Malaysia Fixed Deposits

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#1
Hi,

is there any members putting spare cash in FD of Malaysian banks in Malaysia? The 12-mth FD are giving rates of 3.15%. This appears very high vs what the local banks are offering. Any thoughts on this?
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#2
(18-06-2012, 04:49 PM)guru Wrote: Hi,

is there any members putting spare cash in FD of Malaysian banks in Malaysia? The 12-mth FD are giving rates of 3.15%. This appears very high vs what the local banks are offering. Any thoughts on this?

You have to factor in the risk of exchange rate.

I did that long time ago, after adjusted with the exchanged rate, the return is miserable.
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
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#3
(18-06-2012, 05:03 PM)CityFarmer Wrote:
(18-06-2012, 04:49 PM)guru Wrote: Hi,

is there any members putting spare cash in FD of Malaysian banks in Malaysia? The 12-mth FD are giving rates of 3.15%. This appears very high vs what the local banks are offering. Any thoughts on this?

You have to factor in the risk of exchange rate.

I did that long time ago, after adjusted with the exchanged rate, the return is miserable.

It's O. K. if you need to use Ringgit in Malaysia. Not too bad lah.
WB:-

1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.

Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.

NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.
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#4
(18-06-2012, 04:49 PM)guru Wrote: Hi,

is there any members putting spare cash in FD of Malaysian banks in Malaysia? The 12-mth FD are giving rates of 3.15%. This appears very high vs what the local banks are offering. Any thoughts on this?

I think you may need to consider the exchange rate first.

Long long ago, the exchange rate was RM1.70+ to S$1.00. Today it's like RM2.40+ to S$1.00. So that is how many %tage loss in principal? Our little red dot currency has always been stronger.

Unless you want to keep the money there for some other purposes, like buying a house, or open a trading a/c, etc.
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#5
(18-06-2012, 05:08 PM)Temperament Wrote:
(18-06-2012, 05:03 PM)CityFarmer Wrote:
(18-06-2012, 04:49 PM)guru Wrote: Hi,

is there any members putting spare cash in FD of Malaysian banks in Malaysia? The 12-mth FD are giving rates of 3.15%. This appears very high vs what the local banks are offering. Any thoughts on this?

You have to factor in the risk of exchange rate.

I did that long time ago, after adjusted with the exchanged rate, the return is miserable.

It's O. K. if you need to use Ringgit in Malaysia. Not too bad lah.

Was thinking with current SGD-MYR FX at 5 yrs high, and with pathetic returns in SGD FD, may make sense to "park" some spare cash there. In anyway, can use the interest as pocket money when I go shopping and eating in M'sia too =)
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#6
The political scene with the upcoming general election in malaysia is quite precarious right now. Many of the big wigs (that has ties with the ruling party)are moving their money out...berjaya toto, IHH etc. if there is a change in govt( black swan event), then you are going to see a flt of capital out of the coutnry. The RM will be hit. The prediction is the ruling party is going to lose big time but whether they will be unseated is the unknown.best to stay on the sideline for the time being.
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#7
The current business policy isn't conducive for big investors, due to the New economic policy which requires 30% bumi stake and many other reasons. Funds outflow from the country hurt the economy. RM may continue to weaken, unless there's radical change in the system.
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