4 MYR = 1 SGD coming

[BBCWatcher]

Just bear in mind that thriftiness is not necessarily a national virtue. It can be a national vice.

 

[crimsontactics]

Watch how the spending of whole nation goes up faster than revenue or productivity.

Wlwlsmdwl Bro stanlawj!

 

[stanlawj]

Good news for MYR: Diesel subsidies to be cut, to save RM$4B
https://www.channelnewsasia.com/asi...es-jun-10-rise-50-cent-subsidy-reform-4397766

Bad news for MYR: Data centres require heavy investment in new power generation AND water supply.
https://www.straitstimes.com/asia/s...-strain-power-and-water-supplies-warn-experts

Savings is wiped out by another spending ("investment").
Ringgit will need to weaken further as the country needs to spend heavily with imports to restructure its economy. Most likely outcome is the local power generation companies borrow BILLIONs in MYR at low interest rates to finance their local investments. Banks will print this MYR using fractional reserve banking.

This can be avoided IF foreign investors come in to Malaysia and supply all the capital with the foreign currency. Just watch this: who are the foreign investors, and how much money they supply?

Since the topic is the relative strength to SGD, watch SG side for the same, foreign investors and how much money they supply. If SG investors go into Malaysia and invest massively in supply of power generation and water supply, then MYR will strengthen relative to SGD.

 

[stanlawj]

According to official statistics Malaysia's inflation rate is quite low. It was 1.8% in March, 2024 (year over year). The weaker ringgit isn't showing up yet in the inflation rate.

Inflation for Malaysia set to rise. Now it is showing up.

The low cost of living in Malaysia is a mirage.

https://forums.hardwarezone.com.sg/threads/price-hike-across-whole-of-msia.7037235/

Price hike across whole of msia (due to diesel subsidy removal)​

 

[BBCWatcher]

Inflation for Malaysia set to rise. Now it is showing up.

The median household in Malaysia spends (in a typical year) exactly zero ringgit on diesel fuel, zero ringgit on concrete, and zero ringgit on trucking services.(*) If those expenditures show up in Malaysia's Consumer Price Index they show up only marginally, highly attenuated. They're more relevant to Malaysia's Producer Price Index (PPI) which eventually may affect the CPI to some extent.

Malaysia's official CPI is available here. The April, 2024 CPI was released on May 24, 2024. It showed a year over year inflation rate of 1.8% and a month over month inflation rate of 0.2%. These are low rates. Will the CPI increase faster as 2024 progresses? Maybe, but concrete and diesel price hikes alone probably won't affect the CPI much.

(*) Trucking services might show up in CPI goods and services baskets in the form of household moving expenses. But household moving expenses are not a significant percentage of total household expenditures.

The low cost of living in Malaysia is a mirage.

Says who?

 

[stanlawj]

Some things that Anwar is doing right by being agnostic about race and politics. But will JPM (Malaysian Education Ministry) screw this up by pushing the race, religion buttons?

PUTRAJAYA: Singaporean teachers may be sent to teach English and other subjects in Malaysia.

At a press conference, Prime Minister Datuk Seri Anwar Ibrahim said he discussed the matter with his Singaporean counterpart Lawrence Wong in a bilateral meeting today (June 12).

Presently, Johor and Singapore are already working on a joint education project with a new curriculum which also involves the exchange of programs and teacher training.

"We did discuss the possibility of Singapore considering my humble solution to send teachers to teach English and other subjects to many regions in this country," he said.

https://www.nst.com.my/news/nation/2024/06/1062651/anwar-wong discuss-placing-singaporean-teachers-malaysia

My thesis is things may get worse first before it gets better for Malaysia. The huge monster is the civil service in Federal govt and the state govt. Many are old gen, still dysfunctional, and basically unproductive. Another 20 years need to pass to get rid of them and replace them. Then another 30 years for them to drop off the surface of the earth so that their pensions expire and stop being a fiscal drag.

 

[stanlawj]

Oh boy, Malaysia's data centre push is going to create alot of unhappiness. Alot of power and water used for very few new jobs created.

See how Texas residents are suffering due to Bitcoin mining. Texas is an oil and gas producer state.


This is what happens when you have incompetent politicians. Electricity and water shortage crisis coming soon.

 

[stanlawj]

3.5 - 3.33 = 5% appreciation in MYR vs SGD.

Time to convert back any excess MYR to SGD.