View Full Version : Singdollar rises strongly against Malaysian ringgit
princess_morbucks
24-01-14, 08:40
http://www.straitstimes.com/breaking-news/money/story/singdollar-rises-strongly-against-malaysian-ringgit-20140124
The Singapore dollar has risen strongly against the Malaysian ringgit to a four-month high, in a boon for locals travelling or shopping across the Causeway.
In the last two weeks alone, the Singdollar has surged about 1.1 per cent to RM2.6054 yesterday, from RM2.5767.
Since May 22 last year, the local currency has gained a hefty 8.8 per cent against the ringgit.
However, shoppers will not be able to obtain quite the current money-market rate of RM2.6054 at money changers, who add their own margin to make a living.
princess_morbucks
24-01-14, 08:46
The great rush for ringgit
http://news.asiaone.com/news/singapore/great-rush-ringgit
The Malaysian ringgit has tumbled to its lowest level against the Singapore dollar in recent history, triggering a surge in customers at money changers yesterday.
The exchange rate stands at RM2.60 to S$1, compared with RM2.45 back in 1998 and last year's 15-year low of RM2.55.
Some money changers have already run out of ringgit, as customers stock up on the currency just in time for some Chinese New Year shopping across the Causeway.
A check by MyPaper yesterday found that money changers were offering a rate of RM2.57 for every S$1. This is better than the usual rate of RM2.52 that public-relations executive Hazel Joanne gets when she changes money to give to her parents, who live in Johor Baru.
"If this good rate continues, I'll be able to keep them comfortable without as much of a dent to my pocket," she said.
Ms Sarah Lim, a senior retail-management lecturer at Singapore Polytechnic, said the favourable exchange rates would entice more Singapore residents to do their New Year shopping in Malaysia.
She explained: "The prices of services and merchandise are going to be much lower, making them more attractive and worthwhile."
CIMB economist Song Seng Wun said the weak ringgit can be attributed to a firmer US dollar, and the fact that the Sing dollar did not weaken as much.
He added that if the strong US dollar continues, the ringgit is likely to decline further.
princess_morbucks
27-01-14, 09:19
As of now 1SGD = 2.62 MYR
princess_morbucks
27-01-14, 11:03
It is good for people who are paying monthly installment for their Malaysian properties.
It is good for people who are paying monthly installment for their Malaysian properties.
Those collecting rentals from their Malaysian properties will be sad.
High chance RM goes down more when US$ goes up, is S$1=RM2.80 in the cart?........................ :o
S$1=RM$2.65 coming soon.
Those collecting rentals from their Malaysian properties will be sad.
Not really leh. Reasons:
1) Most people rental income is used to repay the mortgage so it is not converted back to sgd. So sgd strong got no effect.
2) Economics will balance thing. Sgd strengthen, those selling to foreigners will also up the price in RM. Seller not stupid one. E.g. last year i list my condo for sale at rm 500k equal to about sgd200k last year. 1sgd=rm2.5
Now for the same unit I will markup to at least rm520k also equal to current sgd200k.
well if interest rates raise in MY. then won't be so happy. if collecting rent to cover.
phantom_opera
28-01-14, 06:01
High chance RM goes down more when US$ goes up, is S$1=RM2.80 in the cart?........................ :o
80% probability already
80% probability already
The jam at 1st and 2nd links will get a lot worse if RM is so cheap.
More Singaporeans opting for reunion dinners in JB
Published: Thursday January 23, 2014 MYT 12:00:00 AM
JOHOR BARU: More Singaporeans are taking advantage of the attractive exchange rates and celebrating with their loved ones at Chinese restaurants here this year.
Checks by The Star revealed that an average Chinese New Year eight-course meal for 10 in Singapore was more than twice the price of a similar meal in Johor Baru.
An average eight-course meal for a table of 10 at Chinese restaurants in Singapore costs between S$530 (RM1,380) and S$2,988 (RM7,777) while in Johor Baru it was between RM789 and RM2,088.
