Although the devaluation of a currency can present economic challenges, it is essential to recognize the multitude of advantages it can bring, often overlooked in debates. Do you personally lean towards supporting a robust currency or a weaker one? Let us know down below!
Explanations are very reasonable.. it will also wean off hot money from the stock market and reduce speculation in the stock exchange.which has been benefiting speculators , politicians and the rich. The common will definitely benefit the natural devaluation of our currency.
If currency getting weaker is so good, why are the neighbouring countries' currencies going higher? To be a competitive nation, we need to an open, honest and robust society. Change the education system and eventually the work culture, ethic and mentality for the country to prosper. Always remember - the building base of a nation is always the people. God bless Malaysia.
Neighbouring countries? All of the neighbouring countries have depreciating currencies against the USD. Maybe not as much as we do but we are not depreciating far worse than them. Also when u talked about education & what not. Malaysian education system is superior compared to our neighbours bar Singapore. None of our neighbours can speak good English like we do & many of our universities are already in the top 200 of QS world ranking despite our small population size. What we need right now is political stability. Currency will remain volatile if the country cannot provide political & economic stability. Unfortunately right now people are not confident enough that the current government has majority support or not. The next 6 state election will be crucial. If PH + BN can win more seats then the currency will appreciate, if PN wins the currency will remain volatile and people will keep on selling the ringgit.
@@secrets.295 Jepun tak pake bahasa Inggris bisa Maju, Korea Selatan tak pake bahasa Inggris Maju, Francis tak pakai bahasa Inggris Maju, Jerman tidak guna bahasa Inggris Maju, UEA tak pake bahasa Inggris Maju, Spanyol tak pake bahasa Inggris Maju, apa guna perguruan tinggi masuk peringkat terbaik dunia tetapi alumninya tak bisa buat pesawat terbang, kereta api, kapal laut,, Kuwait tak guna bahasa Inggris tetapi lebih maju dari pada Negara Malaysia,, Hongkong Qatar China RUSIA Portugal Semua itu contoh negara yang tak menggunakan bahasa Inggris tetapi negara negara itu lebih maju dari pada negara Malaysia,, apa punca pendidikan tinggi tapi pemikiran bodoh,, hiiiiiiiii hiiiii hiiiii hiiiii hiiiii hiiiii
Exportations will depends on the world market itself. You cannot just export and export if other nations exporting the same goods too. Otherwise competition of both countries will arise. But you are free to import the amount you want.
Mahathir once introduced to the world how to manipulate the USD demand that is used in China now and now Malaysia seems like it has lost its plots on controlling USD? In every USA war, the USD will always be manipulated using the petrodollar.
RINGGIT is in free fall, most of the imported goods have stock of dollars in empty countries to buy coal raw materials to Indonesia for dollars, that's where the ringit is in free fall. 😮
Malaysian exports are increasing year by year. Sure the percentage of exports to GDP has been declining over the years but overall in absolute term our exports value is on upward trajectory.
You see, it is all good when export increase because of low ringgit value. But as a normal citizen we are worried that it will make local price become higher because local business prefer to export thier goods for higher profit instead of selling them locally.
not really when exporter profits... so does everyone else in malaysia because why.. export could employ more people invest in new factories to increase output that in return creates new jobs, also by increasing output also help other supplier in domestic supply chain increase in revenue, eventually creating more jobs. . not to mention inderect multiplier effects once people has jobs they would buy domestic goods and services that increases domestic local business revenue, they them self can expend business thus creating even newer jobs... = economic growth... once so many jobs created it helps bank revenues too since people will take loans for credit cards, buy cars and home... but unfortunate effects are inflation since people has money demand of goods and increases... inflation end up above target, its called "demand push inflation"... its unfortunate cost of economic growth...
@@zarith87 Look at the price of durian. Do we still enjoy good local planted durians? Or are they exported to neighbouring countries with better consumer power? We can only afford durian kampung while all the musang are exported. But how is it benefitting the locals when the farm workers are all foreigners - spurring more currency weakness.
@secret....malas sia education system is SUPERIOR compared neigbour country..WTF You cantdo manufacture the electronic product itself. That's a big difference. It's the reason why you do not see a Malaysian made aircraft laptop, TV, washing machine, phones etc because you do not have the technology to produce these items from scratch
Mahathir once introduced to the world how to manipulate the USD demand that is used in China now and now Malaysia seems like it has lost its plots on controlling USD? In every USA war, the USD will always be manipulated using the petrodollar.
There are few things no accurate in this video. Agriculture: Malaysia import most the fertilizer. Driving up the cost for farmers. Manufacturing: Not all raw materials are sources locally especially in electronics manufacturing. Weaker ringgit increase the manufacturing cost and the prices of finished goods.
A weaker ringgit could spurn the economy but always realise that the wealth will be heavily concentrated within the upper echelons of society. Essentially, a rich get richer economy. Countries with a stronger currency no doubt have lower competitive edge but they are able to diversify their wealth amongst their populace more evenly. The poor of countries with stronger economy will still access to quality living of standards even if they are in the lower spectrum of the earning power in it's economy. So essentially, it is a flawed perception that a weaker currency is better for the populace.
A weaker ringgit will only give more money to CEO's and high society as they earn more from exports. Normal working people won't see a penny tho so it's bad for the middle-class
@@flaviomulatojerkin yes true . Employee living paycheck to paychecks…. No Benefits and many loss , as everything got more expensive coupled that will end up less spending power for individuals
Mahathir once introduced to the world how to manipulate the USD demand that is used in China now and now Malaysia seems like it has lost its plots on controlling USD? In every USA war, the USD will always be manipulated using the petrodollar.
Those facts stated in the video are all 'theoretically' correct but when it comes to how the reality is, it won't always works out how it's thought to be. Tho yes weaker ringgit makes Malaysia exports attractive yet those are just good numbers on paper. Weaker ringgit more often than not causes goods price to increase, which affects Malaysia consumers as a whole.
Because MY maintain OPR at 3%. If MY raised OPR to 5% the ringgit also will strengthen but the people will affect. So we need to choose OPR atau ringgit.
Malaysia economy is stagnant due to inner politics fighting by its ruling party n also racism by the public against its government officials, for example 😮
no is not stagnent.. data shows its not... GDP growth among the fastest currently in asia... like the video said, curency depreciation are not an macro economic indicator but GDP is...
@@hijodelsoldeoriente foreigners pay unsubsidized amount. But for private hostpital the charges are the same and it's still cheaper than other countries, thus influx of medical tourism from Indonesia (60%), China, AU, SG and the UK. Abt 1.5 million tourists
I'm so disappointed with this government. All they do is going on social media and talk much but did nothing concrete enough as ministers to stabilize the inflation. If other countries can do it, why when it comes to Malaysia the ministers will always blame US Dollar Us Dollar US Dollar. I'm tired of this BS.
Don't blame other factors, the drop in ringgit simply because we have incompetent leadership who speaks faster than his brain can think of anything else.
No because of OPR. If you are investor. bank A offer 5% interest and bank B offer 3% interest which one you will choose? Ringgit can strengthen if OPR raise to 5%. Right now at 3%.
You should study macroecomics before commenting. The main cause of the currency movement value is the interest rate differential between US and Malaysia (other country as well). The central bank used interest rate to control inflation. Current inflation in the in the US is 5.5%. Malaysia is 3.5%. Prime rate in the US is 5% and Malaysia OPR is 3%. In normal economic condition Prime rate must be higher than inflation. So the prime rate is still behind the curve, so to speak. Hence there is strong possibility that US prime rate will be raised. If Malaysia (being open economy) dont follow suit, investor will liquidate their share and bond and bring their cash out to invest in the US bonds with higher return. This movement of hot money will reduce demand for Ringgit increase demand for US dollar causing ringgit to fall.
