Malaysia's Ringgit continues its decline, becoming one of Asia's biggest losers. Narrated by Tom McKay Video Edited by iyanbriandi Inquiries: behindasian@gmail.com Brought to you by the Behind Asian Team.
Why do you think the Malaysian Ringgit has been declining? Is it because of the US Dollar, international and domestic issues or a mix of everything? Let us know down below!
Not only because of US. Couple possibility reason: 1. In malay, there are more than 1 mio foreign workers whom bring their money out of malay. 2. They have billion debt in $ from previous gov 3. Unequality of ethnic in politic and society caused fragile nationality and often point up as sensitive issue.
@@hjavaDebt from previous government is not a valid excuse since lockdowns happened during last administration and they still do better than the current😂 Malaysia has no excuse for their poor governance when current South Korea administration has similar shitty situation as Malaysia yet still doing better.
Basically, because of high household debt (82% of GDP), the government doesn't want people to lose their homes or cars. Hence it can't raise interest rates too much. Also, inflation is in check so no need to raise interest rates too. But it is in check because of government subsidies, which worsen the deficit. Hence the Ringgit drops. One more factor not mentioned here is the limited OFFSHORE Ringgit market. As Bank Negara doesn't want local banks to participate in this market, there is little liquidity, so it's difficult for fund managers to hedge so less funds come. Also, this increases the volatility of the currency
@@harukrentz435Malaysia spends its state budget and loans to subsidize unproductive things such as rice, oil, sugar, eggs, meat, petrol, etc. Prices are cheap because most are overly subsidized.
@@MSDGroup-ez6zk The subsidy system malaysia does is a direct ones, fixing price ceiling for items. Just for comparison , Singapore probably subsidize via propping up its currency and hence imported goods especially food and energy are cheaper. So I would think Malaysia should have long remove the subsidy system especially the direct ones as this promote wastage for the rich (heavily subsidize the top) and the lower income get less as they buy less. Let’s hope something make sense they are coming up this time in rationalizing it.
Malaysia is addicted to cheap foreign labor, businesses are unwilling to pay more for labor and thus give visas easily to foreigners. These foreigners use Malaysia as a springboard by using Malaysia as a place to stop before moving on to better economies i.e. USA. Secondly, exports requires low and persistently low currency. This is a very huge driver for these industries because of Petronas and palm oil.
Should we also take into account that most Malaysian are also unwilling to do these kinds of Labour? Ask any Malaysian if they would like to do hard labour as their career path, 9/10 of them would say no. These hard labour jobs are often looked down upon as Malaysians think that there is no career growth and no future for such jobs. Garbage guy? No Future. Construction worker? No future as well. Malaysians don't encourage their younger generations for such jobs because its been cemented inside their minds that hard labour jobs such as these are for the lowest of the lowest class. Thus resulting for corporates to import foreigners who are willing to do the job instead.
@@jarretfaisal Ah yes, because most people would like to work hard labour, where they pay you barely above minimum wage because there's already a readily available pool of foreign workers. I've worked with these foreign workers, do you how they live? Up to 10 people in a single 3 bedroom apartment. I don't know bout you but I wouldn't want to live like that with crap pay in my own country.
@@jarretfaisalreason being the pay is shit, a running joke we used to have here is collecting garbage in sg makes more than a 9-5 here, other countries pay these people that do hard labour well enough for it to be a viable option for less educated people.
totally..most bosses dont know from money comes money..include the govt..when it comes into wages to local every company want to pay less..at the end whos lost?
@@jarretfaisal have you entered any factory or construction site? There is a lot of local working in those sectors if you actually go in and work there. Funnily enough, these foreign worker are more demanding and lazy the longer you work with them. The pay also very bad and we can barely living with overtime and working more than 11 hour everyday. Also most of the time we can only apply job through contractor which most of the time pay less than the permanent foreign worker there. The problem is not people don't want work hard, but it is because labour worker have been exploited too much while the economy going down. Working in those sector also make me realized that the workers also have no protection or regulation whatsoever, as none of the management try to educate them the procedure when they harm themselves and some even got gaslighted that that is the worker responsibility. In the future if you become a part of management in any company or the head even, please look and treat people under you as human not statistics.
Living in Kuala Lumpur as an expatriate, earning in Euros snd spending cheap Ringgits is a blessing for me, but I see the struggle of the netizens all around me. If only Malaysia had a stable and strong government, things could be so much better.
They did have a stable and strong gomen, during Mahathir's 22 years in power. However, the old man put in policies and spent $$$ that may have made Malaysia look good temporarily but without any long term substance that would have given the country a proper foundation for future growth. In fact, it was the start of a new era of of corruption, easy-money and no- accountability. Malaysia has been on a downward trend since, just look at the quality of leaders and the scandals. SGD to RM 1:5, coming soon.
@@iancharles9222 no what? You come from a planet of brain readers? are you capable of intelligently emphasizing your response like an adult? When is your bedtime, kid?
Old timers like me will remember when the ringgit and the Sing were on par and interchangeable. I think it was when it hit maybe 1.20, that the busses stopped taking Malaysian coins. Then sudenly no one took ringgit in SG any more.
