Is Malaysia as abundantly rich in foreign reserves as it is in Southeast Asia? Narrated by Tom McKay Video Edited by iyanbriandi Inquiries: behindasian@gmail.com Brought to you by the Behind Asian Team.
One topic that frequently dominates discussions in Malaysia is foreign reserves. What sets this particular subject apart and makes it significant for Malaysians?
they are already trapped in import-export game, plus high debt, we in Indonesia are different even though Indonesia's FDI is high but we are trying to buy their shares even if it's only 10% but we are trying to be more than that, a complex system how technology transfer continues in Indonesia. Malaysia is not open but we know what's going on.🤣🤣🤣
@@maumuapa4198 Malaysia ranked 24 in the Economic Complexity Index (ECI 1.09), and 21 in total exports ($333B). That same year, Indonesia ranked 61 in the Economic Complexity Index (ECI 0.042), and 27 in total exports ($248B).
@@asia.network5475 Malaysia has a surplus of 25 years lol, you don't need to count this year's surplus, but where is the money going, that's why you could say it's a trade trap. there is a saying that we will not be lazy to run if we are not chased by dogs. we in indonesia just want to relax. ECI only measures how fast you run, with high debt you have to run like Singapore, because America is in debt.
What you have failed to mention is that Malaysia does not rely on foreign reserves only to maintain its economic position. The country has two fund management companies that are in the top 10 in the world. It also has Southeast Asia's largest Fortune 500 company that is fully owned by the Malaysia government. Malaysia also has fixed assets in the forms of properties around the world. These are in hundreds of billions of US Dollars. So that is why Malaysia has a far higher credit rating than all Southeast Asian nations, bar Singapore.
@@mohdazminishak6387 and the others are Lembaga Tabung Haji (significant investment in Tabung Haji and Bank Islam), Kumpulan Wang Persaraan (KWAP) and Lembaga Tabung Angkatan Tentera or LTAT (significant investment in Boustead Holdings and Affin Bank)
I hate people like you. why do you spew lies that can be easily fact-checked with just a simple google? Khazanah, total managed fund RM130 billion, barely crack into top 30 worldwide sovereign wealth funds. EPF, total managed fund RM1 trillion, is around top 20 worldwide pension funds. None of them come close to "top 10" even in their own fund category. LMAOOO
Could you tell the other fund besides Khazanah? If I’m not mistaken only khazanah Nasional can be consider as one of biggest fund in the world..others does not count including KWSP..but if KWSP is one of it, make sense coz KWSP now have around RM1 trillion equivalent USD450 billion..plus minus others..Singapore have 3 of them.. Other than Khazanah, what is it? Petronas listed in 500 fortune in Forbes..about the other fund I have no idea bout it.. en.wikipedia.org/wiki/List_of_countries_by_sovereign_wealth_funds
Malaysia is such a lucky country. So much pessimism but we are still chugging along. Our financial parameters are not the best but also definitely not the worse. I guess it is the whole package which gives this place its charm. Personally, I think it would be the better for countries to work towards a balanced budget. For us that would mean reducing both our foreign debt and reserves in tandem, spending within our income and working harder if we want more. We have a long way to go.