M Suite Hotel general manager Dev Singh said the hotel’s Ming Court Chinese restaurant was almost fully booked.
“We can see a 15% increase in bookings from Singaporeans this year compared to last year,” he said.
Mutiara Hotel’s Meisan Szechuan restaurant assistant supervisor Joanne Chan said the restaurant had to split into two sessions to meet demands for Chinese New Year eve. Both sessions were also almost fully booked.
The Wan Li restaurant at Renais*sance Hotel here had also been receiving similar response.
The restaurant’s manager Ng Shen-ynn said the restaurant also had to split into two sessions to accommodate the crowd.
http://www.thestar.com.my/News/Nation/2014/01/23/More-Sporeans-opting-for-reunion-dinners-in-JB/
well if interest rates raise in MY. then won't be so happy. if collecting rent to cover.
True, so depend on entry point lor. But good thing over there in MY is that they have fixed mortgage interest for 30yrs. About 5.x%
And those people who live in JB and work in Singapore will suffer more.........
Not to mention US$ up, Fed rate up, housing loan rate up..................
The jam at 1st and 2nd links will get a lot worse if RM is so cheap.
More Singaporeans opting for reunion dinners in JB
Published: Thursday January 23, 2014 MYT 12:00:00 AM
JOHOR BARU: More Singaporeans are taking advantage of the attractive exchange rates and celebrating with their loved ones at Chinese restaurants here this year.
Checks by The Star revealed that an average Chinese New Year eight-course meal for 10 in Singapore was more than twice the price of a similar meal in Johor Baru.
An average eight-course meal for a table of 10 at Chinese restaurants in Singapore costs between S$530 (RM1,380) and S$2,988 (RM7,777) while in Johor Baru it was between RM789 and RM2,088.
M Suite Hotel general manager Dev Singh said the hotel’s Ming Court Chinese restaurant was almost fully booked.
“We can see a 15% increase in bookings from Singaporeans this year compared to last year,” he said.
Mutiara Hotel’s Meisan Szechuan restaurant assistant supervisor Joanne Chan said the restaurant had to split into two sessions to meet demands for Chinese New Year eve. Both sessions were also almost fully booked.
The Wan Li restaurant at Renais*sance Hotel here had also been receiving similar response.
The restaurant’s manager Ng Shen-ynn said the restaurant also had to split into two sessions to accommodate the crowd.
http://www.thestar.com.my/News/Nation/2014/01/23/More-Sporeans-opting-for-reunion-dinners-in-JB/
And those people who live in JB and work in Singapore will suffer more.........
Not to mention US$ up, Fed rate up, housing loan rate up..................http://www.ingmalaysia.com/index.htm
In malaysia they have fixed rate 4.85% throughout whole tenure. Current typical rate is 4.2%
So they have less to worry compared to us.
3 staff in my department will be very happy as they are malaysians working in Singapore but staying in Malaysia.
And those people who live in JB and work in Singapore will suffer more.........
Not to mention US$ up, Fed rate up, housing loan rate up..................
They will be very happy to be stuck for an extra 1 hour or more in travelling time 2 ways every day? :doh:
3 staff in my department will be very happy as they are malaysians working in Singapore but staying in Malaysia.
Worry for Singaporeans who buy Malaysia properties but loan in S$..... Their property depreciating in RM value vs S$ but their costs fixed and interest rate goes up....................... :beats-me-man:
http://www.ingmalaysia.com/index.htm
In malaysia they have fixed rate 4.85% throughout whole tenure. Current typical rate is 4.2%
So they have less to worry compared to us.
