and chap-fun for almost 10 years and it seems all the young ones are also doing the same thing at the age ...
Me too ,i ate loh mee, curry mee, :D :D but those days in PJ state food court chap fan only cost RM1.50 plus chinese tea unlimited ...now....RM4.50above for a decent meal..

Jey
31-12-2009, 05:09 PM
Actually for domestic spending, whether the RM is weak or strong makes little difference to the consumer because you are earning in RM and spending in RM. Unless you are travelling overseas every other day and doing international trade business, which brings to a currency exchange situation.

But as strange as it sounds, having a weak currency is not entirely a bad thing as far as the economy of the country is concerned. If you take Japan for example, its Government thru the BOJ had intervened a number of times in 2009 to deliberately weaken the Yen as it was growing "too strong" for them and they ran out of patience. Read here http://www.ft.com/cms/s/0/178e5b3e-df6a-11de-98ca-00144feab49a.html?catid=24&SID=google&nclick_check=1
The sole purpose is to boost exports. Imagine this. If you have a shop in a street and you are the only one being overpriced, pretty soon you will have to close shop due to lack of business. Likewise a country's rising currency is a disadvantage to its economy with respect to its export sector. If its exports are down, then its internal economy will die too.

As a market trader I have witnessed this deliberate intervention and the sudden change in market direction a few times in 2009.
So why worry about weakening currency? Instead worry about the weakening government ... that is getting from bad to worse by each passing day. :D

jan tomaswaki
31-12-2009, 05:17 PM
[QUOTE=Jey]Actually for domestic spending, whether the RM is weak or strong makes little difference to the consumer because you are earning in RM and spending in RM. Unless you are travelling overseas every other day and doing international trade business, which brings to a currency exchange situation.
Kawan,what i'm trying to say is nowadays food is expensive,when our earning
is still the same 15 years ago.Early this year SJ pasar malam granny smith apples cost RM10 for 40 apples now is RM10 for 16 or 30 pcs.

bslee
31-12-2009, 05:26 PM
Early this year SJ pasar malam granny smith apples cost RM10 for 40 apples now is RM10 for 16 or 30 pcs.

Perhaps you're encouraged to eat lambutan, papaya, pineapple, langsat, longan, duku, maybe lewlian once a while. Errrr.. our local fruits ain't that cheap either, even considering the farms are having foreign labor too, imagine if its was with local labor. Nope, you don't eat cheese either, you eat nasi lemak or mee goreng for breakfast.. and that too, roadside prices of NL or MG isn't getting cheap.. STALEMATE MAN!...

Guess what?.. I said earlier the gahmen have a hand in everything and they even SUGGEST WHAT YOU SHOULD EAT!.. not butter or cheese... THIS IS A FACT AND was read aloud IN PARLIAMENT a decade ago!.. Guess who read aloud?...

Jey
31-12-2009, 05:28 PM
Kawan,what i'm trying to say is nowadays food is expensive,when our earning
is still the same 15 years ago.Early this year SJ pasar malam granny smith apples cost RM10 for 40 apples now is RM10 for 16 or 30 pcs.

Then you should be talking about inflation. Inflation is a matter of supply and demand in a country's economy. This has nothing to do with "weaker RM" as the title suggests. :D

bslee
31-12-2009, 05:30 PM
Then you should be talking about inflation. Inflation is a matter of supply and demand in a country's economy. This has nothing to do with "weaker RM" as the title suggests. :D

Not entirely right or wrong either. In the 80's car spare parts price (for example) shot up to everyone's disappointment, and EVERY dealer attributed it to the rising YEN.

tupai
31-12-2009, 05:32 PM
Actually for domestic spending, whether the RM is weak or strong makes little difference to the consumer because you are earning in RM and spending in RM. Unless you are travelling overseas every other day and doing international trade business, which brings to a currency exchange situation.

But as strange as it sounds, having a weak currency is not entirely a bad thing as far as the economy of the country is concerned. If you take Japan for example, its Government thru the BOJ had intervened a number of times in 2009 to deliberately weaken the Yen as it was growing "too strong" for them and they ran out of patience. Read here http://www.ft.com/cms/s/0/178e5b3e-df6a-11de-98ca-00144feab49a.html?catid=24&SID=google&nclick_check=1
The sole purpose is to boost exports. Imagine this. If you have a shop in a street and you are the only one being overpriced, pretty soon you will have to close shop due to lack of business. Likewise a country's rising currency is a disadvantage to its economy with respect to its export sector. If its exports are down, then its internal economy will die too.