Weaker ringgit is great for neighboring Singapore for sure. Every weekend hundreds of thousands of Singaporeans flock to Malaysia to shop till they drop. Great for businesses but really bad for ordinary citizens and retirees who see the purchasing power of their ringgit melt away like ice cubes.
Local business owners who benefit from singapore customers will increase their prices which in return putting more burden on the local customers itself, look at durians for examples
I don’t understand what’s the point of celebrating depreciation of ringgit here. Even though lower value of ringgit can make Malaysian export to be more competitive, Malaysians still become poorer because what we had earned become lower value in global aspect every year. In my point of view, the competitive should come from selling added value products to win the global market shares. Just like Apple iPhone, consumers buy it not because it’s price cheap but the product has its competitive advantage. Chasing a depreciation value only can make a nation become poorer.
IMO, "We" are not celebrating but instead see this thing as a whole and why the ringgit is depreciating due to the situation we have right now. I'm sure the government is trying to fix the problem in a short amount of time at a fast pace, so I think the value of the ringgit is lower as part of the solution to fix immediate issues and will change accordingly from time to time. I might be wrong in this matter, but as a citizen, I hope I am not. Just wait and see.
Good point and very true . Chasing 8k iPhones , loan 100k cars and our salary stagnant for years . If fixed salary employee indeeed we are getting poorer by the day
This video is about the pros and cons of a weaker RM but does not explain why the RM is weakening. Well, it has to do with Malaysia's lower interest rates vs the USD among others. Also perhaps speculators betting against the RM.
The weakening of Ringgit is due to increasing interest rate of US government (to curb inflation) while Malaysia maintains the interest rate. Increasing interest rate will make ppl like us angry due to higher loan repayment due to higher interest rate.
In this 10.48 minutes video, only one line mentions the most important economic factor to keep the economy strong and that is "increased productivity and innovation" which is not happening. That's the elephant in the room.
How to increase productivity when all major factories country wide still cut the overtime lorr and some simply close factory and moves elsewhere. Probably got tired of the political bickerings and yet here you are still blaming the citizen for the government's incompetency in ruling the country 😂😂
Some people misunderstanding productivity with over-working. The rich squeezing their good workers and not "investing" their money on good workers can also explain low productivity. Especially when they can't abuse illegal foreign workers now, they're becoming more stingy. 😊
At one time the opposition accused the government of failing to control the devaluation of the ringgit, and assured the people that all this could be overcome with a very convincing formula.
The Malaysian ringgit failing is all due to an ineffective government. The continuing leadership of the current government will bankrupt the country. There is no trust by the local population and foreign investment. Change will be needed sooner or this will be the downfall of Malaysia.
Mahathir once introduced to the world how to manipulate the USD demand that is used in China now and now Malaysia seems like it has lost its plots on controlling USD? In every USA war, the USD will always be manipulated using the petrodollar.
brah.. they did.. just did not explained it well.. there are 2 types of economy export oriented and import oriented.. if an economy are solely base in export its natural by design the currency would depreciate..
@@GerbenWulff no it is not .. export surplus = currency depreciation... not to mention Fiscal & Monetary policy (which currenty malaysia are generally expensionary) fundamentally effects currency value to depreciate as well... last budget were expensionary and our monetary policy by BNM interest hike were too slow that them self has significant impact on currency depreciation... unlike singapore mainly import oriented economy naturally would appreciate its currency value, also this year and next Singapore gov had plans to contracts its economy by hiking GST (contractionary fiscal policy) to 8% this year and to 9% in 2024, also at the same time aggressively increase its Interest Rates (contractionary monetary policy). same as united states they last month Joe Biden had agreed to contract (contractionary fiscal policy) its economy by debt restructuring and the FED had aggresively increase its Interest rate... this in turn were major impact on currency appreciation on USD and SGD... to sumarize net contractionary = currency appreciation = cheaper import = negative gdp output (slow down economy) = unemployment rate increase = inflation undercontrol, whereby net expensionary policies = currency depreciation = cheaper export = positive gdp output = unemployment rate reduce = inflation rate increases
How about accepting reality that reverting to SST hurts govt coffers. Whatever said about Najib,he was right by implementing GST. It increases govt revenue, reduce dependence on Petronas money and reduced black exonomy
@@shamshulanuar7718your Shameless Boss promoted illicit money laundering and you shamelessly support him. He is a disgrace to the country by putting Malaysia as kleptocracy in the world map
@@shamshulanuar7718 on a side note, it hurts mid to lower business owners to pay on going penalties due to nature of gst implementation. gst is like how insurance company handle their cashflow except is for taxes.
Great Analysis.👍 As the ADB Expert Advisor to the Malaysian Govt. during 1993-94, l like to make a suggestion too. As the Speaker has rightly pointed out, Dr.M's Peg Rate during 1998-2005 was pretty effective. However, good action should continue, just like our Peg Rate at $7.8 since 1984 in HK. In fact, HKD fell from 5.1 (1981) to 9.6 (1983) against the USD, due to hiccups in the Sino-British negotiation and attacks by the Financial Crocodiles. So, our Gov. made a determined effort to peg it at $7.8, and problem solved since then. My suggestion is for Malaysia to learn from the HK experience by moving the exchange rate back to Dr.M's day of RM3.8 again. Despite Malaysia may not have sufficient National Reserve to back it up, but your Gov. could seek help from ADB/IMF and even OBOR's Asian Development Fund from China. 😂🎉 -- Sam, Prof. & Speaker, Oxford U. (HKSAR & UK Citizen)
Indonesian IDR also dropped from 11.800/USD in 2014 to 15.000/USD in 2023, which is a 27％ drop in value. Malaysia Ringgit dropped by 50％, almost double.
Malaysia's weakening currency will be a blessing in disguise. We just have to reduce luxury imports and increase our exports focusing on our local raw materials.
@@mohdazminishak6387 No one person is a net consumer. We are all firstly producers, we expand our energy to produce or contribute something. Any job you do you are being paid because you add value otherwise no one is going to pay you. It's with that money we become consumers. If we want more money then we in turn have to learn how to add more value to the the society we live in. Complaining is never going to bring the desired results.
@@fushionm6098blessing in disguise? 😂😂 this is syok sendiri mentality. I have lived through Asia financial crisis and witnessed ringgit depreciation from 1997 until today. Ringgit even depreciates against Thai baht by 30%. Malaysia has stucked in middle income trap with depreciating ringgit
Its depends how people changes its economic structure. Central Bank only can influence, if people cannot move competitively.. then there is no benefit of weaker ringgits.
Malaysia finance minister is obviously too busy, he seems to have a country to run as well...but he tells himself that he is very good but most people are unconvinced
Malaysia imports certain goods is because we do not have the technology to make it ourselves such as phones, laptop, fighter jets, warships, medical equipment, vaccines etc. So, the argument that a weaker ringgit can spur positive economic changes by opting for locally produced goods is ridiculous. A weaker ringgit means anything that we can't produce will be very expensive
By theory what the video say is correct, but as point out it's not, just to add in your point we also import egg, which we also a major egg producer. Funny right
@@cl9803 If the govt jacks up the prices for everything without increasing the salary of its citizens, there would be a mass protest in Malaysia like those in the UK and France.
we do... u underestimate ur own country, did u watch the video... may be true we dont hve our brand but export world 17% supply chain of electronic products aka "the things inside your devices"... samsung/apple dont make everything on their own.. Malaysia part world electronic of supply chain.. are big.. 17% world supply chain are massive for a small country like us .
It doesn’t help that Malaysia practices institutional racism and institutional religious discrimination against its own citizens. The rich countries, investors and funders are becoming more aware of these and are staying away.