They are doing it daily. :)
They will be very happy to be stuck for an extra 1 hour or more in travelling time 2 ways every day? :doh:
Worry for Singaporeans who buy Malaysia properties but loan in S$..... Their property depreciating in RM value vs S$ but their costs fixed and interest rate goes up....................... :beats-me-man:
No need worry. Property is a hedge against depreciating currency too. Prices in malaysia also rises. Look at Indonesia too. See how the rupiah has depreciated over the years, see how the property prices has climbed too.
princess_morbucks
07-02-14, 07:18
http://www.straitstimes.com/breaking-news/money/story/ringgit-hits-new-record-low-against-singdollar-20140207
The Malaysian ringgit has hit a fresh record low against the Singapore dollar as several regional currencies continue to stay weak.
Just three days after softening to an all-time low of RM2.622 against the Singdollar last Thursday, the ringgit fell further to RM2.624 at the start of this week.
It was hovering around RM2.6207 yesterday.
The ringgit's persistent weakness is not so much due to the Singdollar gaining strength, but rather a massive outflow of capital from emerging markets back to developed markets, experts say.
Different lah.
Indonesia land size 1811,000 km2 while Malaysia is 329,000 km2 or 5.5x.
Indonesia population 250m is while Malaysia is 30m or 8.33x !!!
Indonesia with population density of 138 people/km2 so MUCH MUCH MORE DENSELY POPULATED than Malaysia of 91.18 people/km2 ! Obviously Indonesia land more valuable!
But heh, Singapore population is 5.4m and land only 687 km2 for a population density of 7860.26 people/km2 !!! Singapore's land is worth more than GOLD!!!
No need worry. Property is a hedge against depreciating currency too. Prices in malaysia also rises. Look at Indonesia too. See how the rupiah has depreciated over the years, see how the property prices has climbed too.
What capital outflow?? ALL WRONG!!!
Ringgit is dropping cos' price of Kang Kong is spiking and causing super-duper-hyperinflation :rolleyes::rolleyes:
http://www.ingmalaysia.com/index.htm
In malaysia they have fixed rate 4.85% throughout whole tenure. Current typical rate is 4.2%
So they have less to worry compared to us.
Why? Even if our rates goes up will be ard 3%. When that happen I will also expect Malaysia inflation to catch up too. Int might be fixed. But other cost will go up.
princess_morbucks
11-02-14, 14:37
Today it is SGD $1 to MYR 2.63!
Today it is SGD $1 to MYR 2.63!
cos najip buckling under populist (or crony) pressure and not raising toll fees to generate more taxes
when the country goes bust, ringgit sure BOOMZZZ!!!! pity those SG brothers and sisters who invested in the iz-scammm-dah dream
S$1 to RM3.0 coming? :o
cos najip buckling under populist (or crony) pressure and not raising toll fees to generate more taxes
when the country goes bust, ringgit sure BOOMZZZ!!!! pity those SG brothers and sisters who invested in the iz-scammm-dah dream
S$1 to RM3.0 coming? :o
i think if najip don't do something to bolster taxes, it will soon breach the RM2.7 mark. RM3 is a little far and i doubt they would want to risk a perfect storm of declining ringgit value, govt coffers, FDI decline, rising interest rates, above average inflation
phantom_opera
12-02-14, 08:08
land price in Malaysia will go up big time soon :rolleyes:
land price in Malaysia will go up big time soon :rolleyes:
i think taxes, for foreigners and business entities, will go up big time soon. land price hikes will hurt the economy more in the mid-long term.
It will be very interesting if SGD $1 = MYR $2.7. Consumers who spend in Malaysia and Malaysia property owners (who loan in MYR) from Singapore will benefit.
RBS sees fresh M'sia fuel hike - in H2
It expects subsidy rationalisation to continue as KL improves finances
By pauline ng in Kuala Lumpur
Published February 12, 2014
THE Royal Bank of Scotland plc expects Malaysia to see another fuel hike this year as part of what it described as "the most serious attempt by the Malaysian government to date to improve the country's finances".
Its head of economic research for Asia ex-Japan Sanjay Mathur said that the hike would most likely take place early in the second half, notwithstanding a decision last week by the government to compensate highway concessionaires for scheduled price increases rather than allow toll users to shoulder the burden.
