Ringgit hits new record low against Singdollar

[pianist]

source in Malaysia shared that it may reach as low as 1sgd :3rm. sgd huat ah

Yasmine YahyaThe Straits TimesSunday, Feb 09, 2014The Malaysian ringgit has hit a fresh record low against the Singapore dollar as several regional currencies continue to stay weak. Just three days after softening to an all-time low of RM2.622 against the Singdollar last Thursday, the ringgit fell further to RM2.624 at the start of this week. It was hovering around RM2.6207 yesterday. The ringgit's persistent weakness is not so much due to the Singdollar gaining strength, but rather a massive outflow of capital from emerging markets back to developed markets, experts say. Fundsupermart general manager Wong Sui Jau said: "Overall, in terms of fiscal and financial strength, (Singapore) is perceived to be stronger, so our currency has held up better and it looks as if the ringgit has been weakening against the Singdollar." Oanda currency analyst Wu Mingze agreed, saying: "In terms of fundamentals, Malaysia is not looking great, but it's not that bad either compared to Thailand, the Philippines, or Vietnam." Despite coming close to a current account deficit in the middle of last year, Malaysia's trade surplus has been improving, which will help to keep its current account in the black, he said. The outflow of capital has hit emerging market currencies, with the Thai baht and Indonesian rupiah among those particularly hard-hit. One Singdollar was trading at 26.86 Thai baht yesterday evening. It was also equal to 9,611 Indonesian rupiah. It is hard to say how long the volatility will last or how low the currencies could go, they added. However, judging by past market swings, Mr Wu said it is likely that Malaysia's central bank will intervene if the ringgit depreciates to as low as RM3.80 against the US dollar. Today, one US dollar buys about RM3.33. In the meantime, Asian currencies will have to ride out the volatility until confidence returns, said Mr Wong. "When we will hit bottom, it's hard to say. But confidence will return and the rebound could be quite fast." Companies say the weak ringgit has not affected business much. Mr Mike Lim, executive director of bottling firm Dr Who, which imports some material from across the Causeway, said the weaker ringgit was a cushion against general rising costs in Malaysia. "But we don't expect it to stay weak very long," he said. - See more at: http://business.asiaone.com/news/ringgit...wGUMC.dpuf

[corydorus]

There is a reason why the other side is willing to gives higher yield or interest rates. Even on their retirement funds.

One of them is weaker currency and the impact is significant because it hits all your capital denominated whereas a lower interests in Singapore only hits your returns.

[orangetea]

There is a reason why the other side is willing to gives higher yield or interest rates. Even on their retirement funds. One of them is weaker currency and the impact is significant because it hits all your capital denominated whereas a lower interests in Singapore only hits your returns.

Higher interests attract deposits to increase liquidity of banks.

[greengiraffe]

Must not forget about leakages... loss of confidence within system will continue to dog RM... no different to Rupiah...

Ringgit falls to four-and-half-year low

Business | Updated yesterday at 12:08 PM
KUALA LUMPUR (The Star/Asia News Network) - The ringgit has fallen to a fresh multi-year low against the US dollar, as sentiment has been somewhat dented by Malaysia's shrinking current account surplus and slower economic growth in the third quarter of 2014.

At 5pm on Tuesday, the ringgit traded at 3.3565 against the greenback - the weakest level since May 2010. The ringgit is the second-worst performer in the region after the Singapore dollar so far this year. Over the last two weeks, it had declined 2 per cent against the US dollar.

Bank Negara, however, dismissed any notion that the narrowing current account surplus, from falling exports, is a matter of concern.

"At this stage, with our current account surplus standing at about 3 per cent of gross domestic product (GDP), it is considered a good sign... it is still positive," Bank Negara governor Zeti Akhtar Aziz told reporters on Tuesday after delivering a keynote address at the inaugural International Statistical Institute Regional Statistics Conference.

Analysts said the narrowing current account surplus put Malaysia in a less favourable position compared with its peers in the region, amid a volatile environment where foreign investors are already looking to withdraw their funds from emerging markets to developed nations.

The US dollar is rising broadly against most major currencies in the world in anticipation of the United States tightening its monetary policy stance by raising interest rates next year.

Malaysia's GDP growth had slowed to 5.6 per cent in the three months to September from 6.5 per cent in the preceding quarter, according to data released last Friday.

The data also showed that the country's current account surplus had narrowed sharply to RM7.6 billion, or 2.8 per cent of GDP, in the third quarter from RM16 billion, or 6.1 per cent of GDP, in the second quarter.

However, for the nine months to end-September this year, Malaysia's current account surplus stood wider at RM43.4 billion, or 5.5 per cent of GDP, compared with RM25.1 billion, or 3.5 per cent of GDP, in the first nine months of 2013.

An economist said that the fear amongst currency traders was that Malaysia's long streak of surplus since late-1998 might be broken, leading the country to a twin-deficit situation.

Malaysia has already been running on fiscal deficits, where government spending exceeds revenue, for the past 16 years. Its fiscal-deficit-to-GDP ratio stood at 3.9 per cent last year.