I heard paying for the FA-50 fighter with palm oil. I believe that if governments increase productivity in education, technology, and IT, they will become as powerful as Singapore. It need a more flexible and open policy. from KR
They squandered most of resources to the weak majority. In the end, this privileged majority can only produce mediocre results and ruin country financial situation
Malaysia have low rate OPR. Short term we slowly drop cuz some banker out to other country market. But for longevity, we win. cuz we didn't not have higher rate means didn't not have too much money in the market msia. Didn't print too much money. For long term there will be a monster currency. For now we just reform the governance & focus more on facility & infrastructure for public nation. Slowly n surely we will survive
In short, if Bank Negara higher the percentage interest rates the currency will be stable but people in debt will be most effected because of the high price to pay every month. Unfortunately Malaysian don't understand this problem😌😌
It is good for the country but not the people. Many workers were below Rm2.3k No wonder people no longer wants to make babies like Korea, China, Japan or any European countries. Life is just getting more expensive and it is not a good idea to bring a new life into this world of suffering.
The problem is malaysian live very afluent lifestyle even though we are still trapped in middle income zone. Malaysia has one of the highest car owners, phone users, internet, and our spending is towards branded products. When ringgit depreciates average malaysian especially felt that as it means we have to change our lifestyle.
There's no need to be paranoid. Malaysia is doing good already. USD v.s Every other currency happens everywhere. You don't even need to compare to us (Indonesia). We are very good playing with numbers, while it does not represents the social economic gap. We have big GDP, but also really good at wasting money on inefficient bureaucrachy, social aid system, justice system, and education. Don't get biased by comparing ourselves with Singapore. Even they have big underlying problems that threatening their own standings despite of being on top of world economy.
@@gemilangrahmandhika7509 Every other currency? Seen Singapore's? It used to be 1 USD = 1.75 SGD, today it is 1 USD = 1.25 SGD. It's not happening everywhere. If it was planned, like the governments saying "We want a weaker ringgit/rupiah for better economic exports", it is one thing but this really is not controlled, you are getting a weaker currency not because it was planned but because it is crashing and no one knows how to stop it!
Hi, thank you for the video. It was very insightful on how a currency (specifically MYR) has an impact on a country. But I can't help to feel that the title is a bit misleading. The video feels more like a "Benefits of a weaker currency" instead of "actual" reasons why the MYR is dropping. I came in with expectations of certain crisis/world economic issues/wealth management being discussed as potential reasons. Maybe you could word the title differently?
Mahathir once introduced to the world how to manipulate the USD demand that is used in China now and now Malaysia seems like it has lost its plots on controlling USD? In every USA war, the USD will always be manipulated using the petrodollar.
The headline - "Why Malaysian ringit is dropping". The content - copy paste from a school text book on economics with occasional use of the word Malaysia.😢
One of his brilliant formula: "by right, when the price of chicken increases, people should avoid buying chicken". Even einstein probably would never thought of that formula. Huhuhuhu
The big problem with Malaysia is that Malaysia is a manufacture based export oriented country. Though this may seem to be a good thing we have to understand that majority of the raw material used for these manufacturing is imported and the labour working in these factories are also imported too. If you take this factor in to consideration, the net gain for Malaysia is actually very little. That is one of the reason why the Ringgit value can drop faster than any other currencies.
@@kamilasukses3177 yes, unless Malaysians & Malaysian businesses owners change their attitude to be more productive oriented and not only depends on the low labour costs centred economy then there will be a chance for Malaysia.
@@LoC28Cthat will not happen😂 Malaysian love money more than their own country 😂😂if Malaysia become worst they can just leave the country with money their own
This video is for mediocre thinking or for those love complacency.. malaysia should find way for stronger ringgits and yet still competitive in its export. This can be achieved thru hard work and efficiency to reduce cost of production.
Our saving deminish day by day. Thanks to politicians at this country by promoting to the world that this country govern by corrupt politicians. Thus investor no longer trust our country.
Further more info ...There is about 5 million foreigners with and without documents in Malaysia ...and every monthr they are transferring $$$ to their home town people's ...5 MILL X 1000 RM = EVERY MONTH TO INDIA , BANGLADESH , PAKISTAN , MYANMAR , RUHINYA , NEPAL , VIETNAM , TUNISIA , THAILAND , INDONESIA, PHILIPPINES ...! JUST IMAGINE .
Good ! The Singaporeans can cross over to snap up everything on display . GOOD ALSO FOR 👌 MALAYSIANS WHO Come here DAILY TO WORK . EARN SINDOLLARS TO SPEND MALAYSIAN RINGGIT !
A very interesting, but misnamed video. Since very little of this video is about why the Ringgit is dropping in value, a better name might be, "The advantages and disadvantages of a weaker Ringgit."
interest rate hike complaint... when interesrt rate hike too slow causes currency to depreciate complaint... so ? the idea that currency depreciation = recession are so wrong.. malaysian lack of macro economic knowledge are what make this country fail...
So far the central bank made good decisions on the monetary policy. We only need good fiscal policy from the government. Smaller picture: Weaker currency creates wealth gap, that is why we can tax the rich & the use of zakat. Bigger picture: It is a cycle that every country go through when they suddenly experience political change. (Study Japan) The projection is still the same. We will be in a choppy sideways until we form a decisive political landscape. a.k.a All politicians finally decide which side they are on (get their share) and start looking ahead.
Public food landscapes using Malaysian contract workers hired by the government..Perhaps government should plant Coconuts, Breadfruit, Keledek and Sweet Date Palms in public food landscapes instead of planting inedible trees.
keep consume import product, relied on foreign investor and worker plus grow economy based on industry commodities not basic need commodities... there you go
The comments are incorrect... Palm oil exports are traded & sold in USD spot market prices...Prices are determined by Supply & DEMAND. Therefore Palm oil export prices are not determined by (lower) Costs , but actual demand from consumer countries. Please do not mislead
All Thanks To Very Smart PM as Finance minister also...Busy playing Political and Total Fail Doing His Job as Finance minister.. Malaysia Urgently need Full time Finance minister not a Greed clown who know nothing about Economy....he the same person who fail To lead Malaysia In 1997 monetary crisis.... I'm not shock at all If Ringgit Fall Double or more than today Current value because of that Joker...
This is why Indonesian let the Currency remain weak for weakened weak currency itself drop still reamining low around 0.0001% per days and strenghenin 0,00005% per days estimately
one must not forget Weaker currency also makes ur country's top talents like a doctor or scientists who make RM 10k for example, may decide to work in Singapore for 6k SGD or USA for 5k USD as their currency is much much higher also. so if u have a weak currency it benefit exporting natural resoruces and goods but ur smartest ppl may not want to work in a country that pays them so low. imagine if u make 10k ringgit a month, you probably have a hard time planning a vacation for 4 to USA for a week maybe.
There are pros and cons of a weaker ringgit. Therefore, we needed “capable (right) person, who are able to make the best of it, for the benefits of its rakyat. And definitely not fighting for position for his or her own agendas.
Unfortunately we can never have anyone capable for the job, even if there one, he wont be able to make any notable changes without being stricter or forceful
The people outside the coutries can buy anything in malaysia..the sales will growing up and make the company stable..it is good also for malaysian economies..
Really? Samsung invest USd 2 billion recently to make EV battery factory in Malaysia last year. Foxcon invests too. Another South Korean company invests billions to build factory to amke coils used in EV
📉📉RM didn’t 😊happen recently but since 40-50 years ago . 🇲🇾 leaders kept on saying it wa KL s US rate hike or poor China economy but never blames themselves. And kept on saying it is good for tourism.😂
If it’s good for Msia why not devalue to USD$1 = RM10 then?! Your argument doesn’t hold water for long run, esp keep dropping annually. Look at Singapore. Their exchange has been getting better but no problem at all
Most countries use tariffs to control imports and protect local producers. Why would Malaysia need to lower currency strength to protect local industries...
top import item is integrated circuit, refined petroleum and products, machinery, etc. increasing tariffs on these will put local manufacturers at a disadvantage
@@patrickgz TBH though I suspect that is only a small factor that people blew up to something it might not support. I mean, when I go shopping, price isn't the only thing that affects my decision, there is also coverage, i.e if I can find the product easily in stores, how useful it looks and if it has a good reputation. In fact, just think food, when you go shopping for food, is price your only judging criteria? So IMO while it is a factor, it might not be as heavy as people sometimes claim it is.
