1. For our bank negara to intervene, buying all the ringgit that are sold.
2. Next is to make ringgit attractive to usd depositors by increasing its fixed deposit interest rate.
3.Third is if the US economy turn around and the federal reserve need to accommodate to the demand of borrowers there to do business. This means a less attractive rate to keep the money in US hence the US dollar will buy our ringgit again.
B. The long term is :
1. To be in a current account surplus again. We have been in deficit for last 40 years!. How? This means no more wasteful lost making projects, a relook at new areas of wealth creation by taking advantage of digital economy and reduce corruption.
2. To be SEEN working toward current account surplus with a team that knows what to do.
As an example, start by reducing subsidy from rgt80bil to rgt30bil, target it only to those who need it and implement a cheaper but more impactful policies. Reduce development budget from rgt100bil to rgt50bil.
Get out of this vicious cycle of deficit.
Increase petronas production to a profit of rgt1bil a day and push small medium enterprise to contribute to half of our gdp.
The idea is for us to achieve a gdp of rgt3trillion next year whereby rgt1trillion is from SMEs and the rest of rgt2trillion from GLCs and other market value of final goods and services produced.
Forward sell some of our rgt5 trillion oil n gas deposit and take rgt100bil from there and negotiate and refinance our rgt45bil cost of borrowings to rgt20bil. Extend payment by another 5 years.
Civil service budget should be cut a bit but the pensioners get same amount monthly. Be frugal. Tun daim did this in 1987.
This can be some of the action that can be taken to combat the falling ringgit and the rising cost of living.
What Malaysia seriously lack is mind power in the skull of the decision makers scattered all over the country from ministry of trade, commodity,agriculture, human resource and education.Just to name a few ministries related to nation building.
There are more than 140,000 MIT alumni living and working in 164 countries on six continents. These graduates are making good on the Institute's mission to advance knowledge and pursue new discoveries that serve the world.
Alumni-founded companies have created 4.6 million jobs, generating nearly $2 trillion in annual revenues. by Rob Matheson | MIT News Office Publication Date: December 9, 2015
Malaysia can generate the same MIT top class of graduates to contribute towards uplifting the nation out of being called a failed state.
it is prenatal investment to the rescue. Unlike animals which learn by instinct and not in formal or informal instruction as happens to human beings.
First, the fact must be revealed that unborn baby is capable of learning soon after conception and before delivery. That's how child prodigy such as the latest sensation of a 14 years old boy who is employed by Elon Musk as a software engineer in his Space-X Star link project. This boy's precocious learning in science and technology begins from the womb.Deep listening without distraction leaps frog him into such advanced learning that makes him what his is today.
About 1500 newly born babies are born daily in our land. Had the past government leaders of the last two decades applied this art and science of prenatal psychology on all these newly born, today we could have a crop of graduates as enterprising and productive as the MIT alumni mentioned above.
To address the failing value of Ringgit, it is not too late to start now to reverse this deterioration.
As expressed by Lao Tzu
"Do the difficult things while they are easy and do the great things while they are small. A journey of a thousand miles must begin with a single step".
It may take 20 years to see the magnificent result of prenatal education for the masses, but if we are lucky, we may get one or two child prodigies like what Elon Musk now has in his employment.
All truth passes through 3 stages. First it is ridiculed. Second, it is violently opposed. Third, it is accepted as being self-evident. (Arthur Schopenhauer Feb 22, 1788-Sept 21 1860)
I hope out of many readers of this column, a large enough number of these readers will act and go further then just treat this as information, and progress further to nation transformation.
“The illiterate of the 21st century will not be those who cannot read and write, but those who cannot learn, unlearn, and relearn. ”
My views is that Increasing Int rates may NOT be the only Pull Factor for FDIs. FDIs will see the Overall Management of a Country to give them the added Confidence before they invest in any Country. The current High Corruption Rates in Malaysia is NOT helping FDIs Confidence. For e.g. Singapore for the last couple of years around 5 to 8 years ago, has Almost Zero Bank Interest rates but you do NOT see FDIs fleeing from the Country like it does in Malaysia, Indonesia, Thailand and other ASEAN Countries. Malaysia has always been managing the MYR with Interest, which has been unsuccessful in strengthening the MYR, as it directly devalues whenever USD appreciates with Interest rates hike. My proposal is for PMX follow the footsteps of Singapore to manage MYR with Foreign Exchange instead where there will be less direct impact to the Livelihoods of the Rakyat.
The government should help industries to develop better products, so as to attract importers to buy our produce, hence earning more foreign exchange to offset the deficit.