😂 agree with u regarding pessimism.. malaysian complain too much, even badmouthed their own country, without realising how lucky we are compared to so many countries.. in term of harmony, health system, education, freedom, citizen welfare & so on.. but yeah, we like to complain tooo much 😅
*Welcome to Malaysia truly Asia good food, people beautiful beach, skyscrapers & others, Msian likes to lepak Mamak drink Teh Tarik Jom joining Malaysian 🇲🇾💙🧡♥️💙🇲🇾*
Commercial entities exports might not have a direct relationship with dollar reserve holdings, rather the country’s denominated debt and the country’s intentions on relying on foreign debt on its domestic growth … non the less more would be better but the amount in general is subjective depending on its reliance on international funding
Title is clickbait. The subject is very complex but hopefully a brief summary is useful towards a better understanding. To increase Foreign Reserves is basically productivity, High output with less input. Foreign direct investment is when capital move into the country to utilise facilities within. Can be setting up factories or investing in the Capital market. However the infrastructure is a must to support the industries. Airports, roads, ports, logistic support and pools of educated workforce. Capital markets is an attractive option when foreign equity funds put money in Govt Bonds or invest in shares of listed companies at our stock exchange, but it must be noted that Capital flight exit just as fast when other Markets perform better or other Central Banks offer higher rates like what the US is doing. (Hot money) Tourists arrivals with planes loaded and hotel rooms booked, add to that, local tours, souvenir, handicrafts and food etc. Ten million visitors outside our border have visited since reopening and they bring in monies earned elsewhere. They contribute to various sectors of the M'sian economy. Export more and import less. It's very challenging when worldwide economies have not recovered. There are necessary imports for the added value to goods, but the US/China chips war can be a good illustration of import substitution. China's import bill of Chips total hundred of billions but with US restrictions, they accelerated R&D to produce local chips. Year on year, local champions emerge to significantly reduced imports saving the scarce foreign reserves. M'sia, a blessed country, with no major natural calamity but plenty of resources and fertile land, can identify imports with substitution in mind. Present foreign reserves are adequate but not at the comfortable level and "Malaysia Boleh" definitely can do better.
@@tunkulailitunkushahriman3939betul tu. Tgok dari level reserve ni dah tau Malaysia lebih selamat era najib berbanding era sekarang. Ada logik pmx berusaha nak kurangkan debt, supaya level selamat ni pulih semula.
kepala otak ko. Zaman Najib duit pesara tentera tak dibayar caruman LTAT akibat dari krisis 1MDB dan ramai pesara tentera duduk bawah kolong jambatan 😂 @@shahrin7073
I agree, Malaysia should compare with Asian peers like Singapore, Hong Kong, Taiwan, Japan and South Korea. If we compare with the ones better, then, will improve. You compare the ones worst than us, you will eventually be even worst than the ones we were worse than.
As a Malaysian, this video makes Malaysia looks too good to be true, currently Malaysia is on its way to have the worst USD exchange rate, RM 5 = 1 USD 😢 I miss the good old days it was less than RM 3 = 1 USD when I was growing up
For dummy economists like me and most of us, base on exchange rate is the only thing we can compare, there are so many strong evidence such as SGD, GBP, AUD
Misleading. A country's financial health is not about forex reserves but it has to take into account the country's debt. Malaysia's debt if you include contingent liabilities can reach 90% of GDP. One should consider the total reserves of a country and not just reserves held by the central bank. Also, the economic capacity of a country to pay for the debts is critical. Malaysia's debt has been rising the past decade and this is not good at all.
97% debt dalam Malaysia, 3% debt dengan negara luar macam china, 18% dari income bulanan Malaysia kena guna untuk service debt adakah ini di namakan kritikal? Jika reserve ni turun n turun ya itu memang kritikal. Jika stay macam tak berguna, jauh lagi nak kritikal.
You have a very good point. The key is total household debt against GDP. This is also the reason why bank Negara did not raise interest rates that much, because my raising interest rate high, it will prevent out flow of funds out of malaysia, however if interest rates is too high you will start seeing people defaulting on loans repayment and which will hurt every economic sector of life and degrading of quality of life.. leading to financial and social issue.
Our currency is weak because we do not have enough foreign reserves. 100bil+ isn’t much compared to our neighbouring country. We need at least US$250bil to see our currency strengthened
Are you sure a small country needs to have that much forex? Malaysia's forex of 115 b is higher than Canada's 106 b, Spain's 87 b, Denmark's 74 b, Norway's 70 b, Australia's 58b, Sweden's 54 b and the Netherland's 54 b. I had to leave out many other EU countries with lesser forex due to space limitation.