WHY MALAYSIA CURRENCY VALUE DEPRECIATE COMPARE TO SINGAPORE 1) Malaysia is export oriented economy like the video suggest, Singapore is import oriented economy 2) Singapore has clear macro goal.. where by Malaysia is not clear... what i meant by that is simple.. scenario 1= when an economy is in recesion clear micro goal is to increase unemployent back to full output by using 2 tools at disposal which are A) expensionary fiscal policy = reduced GST and increase budget and B) expensionary monetary policy =by reduce interest rate.. however unfortunate cost of expensionary policy are higher inflation, currency depreciation, increase in national debt.. scenario 2 = when an economy in inflationary gap (that the world in right now & past year ) when inflation above target 3% to get back to target 3% the tools are A) contractionary fiscal policy = increase GST and reduced government spending and B) contractionary monetary policy by increase interest rate.. however unfortunate cost of fighting inflation are lower economic growh (drop in gdp) higher unemployment, business lost of revenue, down stock market but the good thing is currency appreciation, lower inflation and cheaper import.. so back to singapore , the gov had made it clear that they want to fight inflation as priority so they increaase GST to 8% this year and increase further to 9% next year (contractionary fiscal policy) at the same time agresively hike interest rate (contractionary monetary policy) at the cost of slow economic growth that alone clear macro policies allows its currency to appreciate... where by malaysia like PMX said want to fight inflation but last budget its seems to be Expensionary thats why, it will make inflation worst and depreciate currency.. also too much politicing on interest rate hike make BNM too slow on hiking the interest rate made currency drop even worst and did not help counter inflation either because BNM are too slow on hiking interest rates.. 3) Malaysia tax system are still using old school 19th century supply side tax system.. where by the rest of the world already adopt demand side tax system called GST/VAT... GST/VAT are the best demand side tax system and better suited for current modern economy... thats why all countries around the world accept malaysia adopt GST/VAT.. without demand side GST - ability to use Fiscal policy to engineer the economy rather to expend or to contreact are much left ineffective thats why we end up this B40 M40 T20 thing.. because our current supply side tax system are ineffective fiscal tool .. for singapore and the rest of the world is simple.. they just adjust gst/vat rate no need B40 m40 t20 or targeted subsidy.. malaysia current supply side tax system are simply not efective.. where by for singapore is super easy.. when singapore in recession unemployment gap all they need to do is to reduce GST rate and reduce interest rate to acheived full employment.. when singapore in inflationary gap (inflation rate higher than 3% target) they just increase GST rate and interest rate hike to achieved 3% target. easy.. like they did currently and during covid years. 4) malaysian habit to spent overseas also give and significant impact on currency value.. did u know that 800k to 1million malaysian muslim do pilgrimage per year.. each cost about 100k to 200k per person.. thats close to 100billion ringgit MYR being sold to forex market making oversupply on ringgit in the forex market.. thats muslim pilgrims alone not to mention malaysian loves to go on vacation.. although impact are generally small compare to export markets and bond markets but it does contribute significant number on MYR currency depreciations...
It is time for the finance minister to resign. Pick a new finance minister with the right qualifications, knowledge and experience. The present one is clueless.
@@JC-tg5xx it's alright I guess. It's high cost of living. Getting worse.esoecially Ontario and BC But it's not a shit condition here, this country is better off than most . Just have to work hard.and be able to support yourself. There isn't the same barriers here to face like what I faced in Malaysia .
25 years after Asian Financial Crisis still no balls to fully float the Rm and allow offshore trading. Reforms not done and bail outs continue for zombie bumi companies. And we import inflation with our weak currency.
Although the devaluation of a currency can present economic challenges, it is essential to recognize the multitude of advantages it can bring, often overlooked in debates. Do you personally lean towards supporting a robust currency or a weaker one? Let us know down below!
so technically we malaysians are becoming self reliant? wow
The catch is Malaysians have got used to whining and blaming the other major nation.
Explanations are very reasonable.. it will also wean off hot money from the stock market and reduce speculation in the stock exchange.which has been benefiting speculators , politicians and the rich. The common will definitely benefit the natural devaluation of our currency.
@@oooshafiqooo1
Rm dropped because malaysia didnt increase interest rate as fast as other countries to protect households. It is similar to Japan.
If currency getting weaker is so good, why are the neighbouring countries' currencies going higher? To be a competitive nation, we need to an open, honest and robust society. Change the education system and eventually the work culture, ethic and mentality for the country to prosper. Always remember - the building base of a nation is always the people.
God bless Malaysia.
Are you certain that neighbouring countries are problem free? look at both sides to have a clear picture...rome is not built in a day.
Know ...is..it...SO..LONG UNQUALIFIED QUALIFIED PERSONS AT THE TOP..AND ONE "CRIPLED COMMITEE.."..
Which neighbouring country do you mean? Singapore?
Neighbouring countries? All of the neighbouring countries have depreciating currencies against the USD. Maybe not as much as we do but we are not depreciating far worse than them. Also when u talked about education & what not. Malaysian education system is superior compared to our neighbours bar Singapore. None of our neighbours can speak good English like we do & many of our universities are already in the top 200 of QS world ranking despite our small population size. What we need right now is political stability. Currency will remain volatile if the country cannot provide political & economic stability. Unfortunately right now people are not confident enough that the current government has majority support or not. The next 6 state election will be crucial. If PH + BN can win more seats then the currency will appreciate, if PN wins the currency will remain volatile and people will keep on selling the ringgit.
@@secrets.295
Jepun tak pake bahasa Inggris bisa Maju, Korea Selatan tak pake bahasa Inggris Maju, Francis tak pakai bahasa Inggris Maju, Jerman tidak guna bahasa Inggris Maju, UEA tak pake bahasa Inggris Maju, Spanyol tak pake bahasa Inggris Maju, apa guna perguruan tinggi masuk peringkat terbaik dunia tetapi alumninya tak bisa buat pesawat terbang, kereta api, kapal laut,,
Kuwait tak guna bahasa Inggris tetapi lebih maju dari pada Negara Malaysia,,
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Semua itu contoh negara yang tak menggunakan bahasa Inggris tetapi negara negara itu lebih maju dari pada negara Malaysia,, apa punca pendidikan tinggi tapi pemikiran bodoh,, hiiiiiiiii hiiiii hiiiii hiiiii hiiiii hiiiii
Ringgit declined much faster than the rate of growth of the export.
Exportations will depends on the world market itself. You cannot just export and export if other nations exporting the same goods too. Otherwise competition of both countries will arise. But you are free to import the amount you want.
Mahathir once introduced to the world how to manipulate the USD demand that is used in China now and now Malaysia seems like it has lost its plots on controlling USD? In every USA war, the USD will always be manipulated using the petrodollar.
RINGGIT is in free fall, most of the imported goods have stock of dollars in empty countries to buy coal raw materials to Indonesia for dollars, that's where the ringit is in free fall. 😮
Malaysian exports are increasing year by year. Sure the percentage of exports to GDP has been declining over the years but overall in absolute term our exports value is on upward trajectory.
You see, it is all good when export increase because of low ringgit value. But as a normal citizen we are worried that it will make local price become higher because local business prefer to export thier goods for higher profit instead of selling them locally.
not really when exporter profits... so does everyone else in malaysia because why.. export could employ more people invest in new factories to increase
output that in return creates new jobs, also by increasing output also help other supplier in domestic supply chain increase in revenue, eventually creating more jobs. . not to mention inderect multiplier effects once people has jobs they would buy domestic goods and services that increases domestic local business revenue, they them self can expend business thus creating even newer jobs... = economic growth... once so many jobs created it helps bank revenues too since people will take loans for credit cards, buy cars and home... but unfortunate effects are inflation since people has money demand of goods and increases... inflation end up above target, its called "demand push inflation"... its unfortunate cost of economic growth...
