Sunny days ahead for Ringgit
The Ringgit has been soaring rapidly in recent weeks. Everyone in business is talking about it. Perhaps you should do some homework and find out why.
Another question: Is it good or bad for the Ringgit to keep rising this way? And can the uptrend be sustained?
Your politically correct question has not come at a more appropriate time. I like you!
What I'm trying to say is that the weather is very hot these days, and the scorching heat might have burned some brain cells. When tension is high, it is not a bad idea to calm down and look into the more pertinent financial problems.
Talking about the Ringgit, the local unit has risen to a high of 3.19 over the past two days, and has become the fastest appreciating currency in the region over the last three months.
The Ringgit finally has its day!
In March, Bank Negara governor Zeti was always seen with a smiling face. Behind the smiling face we could see the Ringgit fluttering upward.
There are a number of reasons for this, it has been moving alongside the regional big brother: Chinese Renminbi.
Recently, Renminbi comes under mounting pressure from the States. US secretary of the treasury Timothy Geithner made a surprise visit to Beijing lately, but he was not in the Chinese capital for a tea rendezvous with president Hu Jintao.
Even as Beijing said it would remain firm in its position soon after Geithner left, the Chinese currency has started to show signs of easing up.
Yes, with the Renminbi inching up, can the Ringgit stay put?
2. Malaysia's economic data have been pretty impressive of late, and this year's GDP growth, earlier predicted to be in the region of 5%, may look forward to even 6 or 7% according to some foreign bankers.
The first quarter growth has breached the 7% mark, and with exports going robust, we can easily see why Taiwanese investors are complaining of labour crunch.
With economy back on the growth track, interest rates rising in tandem, and foreign funds flooding in to grab the local currency, there aren't reasons for the Ringgit not to rise.
3. The New Economic Model unveiled by the prime minister has set the priority to make Malaysia a high-income country.
In a country where its currency is undervalued, the people's income couldn't go a lot higher. The appreciating Ringgit will be instantly reflected on the per capita income.
As for whether it is good to have a strong Ringgit, a strengthening currency will inevitably perk up export costs, eroding our export competitiveness.
But, if all regional currencies appreciate at the same rate, especially with Renminbi taking the lead, then Malaysia will not be disadvantaged.
At the same time, an appreciating Ringgit will make imported products cheaper, which will benefit businesses who need to acquire imported raw materials, machinery as well as consumer products.
A stronger Ringgit should also be good for those with children studying abroad.
In general, currency appreciation is a good thing for most Malaysians, and should have a catalytic effect on the government's effort to increase the national income and enhance the competitiveness of local businesses.
The facts that Bank Negara has not stepped in to check the rising exchange rate and that Zeti is recently seen with a brilliant smile should serve to reassure all that the latest spike is not just momentary but can be sustained for some time.
Aiyah! Let us go back to MCA politics lah.
ReplyDeleteRead this: This is so shameful for the current MCA leadership under the effing pornsident and effing brutus.
Free Malaysia Today) - An Umno division has called on MCA to leave Barisan Nasional following its failure to deliver the Chinese votes in the recently-concluded Hulu Selangor by-election.
Paya Besar Umno division chief Ahmad Tajuddin Sulaiman told MCA to stop making “silly excuses.”
He said MCA should leave the ruling coalition for not mustering Chinese support for the BN candidate.
As a result, he claimed that BN managed to retake the seat by a slim majority.
Ahmad Tajuddin said MCA’s best option was to withdraw from the coalition, and not continue to be a burden on BN.
“Leave BN to prevent yourselves from becoming a burden to the other component parties. Don’t point fingers at others for your own failure.
“They (MCA leaders) should admit their mistakes and not blame others,” he said, in referrence to their recent comments blaming Perkasa for the loss of Chinese support.
Zeti smiles because the Greeks have fcuked up.
ReplyDeleteThanks to the Greeks the Euro has tanked.
BTW, if anyone bother to check, RM is not the only currency spiking. Other currencies are also spiking.
We can also blame UMNO for poking into MCA's affairs. If not for Najlis and Mooingdin preference for the rotten bottom pornstar to be president of MCA , MCA would not have lost so much support.
ReplyDeleteRotten Bottom
DS Ong Tee Keat cleared by MACC;
ReplyDeleteI am glad that the Malaysian Anti Corruption Commission has finally cleared me in the case where I was accused of receiving RM10 million from Dato' Seri Tiong King Sing. I received a letter from MACC regarding this on April 22 where I was told that there were no evidence to support the wild allegations. The allegations were very hurtful not only for me, but also my family. They were used against me during the recent MCA election and the Party crisis. My enemies had used the issue to topple me politically. I am glad that I am now cleared of the allegations and the picture is now clear. I was also told that the MACC had concluded it's investigations much earlier but I was only informed of it a few days ago. Be it as it may, I did not use this as a political capital during the Hulu Selangor by-election. Far from discouraging me, this episode has only strengthened my conviction to do what is right. I will not be cowed or intimidated and will continue to speak up and go after the perpetrators who defraud taxpayers.
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Any intelligent person finds the allegation is a pack of blatant lies, an evil intent to deliberately create doubt on Tee Keat leadership, a strategy, including pouring millions of the fraudster dirty money to topple him. They achieved their aims to oust a distinguish sitting president to the wish of a fraudster.
Coupled with the humiliation MCA tainted president got for the Hulu Selangor Chinese community, bring me to to question the wisdom of the central delegates. They have to admit that they blundered, the outcome now, nobody want them.......they should made effort to redeem their weaknesses to kick out all those trouble makers in MCA......then only MCA will be able to see the light at the end of the tunnel..
The Chinese is not against BN, but the tainted president...as long as the tainted president is not remove, MCA will not get the Chinese vote....
I think MCA should leave BN. It is not wanted there too.
ReplyDeleteWhere is Nanyang/Sin Chew/China Press / WKS/LTL/WNC /WML- ALL STILL SLEEPING ? DSOTK is free from the accusation of KDSB boss for the RM10 Million scandal. Where is their LEONG XING now ? Keep silent meh....How can support these kind of leaders. Tainted President is just match with them, bury their political life completely in the next GE.JUSTICE never varnish in the heart of every Chinese.
ReplyDelete