@@brandenburg2388 Ikr. I am waiting for someones to reply your comment, "Why you compare Malaysia with Canada and EU nations, Malaysia is developing nation, those are developed nations." 😅
I have a very crucial question pertaining to foreign reserves. Who are the owners of the foreign reserves of a country? Does the government fully own the money or the private entities (private companies / individuals) co-own the foreign reserves. For example, If a Malaysian citizen (individual A) has a savings of 1 million USD in his foreign currency account, is that money taken into account as foreign reserves of Malaysia?
Are you still in elementary school? Check your spelling.. and please study so you dont come out with rubbish comments that make you look very very stupid...
The south east Asian countries should invest in infrastructure like western nation instead of high Foreign reserve. They should all have the very fast train, highway , road, aiport, port. To become a rich nation, you need perfect infrastructure. The finanical crisis in 1997 destroy Thailand, Indonesia and South Korea financial system and bankrup the country
1997 is nothing to do with not enough foreign reserve. It is just the USA attacking asia financial system. They try to do the, same in Hong Kong but fail
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Malaysia's foreign reserves compared with Taiwan's $567 billion is only "a drop in the ocean".
It doesn't change at all as the amount of US Dollars in the forex remains the same. $ 115 billion is still $ 115 billion yesterday, today and tomorrow.
Japan has the highest debt in the world along with Singapore. Debt doesnt mean anything in the world economic order. Its debt servicing that matters. Thats the reason Malaysia has a very high credit rating compared to all it neighbours, bar Singapore.
Lah ko ingat hasil kerajaan madanon ke foreign reserve ni bodo tol walanon ..berapa puluh tahun nk kumpul tu hg ingat madanon ambil alih terus ada 100billion usd ka bodo😂
Sabah is already resolved. Read the news. The Sulu Sultan heirs are required to pay $400,000 worth of damages. They live in papan housibg, where do u think they are going to find this money? Do u think they will think twice to fight this case again? Lol.
@@secrets.295 Do you think it's that simple? even the united nations agreed at that time. the hearth of the sulu people recognized that sabah is part of sulu. when the spark awakens, many people will be destroyed in this battle forever. only time waits for what we fear. concrete solutions are needed and the complication will never end.
@@alice.wonder...Msia is not an agressive countries & abide thru law ..that's why every disputes went thru discussion or court & as it is right now all the Sulu's claim has lose in court....whoever their backup will think many times as this will incurred huge costs & if they lose again then all the money gone....
I dont think Malaysia has too much Foreign Reserves. Absolute reserve size comparison is not right; other metrics like months of imports is more relevant. 5 months of imports sounds like trouble. Malaysia spends too much of subsidies, I think. Politically, it is a sacred cow; people have become more dependent on this subsidies without regard of reality of prices in global markets. Productivity needs to be improved as well. Bank Negara Malaysia needs to recover some of the credibility it lost under the previous leadership and be more transparent. Just a quick brain dump :)
The government is slowly, but surely putting a stop to these subsidies, no pain no gain, people need to realize that to give more room for government budget to be used in a more productive way and thus grow the economy, it is a painful journey we all need to go through together
As a rule of thumb, a country has to maintain FX reserves at least 3 months worth of imports for it to be sustainbale. So 5 months for Malaysia is good enough. No need to panic. Our trade is always on surplus (Export>Import) and only 3% of Govt Debt is in Foreign Currency. Bring back GST and cancel fuel subsidy. That will put our fiscal condition in a better position.
@@0900370pian except that politics is not always that simple, bringing back GST or introducing any forms of alternatives will surely receive backlash from oppositions and their supporters, which can dampen the government 's political intention to push it through
Why don't try to explain why Malaysia is in so deep a debt of USD 320+ billions even when blessed with rich natural resources like petroleum, rubber, palm oil, timber & etc...?? Better still, why its neighbour, Singapore is outperforming Malaysia many times better even with ' zero ' natural resources..??