@@zarith87 Look at the price of durian. Do we still enjoy good local planted durians? Or are they exported to neighbouring countries with better consumer power?
We can only afford durian kampung while all the musang are exported. But how is it benefitting the locals when the farm workers are all foreigners - spurring more currency weakness.
@secret....malas sia education system is SUPERIOR compared neigbour country..WTF
You cantdo manufacture the electronic product itself. That's a big difference. It's the reason why you do not see a Malaysian made aircraft laptop, TV, washing machine, phones etc because you do not have the technology to produce these items from scratch
Rm dropped because malaysia didnt increase interest rate as fast as other countries to protect households. It is similar to Japan.
Mahathir once introduced to the world how to manipulate the USD demand that is used in China now and now Malaysia seems like it has lost its plots on controlling USD? In every USA war, the USD will always be manipulated using the petrodollar.
There are few things no accurate in this video.
Agriculture: Malaysia import most the fertilizer. Driving up the cost for farmers.
Manufacturing: Not all raw materials are sources locally especially in electronics manufacturing. Weaker ringgit increase the manufacturing cost and the prices of finished goods.
A weaker ringgit could spurn the economy but always realise that the wealth will be heavily concentrated within the upper echelons of society. Essentially, a rich get richer economy. Countries with a stronger currency no doubt have lower competitive edge but they are able to diversify their wealth amongst their populace more evenly. The poor of countries with stronger economy will still access to quality living of standards even if they are in the lower spectrum of the earning power in it's economy. So essentially, it is a flawed perception that a weaker currency is better for the populace.
A weaker ringgit will only give more money to CEO's and high society as they earn more from exports. Normal working people won't see a penny tho so it's bad for the middle-class
@@flaviomulatojerkin Yes u are right
@@flaviomulatojerkin yes true . Employee living paycheck to paychecks…. No Benefits and many loss , as everything got more expensive coupled that will end up less spending power for individuals
That is worrying soon iphone will cost Rm10,000
Mahathir once introduced to the world how to manipulate the USD demand that is used in China now and now Malaysia seems like it has lost its plots on controlling USD? In every USA war, the USD will always be manipulated using the petrodollar.
Those facts stated in the video are all 'theoretically' correct but when it comes to how the reality is, it won't always works out how it's thought to be. Tho yes weaker ringgit makes Malaysia exports attractive yet those are just good numbers on paper. Weaker ringgit more often than not causes goods price to increase, which affects Malaysia consumers as a whole.
TLDR; So basically the advantages of a weaker ringgit are short term only but the detriments will stay with us for a long time.
The finance ministry should answer this question not from a source that only makes assumptions
Because MY maintain OPR at 3%. If MY raised OPR to 5% the ringgit also will strengthen but the people will affect. So we need to choose OPR atau ringgit.
Malaysia's Corruption makes the country hard to develop. And have no money to spend for infra and other investments.
Malaysia economy is stagnant due to inner politics fighting by its ruling party n also racism by the public against its government officials, for example 😮
Is it true that hospitals in Malaysia charge foreigners higher than locals?
no is not stagnent.. data shows its not... GDP growth among the fastest currently in asia... like the video said, curency depreciation are not an macro economic indicator but GDP is...
@@hijodelsoldeoriente Yep..They charge almost 3 x higher for foreingers here. Such a bad country. No respect to people frm other countries at all.
@@sdm3032it's all about subsidies. Subsidies is targeted for Malaysian. The price is paid by Malaysian government for its people.
@@hijodelsoldeoriente foreigners pay unsubsidized amount. But for private hostpital the charges are the same and it's still cheaper than other countries, thus influx of medical tourism from Indonesia (60%), China, AU, SG and the UK. Abt 1.5 million tourists
This channel is the best way to learn about SEA.
Or AIR because it is all speculation lol.
I'm so disappointed with this government. All they do is going on social media and talk much but did nothing concrete enough as ministers to stabilize the inflation. If other countries can do it, why when it comes to Malaysia the ministers will always blame US Dollar Us Dollar US Dollar. I'm tired of this BS.
I’m wonder if inflation be more and more worst why don’t Malaysia change they currency ??
Don't blame other factors, the drop in ringgit simply because we have incompetent leadership who speaks faster than his brain can think of anything else.
dont forget they selling their soul to china. Let china take so much of the sea
We need a full time Finance minister
YUP SO TRUE
No because of OPR. If you are investor. bank A offer 5% interest and bank B offer 3% interest which one you will choose? Ringgit can strengthen if OPR raise to 5%. Right now at 3%.
You should study macroecomics before commenting.
The main cause of the currency movement value is the interest rate differential between US and Malaysia (other country as well). The central bank used interest rate to control inflation. Current inflation in the in the US is 5.5%. Malaysia is 3.5%. Prime rate in the US is 5% and Malaysia OPR is 3%. In normal economic condition Prime rate must be higher than inflation. So the prime rate is still behind the curve, so to speak. Hence there is strong possibility that US prime rate will be raised. If Malaysia (being open economy) dont follow suit, investor will liquidate their share and bond and bring their cash out to invest in the US bonds with higher return.
This movement of hot money will reduce demand for Ringgit increase demand for US dollar causing ringgit to fall.
Weaker ringgit is great for neighboring Singapore for sure. Every weekend hundreds of thousands of Singaporeans flock to Malaysia to shop till they drop. Great for businesses but really bad for ordinary citizens and retirees who see the purchasing power of their ringgit melt away like ice cubes.
Local business owners who benefit from singapore customers will increase their prices which in return putting more burden on the local customers itself, look at durians for examples
I don’t understand what’s the point of celebrating depreciation of ringgit here. Even though lower value of ringgit can make Malaysian export to be more competitive, Malaysians still become poorer because what we had earned become lower value in global aspect every year. In my point of view, the competitive should come from selling added value products to win the global market shares. Just like Apple iPhone, consumers buy it not because it’s price cheap but the product has its competitive advantage. Chasing a depreciation value only can make a nation become poorer.
IMO, "We" are not celebrating but instead see this thing as a whole and why the ringgit is depreciating due to the situation we have right now. I'm sure the government is trying to fix the problem in a short amount of time at a fast pace, so I think the value of the ringgit is lower as part of the solution to fix immediate issues and will change accordingly from time to time. I might be wrong in this matter, but as a citizen, I hope I am not. Just wait and see.
Good point and very true . Chasing 8k iPhones , loan 100k cars and our salary stagnant for years . If fixed salary employee indeeed we are getting poorer by the day
This video is about the pros and cons of a weaker RM but does not explain why the RM is weakening. Well, it has to do with Malaysia's lower interest rates vs the USD among others. Also perhaps speculators betting against the RM.
The weakening of Ringgit is due to increasing interest rate of US government (to curb inflation) while Malaysia maintains the interest rate.
Increasing interest rate will make ppl like us angry due to higher loan repayment due to higher interest rate.
In this 10.48 minutes video, only one line mentions the most important economic factor to keep the economy strong and that is "increased productivity and innovation" which is not happening. That's the elephant in the room.
Innonavation? Here in Malaysia the people doesnt knw the meaning of it..Today generation mostly are just social media addict and becoming more stupid.
Yup, with current Malaysian laidback personality, how to change them?? 😂
How to increase productivity when all major factories country wide still cut the overtime lorr and some simply close factory and moves elsewhere. Probably got tired of the political bickerings and yet here you are still blaming the citizen for the government's incompetency in ruling the country 😂😂
Some people misunderstanding productivity with over-working. The rich squeezing their good workers and not "investing" their money on good workers can also explain low productivity. Especially when they can't abuse illegal foreign workers now, they're becoming more stingy. 😊
At one time the opposition accused the government of failing to control the devaluation of the ringgit, and assured the people that all this could be overcome with a very convincing formula.
dont always trust politician even if he's anwar ibrahim
@@mofb8331
I don't believe in money, its value changes and can also change a person's dignity
@@mofb8331 i prefer "especially" rather than "even if"
The Malaysian ringgit failing is all due to an ineffective government. The continuing leadership of the current government will bankrupt the country. There is no trust by the local population and foreign investment. Change will be needed sooner or this will be the downfall of Malaysia.