The Malaysian economy is simply not strong enough as people are struggling with low wages and low savings. And then we have this boycott that further erodes consumption and weakening our economy even further. The answer is opening our country to more tourists to bring in more foreign exchange and not to bother the tourists excessively.
I was actually surprised witht the Ringgit. It used to be 14 PH pesos to 1 MY Ringgit. Now, I can change 1 Ringgit with 11 Pesos. Our currency has depreciated a bit vs. dollar but Ringgit's depreciation is more.
@@ronnienestorPreviously, RM 1 could be almost Rp. 4 (referring to 4000, if you redenominate it, remove the 3 zero digits at the end rupiah ), now RM 1 becomes Rp. 3.2.
Well, if the govt wants to not bother tourists stop charging this 10RM/per person per night hotel tax and then in Penang and Melaka they charge another 2RM and ask you to pay in cash at check in. Yeah, it's not a lot of money but it's super annoying and not something you deal with in Indo, Thailand, or Vietnam. Also, paying 2x the cost for beer definitely reduces tourism. I understand ppl have their religious beliefs but you need to be more tolerant of others. It's a huge reason Malaysia doesn't attract as many tourists as Thailand or Bali. In Cameron Highlands I even saw many homestay listings that said "Muslim Only". This is absurd.
Malaysia's foreign exchange reserves have been shrinking for a consecutive 10 years. Despite the outdated protectionist policies, the government continues to implement them, resulting in a brain drain as talents leave. The future outlook for the Malaysian Ringgit remains bleak.
Because, we have a prime minister who doesn't focus on fixing all the economic issues, instead barking like mad dog all over the world trying to be hero.
said the one who had negative economic growth under his administration don't blame covid now other asian nations in 2021 were able to recover back the growth they lost in 2020 and about going around the world lemme ask u ask hadi awang to help palestine he is after all an influential muslim isn't he? 😂
This channel viewer supposedly don't have someone stupid that oversimplified the economic conditions = value of the ringgit, so it's obvious that you doesn't understand the economy after all
Every one of your PM have since been a barking dog, so what's the difference between pervious ones and the current one? Maybe the Bumi should SELL Johore to Singapore and let Singapore show you Bumi in a short period of 5 yrs, what Johore will beome instead of a ghost town now!😆😆😆🤣🤣😆😆😆
The bigger issue is no confidence in the government leader. He doesnt guve confidence in being able to manage. Instead he is a doomsayer, not givingvhope for investors. All he does is complaining about previous governments flaw instead of intervention
As a whole, it's really about the leadership of the country, what the society really wants from the point of view of the people who exert the most influence on the power structure of the nation. It is clearly not in the interest of building a strong economy and an advanced society - tech wise and mentality wise.
Too much Malaysian Ringgit goes out to Bangladesh, Nepal, Myanmar, Vietnam, the Philippines.. Meanwhile the money entering Malaysia is not that much.. That's why the exchange rate continues to fall In a digital era like this, all online marketplace, transportation, logistics and financial applications are also increasingly being used by the public. But as you know most of the app used in Malaysia are app from Singapore. of course the royalties from each transaction will go to Singapore. While the public's demand and need for this digital application platform is very large and grow rapidly in Malaysia. That is the reason why the Malaysian Ringgit continues to weaken against the Singapore dollar. Not only malaysia but all of ASEAN country.. But I think malaysia is the worse
It's clear most money went to China considering most plastic and electric products and of course phones have "made in China" at the back and that's already a thing before internet is a thing. Now with internet it's far easier to happen. I can confirm that every household in Malaysia have a made in china product
@@fakhrianuar made in China products are cheaper. you are free to buy elsewhere. in which case even MORE money will flow out of your country, albeit not to China. blame yourselves for being unable to manufacture your own products.
In my experience, it's been a lack of professionalism and work ethic while attempting to do business in Malaysia. I believe better company management is the key to telling the world Malaysia is an ok place to invest in.
Those who came said that he avoiding the heavy taxes in his own country. In Malaysia they gave them special rates. Even HKongers said he can saved more in Malaysia than in HK. Only people who are in business knows better. In developed countries not easy to escape tax. Why wages are paid weekly and not monthly?
@@shukriramleetemporary u say? All the depreciation and weakening of ringgit didnt happen overnight. Its been 43 years since singapore split with malaysia and rm is still going down
@@shukriramleeyo wtf, why you mention indonesia out of nowhere ? comentators doesnt even mentions indonesia in his comment. are you wanna being profocator or what bozo ?
@@shukriramlee...ringgit flop just temporary? Yah...it has been temporary ever since over 60 yrs ago when LKY told you Malays, you ppl cannot run your country...PROPERLY. Guess for Malays...anything over 60 yrs and even more is just.....TEMPORARY!!😆😆😆🤣🤣😆😆😆
Malaysia politicians and opposition politicians are using race and religion based economic policies instead of comprehensive and holistic economic policies regardless of race and religion uphold the meritocracy regardless of background and territories towards high standards and good governance not race-based, every countries economic taken off from the ground Malaysia still struggling or stuck at religion and race issue deterring proper economic policies implementations, that is why Malaysia economic structure still stagnant that low value added industry due to politicians step back rhetoric to affect unity of Malaysian to gain its position to reign a country before Asian Financial Crisis 1997 caused by George Soros and his fellow traders.