An economy with twin deficits is particularly vulnerable to capital reversals, which could impact the value of its currency, as was the case with India and Indonesia last year when their financial markets and currencies took a huge battering, as investors withdrew from emerging economies with twin deficits, because these countries were deemed to be structurally weak.

However, the countries have seen an appreciation in their currencies this year, as investors were optimistic of structural reforms in the economy.

On concerns of weaker exports next year weighing on the country's current account, Dr Zeti said the diversification of Malaysian exports in terms of markets and products had resulted in 60 per cent of the country's exports being destined for the Asian region, which remained the growth centre of the world.

Dr Zeti pointed out that most of the region's economies were no longer export-led but driven more by domestic demand, thanks to various reform initiatives that have been made in recent years.

"Most of Malaysia's exports now are for final demand, and not for re-exports to third countries," she said.

On falling crude oil prices, Dr Zeti said Malaysia would need to make an assessment on whether the decline of the commodity was due to temporary factors, or a permanent trend.

"The trend (of falling oil prices) has just begun, so we are monitoring it closely to see where it (oil price) will settle," she said.

[specuvestor]

Malaysia Boleh... At least they got the heart not to con own countrymen Note the names:

Malaysia-headquartered e-payment services firm MOL AccessPortal (MOL) has launched its MOLPoints online game and digital goods payment platform in the US and Brazil in collaboration with its Silicon Valley subsidiary Rixty, Inc.

During the launch in San Francisco, which was witnessed by the Malaysian Prime Minister Dato' Sri Mohd Najib Bin Tun Abdul Razak, MOL Global chief executive officer Ganesh Kumar Bangah said its subsidiary MOL AccessPortal' s micropayment system MOLPoints is to be distributed across Rixty's distribution channels of more than 140,000 stores in the US and Brazil.
http://www.cio-asia.com/tech/internet/ma...-americas/

MOL Global Pte, the online payments company backed by Malaysian billionaire Vincent Tan, picked Credit Suisse Group AG and Deutsche Bank AG to work on an initial public offering in the U.S., said two people with knowledge of the matter.

The Kuala Lumpur-based company plans to seek about $300 million this year, said the people, who asked not to be identified because the information is private. MOL Global changed an earlier plan for an IPO in Malaysia because most comparable companies are listed in the U.S., one person said.

MOL Global’s IPO preparations come four years after it acquired Friendster Inc., owner of one of the earliest social networking sites. The proceeds will help it better compete with payment providers including EBay Inc. (EBAY)’s PayPal unit, which has been expanding in emerging markets.

Ganesh Kumar Bangah, the chief executive officer of MOL.com, didn’t immediately return an e-mail seeking comment.

MOL Global would be the first Southeast Asian company in more than four years to carry out an IPO in the U.S., data compiled by Bloomberg show. Chinese companies raised $906 million through U.S. initial offerings last year, according to the data.

MOL Global, founded in 2000, handles more than 60 million payments annually totaling at least $300 million, according to its website. In 2009, it bought Friendster to tap into its Asian subscriber base.
http://www.bloomberg.com/news/2014-01-17...sting.html

DEUTSCHE Bank has advised investor caution about shares in MOL Global Inc a day after it issued a buy recommendation for the Malaysian online payment firm it helped go public almost two months ago.

The warning by Deutsche analysts on Friday came after shares in MOL fell 54 per cent after it said in a stock exchange filing that it would delay earnings, and announced its chief financial officer was leaving.
https://my.news.yahoo.com/deutsche-advis...35103.html

[BlueKelah]

Molg owned by bj corp, boss vincent tan. Company is system used for payment of online games. Very limited to msia market. Not much use, surprised they could convince us investors to let them ipo

via tapatalk

[greengiraffe]

Malaysian ringgit sinks to 10-month low against Singdollar on oil price fears
Published on Dec 1, 2014 4:30 PM


The ringgit has slumped to a 10-month low against the Singapore dollar, on concerns that a protracted slide in crude oil prices will hit oil-exporter Malaysia. -- PHOTO: BLOOMBERG

By Chia Yan Min

SINGAPORE - The ringgit has slumped to a 10-month low against the Singapore dollar, on concerns that a protracted slide in crude oil prices will hit oil-exporter Malaysia.

One Singdollar could buy 2.63 ringgit as of 4pm on Monday, a 2.3 per cent slide from 2.57 ringgit last week.

The ringgit has also fallen 2.5 per cent against the US dollar in two days, the steepest decline since June 1998.

Analysts said Malaysia is likely to be among the Asian countries hit hardest by the precipitous decline in global oil prices.

Oil-related industries account for a third of Malaysian state revenue.

[opmi]

Oil price Toh. Najib ETP Toh with it.
Msia has 'Dutch disease'


Sent from my iPhone using Tapatalki

[flinger]

None of the money exchangers are giving that rate. It is still 2.57. tsk...tsk.

[violinist]

Malaysians working in Sg huat.