As a market trader I have witnessed this deliberate intervention and the sudden change in market direction a few times in 2009.
So why worry about weakening currency? Instead worry about the weakening government ... that is getting from bad to worse by each passing day. :D

Agree. and thats Y all the voting electorate blur sotongs are perfectly happy living, under the coconut shell in this bountiful yet corrupted land of fulla racist-politicians (ruling buncha ignoramus)...but i digress.

So, your suggestion is that we all just dont travel lah. Earn ringgit and spend rinngit in msia, all our lives? What about buying imported stuff? dont buy too? just buy local? Hahahahaha!

I luv Malaysia. Seriously. Piece of cake to cari makan good food! Literally!
:D

Yang Becintai msia latotupai :D

patrick
31-12-2009, 05:32 PM
[QUOTE=Jey]Actually for domestic spending, whether the RM is weak or strong makes little difference to the consumer because you are earning in RM and spending in RM. Unless you are travelling overseas every other day and doing international trade business, which brings to a currency exchange situation.
Kawan,what i'm trying to say is nowadays food is expensive,when our earning
is still the same 15 years ago.Early this year SJ pasar malam granny smith apples cost RM10 for 40 apples now is RM10 for 16 or 30 pcs.

Sorry but I dont agree fully here. Even spending domestically, we are affected because lots of purchases are still imported. Unless one spends exclusively on local produce, which I doubt. Look, an imported pair of sports shoes tend to cost cheaper in Spore than here, even after conversion. Lama lama rakyat sure mati one!!

jan tomaswaki
31-12-2009, 05:34 PM
Then you should be talking about inflation. Inflation is a matter of supply and demand in a country's economy. This has nothing to do with "weaker RM" as the title suggests. :D
I may not be an economist whether inflation,deflation or whatsoever ...tion...or weaker RM, things are getting expensive.That is why pirate DVD's are flourishing as going to movies for a family of 4 will cost you RM50(like i pay for one pax for movie 2012 in sunway - RM12).

patrick
31-12-2009, 05:40 PM
I may not be an economist whether inflation,deflation or whatsoever ...tion...or weaker RM, things are getting expensive.That is why pirate DVD's are flourishing as going to movies for a family of 4 will cost you RM50(like i pay for one pax for movie 2012 in sunway - RM12).

Why you pick "upmarket" cinemas? Sure pay more lah!! ;-) Go to Summit on weekdays, and pay cheap cheap!!

bslee
31-12-2009, 05:40 PM
The only way to bring down prices is a nationwide, collective effort of all NOT TO BUY for at least a year or more. Don't buy NEW CAR, don't buy NEW clothes, don't EAT OUT, don't buy new house, don't buy new luxury items, don't buy new highly taxed goods. Can this be done?.. I really don't think so it can be achieved, because Malaysians are a selfish lot, thats why can't even throw out this regime for a change.

Jey
31-12-2009, 05:42 PM
Yes, Patrick you got that (half) right. You are just stopping at the tip of the iceberg.

Its good that you have observed that the rising Yen can affect local spending here. What happens next? :D

The locals will reduce imports from Japan and will look at cheaper alternatives. Taiwan maybe? Or local made?
So where does this leave Japan's economy?
With lesser and lesser exports, their own economy suffers.
So what do they do next?
Weaken the Yen.
Export increases and economy improves.

See the cycle?

Read here http://www.ft.com/cms/s/0/178e5b3e-...&nclick_check=1 ... this is not the figment of my imagination. This is from the Financial Times which mentions Japan's PM wanting to weaken the Yen. Why do they want to deliberately weaken the Yen?
:rolleyes:

tupai
31-12-2009, 05:43 PM
I may not be an economist whether inflation,deflation or whatsoever ...tion...or weaker RM, things are getting expensive.That is why pirate DVD's are flourishing as going to movies for a family of 4 will cost you RM50(like i pay for one pax for movie 2012 in sunway - RM12).

we paid Rm8.00 yesday in pyramid! :D BUT i came out wanting to finish my PPL, buy an imported plane and also take up captaincy level for my ocean going flotsam. AND they gonna cost lotsa ringgit in today's devalued situ! :mad:

Who wanna sell me cheap malaysian made oceangoing sampan, and a cheap malaysian airplane? All to be paid in ringgit at local price. :confused: :confused:

Yang Boikot katak dibawah coconut latotupai

Jey
31-12-2009, 05:46 PM
Fuyoooh Lato Tupai... so fast you came outta the banana plantation laa! Must be the shortest record so far. What made the early release possible?