Yes, it's crazy they wld drive away the brightest Chinese and Indians Malaysians. Malaysia is pretty rich already but it wld be way richer if it didn't drive away many of its top students.
In the long run, a country gets a currency value its politics deserve. It is no fluke, it is a public collective decision whether to support the hard things that fosters and sustains a strong currency. This includes raising productivity growth, increase returns on productive capital, ensuring public finances are sustainable, etc.
Exactly, like you said. It was just a stroke of luck after WW2, that a country across a bridge had a totally different leader like LKY and that country ISN'T AN ISLAMIC COUNTRY!😆😆😆😆
@@TankEngine75 ...rich your kam lan, rich does not mean just being 'having money' you need to have proper morals, ethics and above all human rights and low corruption. You sure your Gulf states have that? Uncle Sam is laughing like hell as I type this!😆😆😆😆😆
the cause may be because Malaysia's debt is high, almost 90% of GDP, Second, because exports have decreased, then perhaps because of political instability, the issue of racism in Malaysia is very strong, in fact Malaysia is the most racist country in the world.
@@shukriramlee so, what the point of thats with you being racist ? you said "indon's pov indeed shows" is racist, you generalize whole country cause one comment.
our problems did not start this year nor last year. it is an accumulation of our lack luster efforts, inefficiency and mismanagement of the nation over previous govts. this govt happens to inherit this basket of problems and now they must solve it. this is the job for this govt
Not an easy task when estimated 4.5T were stolen and most of the money deposited overseas. It's a very hard taak for our present. Itmay take years to do it.
i think PMX responsible for it…..he promised so many reform before became PM…..but it getting worse and none were true….the investor feel cheated and cant trust politican who lied so much….
Frankly a rascist Malay first economic policy outlook and unbridled corruption has stunted growth and reinforced inefficiency and low productivity. There is no meritocracy and it shows up in Govt, Malay Businesses,Acadaemia etc. This once promising economy is headed south. Then to add to the misery we have religious fundamentalism much al8ke what afflicts Pakistan etc. Simply put its a toxic soup with little hope for the ringgit or economy.
Maybe if some politicians focused more on the economy rather than trying to protect their sacred religion by cancelling concerts and what not, maybe our economy wouldn't be so bad.
@@moseszainal4119agree..maybe stop blaming others, focus on productivity, being positive and always good insight of where you are going is going to help - starting from ourselves
Just a simple answer here Singapore , Malaysia , Indonesia It’s not about racist, but u can see which races leading the country will be the top here This 3 country have the same races in it But different leader in the country Make it HUGE different Cuz when the people are raised by outdated brain and logic , Money and business are not the priority, the country will never see the future China is the same problem now Their gomen not thinking about the business thing , but serve the Xi king and licking shoes are the priority Who have time to think about business ??
I think in the current world of geopolitcal chaos, Malaysia is doing pretty well. Now FDI in 2023, exceeds RM100B just from projects from China, and new FDI injections from Tesla, Apple, Micron, etc. So that's good. Now weak ringgit will attract all the birdies (that go cheep-cheep) from the south or even further. That's good for our retailers. For our manufacturing it's good due to our export prices will be cheaper now for the dollar. The only category being hit are the importers. Or more generally, any transactions in USD would be painful. That's why the entire global South and/or BRICS are dedollarizing like crazy. We should too. Avoid dollar when doing overseas transactions if you can. For example, it's pretty stupid if you were to import some baby clothes in Thailand using USD!! So in conclusion, we're in a pretty good position. Way better than our illustrious southern neighbour. Rentals in SG has risen 70% from 2019, many expats have balik their kampung or some moved to MY even. SG estimated core inflation rate is at 5% for 2023, whereas it's 3% for MY. UK is 4.6% as comparison. So yes, inflation in SG is higher than UK. So please don't shoot our dear PMX too much. He's doing ok in my books. Remember: low currency exchange doesn't mean bad, high currency exchange doesn't mean good.
Yes … spot on. We are definitely position in a better way than US and I would argue even Singapore. Let those Singaporean commenter syok sendiri. They have to defend the SGD by using foreign reserves in order to keep inflation down as they are importers of those essentials item like food, energy etc. amid rising rents. Just another way of subsidy. My take is financial hubs can shift like right now from HK to SG, can shift somewhere else in the future, but natural resource like oil and gas, land stays within the country. My advice to SG commenter, these videos might seems like lifting Singapore image, downplaying Malaysia, its probably giving out messages to foreigner in detriment of SG as it shows opportunities cheaper input cost and more profit. SG citizen has to increase its efficiency to compete , currently working at 120% need to move to 150%.