Mahathir once introduced to the world how to manipulate the USD demand that is used in China now and now Malaysia seems like it has lost its plots on controlling USD? In every USA war, the USD will always be manipulated using the petrodollar.
What I think? I think I wasted 10 minutes listening to a lesson about basic economics where they didn't even try to answer the question they raised.
brah.. they did.. just did not explained it well.. there are 2 types of economy export oriented and import oriented.. if an economy are solely base in export its natural by design the currency would depreciate..
@@zarith87 No, if you have an export surplus, it would be natural that your currency appreciates. They didn't explain it at all.
@@GerbenWulff no it is not .. export surplus = currency depreciation... not to mention Fiscal & Monetary policy (which currenty malaysia are generally expensionary) fundamentally effects currency value to depreciate as well... last budget were expensionary and our monetary policy by BNM interest hike were too slow that them self has significant impact on currency depreciation... unlike singapore mainly import oriented economy naturally would appreciate its currency value, also this year and next Singapore gov had plans to contracts its economy by hiking GST (contractionary fiscal policy) to 8% this year and to 9% in 2024, also at the same time aggressively increase its Interest Rates (contractionary monetary policy). same as united states they last month Joe Biden had agreed to contract (contractionary fiscal policy) its economy by debt restructuring and the FED had aggresively increase its Interest rate... this in turn were major impact on currency appreciation on USD and SGD... to sumarize net contractionary = currency appreciation = cheaper import = negative gdp output (slow down economy) = unemployment rate increase = inflation undercontrol, whereby net expensionary policies = currency depreciation = cheaper export = positive gdp output = unemployment rate reduce = inflation rate increases
Increasing OPR, weaker RM. Good for the country but bad for the citizens. The government is killing it's domestic micro economy
Anwar Ibrahim is the main factor in ringgit depreciation.
thats a good thing.. lol
ringgit devalue? because PM announce want to to adopt asian currency instead of dollar..such a bad move..small countries wanna fight US
So true
A weaker currency is only okay if inflation and people's income/salary are okay. Otherwise, we should be worried
I dont agree. Yes true that a weaker Ringgit makes exports more competitive. But Ringgit now is too LOW. There must be a right balance.
How about accepting reality that reverting to SST hurts govt coffers.
Whatever said about Najib,he was right by implementing GST. It increases govt revenue, reduce dependence on Petronas money and reduced black exonomy
@@shamshulanuar7718your Shameless Boss promoted illicit money laundering and you shamelessly support him. He is a disgrace to the country by putting Malaysia as kleptocracy in the world map
@@shamshulanuar7718 on a side note, it hurts mid to lower business owners to pay on going penalties due to nature of gst implementation. gst is like how insurance company handle their cashflow except is for taxes.
The best example of a country trapped as a Middle income economy
it just make Malaysians thinking of travelling overseas harder..😅
Please use the correct flag with 14 pointed stars.
Great Analysis.👍
As the ADB Expert Advisor to the Malaysian Govt. during 1993-94, l like to make a suggestion too.
As the Speaker has rightly pointed out, Dr.M's Peg Rate during 1998-2005 was pretty effective. However, good action should continue, just like our Peg Rate at $7.8 since 1984 in HK. In fact, HKD fell from 5.1 (1981) to 9.6 (1983) against the USD, due to hiccups in the Sino-British negotiation and attacks by the Financial Crocodiles. So, our Gov. made a determined effort to peg it at $7.8, and problem solved since then.
My suggestion is for Malaysia to learn from the HK experience by moving the exchange rate back to Dr.M's day of RM3.8 again. Despite Malaysia may not have sufficient National Reserve to back it up, but your Gov. could seek help from ADB/IMF and even OBOR's Asian Development Fund from China.
😂🎉
-- Sam, Prof. & Speaker, Oxford U.
(HKSAR & UK Citizen)
Indonesian IDR also dropped from 11.800/USD in 2014 to 15.000/USD in 2023, which is a 27％ drop in value. Malaysia Ringgit dropped by 50％, almost double.
As a whole IDR drop way more in value since the Asean crisis. That is why RM is still stronger than IDR
The Philippines PHP that went from 14/USD to 57/USD in 2023 💀
HAHAHAHAHA were dropping more
@@oooshafiqooohAhAhA
Its A domino effect After pandemic
Malaysia's weakening currency will be a blessing in disguise. We just have to reduce luxury imports and increase our exports focusing on our local raw materials.
Netizen are mostly consumers, not tauke kilang, exporters…so their voices are louder
@@mohdazminishak6387 No one person is a net consumer. We are all firstly producers, we expand our energy to produce or contribute something. Any job you do you are being paid because you add value otherwise no one is going to pay you. It's with that money we become consumers. If we want more money then we in turn have to learn how to add more value to the the society we live in. Complaining is never going to bring the desired results.
Typical 🇲🇾Ah Q .
🇲🇾 imports many common food / basic .
Luxury imports are not common.
@@fushionm6098blessing in disguise? 😂😂 this is syok sendiri mentality. I have lived through Asia financial crisis and witnessed ringgit depreciation from 1997 until today. Ringgit even depreciates against Thai baht by 30%. Malaysia has stucked in middle income trap with depreciating ringgit
Nak reduce luxury import macam mana kalau income golongan kaya yg tak ramai tu aja lebih tinggi dari the whole common population 😂😂
Its depends how people changes its economic structure. Central Bank only can influence, if people cannot move competitively.. then there is no benefit of weaker ringgits.
today was a tragic day. Malaysian ringgit has dropped to 1sgd = rm3.5
Thanks to poor governance from PM Annuar Ibrahim..
We cant rely on weaker USD, we should ensure stronger RM as well.
Malaysia finance minister is obviously too busy, he seems to have a country to run as well...but he tells himself that he is very good but most people are unconvinced
Who works at KL? Low bonus, endless traffic, expensive everyday goods, salary not increasing. Empty condos
True , but still so many ppl going out spending on the weekend
Malaysia imports certain goods is because we do not have the technology to make it ourselves such as phones, laptop, fighter jets, warships, medical equipment, vaccines etc. So, the argument that a weaker ringgit can spur positive economic changes by opting for locally produced goods is ridiculous. A weaker ringgit means anything that we can't produce will be very expensive
By theory what the video say is correct, but as point out it's not, just to add in your point we also import egg, which we also a major egg producer. Funny right
yea this video is trying to con malaysian into being slave
just jack up the price of everything to counter that
@@cl9803 If the govt jacks up the prices for everything without increasing the salary of its citizens, there would be a mass protest in Malaysia like those in the UK and France.
we do... u underestimate ur own country, did u watch the video... may be true we dont hve our brand but export world 17% supply chain of electronic products aka "the things inside your devices"... samsung/apple dont make everything on their own.. Malaysia part world electronic of supply chain.. are big.. 17% world supply chain are massive for a small country like us .
It doesn’t help that Malaysia practices institutional racism and institutional religious discrimination against its own citizens. The rich countries, investors and funders are becoming more aware of these and are staying away.
I heard paying for the FA-50 fighter with palm oil.
I believe that if governments increase productivity in education, technology, and IT, they will become as powerful as Singapore.