It must be the New Year eh? This is the last day of the last year of the decade :D ;)

bslee
31-12-2009, 05:49 PM
There was or is a phenomenon.
When US dollar was at its highest, US import goods here had prices going through the roof. Ok.. people considered very carefully when buying...its now more expensive than long before, eventhough its same US$ value.
When US dollar dipped and economy was bad sometime ago, some manufacturers in the USA INCREASED the price to maintain their margins.
Bottomline for Malaysia, US$ up or down, price of these imports either maintain or go up.
I've been noticing the price of pet food.. THE PRICES ARE like 40% to 50% more than early last year. Distibutor simply jacking the prices?.. Mind you these products are from Down under...so are DAIRY products which are also now at rediculous prices. Why?.. MALAYSIA CANNOT PRODUCE BUTTER, CHEESE or milk products....MATI LAH!...
MALAYSIA IS OVERDEPENDANT ON IMPORTS!.. even many essentials! This spells TROUBLE in the long term!...Believe it!

tupai
31-12-2009, 05:54 PM
Fuyoooh Lato Tupai... so fast you came outta the banana plantation laa! Must be the shortest record so far. What made the early release possible?

It must be the New Year eh? This is the last day of the last year of the decade :D ;)


malaysia Boleh mah! Tupai lompat keluar also boleh mah! :D

...and i did this to those 2losers still in there:


.........................//)
......................,/..//
...................../..../ /
.............//'...'/`
........../'/.../..../......./\
........('(...(........,~/'...')
.........\.................\/..../
..........''...\.......... _.
............\..............(
..............\.............\

currymee
31-12-2009, 05:59 PM
Maybe KWChang has a NEW YEAR AMNESTY for all ? :D

bslee
31-12-2009, 06:03 PM
Maybe KWChang has a NEW YEAR AMNESTY for all ? :D

You think what?.. we're criminals at sometime or other? :D

currymee
31-12-2009, 06:08 PM
You think what?.. we're criminals at sometime or other? :D

Hahahaha .... wait , BS, let me check if you are an alumni of Banana Plantation :D

Ok, we are all alumni :p

Hiliary
31-12-2009, 06:16 PM
For me, i still find Malaysia is cheaper to eat out, with better food than anywhere else, hawker food or high class French restaurant.
My children live in Manila and it costs at least 3 times more for normal food and about twice as much for decent restaurants.
On average i find the cost of living in Malaysia at least 30% less than in the Philippines.

What bugs me is car parts prices, i mean parts from cut cars for my Mini. I buy here when it makes sense, but when used parts are 150 - 200% higher here than new parts (including the cost of shipping from the UK or USA) it makes no sense.

For audio and camera, Philippines cheapest, Singapore cheaper.

Food, cars, audio and photography, can't say i'm interested in anything else so no opinion on anything else :D

bslee
31-12-2009, 06:27 PM
Cost of sugar to go up 20sen from tonight midnight. THIS HAVE NOTHING TODO WITH FOREIGN EXCHANGE RATE!... YOU'VE BEEN SCRE**D IN FACT!

Happy drinking with less sugar..

Be UNsurprised with more price increases from tomorrow onwards.. Happy days to come!.. :rolleyes:

Fang Su
31-12-2009, 07:36 PM
Huge slab of juicy pork ribs, french fries and vegetables at The Cafe Cartel in Singapore for only $13.80. Enough for two. Can anyone tell me where you can get such a quality/quantity for RM13.80 in any western restaurant in Malaysia? The strength of the Singapore dollar also sees canned food from Denmark, Australia and China sold in supermarkets at prices so much cheaper than in Malaysia. For example, a Turlip brand canned pork sausages from Denmark is sold at $3.10. It is sold for RM10 here.