Follow singapore increase government revenue reintroduce gst 5 percent, our reserve will surely increase. Country may be rich but people suffer, like many Singaporeans days and nights always think how to earn money until many commit sucide and mental problems, no live no happiness.
This not really show the real economy of the country. Lots of people here are getting a lot poorer. Big Cooperate and rich are getting richer. The strength of the currency going weaker on each passing year.
Neoliberal capitalism which the former PM Dr Mahathir embraced, is at fault. Year-on-year, percentage of labor income as a percentage of national income suffer either stagnation or reduction from time to time , whereas corporate profits as a percentage of national income kept increasing. With most of the income going disproportionately to the already rich , it is inevitable that the wealth gap between the rich and poor widens exponentially over time. The world over is headed towards late-stage capitalism. If things do not change for the better, expect more financially precarious working poor and destitution in the years ahead.
😮🙏 What?! Malaysia still needed to Repay RM$Trillion+ Ringgits of Foreign Debts with Interests as of 2023 ... Looking at the current management of the Malaysian finance & the treatments of Foregn Investments with so many illegal race & religion based boycotts & the looming 2030 European Union restrictions & high taxes on fossil fuels & unsustainability produce ... Malaysia's Petronas & Palm Oil industries will be greatly be impacted & thus the revenues of Malaysia will be affected if the government of Malaysia / Putrajaya , is still relying on the phasing out fossil fuel & palm oil industries instead of learning from other countries in dealing with the challenges of creating & investing in Eco-Friendlier & Sustainable industries now before 2030 , which is just 6 years from 2024! Malaysia should be planning & executing these Urgent Changes of Managing Future-Proof National Economic Master Plans 20 years ago! 🙏🕯🌍🕊🇲🇾
Australia also much bigger country, highly developed economy and AUS Dollar is high. But their FX reserves only USD 38 billion. How do you explain that?
This show that Anwar Ibrahim as PM is very capable and managing the country's finance in proper manner despite the 1MDB debacle. But Malaysia is plagued with race and religion issues that prevented Malaysia from becoming a Asian Tiger like Singapore. In the last election the racist party, PAS made headway with Hadi and Bersatu aka Muhyiddin using race and religion as their electoral motto. Malaysia will never come up if the country allow these parties to rule Malaysia like they did before the coalition of PH brought them down. Even arabic countries do not use race and religion to win election but PAS and Bersatu use these 2 issues as their only program to make headway. AS LONG AS MALAYSIAN ALLOW PAS AND BERSATU TO RULE BY RACE AND RELIGION THE COUNTRY WILL ALWAYS REMAIN A BACKWARD COUNTRY AND HAMPER IT'S ECONOMIC PROGRESS.
@@yogasetiaone Debt as a percentage for Malaysia is still lower than the Philippines, Indonesia and even Singapore. Malaysian debt levels is 87% of GDP compared to 150% of GDP by Singapore. Also Malaysia has one of the highest debt servicing ratios in Asia, which is why it has an A- and BBB+ credit rating compared to the B- and C of other Southeast Asian nations. Meaning countries and world financial institutions have more confidence in lending to Malaysia compared with lending to Indonesia, Philippines, Thailand and Vietnam, all of which have difficulty getting foreign loans (except from China).
For a huge country to have only 115B in reserves as compared to tiny Singapore with 310B - No wonder the ringgit is so weak. Najib probably has 100B taken out from it ! LOLsssss
Blame on Najib's thieving government OneMalaysia policy resulting in 10years of development setback. 1 dollar for ordinary Malaysian, 1000 dollars for himself and wife.