Public funds will be used to pay the concessionaires some RM400 million (S$152 million) in compensation - a move that has led Credit Suisse in its Asia report this week to question Putrajaya's commitment to fiscal reforms. The financial services group also cautioned that international investors could punish the country for such rollbacks.
In December, a survey by independent pollster Merdeka Centre revealed that Prime Minister Najib Razak's popularity has fallen significantly to 52 per cent from 62 per cent in August. This was partly because of an 11 per cent increase in fuel prices, which was implemented in September.
Since January, electricity tariffs have also gone up 15 per cent, and most businesses have said that they will pass on some of the additional cost to consumers.
Cash handouts to lower income earners, notwithstanding a by-election later this month for the Kajang state seat in Selangor, has added to Putrajaya's pressure.
Still, Mr Mathur expects subsidy rationalisation to continue as the government seeks to pare its fiscal deficit to 3 per cent of gross domestic product (GDP) this year and to keep public debt within 55 per cent of GDP as per regulatory mandate.
He said that the pace of fiscal reforms had been quite fast since the 2014 budget, noting that in emerging markets, Malaysia stacks up well against its peers in a number of aspects including its solid current account surplus and foreign reserves.
RBS has pegged inflation at 3.5 per cent this year from 2-2.5 per cent in 2013. It does not expect the central bank to raise interest rates as it views the price hikes as a "one-time price adjustment" with no knock-on effect.
The country is projected to grow 4.6 per cent this year - similar to 2013 - driven largely by net trade. Bank Negara is seen tolerating a weaker ringgit to facilitate exports.
Mr Mathur pegged the ringgit to trade at around 3.36 to the greenback, and appreciating to 3.32 by year-end.
Areas of concern to RBS are household debt - pegged currently at 80 per cent of GDP - and the debt service burden which is at around 40 per cent of disposable income.
On Asia, he said that the rest of the story is one of "gentle improvement". "We would be happy just to see the horse trot along (this year)."
http://www.businesstimes.com.sg/premium/malaysia/rbs-sees-fresh-msia-fuel-hike-h2-20140212
2014 and 2015 inflation could be quite high in Malaysia.
phantom_opera
12-02-14, 10:55
second fuel hike coming soon ... if no fuel hike, 2.7 can see liao ;)
It will be very interesting if SGD $1 = MYR $2.7. Consumers who spend in Malaysia and Malaysia property owners (who loan in MYR) from Singapore will benefit.
it also means a drop in property value for those who bought when RM was 2.4-2.5
princess_morbucks
12-02-14, 13:22
it also means a drop in property value for those who bought when RM was 2.4-2.5
But is also means need to pay less in sing dollars for monthly installments on the malaysian housing property loan.:D
it also means a drop in property value for those who bought when RM was 2.4-2.5
Also has to see if the increase in property value is sufficient to offset the increase in SGD.
Assuming a guy bought at 2.45 around 1.5 years ago, the SGD currency appreciation is 6% based on 2.6 now. Has his/her property value increased by > 6%?
Unless he bought into a really lousy deal, his capital appreciation should be quite easily > 20% now.
Also has to see if the increase in property value is sufficient to offset the increase in SGD.
Assuming a guy bought at 2.45 around 1.5 years ago, the SGD currency appreciation is 6% based on 2.6 now. Has his/her property value increased by > 6%?
Unless he bought into a really lousy deal, his capital appreciation should be quite easily > 20% now.
i believe you meant to say the property value decreased along with the depreciation of RM. let's keep the discussion to the effects of RM devaluation - as stated in the thread title.
But is also means need to pay less in sing dollars for monthly installments on the malaysian housing property loan.:D
yes, that would also mean the rental income has declined too, ex-conversion
princess_morbucks
12-02-14, 14:01
yes, that would also mean the rental income has declined too, ex-conversion
Yes, agreed!