We have to compare apples to apples. SG relies heavily on import compared to export so it makes sense to keep SGD strong, so inflation is inevitable with the current global financial situation. MY can be compared with Japan in terms of weak currency for stronger trades flow but one major difference is Bank of Japan actively strengthens their yen by buying back their currency in attempts to deter further deterioration and keep their citizen with affordable living within their country BUT also outside of their country (when citizens travel). MY on the other end, fails to do either well (fast rising cost of living within and extremely weak currency outside. To summarize, MY government are just way less competent, given the resources they have at hand to work with. Also, in regards of mentioning of migrating to MY, it is the same for any stronger nation's citizens migrating to weaker nations (financially) because of stronger buying power (privileged of coming from a stronger country). Too many examples like to Bali, Thailand, Vietnam and etc
@@shukriramlee they can afford to go that as they strong foreign reserve. And their interest rate are market driven which current SORA about 4%. I do think Bank Negara should raise to match SG interest rate at least and I think Malaysia economy can stomach it. But Malaysia government probably need to take political consideration more because in the short term raising OPR has immediate effect and making their voter less happy.
Malaysia is a country hooked on subsidies, and most of it going to the Malays. But even with the numerous subsidies, most Malays cannot cope if prices went up by even a little bit. So the government is scared to raise interest rates in case it will send inflation up. Unfortunately, the artificially low interest rates are not helping investments. Rather they are just feeding consumption. It's a vicious circle because as more is consumed, more subsidies ars needed. Petrol is heavily subsidised, encouraging people to drive even to nearby locations. So it goes on. The ringgit is going to be worthless soon.
If you are not Malay, and as you said petrol is highly subsidised. Is that everybody subsidised including you, including transport company and many other company that used petrol
@@toreditahrin3717 Petrol pump prices all over Malaysia are fixed by the government at subsidised prices. So everyone gets it, and no point shopping around for a cheaper option. The low subsidised price would be a boon for Singaporean drivers who could nip across the causeway, except that the Singapore customs check that they can only drive out and back with near full tanks. and
@@j.bernardsaipoh8111 Anwar's government is looking at subsidies because it knows they are unsustainable. So the minister responsible is saying she's going to come up with "targeted subsidies". It will be interesting to see who they will target and how. Means testing? Racial profiling?
Malaysia are hooked on subsidies and most go to Malay because majority Malaysian are Malays. The problem is subsidies not the racial argument that you try to potray here. Government is not scared to raise interest rate because it causes inflation up, it will hit the GDP growth or its voter base will suffer. If hiking interest rate causes inflation, why is US hiking now? To send inflation higher? I do think government should cut subsidy and raise a bit more interest rate but your explanation of causation is just purely twisted and lack understanding of basic economics.
The Malaysian are more concerned about how the citizens should wear than how to make citizens earn more. When keep arguing which “race” are more privilege & which religion practice are more holy, the rest of the development will only stop & wait. The facts of success & fail are out there, simple & easy to notice, but …….. the selfishness of premier class understand the power of the religion & race are more easier to manipulate, through that to obtain wealth & political power.
It's good? 2018 was the worst ever since Mahakutty taken place from Najib!!! 😢😢😢 The stupid move to ruin national front government in 2018 GE of 14. All because of Mahathir Midin PPBM....stupid move !!!
It is all speculative and diferential lending rate , but in the future USD which is fraud will fall & MYR will rise . In tendem other currencies of developed countires will also drop
The US is already melting up. Next year, almost USD16 trillion of its debt mature. As usual, the US govt will refinance that debt. But this time at much higher interest rate. Last week, for the first time ever, the Federal Reserve becomes the largest buyer of US Treasury bonds. The global dedolarisation has begun...
Plus more than USD 8 bill money outflow through legal foreign workers & almost USD 3 bill spend to capture, detain, court & punishment for illegal immigrants every year. All of them enjoying gov's subsidies too
@@NewmaticKe it's mostly a private companies not government who hired them. And obviously the reason is simple, cheap labour and they can't complain. Why? Because they not included as part of minimum wage program and it's common practice that those bosses will seize their passport so their foreign workers won't escape
@@NewmaticKewe had a whole thing in the 90s to buy votes by allowing foreigners to get ICs here, that could be a main reason why we don’t have much locals participating in the labour market.
Necessity is the mother of invention. The Malaysian people must become industrial or creative and look for opportunities to improve their income besides not depending on imported goods. Improve domestic products and become more self sufficient.
@@lancewood1410wth is wrong with u? I see u hating in every comment, if u think that's how life works u gotta think twice man. U think majority of them is lazy? People are doing everything in here from working as rider and to the extent. But here u are thinking that they are lazy. U dont know that in here the government are corrupted.
The country is already self sufficient in many aspects with so many natural resources even oil. But to run a country along racial and religious lines, particularly a religion like Islam ,will not get these Bumi to change their mentality or get their country out of this rut! Boleh?😆😆😆
Political instability, foolish policy for tourist visit,and many racist politicians, they still living in the glory of their past,regressive n wrong aspirations !,
@@wavemaker2077 I dont know what he's referring to but they started a 10 ringgit a night per person hotel tax for foreigners only. Then in Penang and Melaka you need to pay 2RM more. There's also different foreigner prices for stuff like museum entry. It's all pretty stupid.
salary never grow! i work as barista RM2000 4year ago .but now at Singapore i have SGD2700 ....5days work week.istill hope one day i can live in malaysia im malaysia chinese
You done good, keep your money there , bring a small portion back home for spending. I never regret done that since 30 years ago and still kept it there.