CS Chua
31-12-2009, 08:39 PM
In Central and South America, you can get high quality beef steak for around US$10.00 per meal. I mean quality that is much higher than the Australian beef. The Argentinian beef is considered the best in the world and yet it is only a fraction of what we pay here.

The RM is weak because the government wants to attract manufacturers to open factories here for Malaysians. When it becomes successful, they start to allow foreign workers to come in by the millions. When the free trade zone was first started in Sungai Way, it was mainly Malaysians working there. Now, we are a victim of our own success. We are so dependent on the foreign workers. The government is right to double the levy but look at the protests from the manufacturers. They do not give two hoots to the local people.

The government has to move from labour intensive industries to value-added industries. However, their current affirmative policies have driven away the best brains so it is difficult for them to do that. In short, they are caught in a rut of their own making.

Fang Su
31-12-2009, 10:50 PM
I pay RM88 a month for a 1 Mbps Internet "broadband". My children pay $64.90 for a 15 Mbps Internet broadband in Singapore.

firefox
01-01-2010, 10:39 AM
Huge slab of juicy pork ribs, french fries and vegetables at The Cafe Cartel in Singapore for only $13.80. Enough for two. Can anyone tell me where you can get such a quality/quantity for RM13.80 in any western restaurant in Malaysia? The strength of the Singapore dollar also sees canned food from Denmark, Australia and China sold in supermarkets at prices so much cheaper than in Malaysia. For example, a Turlip brand canned pork sausages from Denmark is sold at $3.10. It is sold for RM10 here.


Its true, wouldnt the Singaporean pay almost the same amount if he shops and eats here?

I know of Singaporeans and other foreigners who come here for fine dining and shopping, its so dirt cheap for them. Of course i woudnt go there to spend my rinngit, i will be out of my mind.

bslee
01-01-2010, 01:11 PM
Look, all your stories clearly reflect the fact that most Malaysian purchasing power is LOWER than citizens in other lands where the exchange rate is significantly higher. A lot of goods are tagged to the US$. Go Giant USJ and see what a can of decent to premium corned beef now cost?... ITS GONE THROUGH THE ROOF!

cinasami
01-01-2010, 01:15 PM
it is very difficult to make price/value comparisons between countries based on currency. At the moment I (I stand corrected) the Mcdonald's Big Mac comparison is the one most understood by the general public. Apple to apple comparison.

Whether its cheaper to eat at hawkers here or at Manila or Singapore would depends on numerous factors. For one one must know if component to make local food stuff is being imported, taxed, subsidies, transportation, rent or locally produced. This would make comparison difficult. I.e. internal consumption is highly dependant on the policies the goverment put in.

It is generally accepted that One Singapore dollar would buy more than One Malaysian Ringgit. And in terms of numbers, Dollar to ringgit, you would need less dollars to buy most items in Singapore as compared to here. However I say this with a caveat as most of the time we are only comparing prices in the city or suburbs (i.e. Subang Jaya, Usj). One must see also prices of buying items out of town as compared to Singapore in which the prices are lostly uniform for the same item thru out the country.

Back to the question why is the ringgit so weak, I believe the answer is broader than just us comparing prices as consumers but the answer lies in the economy as a whole. Factors and questions like, What industries the country is in? Goverment policies, socialist or capitalist or both. Tax structures. Monetary policy etc.

For good or bad the situation we are in...well...that needs to answered individually.

Fang Su
01-01-2010, 01:32 PM
I know of Singaporeans and other foreigners who come here for fine dining and shopping, its so dirt cheap for them. Of course i woudnt go there to spend my rinngit, i will be out of my mind.

It is dirt cheap for Singaporeans to dine in Malaysia but dollar to dollar, it is very affordable for them not to eat at home and even more so if they choose to eat at home. Every morning I would sit in a coffee shop in Sengkang after my children have gone to work. A breakfast of two eggs, two pieces of thick toasts with butter and kaya and a large mug of coffee or tea is $3. And should I decide to take the MRT from a station which is 500 metres away from the coffee shop to Orchard MRT to jalan-jalan in Orchard Road, it costs me $1.60 each way.

Fang Su
01-01-2010, 01:35 PM
Go Giant USJ and see what a can of decent to premium corned beef now cost?... ITS GONE THROUGH THE ROOF!