The group that will benefit are the Malaysians who commute to and fro working in Singapore , who are servicing their Malaysian housing loan.
Yes, agreed!
The group that will benefit are the Malaysians who commute to and fro working in Singapore , who are servicing their Malaysian housing loan.
assuming that they own a house in johor, these malaysians won't be impacted. after all, their mortgage is denominated in RM anyway.
But is also means need to pay less in sing dollars for monthly installments on the malaysian housing property loan.:D
Yes, now it is highly favorable to those who loan in RM, and keeping the house for own use. If it is rented out in RM, then the negative impact is minimal, except that the inflationary pressure justifies higher rental.
phantom_opera
13-02-14, 05:27
if SG property sliding ... good luck to JB
if SG property sliding ... good luck to JB
A minor price correction in Singapore still makes Singapore properties several times more expensive than JB. Factoring in the lower cost of living, the overall proposition is still attractive. The main buyers in JB are PRs (Malaysians), not Singaporeans. The motivation is different.
Yes, now it is highly favorable to those who loan in RM, and keeping the house for own use. If it is rented out in RM, then the negative impact is minimal, except that the inflationary pressure justifies higher rental.
highly favorable? you are not factoring in the decline in asset value, by no fault of the owners.
it's a big whammy for investors.
highly favorable? you are not factoring in the decline in asset value, by no fault of the owners.
it's a big whammy for investors.
If you do follow the Iskandar landed property scene, you will find that the capital appreciation (>30%) has vastly outperformed the currency depreciation (>6%) in the last 2-3 years.
Whether this is set to continue or not, no one will know for sure.
If you do follow the Iskandar landed property scene, you will find that the capital appreciation (>30%) has vastly outperformed the currency depreciation (>6%) in the last 2-3 years.
Whether this is set to continue or not, no one will know for sure.
i don't deny that prices have appreciated. but is there a healthy resale market or is it merely paper gains?
If you do follow the Iskandar landed property scene, you will find that the capital appreciation (>30%) has vastly outperformed the currency depreciation (>6%) in the last 2-3 years.
Whether this is set to continue or not, no one will know for sure.
I think JB in general, the capital appreciation is based on supply. Ie, developers are building more luxurious projects that command higher price, that in turn lifted up the older and less luxurious surrounding properties.
U can prove it by looking at the rental yield. Sg is more to demand side capital apppreciation. Sg rental yield is higher.
highly favorable? you are not factoring in the decline in asset value, by no fault of the owners.
it's a big whammy for investors.
There is always a risk in every purchase. Even buying property in Singapore is a lot more risky now.
i don't deny that prices have appreciated. but is there a healthy resale market or is it merely paper gains?
Mostly paper gain. Similar situation in Singapore now that transactions have fallen sharply. Properties are quite illiquid in nature.
http://www.channelnewsasia.com/news/singapore/resale-private-home/989140.html
There is always a risk in every purchase. Even buying property in Singapore is a lot more risky now.
i agree. the same set of risk applies, if not more, when you invest overseas - e.g. taxation, forex
Mostly paper gain. Similar situation in Singapore now that transactions have fallen sharply. Properties are quite illiquid in nature.
http://www.channelnewsasia.com/news/singapore/resale-private-home/989140.html
if investor, jialat - rental yield drop, asset depreciate
if for own stay, bo tai chi or probably heartache nia
NorthernStar
13-02-14, 16:59
https://www.facebook.com/moneyweek/posts/10151919244791200
I think JB in general, the capital appreciation is based on supply. Ie, developers are building more luxurious projects that command higher price, that in turn lifted up the older and less luxurious surrounding properties.
Sorry I am a bit slow. I thought that's how it works everywhere, say Jurong Gateway pulling up Jurong, Sky Habitat pulling up Bishan, Centro pulling up AMK etc?
Except for the really ex bungalows and semi-ds, most JB double storey terraces are easily sold out in a matter of weeks, save for bumi lots.
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