As a malaysian really admire people who work in Singapore Pls don’t back to the hell!! Uve trying so hard to finally get into heaven Don’t miss here , get out from hell
Anwar Ibrahim is trying his best to help it recover right now, but the Palestinian-Israeli war has affected his progress, making it extremely slow. The main reason it fell was due to corruptancy though.
The bigger issue is no confidence in the government leader. He doesnt give confidence in being able to manage. Instead he is a doomsayer, not giving hope for investors. All he does is complaining about previous governments flaw instead of intervention
The video did not address the root cause of the problem. Those mentioned were just the consequences. Root cause is majority Malaysians are not competitive enough, not educated enough, not hardworking enough, lacks financial nous, spends more than they earn without realizing their currency is weak. Countries with strong currencies always have a population that is educated, thus making them high skilled workers and enticing for MNCs to setup base.
I think the main issue is that the government wants to entice foreign investment and business to set up shop here, so a weak ringgit wouldn’t look bad to foreign investment. However, without much Malaysian participation in the labour market, a weaker ringgit just hurts the Malaysian people more.
@@ashchisalleh1454US printing money because they can, as they are the only proxy currency for international trades. Not the other way around, will anyone outside Malaysia want to hold ringgit? Not that there’s no use for ringgit, as compared to Japanese Yen, Chinese RMB, Singapore Dollar, but holding ringgit means a huge risk of losing paper value, due to ringgit always fail to hold up.
lol. malaysia have abbundant talent that working oversea even supporting overseas operation. the factor that you mention is not really a factor. malaysian is the 3rd asian country that well verse in english as well. don’t talk nonsense. ask singaporean conpany about how productive and competent our workforce is. the problem right now is goverment policy and their effectivenes to implement those policy. current cabinet is incompetent. some of it yes especially loke but majority are incompetent bunch. talk and no action. especially pmx😢
I like the way Malaysia thinks.. Everything is FINE.. weaker Ringgit is okay.. Good good, hope they dun do anything about it,.. Continue thinking.. its fine.. its fine.. 1 USD to 4.7 RM is okay, 1USD to 5RM is good.. 1USD to 6RM is also good.. continue thinking that way..
@@Resol26 i just feel they need to take some actions, but they sometimes try to DOWNPLAY the situation by telling its ppl.. WEAK Ringgit is OKAY.. EARN Ringgit. then spend in Ringgit and everything will seems the same to you, buy local so no currency exchange happen, but its not that simple. every thing you see around you is made overseas or partly overseas. Your Smartphone or your food even.. your computer, your favorite Kopi even the coffee beans and white sugar also imported.. so just thinking its fine, and weak ringgit is good, is just telling urself you are okay living in a well.. if you think 1 USD to 4.7 RM is nothing serious, then i USD to 5RM will probably happen in 2024.. i wonder what happens in 2025 or 2026 then.
@@palanisamymurugan3943 Honestly i feel cancelling the HSR project was a big mistake, not only did Malaysia had to pay compensation, they say there is budget constraint for it, but the amount of TRADE and revenue it would GENERATE after the project is completed is HUGE, also the stations near the HSR will also bring about new towns and business will also prosper with increased traffic.. i feel however the affected business will be those express bus companies, and the highway rest stops that serve those buses as ppl will take the high speed rail and rest stops would be at the stations instead. with the falling Ringgit the Project Cost for the ECRL will be higher over time also, i wonder if it will open in 2027 as planned.
High living expenses just excuses. It is higher than before but there are many affordable choices available as well. Many daily need products do have local made, from local raw ingredients. Instead many actually complaining is actually due to not able to enjoy the lux as easy as they wish, hence the High living expenses. For example, (a real case) 1 fruit juice from Boost cost as much as RM15 a cup (Medium). But you could get the same fruit juice as low as RM6-7 somewhere else. One will argue saying Boost use more fruits extract but definitely RM6-7 can get you a bag of fruits that you could extract out more. But this person complained living cost so expensive now while sipping away that RM15 fruit juice. Ironic
Yeah, I'm traveling arnd SE Asia and actually stuff like food is pretty affordable in Malaysia. Lots of cheap options that are still clean and healthy. In contrast, Vietnam wages are way less than Malaysia but midrange food is pricey. If you dont sit on a sidewalk and eat there you can easily spend 10usd but in Malaysia even nice cafes have food for 2-4usd.
Prices for stuff have went up exponentially compared to years past, with the purchasing power of people’s wages going down. Yes, boost is severely overpriced, but looking at the bigger picture, we can see that stuff like housing, food (yes, food!) and other living expenses are becoming more and more expensive. I hope you understand that you are comparing wants vs wants, and not needs vs needs. We as Malaysians have been stuck with a weak ringgit and immense strain on the economy (ahem dirty old man ahem) to the point that necessities are hard to pay for. This isn’t even something you can vote out, rather you just gotta make more money to offset the decreasing value of wages.