It need a more flexible and open policy.
from KR
They squandered most of resources to the weak majority. In the end, this privileged majority can only produce mediocre results and ruin country financial situation
Malaysia have low rate OPR. Short term we slowly drop cuz some banker out to other country market. But for longevity, we win. cuz we didn't not have higher rate means didn't not have too much money in the market msia. Didn't print too much money. For long term there will be a monster currency. For now we just reform the governance & focus more on facility & infrastructure for public nation. Slowly n surely we will survive
Title is is why ringgit is dropping but content is advantages of weak ringgit 🤦🏻
In short, if Bank Negara higher the percentage interest rates the currency will be stable but people in debt will be most effected because of the high price to pay every month. Unfortunately Malaysian don't understand this problem😌😌
Riggit will drop to Rm5 very soon
It is good for the country but not the people. Many workers were below Rm2.3k
No wonder people no longer wants to make babies like Korea, China, Japan or any European countries. Life is just getting more expensive and it is not a good idea to bring a new life into this world of suffering.
If Malaysian government would to remove subsidies on petrol and diesel totally, can Malaysians accept ?
Malaysia has rich resources. It won't be brought to its knees. Even with weaker ringgit Malaysians can still weather the storm.
The problem is malaysian live very afluent lifestyle even though we are still trapped in middle income zone. Malaysia has one of the highest car owners, phone users, internet, and our spending is towards branded products. When ringgit depreciates average malaysian especially felt that as it means we have to change our lifestyle.
Yeah embrace life of being poor and do nothing about it 😂
Is that a problem? Koreans spent money on plastic surgeries
There's no need to be paranoid. Malaysia is doing good already. USD v.s Every other currency happens everywhere.
You don't even need to compare to us (Indonesia). We are very good playing with numbers, while it does not represents the social economic gap. We have big GDP, but also really good at wasting money on inefficient bureaucrachy, social aid system, justice system, and education.
Don't get biased by comparing ourselves with Singapore. Even they have big underlying problems that threatening their own standings despite of being on top of world economy.
@@gemilangrahmandhika7509 Every other currency? Seen Singapore's? It used to be 1 USD = 1.75 SGD, today it is 1 USD = 1.25 SGD. It's not happening everywhere. If it was planned, like the governments saying "We want a weaker ringgit/rupiah for better economic exports", it is one thing but this really is not controlled, you are getting a weaker currency not because it was planned but because it is crashing and no one knows how to stop it!
Malaysia rank 45 in car ownership per capita. 25 in phone use. What are you smoking? Or is suffering the illusion of grandeur?
Hi, thank you for the video. It was very insightful on how a currency (specifically MYR) has an impact on a country.
But I can't help to feel that the title is a bit misleading. The video feels more like a "Benefits of a weaker currency" instead of "actual" reasons why the MYR is dropping. I came in with expectations of certain crisis/world economic issues/wealth management being discussed as potential reasons. Maybe you could word the title differently?
Exactly my thoughts.
Propa video lol we never knew who is paying for this video 😂😂
Mahathir once introduced to the world how to manipulate the USD demand that is used in China now and now Malaysia seems like it has lost its plots on controlling USD? In every USA war, the USD will always be manipulated using the petrodollar.
Italy is a prime example the weaker currency is actually bad for economy long term
The headline - "Why Malaysian ringit is dropping". The content - copy paste from a school text book on economics with occasional use of the word Malaysia.😢
Don't worry Malaysia have the best Prime Minister which superb in economy and formulation ministry
I am totally disappointed with the new PM. I never thought he is a racist
do they really think the domestic companies will not price their product according to the international market rate?
Don't worry, Malaysia has The King of Formulas, The one and only, None other than the genius Rafizi Ramli, Economics Minister of Malaysia.
Kahkahkah
People eat menu rahmah nowadays kahkahkah
One of his brilliant formula: "by right, when the price of chicken increases, people should avoid buying chicken".
Even einstein probably would never thought of that formula. Huhuhuhu
Rm dropped because malaysia didnt increase interest rate as fast as other countries to protect households. It is similar to Japan.
hahahahah
The big problem with Malaysia is that Malaysia is a manufacture based export oriented country. Though this may seem to be a good thing we have to understand that majority of the raw material used for these manufacturing is imported and the labour working in these factories are also imported too. If you take this factor in to consideration, the net gain for Malaysia is actually very little. That is one of the reason why the Ringgit value can drop faster than any other currencies.
And next Malaysian Will poor forever😅😅😅😅😅
@@kamilasukses3177 yes, unless Malaysians & Malaysian businesses owners change their attitude to be more productive oriented and not only depends on the low labour costs centred economy then there will be a chance for Malaysia.
@@LoC28C seriously 😂?
@@LoC28Cthat will not happen😂 Malaysian love money more than their own country 😂😂if Malaysia become worst they can just leave the country with money their own
Ringgit drop because malaysia government right now is the best in the world😂
I like how Malaysia govt is saying weaker is better.. i look forward to see 1 USD to 5 Ringgit soon..😂
TRY TO DISCUSS WHY THE RUPIAHS IS STRONG AND STABLE. FDI COMES IN HOURLY, WHAT IS THE CAUSE?
One of the reasons is political unstablity......
This video is for mediocre thinking or for those love complacency.. malaysia should find way for stronger ringgits and yet still competitive in its export. This can be achieved thru hard work and efficiency to reduce cost of production.
Most importantly is the currency must be stable.
Our saving deminish day by day. Thanks to politicians at this country by promoting to the world that this country govern by corrupt politicians. Thus investor no longer trust our country.
Further more info ...There is about 5 million foreigners with and without documents in Malaysia ...and every monthr they are transferring $$$ to their home town people's ...5 MILL X 1000 RM = EVERY MONTH TO INDIA , BANGLADESH , PAKISTAN , MYANMAR , RUHINYA , NEPAL , VIETNAM , TUNISIA , THAILAND , INDONESIA, PHILIPPINES ...! JUST IMAGINE .
Good ! The Singaporeans can cross over to snap up everything on display . GOOD ALSO FOR 👌 MALAYSIANS WHO Come here DAILY TO WORK . EARN SINDOLLARS TO SPEND MALAYSIAN RINGGIT !
Due to unreliability Government runs by PH, BN, DAP.
they apply a formula = cheap ringgit, investor come more... stupid gov.. a lowly kiddy brain formula
This is a good sign and good move for Malaysia to spurn up its economy. It should match the US $ at RM$5.00 ultimately.
We pray that Ringgit will increase back soon🤲 be patience everyone... an effort takes time to reflect the result
Desperate kahkahkah
Trapped as middle income kahkahkah
@@riyandataswar8580 be patience bro...we should trust the process... always pray Malaysia will grow back stronger 💪🇲🇾 we love Malaysia❤️
Thanks to the PM currency is dropping
Nampak sgt busuk hati org Indon ni siap ketawa kan,org Islam Indon
Semoga Ringgit lekas sembuh..🤲😢
I have a question, does the fall of currency can cause bankrupt to the coutry?
Lack of direction due to too much politicking.
Good luck abangs. Biz increase prices very soon but your incomes remain same..
from your previous video... this is what we argued for... now you make the truth information... thanks
Buy things and foods made in Malaysian first ! Keep RM rotating inside Malaysia. Yes we can. "Malaysia Boleh !!! ".💪💪💪
Yes i know... BOLEHLAND..kikiki
Apa bun boleh
A very interesting, but misnamed video. Since very little of this video is about why the Ringgit is dropping in value, a better name might be, "The advantages and disadvantages of a weaker Ringgit."
If decline is a blessing in disguise why not maximize it.
Yup and Zimbabwe is the world's leading manufacturing export powerhouse according to their currency lol.
BNM fail. The only thing stable/predictable about the ringgit is that it will be weaker in the future.
BNM can see 10 steps ahead from you
interest rate hike complaint... when interesrt rate hike too slow causes currency to depreciate complaint... so ? the idea that currency depreciation = recession are so wrong.. malaysian lack of macro economic knowledge are what make this country fail...
Please talk about Sabah and Sarawak they need help
I came looking for reasons "why it is dropping" , but the whole video is about "why it is good that its dropping". 😂
This country is heading to prominent disasters
So far the central bank made good decisions on the monetary policy. We only need good fiscal policy from the government.