I agree with you 100%.

Fang Su
01-01-2010, 01:45 PM
it is very difficult to make price/value comparisons between countries based on currency. At the moment I (I stand corrected) the Mcdonald's Big Mac comparison is the one most understood by the general public. Apple to apple comparison.

Whether its cheaper to eat at hawkers here or at Manila or Singapore would depends on numerous factors. For one one must know if component to make local food stuff is being imported, taxed, subsidies, transportation, rent or locally produced. This would make comparison difficult. I.e. internal consumption is highly dependant on the policies the goverment put in.

It is generally accepted that One Singapore dollar would buy more than One Malaysian Ringgit. And in terms of numbers, Dollar to ringgit, you would need less dollars to buy most items in Singapore as compared to here. However I say this with a caveat as most of the time we are only comparing prices in the city or suburbs (i.e. Subang Jaya, Usj). One must see also prices of buying items out of town as compared to Singapore in which the prices are lostly uniform for the same item thru out the country.

Back to the question why is the ringgit so weak, I believe the answer is broader than just us comparing prices as consumers but the answer lies in the economy as a whole. Factors and questions like, What industries the country is in? Goverment policies, socialist or capitalist or both. Tax structures. Monetary policy etc.

For good or bad the situation we are in...well...that needs to answered individually.

Thank you for your explanation. I am not an economist and I am not educated to understand the finer details of how our country is run. All I am interested to know is whether I can have my breakfast of two eggs, two pieces of toasts and one big mug of coffee for RM3.

firefox
01-01-2010, 01:57 PM
The tourists are having a gala time in Malaysia with the weak ringgit, i wished i was one! Last nite the drinks and food were just flowing..No! they were not interested in the price list and the resturants were making the kill. So you see there are loads of ppl out there who are enjoying the fruits of the weak ringgit.

tupai
01-01-2010, 02:42 PM
The tourists are having a gala time in Malaysia with the weak ringgit, i wished i was one! Last nite the drinks and food were just flowing..No! they were not interested in the price list and the resturants were making the kill. So you see there are loads of ppl out there who are enjoying the fruits of the weak ringgit.

During the Xmas and NY eve scene, many standalone drinking joints/pubs/clubs etc (not high end karaoke with chinadolls 1 lah) can close the SINGLE nite sale, with the tills ringing up to ....wait for this:
>
>
>
>
>
>
>
>
>
>
>
>
>
>
>
Rm400,000 or more! And the unspoken (cos cari makan) advice from any salty F&B consultant is "Never sink in your money to open a standalone F&B outlet after cny and the following lull months!" The killing is made year end!

Yang Bercontributing to yr-end liquor sale latotupai :p

Jey
01-01-2010, 03:46 PM
Sometimes I just wish I was born as a dimwit .. so that I can have a gala time with a lot of company... heck I can even go to another country and take my weak ringgit and spend in another much weaker country with a much weaker currency, and have a gala time there again. ... Syiok Katak.... yipppeeeeee!! :D :eek:

Yang Beringin joli joli dengan weak ringgit in a much weaker foreign land... Lato Jey.

ayam sori Lato Tupai... terpinjam your tagline :D

tupai
01-01-2010, 04:04 PM
Sometimes I just wish I was born as a dimwit .. so that I can have a gala time with a lot of company... heck I can even go to another country and take my weak ringgit and spend in another much weaker country with a much weaker currency, and have a gala time there again. ... Syiok Katak.... yipppeeeeee!! :D :eek:

Yang Beringin joli joli dengan weak ringgit in a much weaker foreign land... Lato Jey.

ayam sori Lato Tupai... terpinjam your tagline :D

hhahahah! so all those farang kwailohs, japs, koreans, sporeans, bruneians, ozzie etcectect all dimwits Blur Sotongs coming to spent their hardearned dimwit weaker $$$$$$$$ in elcheapo weaker LOS, Bolehland, Laos, cambodia, filipines, vietnam? hahahahaha!

becos, u so evidently in hard pursuing tupailand horrorifics, I shalt submit your name, to the ruling cabinet, in time for the next HRM Tupaiperor's (birthday in Feb 30.~ a public holiday) horrific award ceremony.