4 Main reason why Malaysia ringgit is so weak : 1) Too dependent on Foreign Investor (This is not something sustainable nor it is within country control) 2) Too many imported products (Both large corporation & SME relies too much on China) 3) Too many immigrants worker (That will send money back to their country) 4) Corruption Basically, Malaysia money going in came from unstable source while ALOT of money is going out with no control whatsoever. Before Malaysia want to generate money, Malaysia have to strive for self-sustain first.
"Too many immigrants worker (That will send money back to their country)" gets paid 900myr for working 16 hours.Typical xenophobic malay brain moment.xde logic
Rm weak.. so?. All people here still feeding+ working and living and buying.. 😊. Medical free+ petrol cheap+ cooking oil cheap+ transportation cheap+ water cheap+ electric cheap+ internet cheap+car cheap.. all is cheaper.😅. Compare to other countries..
Lol.. Bila masa harga barang murah.. Kamu buta ke.. Atau penjilat rapat anuar ibrahim kaki penipu.. Satu Malaysia tiap hari gelak bila dia berucap.. Kerajaan pun kerajaan talian hayat.. Tidak cukup majoriti parlimen.. 😂
Learn more about economy. What you say has nothing to do with the weak currency and it's not came from nowhere just because the government subsidies until the money runs out and all burden shows up. what if the government can't support all of those you mentioned anymore? Just looking at the rice prices nowadays.
possibility reason: 1. In malay, there are more than 1 millon foreign workers whom bring their money out of malay. 2. They have billion debt in $ from previous gov for subsidies
*Policy Kerajaan dulu2 tak Bagus, Banyak Hutang, Msia Banyak sangat kena samun oleh Menteri2 YB2 PM2 sebelum ini kuat menyamun, hutang pun banyak2 DLL kerja2 penyamunan oleh orang2 Kerajaan dulu2*
Don't forget Malaysia opted for islamic banking system hindres many from actually investing in the market. The shariah style monetary system is not suitable with many Western style capitalism business.. this is why Malaysia mostly attracts the likes of China and the 10/40 window nations that trade on rubles
We rather ringgit drop than our property values drop. Weak ringgit also helps with exports, discourages overseas spending. Seeing the government stabilising our economy now rather than letting it free fall is better. South Korea property tanked 40%, Turkey lira dropped 80%, I guess we're ok.
If Malaysians are saving their RM in other currencies then more ringitt are being dump in the market that cause the deprecation. Household debts are too high for citizens to bear with many low wage earners. Can't cut big loans bcos having a car is a must have in Malaysia. Besides housing loans are tied to banks interest rate also. Many are struggling with no end in sight.😢
In the point of business, we see any opportunity in future instead of discussing the past. I feel more interesting if the title is "Does Ringgit will raise?"
National foreign exchange can be obtained from citizens who migrate to work in other countries, when they return they bring dollars to their home country to increase foreign exchange. while the problems of the Malaysian people are 3 points. 1. Malaysian people are very dependent on government subsidies. In normal situations subsidies are a good policy, but when a crisis hits a country that pampers the people with lots of subsidies, it will only be a backlash. 2. Actually, there is no shortage of Malaysian population to be able to mobilize its people to work in their country, even if the country of Malaysia is measured by its size, it still has a lot of job prospects, it's just that the government's policy is unique in bringing many foreign workers to Malaysia, making Malaysia one of the A country that has over-immigrant foreign workers, bringing the Malaysian ringgit currency out of the country which has the effect of weakening the economy, and subsidies that should be for local people are mostly consumed by foreign workers because Malaysian people are picky when looking for work. 3. There is a lack of appreciation for Malaysian people migrating to other countries to work, where such actions help the country increase foreign exchange in the form of foreign currency, but only want to be in the country relying on subsidies.
The Malays wanted free money without working. Their goal is to have more babies and not educate their kids, which mostly turned out to be drug addict. Instead of learning skill education, they only study religious studies and how to hate non Muslims ( kafir) this is why Muslim majority states are backward. Infect the Malay people are good people, but their religious scholar, spiritual leaders, and politicians brainwash them, so they have a good luxury life.
See who is the HRM. How long has he been sticked to it? No one gonna change that. Believe me. It is one amongst other issue but this one also quite bigger. But no fucking one in the government dare to do changes. The capitalist become too powerful, with the same policy loop over and over again. It is getting worse every single time
Just in case you didn't get the memo, there are like a million Malaysians working in Singapore. And most of these people are considered pariah by the god chosen people in Malaysia. Some of them would rather have these Malaysians staying at Singapore and never to came back ever.
The Malays should become a producing people rather than just easy consumers while the money is getting out of the country through foreign labourers....
possibility reason: 1. In malay, there are more than 1 million foreign workers whom bring their money out of malay. 2. They have billion debt in $ from previous gov for subsidies lazy people 3. Unequality of ethnic in politic and society caused fragile nationality and often point up as sensitive issue.