Seriously big cannon 🇲🇾 is ranked 20th highest 🇸🇬 has 3x of 🇲🇾 Even tiny countries like HK / Israel much more than 🇲🇾 Google Statista foreign reserve ranking
Sulu/PH need to resolve 2 legal aspects before making any claim on Sabah from Malaysia. Firstly, Sulu need to show undisputable proof that earlier, Brunei Sultanate (original owner) give North Borneo (Sabah) to Sulu as a gift for assisting in the Brunei’s civil war. This is to rebuke the existence of 29/12/1877 agreement (consist of 4 agreements) signed by Brunei Sultanate that grant the whole of North Borneo to British North Borneo Company (BNBC). These agreements exist and keep in the National Archives in London. The word “grant” been used, and it has never been challenged or protest by Brunei, even when the British turned North Borneo into British Charter (1881), Protectorate (1888), Colony (1946) and finally British Parliament under the Malaysia Act 1963 incorporate it into Malaysia. Secondly, let assume North Borneo belongs to Sulu. Sultanate of Sulu signed many agreements to relinquish its territories and dependencies (including North Borneo) to the colonizers. These include the Bases of Peace and Capitulation Agreement with Spain on 22/7/1878 and Carpenter Agreement on 22/3/1915 with the US. Later Spain and US relinquish North Borneo under the Madrid Protocol 1885 and Anglo-US Border Convention 1930 to the British respectively. At the end, Sulu has nothing. Rebut with facts and references. Not hearsay.
Initially on 22/5/2019, Madrid Court appointed Dr Stampa as an arbitrator who later grant final award with the sum of US14.92 billion dollars to Sulu against Malaysia. This Final Award became the basis used by Sulu to enforce the ruling for all their claims in other courts in France, Luxembourg, and Netherlands. However, on 29th June 2021 the same Spanish court later overruled its earlier decision and invalidate Dr Stampa as arbitrator. Sulu appeal to the annulment of Dr Stampa as an arbitrator to the Spanish Constitutional Court but on 2/2/2023 the court rejected their appeal. This court decision is final and cannot appeal by anyone. Spanish Constitutional Court is the only authority in Spain that can correctly interpret any law in Spain. Thus, the earlier 2019 decision by Madrid court is thus unconstitutional and invalid. On 25/5/2020, Dr Stampa brought the claim to be enforce to the Paris court based on the Final Award. If to strictly follow French Law of Arbitration 2011, Sulu MUST show the arbitral agreement or clause with Malaysia which is non-existence. The President of the Paris Court of Justice on 29/9/2021, still recognized Dr Stampa as an arbitrator as rendered by Madrid Court in 2019. Dr Stampa then make decision to grant the Final Award with a sum of US$14.92 billion to Sulu on 28/2/2022. However, on 12/7/2022, Stay Order was imposed by the Paris Court of Appeals. Sulu appealed the court decision, but the court decided on Tuesday (14/3/2023) that the appeal filed by the Sulu claimants was inadmissible and dismissed. Further, the Paris Court of Appeals on 6/6/2023 rules the arbitration court (Paris Court of Justice) that ordered payment to the so-called Sulu heirs did not have jurisdiction in the case. The Paris Court of Appeal’s decision will likely cancel an award of about US$15 billion over territorial claims related to North Borneo (Sabah). Same will goes to the other Sulu claims in Luxembourg (first round Sulu lost, making another attempt and verdict on 27/6/2023) and the Netherlands (hearing was on 19/4/2023 and verdict in September 2023).
@@hopelope1703 even the united nations agreed at that time. the hearth of the sulu people recognized that sabah is part of sulu. when the spark awakens, many people will be torn apart in this battle forever. concrete solutions are needed and the complication will never end.
Because Malaysia is a political slave to British, and british is an ally of the US, the correct Question is : Are the English Commonwealth countries politically bound to British? Can politically bound Commonwealth countries influence the economy of their respective countries? For all of you who have just studied Chapter 1 of world political history, it is easy to answer both of these questions.
Please don't use that word. Malaysia is a small country, linkages and partnerships with key countries around the world is good. Look at the southern neighbor that's a good example.
@@perrycheong1058 🤣🤣 the fact Is Tesla more interesting invest in malaysia than Indonesia, US, Australia, British and French Companies loss so much money until The Indonesian government acquired Freeport shares