But hey Jey, no guarantee ok. AND git this! Money cannot buy these horrifics! No sirree! What u tink? Semua Boleh???? :eek:


Yang Berhorrorificked latotupai :p

Jey
01-01-2010, 04:13 PM
Ohhhhhh!! What an honor!

TQ Lato Tupai... I am really honored. :D

tupai
01-01-2010, 04:41 PM
Ohhhhhh!! What an honor!

TQ Lato Tupai... I am really honored. :D

Ooooi! hello! I said I try to submit 'Jey' only lah..U belum dapat the horrorific latoship yet lah!

Dont pin too high hope Ok, lest u drop hard on yoru butt!...

for millenium, HRM Tupaiperor is not hardup to sell, Oops! I mean ,award every walking or crawling or limping Bolehlander (criminals not withstanding) with 2eyes,1nose,2 ears with a latoship or higher horrorifics, ok!

Yang Boleh diKawtim latotupai :p

Jey
01-01-2010, 05:01 PM
Aiyoh... no need to dapat lah... just consider also ok ready for a dimwit like me. Its a big honor. :D

Waiting with bated breath and crossed fingers... Lato wannabe Jey :D

... also with alot of "weak" ringgit in a bag for "kawtim"ing.

;)

USJ27Resident
01-01-2010, 05:12 PM
hhahahah! I shalt submit your name, to the ruling cabinet, in time for the next HRM Tupaiperor's (birthday in Feb 30.~ a public holiday) horrific award ceremony.

Yang Berhorrorificked latotupai :p

You hantu punya squirrel!!!! Feb 30th.... ya... poor fella will have'ta wait till NAP is abolished before Feb30th comes along..... :D

No wonder you never grow old... your birthday never come.... :p

Jey
01-01-2010, 05:36 PM
Its even worth the wait till Feb 31st.... :D

cinasami
02-01-2010, 01:11 AM
Thank you for your explanation. I am not an economist and I am not educated to understand the finer details of how our country is run. All I am interested to know is whether I can have my breakfast of two eggs, two pieces of toasts and one big mug of coffee for RM3.


very true where to get a hearty breakfast for RM3 nowadays...you are right, why would ordinary folk want to know the finer details of economics of the country.
Back to the original topic why is the RM so weak? If anyone know the correct answer is must be working for Bank Negara in the exchange rate department.
As for myself the question should not be why is the RM so weak but at what value would it be by the end of 2010? I believe if you ask anyone (I am just guessing) would the ringgit strengthen against the Sing Dollar anytime soon or with the current economic climate, i am more incline to believe otherwise.

okang
02-01-2010, 09:36 AM
Hi

This is my take on why SGD is solid as a rock as per earlier posting in another thread.

http://www.usj.com.my/bulletin/upload/showthread.php?p=393860#post393860

Jey
02-01-2010, 10:25 AM
Also Singapore's gold reserves are one of the highest in this region of South East Asia. Gold reserves are held as a form of hedge against the country's currency value, as gold is the most stable and unlikely to lose value. This is the reason why SGD is very strong compared with RM.

But anyways, this thread is essentially discussing the issue of inflation, i.e. the buying power of Bolehlanders now compared with like 10 years ago. Inflation rate affects every country and is a function of supply and demand in the economy of a country. Even when an insurance premium is calculated the inflation rate is taken into account, because inflation is unavoidable.

Some are confusing the value of currency with inflation. Whether a currency is weak or strong inflation can happen when the economy is mismanaged. For example, if tomorrow the gov't announces that the price of petrol is raised again to RM2.70 per litre. The pandemonium and chaos that will start will result in inflation as ALL the consumables will be hiked up and become expensive overnight. This is what inflation is. This was also seen when the gov't raised the price of petrol and diesel 2 years back. So its extremely important who you put up there to manage the country. Vote monkeys there, and you get a nice circus show.

Or in another way, if the demand exceeds the supply for any number of items, then inflation can happen for the price of the item. Because now the supply is limited but the demand is rising which will shoot up the price. Its a function of supply and demand. Recently there was a huge hike in vegetable prices due to short supply as this was the rainy Monsoon season. The prices shot up like nobody's business. Many of us in the food industry were hit and we could only hope that the Monsoon season with its wet spell will be soon over and stabilize the prices again.

firefox
02-01-2010, 10:56 AM
Why is the Rm so weak?
Because the other currencies are stronger at this time.