Potatoes government that's all. After I graduated is time to leave msia. Gonna try my luck to apply for working holiday visa, then find a reason to stay overseas.
@@wish-56 well then maybe New Zealand will be a good option 🤣. Haih if everything fked up, maybe I'll learn how to bake and work in a bakery, then if I have enough money maybe can go to Paris learn the European way. Really dw office life, doing something that you don't like everyday.
@@wish-56 I have no idea how other countries are doing. All I know is that everything are getting crazily expensive, but our minimum wages still just RM1.5k and the value of ringgit keep getting worst. But the government just keep building all these super tall buildings dk what for, trx exchange just opened last week, then the pnb 118 second tallest building in the world , but ppl are struggling.
The country just giving out money like Venezuela so that the people support them. Bribe? Or not? Other cou tries give to all people but they give out selectively. Luckily still have petroleum to support.
we need major reforms and bigger and more responsible fiscal spendings, to do that we need to gradually eliminate oil dependence and civil servant pensions, with the increasing longer life span, our budget has less room for spending as most of the budget goes to paying civil servants, new civil servants should be paid EPF instead of pensions and we also need to cut down on hiring. our civil service is too bloated. increase efficiency, increase quality, increase requirements, our civil service should only hire best of the best, make it so they are highly paid but very few position and those that underperform are kicked out, may it be a highly coveted job
Key takeaways: 1. Reasons why MYR so weak: A. Political instability - makes investors nervous and then pull out investment from Malaysia, so currency drop. B. Global Economic Forces: - US dollar strengthened, so other currency might became lower in terms of dollars. - Global trade war of US and China - Fluctuation of oil prices (Malaysia is significant exporters of oil and natural gas) C. Local Economics Policies: - Country having high debt level and trade deficit, so Malaysia has to buy more foreign currency, so MYR weakens. 2. Increasing interest rate could strengthen MYR by encouraging more foreign investment. More foreign investment means higher demand for MYR. 3. BNM has done this but MYR still sliding down because the the magnitude they increase interest rate is lower than other countries. 3. Why they do not increase interest rate much more higher? - Higher interest rate means higher cost of borrowing for buying houses and starting businesses. It means less tax revenue for government and higher unemployment rate. 4. It's a tradeoff between strong currency and economic growth. 5. What about staying weak currency? - It will benefit exports industry as our products become much cheaper globally. - It could attract more tourists and foreign investors as they have more purchasing power here. - But it will cause imported inflation as our purchasing power become weaker globally. Groceries will become more expensive. - Companies struggling with high import cost will layoff more labour to cut down their costs. Higher unemployment will happen. - The benefits of weaker currency is not equally spread to everyone. Only people involved in exports industry does. - Winner and loser exists in this scheme, but average citizens are more likely to become the loser as the cost of living rises. - In overall, the people suffered from rising cost of living might out weight the benefits it brings.
I had a friend in EPU who told me there are about 7 Million foreign work.3 million is legal and the balance is illegal.This people are from Syria,Lebanon,lran,Iraq,Pakistan,Bangladesh,Burma.The least goes on.l don't know to believe it.Hopefully someone can share the light.Thank you
Yeah that is right..plus the illegal might be more then 7 million..if im not mistaken there are around 10 million foreign workers..funny things is Gov asking to improvised and pioneer and be creative yet they are the one that encourage for foreign workers and cheap labor force..you can really search that how many Malaysians company and entrepeuners had gone to Singapore coz of gov action..One of it is Grab Pretty bad rite..but that is our gov now..gov now are not the same like the initial gov when we are demanding for Merdeka and malay chinese and indian also is now different compare to malay chinese and indian back then..all are pursuing for their own benefit especially rich people like India and chinese tycoon and top officials of gov..sadly tycoon chinese and India they still Care about their own race compared to malay..totally they abondon them.
@@rizqdanniel824With 10m foreign workers in the country the local companies still said that they still need foreign workers what went wrong.Are they marketing this workers indirectly.
8:36 excuse me that is not true Everything is getting expensive I work in Singapore and when i get back home to Malaysia the food price is all identical with lower quality
One of the biggest factor was malaysian economy was not strong enough to weather global headwinds such as strong dollar, climate change, geopolitical situation etc. The govt are struggle to bring economy back on top.
I notice Ringgit went on a major dip and started to struggle when Najib took over and had his shenanigans with bad and corrupted investments that effected the country. Things hasn't been the same since. I remember when people started to panic when 1USD became close to rm4 mark and they promised that it will never reach 4. When it reached 4 and beyond, they changed their story and moves the goal post.
no, It is when he lose power. He already planned for GST but people protest it. Now people opened their eyes and plans for gst to take effect. It is way too late I tell you
Are you lying or what? RM nosedived after Najib was ousted. Though not that strong, it was stable then. Procuring from overseas is now pricier for nearly 100 percent .
imo Malaysia is still suited as a manufacturing base economy as it cannot compete with Singapore in terms of high quality service therefore if it's currency is cheap, then it can have the potential to export more of its products👍 especially with lots of manufacturing moving out of China now, they could always pick Malaysia as a new base (because Ringgit is cheap)
Ehhhh "pegging" the ringgit isn't really a permanent solution. Historically, that's can only work momentarily like in Japan and Korea. Do it for too long, you could end up like Lebanon
possibility reason: 1. In malay, there are more than 1 million foreign workers whom bring their money out of malay. 2. They have billion debt in $ from previous gov for subsidies lazy people 3. Unequality of ethnic in politic and society caused fragile nationality and often point up as sensitive issue.