Down to earth common sense ideas. Unfortunately common sense is subservient to bigotry not so common amongst the Malaysian government
To combat the falling ringgit,
A. The short term is:
1. For our bank negara to intervene, buying all the ringgit that are sold.
2. Next is to make ringgit attractive to usd depositors by increasing its fixed deposit interest rate.
3.Third is if the US economy turn around and the federal reserve need to accommodate to the demand of borrowers there to do business. This means a less attractive rate to keep the money in US hence the US dollar will buy our ringgit again.
B. The long term is :
1. To be in a current account surplus again. We have been in deficit for last 40 years!. How? This means no more wasteful lost making projects, a relook at new areas of wealth creation by taking advantage of digital economy and reduce corruption.
2. To be SEEN working toward current account surplus with a team that knows what to do.
As an example, start by reducing subsidy from rgt80bil to rgt30bil, target it only to those who need it and implement a cheaper but more impactful policies. Reduce development budget from rgt100bil to rgt50bil.
Get out of this vicious cycle of deficit.
Increase petronas production to a profit of rgt1bil a day and push small medium enterprise to contribute to half of our gdp.
The idea is for us to achieve a gdp of rgt3trillion next year whereby rgt1trillion is from SMEs and the rest of rgt2trillion from GLCs and other market value of final goods and services produced.
Forward sell some of our rgt5 trillion oil n gas deposit and take rgt100bil from there and negotiate and refinance our rgt45bil cost of borrowings to rgt20bil. Extend payment by another 5 years.
Civil service budget should be cut a bit but the pensioners get same amount monthly. Be frugal. Tun daim did this in 1987.
This can be some of the action that can be taken to combat the falling ringgit and the rising cost of living.
What Malaysia seriously lack is mind power in the skull of the decision makers scattered all over the country from ministry of trade, commodity,agriculture, human resource and education.Just to name a few ministries related to nation building.
There are more than 140,000 MIT alumni living and working in 164 countries on six continents. These graduates are making good on the Institute's mission to advance knowledge and pursue new discoveries that serve the world.
Alumni-founded companies have created 4.6 million jobs, generating nearly $2 trillion in annual revenues. by Rob Matheson | MIT News Office Publication Date: December 9, 2015
Malaysia can generate the same MIT top class of graduates to contribute towards uplifting the nation out of being called a failed state.
it is prenatal investment to the rescue. Unlike animals which learn by instinct and not in formal or informal instruction as happens to human beings.
First, the fact must be revealed that unborn baby is capable of learning soon after conception and before delivery. That's how child prodigy such as the latest sensation of a 14 years old boy who is employed by Elon Musk as a software engineer in his Space-X Star link project. This boy's precocious learning in science and technology begins from the womb.Deep listening without distraction leaps frog him into such advanced learning that makes him what his is today.
About 1500 newly born babies are born daily in our land. Had the past government leaders of the last two decades applied this art and science of prenatal psychology on all these newly born, today we could have a crop of graduates as enterprising and productive as the MIT alumni mentioned above.
To address the failing value of Ringgit, it is not too late to start now to reverse this deterioration.
As expressed by Lao Tzu
"Do the difficult things while they are easy and do the great things while they are small. A journey of a thousand miles must begin with a single step".
It may take 20 years to see the magnificent result of prenatal education for the masses, but if we are lucky, we may get one or two child prodigies like what Elon Musk now has in his employment.
All truth passes through 3 stages. First it is ridiculed. Second, it is violently opposed. Third, it is accepted as being self-evident. (Arthur Schopenhauer Feb 22, 1788-Sept 21 1860)
I hope out of many readers of this column, a large enough number of these readers will act and go further then just treat this as information, and progress further to nation transformation.
“The illiterate of the 21st century will not be those who cannot read and write, but those who cannot learn, unlearn, and relearn. ”
― Alvin Toffler (4 Oct 1928- 27 June 2016)
We either learn continuously or perish.
My views is that Increasing Int rates may NOT be the only Pull Factor for FDIs. FDIs will see the Overall Management of a Country to give them the added Confidence before they invest in any Country. The current High Corruption Rates in Malaysia is NOT helping FDIs Confidence. For e.g. Singapore for the last couple of years around 5 to 8 years ago, has Almost Zero Bank Interest rates but you do NOT see FDIs fleeing from the Country like it does in Malaysia, Indonesia, Thailand and other ASEAN Countries. Malaysia has always been managing the MYR with Interest, which has been unsuccessful in strengthening the MYR, as it directly devalues whenever USD appreciates with Interest rates hike. My proposal is for PMX follow the footsteps of Singapore to manage MYR with Foreign Exchange instead where there will be less direct impact to the Livelihoods of the Rakyat.
The government should help industries to develop better products, so as to attract importers to buy our produce, hence earning more foreign exchange to offset the deficit.
Khoo Soo Hay
General statement…doesn't help the situation! What better products?