So its time to sell my foreign currencies and make a fortune or should i wait a bit longer?..so there is a win win situation for currency traders.

Btw i remember buying the oz $ at 2.10 its 3.00 now.

cinasami
02-01-2010, 04:44 PM
Also Singapore's gold reserves are one of the highest in this region of South East Asia. Gold reserves are held as a form of hedge against the country's currency value, as gold is the most stable and unlikely to lose value. This is the reason why SGD is very strong compared with RM.

But anyways, this thread is essentially discussing the issue of inflation, i.e. the buying power of Bolehlanders now compared with like 10 years ago. Inflation rate affects every country and is a function of supply and demand in the economy of a country. Even when an insurance premium is calculated the inflation rate is taken into account, because inflation is unavoidable.

Some are confusing the value of currency with inflation. Whether a currency is weak or strong inflation can happen when the economy is mismanaged. For example, if tomorrow the gov't announces that the price of petrol is raised again to RM2.70 per litre. The pandemonium and chaos that will start will result in inflation as ALL the consumables will be hiked up and become expensive overnight. This is what inflation is. This was also seen when the gov't raised the price of petrol and diesel 2 years back. So its extremely important who you put up there to manage the country. Vote monkeys there, and you get a nice circus show.

Or in another way, if the demand exceeds the supply for any number of items, then inflation can happen for the price of the item. Because now the supply is limited but the demand is rising which will shoot up the price. Its a function of supply and demand. Recently there was a huge hike in vegetable prices due to short supply as this was the rainy Monsoon season. The prices shot up like nobody's business. Many of us in the food industry were hit and we could only hope that the Monsoon season with its wet spell will be soon over and stabilize the prices again.

I will not comment who will do a better job managing the country but good governance is an important part of a country's economic policy.

As I know it many major currencies in the world is back by a basket of forex currencies. Using gold to back currency had been done away some time ago. Backing currencies with gold had it disadvantages, one of the main disadvantage would be creation and multiplication of the value of money in which gold is limited. Hence the main backing for the ringgit and S$ are with other major currencies.

bslee
02-01-2010, 04:51 PM
I will not comment who will do a better job managing the country but good governance is an important part of a country's economic policy.


There's NO other strategy here other than going defensive to cushion the effects, otherwise its status quo!.(which what this regime is only good for) Imagine if it goes uncontrollably down futher and still trying best to cushion it all, rakyat become loosers everytime and ITS HAPPENING already!. The annual budget is nothing but just another balancing act, rob Paul to pay Peter or vice versa OR SQUEEZE BLOOD out of Paul to ensure paying Peter.

cinasami
02-01-2010, 08:25 PM
whom ever going to give good governance to Malaysia, I think the first item at hand would be to tell the people that things will get worst before it gets any better.
The economy as a whole need a complete over haul and I believe it will take a least a generation of dedicated work before it can current level using Singapore as a bench mark.
Then again one generation is long time for any democratically elected goverment to plan as they can only see 5 years down the line....

bslee
02-01-2010, 08:39 PM
The economy as a whole need a complete over haul and I believe it will take a least a generation of dedicated work before it can current level using Singapore as a bench mark.


When you have officials who blurt out on primetime news we're better than or price of such and such is better than surrounding economys, either they're telling one-eighth truths or with bedside stories all the way in order never to scare you with real story, and you hear broadcasts like that time and again. If they'd like to tell half truth, they'd likely say its better than some volatile or unstable African countries. NO!, this regime is only good for cushioning and on the defensive, they just can't do any better than that. What is likely needed is total throw-out with re-invention in due process, but they can't even think properly at some introduction of national policies, don't even think of start clearing up their own mess they created in the first place. This land rested on its laurels for just too long, like one auto manufacturer as a classic example, see what happens now? TWO and a HALF decades or protection? Look at it this way, WE THE RAKYAT (or majority rakyat who have to struggle hard) are on the loosing end EVERYTIME! Go form your own conclusions.

I could say even the falling exchange rate will affect a Muslim's savings for the Haj!.. just have to save more! and its to be fully saved till one can perform the Haj!...NO hutang, No loans!