Smaller picture: Weaker currency creates wealth gap, that is why we can tax the rich & the use of zakat.
Bigger picture: It is a cycle that every country go through when they suddenly experience political change. (Study Japan)
The projection is still the same. We will be in a choppy sideways until we form a decisive political landscape.
a.k.a All politicians finally decide which side they are on (get their share) and start looking ahead.
Perhaps we should replace all govt landscapes with public food landscapes for all Malaysian residents.
Public food landscapes using Malaysian contract workers hired by the government..Perhaps government should plant Coconuts, Breadfruit, Keledek and Sweet Date Palms in public food landscapes instead of planting inedible trees.
keep consume import product, relied on foreign investor and worker plus grow economy based on industry commodities not basic need commodities... there you go
The comments are incorrect... Palm oil exports are traded & sold in USD spot market prices...Prices are determined by Supply & DEMAND. Therefore Palm oil export prices are not determined by (lower) Costs , but actual demand from consumer countries. Please do not mislead
All Thanks To Very Smart PM as Finance minister also...Busy playing Political and Total Fail Doing His Job as Finance minister.. Malaysia Urgently need Full time Finance minister not a Greed clown who know nothing about Economy....he the same person who fail To lead Malaysia In 1997 monetary crisis.... I'm not shock at all If Ringgit Fall Double or more than today Current value because of that Joker...
Hopefully the govt will collapse... Coalition govt doesnt work. It will fail due to ideological difference.
@@sdm3032 they will...
This is why Indonesian let the Currency remain weak for weakened weak currency itself drop still reamining low around 0.0001% per days and strenghenin 0,00005% per days estimately
because Indonesia export commodities dominate based on domestic product and not likely from investor product commodities
one must not forget Weaker currency also makes ur country's top talents like a doctor or scientists who make RM 10k for example, may decide to work in Singapore for 6k SGD or USA for 5k USD as their currency is much much higher also.
so if u have a weak currency it benefit exporting natural resoruces and goods but ur smartest ppl may not want to work in a country that pays them so low.
imagine if u make 10k ringgit a month, you probably have a hard time planning a vacation for 4 to USA for a week maybe.
There are pros and cons of a weaker ringgit.
Therefore, we needed “capable (right) person, who are able to make the best of it, for the benefits of its rakyat.
And definitely not fighting for position for his or her own agendas.
Unfortunately we can never have anyone capable for the job, even if there one, he wont be able to make any notable changes without being stricter or forceful
The people outside the coutries can buy anything in malaysia..the sales will growing up and make the company stable..it is good also for malaysian economies..
very terrible to invest in Malaysia😱
Really?
Samsung invest USd 2 billion recently to make EV battery factory in Malaysia last year.
Foxcon invests too.
Another South Korean company invests billions to build factory to amke coils used in EV
📉📉RM didn’t 😊happen recently but since 40-50 years ago .
🇲🇾 leaders kept on saying it wa KL s US rate hike or poor China economy but never blames themselves.
And kept on saying it is good for tourism.😂
If it’s good for Msia why not devalue to USD$1 = RM10 then?! Your argument doesn’t hold water for long run, esp keep dropping annually. Look at Singapore. Their exchange has been getting better but no problem at all
Most countries use tariffs to control imports and protect local producers. Why would Malaysia need to lower currency strength to protect local industries...
tarrifs is a form of protectionism that go against the concept of market economy and globalisation.
@@JeraldPham Doesn't stop a lot of people from doing it.
top import item is integrated circuit, refined petroleum and products, machinery, etc. increasing tariffs on these will put local manufacturers at a disadvantage
@@patrickgz TBH though I suspect that is only a small factor that people blew up to something it might not support. I mean, when I go shopping, price isn't the only thing that affects my decision, there is also coverage, i.e if I can find the product easily in stores, how useful it looks and if it has a good reputation. In fact, just think food, when you go shopping for food, is price your only judging criteria? So IMO while it is a factor, it might not be as heavy as people sometimes claim it is.
WHY MALAYSIA CURRENCY VALUE DEPRECIATE COMPARE TO SINGAPORE
1) Malaysia is export oriented economy like the video suggest, Singapore is import oriented economy
2) Singapore has clear macro goal.. where by Malaysia is not clear... what i meant by that is simple.. scenario 1= when an economy is in recesion clear micro goal is to increase unemployent back to full output by using 2 tools at disposal which are A) expensionary fiscal policy = reduced GST and increase budget and B) expensionary monetary policy =by reduce interest rate.. however unfortunate cost of expensionary policy are higher inflation, currency depreciation, increase in national debt.. scenario 2 = when an economy in inflationary gap (that the world in right now & past year ) when inflation above target 3% to get back to target 3% the tools are A) contractionary fiscal policy = increase GST and reduced government spending and B) contractionary monetary policy by increase interest rate.. however unfortunate cost of fighting inflation are lower economic growh (drop in gdp) higher unemployment, business lost of revenue, down stock market but the good thing is currency appreciation, lower inflation and cheaper import.. so back to singapore , the gov had made it clear that they want to fight inflation as priority so they increaase GST to 8% this year and increase further to 9% next year (contractionary fiscal policy) at the same time agresively hike interest rate (contractionary monetary policy) at the cost of slow economic growth that alone clear macro policies allows its currency to appreciate... where by malaysia like PMX said want to fight inflation but last budget its seems to be Expensionary thats why, it will make inflation worst and depreciate currency.. also too much politicing on interest rate hike make BNM too slow on hiking the interest rate made currency drop even worst and did not help counter inflation either because BNM are too slow on hiking interest rates..
3) Malaysia tax system are still using old school 19th century supply side tax system.. where by the rest of the world already adopt demand side tax system called GST/VAT... GST/VAT are the best demand side tax system and better suited for current modern economy... thats why all countries around the world accept malaysia adopt GST/VAT.. without demand side GST - ability to use Fiscal policy to engineer the economy rather to expend or to contreact are much left ineffective thats why we end up this B40 M40 T20 thing.. because our current supply side tax system are ineffective fiscal tool .. for singapore and the rest of the world is simple.. they just adjust gst/vat rate no need B40 m40 t20 or targeted subsidy.. malaysia current supply side tax system are simply not efective.. where by for singapore is super easy.. when singapore in recession unemployment gap all they need to do is to reduce GST rate and reduce interest rate to acheived full employment.. when singapore in inflationary gap (inflation rate higher than 3% target) they just increase GST rate and interest rate hike to achieved 3% target. easy.. like they did currently and during covid years.
4) malaysian habit to spent overseas also give and significant impact on currency value.. did u know that 800k to 1million malaysian muslim do pilgrimage per year.. each cost about 100k to 200k per person.. thats close to 100billion ringgit MYR being sold to forex market making oversupply on ringgit in the forex market.. thats muslim pilgrims alone not to mention malaysian loves to go on vacation.. although impact are generally small compare to export markets and bond markets but it does contribute significant number on MYR currency depreciations...
Please use more local products and food items
It is time for the finance minister to resign. Pick a new finance minister with the right qualifications, knowledge and experience. The present one is clueless.
Moving out of malaysia. Now coming back for a vacation for holidays. ! Yay our canadian currency makes me rich 😂☠️
Isnt canada in a shit condition rn tho
@@JC-tg5xx how?
@@3000A.D at least according to someone i know in canada, if you are living well that is good, not so much for the rest of us
@@JC-tg5xx it's alright I guess. It's high cost of living. Getting worse.esoecially Ontario and BC But it's not a shit condition here, this country is better off than most . Just have to work hard.and be able to support yourself. There isn't the same barriers here to face like what I faced in Malaysia .
@@JC-tg5xx that applies literally any where in the world ..
25 years after Asian Financial Crisis still no balls to fully float the Rm and allow offshore trading. Reforms not done and bail outs continue for zombie bumi companies. And we import inflation with our weak currency.
The solution for Malaysia is pegging the ringgit by hedging the export commodities.