Laying out all the factors, not one party can be blamed completely as well. The video already laid out the pros and cons of a weaker/stronger currency. However as they have presented, it's pros and cons its all about finding the balance. But what the typical rakyat thinks is, "weak currency = weak government", "xxx people are the rich ones taking all the money", "xxx people dont need to work for money, im just gonna go to sg" People are just not educated enough most of the time to properly understand the nuance that comes with currency. Now assume that gov is raising IR to boost currency, export sector gets hit, growth slows down and housing gets even worse, people complain. Reducing IR, drops currency, everyday goods become more expensive. And what is Malaysians all about ? Buying and not saving money. Complain again. Not to mention these economic recovery plans, often require many years for effects to kick in, with this sensitive nation, one harsher step by the government to slowly reform it, results in political turmoil and they themselves even if they want to change the economy, get voted out before its done. The next government takes over and reverts changes to please the people.
You literally paint everyone with the same paint brush and assume everyone is buying and not saving. You claim to be educated but refuse to understand each individual have their own unique problem. Not everyone is spending in fact most people can’t keep up with the inflation with their current salary. Your claim make you some highly uneducated and ignorant to the problem in hand. People like you talk big but completely useless when it comes to execution. 🤦🏽♂️. Go outside and touch grass. People like you are the same people who would complain about the same thing if it were a different government. Macai bro.
as long as the inflation is stabil in Malaysia,i would say things are still in control.And because basic things are government subsidise, can still manage.However the management and flow of goods need to have control so no abuse is done.
The people. I feel like Malaysia will die in the future. When I go to school, many malay students are lazy, incompetent, and the do not value education. In rich countries, people are educated
At least Malaysians should be happy they’ve got one of the best marketing slogans in the world, Malaysia Boleh! Everything also boleh, so that’s one evergreen positivity 😂
Boleh what? Boleh collapse? Boleh fall behind Singapore a tiny island state? Boleh make a mess of things? Boleh under perform? Boleh hand power to corrupt leaders like DrM, Najib, etc?
That's why Chinese citizens can't withdraw money from their banks, multiple banks filed bankruptcy, multiple developers filed for bankruptcy, and GDP free falling. If China was good with math, their buildings and bridges wouldn't collapse within five years. What's more amazing is their ethics. 100,000 engineers, multiple inspections, multiple banks and officials, and all of them agree tofu projects are healthy... 😂
How to solve the weak RM: Get a Fulltime Prime minister and a Fulltime Finance minister instead of someone who can’t perform in either duties. There’s something fundamentally ill in Malaysia’s economy that needs full attention from the finance minister. But let’s not kid ourselves because that’s not happening. The better solutions is change excess savings to stable foreign currencies or foreign currencies denominated assets
@wavemaker2077 both pm and finance minister is the same person. This very same minister was fired during financial crisis because he insist on borrowing with IMF. Now I fear he will do the same mistake again
@@j.bernardsaipoh8111 South Korea Thailand Indon agreed to full transparency reform and borrowed from IMF during 97 AFC whilst Dr.M trying to bury his ugly dirt with his crony empire and bailing out cronies to save them from going under / avoid exposing deep high level corruption. How's Malaysia performing against the peers in this 20+ years? More corruption more cronies more bailouts more monopoly more social/racial divide from politician games.
Malaysia subsidise petrol, sugar,bread etc. The govt is good and care for the people, care for the poor. In Singapore, No Subsidy allowed, you no money you go n die. So caring govt have disadvantage, no choy
I think the charity of citizens must be put on priority. Malaysians generally dont feel so much pain to live in this economic downfall compared to other countries.
@@A-Z_STUDIOsiapa yg nangis? Pasti kamu & kebanyakkan warga indo yg nangis kerana ngak ada kerja. Kami senang saja di Malaysia. Beras murah ke mahal ke kami masih boleh beli.
@@khairultazmantuaman5423 halah... ga mampu beli beras... nangis... terus baper... curhat... di kontenin ke youtube... ga ada beras mentri malon sampe ngemis² ke india minta di import beras.. 😛😂🤣
I'm a Malaysian. I'm extremely happy with the current economic status here... Allah has given us more than enough rezeki, Why worry and soon Malaysia will be a developed country.
The situation benefits tourists...I am a Singaporean. I live like a king in Malaysia. Property is dirt cheap... Chickens widely available and filthy cheap. Food is super delicious and cheap Corruptions are still ongoing 😂😂😂
Foreigners are worried than our locals. In Malaysia you can get all you want. Indonesians to East Malaysia always bring us cheap food and goods from their country.