AllUrban
06-01-2010, 02:34 PM
Also Singapore's gold reserves are one of the highest in this region of South East Asia. Gold reserves are held as a form of hedge against the country's currency value, as gold is the most stable and unlikely to lose value. This is the reason why SGD is very strong compared with RM.

But anyways, this thread is essentially discussing the issue of inflation, i.e. the buying power of Bolehlanders now compared with like 10 years ago. Inflation rate affects every country and is a function of supply and demand in the economy of a country. Even when an insurance premium is calculated the inflation rate is taken into account, because inflation is unavoidable.

Some are confusing the value of currency with inflation. Whether a currency is weak or strong inflation can happen when the economy is mismanaged. For example, if tomorrow the gov't announces that the price of petrol is raised again to RM2.70 per litre. The pandemonium and chaos that will start will result in inflation as ALL the consumables will be hiked up and become expensive overnight. This is what inflation is. This was also seen when the gov't raised the price of petrol and diesel 2 years back. So its extremely important who you put up there to manage the country. Vote monkeys there, and you get a nice circus show.

Or in another way, if the demand exceeds the supply for any number of items, then inflation can happen for the price of the item. Because now the supply is limited but the demand is rising which will shoot up the price. Its a function of supply and demand. Recently there was a huge hike in vegetable prices due to short supply as this was the rainy Monsoon season. The prices shot up like nobody's business. Many of us in the food industry were hit and we could only hope that the Monsoon season with its wet spell will be soon over and stabilize the prices again.was in vietnam recently and paid 28,000 VND for a bowl of pho noodles.

Wifey spent 990,000 on clothes that are worth less than RM300 here.

It was so hard just doing the math...Im glad Malaysia has not seen that level of inflation yet. But we are certainly on that road...despite all the good news from the government.

Oh, and apparently sugar is still cheaper in Malaysia than the rest of SEA. Go figure :rolleyes:

Cheers, m

tupai
06-01-2010, 03:50 PM
was in vietnam recently and paid 28,000 VND for a bowl of pho noodles.

Wifey spent 990,000 on clothes that are worth less than RM300 here.

It was so hard just doing the math...Im glad Malaysia has not seen that level of inflation yet. But we are certainly on that road...despite all the good news from the government.

Oh, and apparently sugar is still cheaper in Malaysia than the rest of SEA. Go figure :rolleyes:

Cheers, m

was at Apocalypse last nite. 333beer is 50000dong a can...

Had the samo samo bowl of beef noodle combo package with a young coconut ,50000 dong@Pho24 near Sheraton Hotel :D

Am heading for somewhere later :p

Yang BerDonging away latotupai :p

bslee
06-01-2010, 04:13 PM
was at Apocalypse last nite. 333beer is 50000dong a can...


Wait lah.. when their economy is as vibrant as SEA countries, if they're not careful, they'd be in the ruts too and become another expensive place.
Some years back, many say most things in China is cheep cheep cheep, prices of things are on the rise.

tupai
06-01-2010, 04:19 PM
Wait lah.. when their economy is as vibrant as SEA countries, if they're not careful, they'd be in the ruts too and become another expensive place.

Their economy IS vibrant now...They attracted more FDI than bolehland last year! :eek:

There are sky scrapers being build left & right of me now! Cranes on top of tall building too!

This is the newest, latest flavor (ditto Indonesia) of the decade for teh western funds & money...and many here dont even speak inglis yet! :eek:

...so, wats in heaven's name is bolehland (with many inglis speekin people) doing? figthing over ownership of 1 of God's 99names :eek: :eek:

hahahahahah!


Yang Bersembayang Booming economy latotupai

ps/ Entry level Admin Exec with degree and speaking inglis is approx USD300/mth...and she is happy like a frog in the Saigon rain!

Jey
06-01-2010, 09:30 PM
was in vietnam recently and paid 28,000 VND for a bowl of pho noodles.

Wifey spent 990,000 on clothes that are worth less than RM300 here.

It was so hard just doing the math...Im glad Malaysia has not seen that level of inflation yet. But we are certainly on that road...despite all the good news from the government.

Oh, and apparently sugar is still cheaper in Malaysia than the rest of SEA. Go figure :rolleyes:

Cheers, m

Dont worry, with the current goons at the controls, we will surely get there where Vietnam is. And easily surpass their level of inflation. I will bet you a kilo of sugar for it. Malaysia Boleh!
:D