FX Alert : New (Almost) Record This Month In SGDMYR !
Actually the high last week was on National Day 2.5838, which was probably due to illiquidity. We went off last Wed at 2.56. The high on record was a short lived one during the Asian Crisis but this climb up has been slow and steady. Woe to those who had invested in Malaysia so far and congratulations to those who intend to buy their Iskandar property soon.
It is the shootings !
Malaysia Violent Crime Wave Escalates With Shootings, Car Blast
Most shootings in Malaysia tied to gangland turf war: Report
Private bankers say the money is flowing out like water as Singaporeans still greedily grab into Iskandar. I guess the Singaporeans must have their own “gangsta” protection to be brave there.
Besides the sensational aspect, there are fundamental grounds to this as well.
“”Dual headwinds like all commodity producers, with 13% of exports going to China and Malaysia exporting both oil and hard commodities.”
Malaysia’s credit-to-GDP ratio stands at 120%.”Source: Morgan Stanley
Fitch just downgraded their outlook and foreigners own half the MYR bonds out there.
It does look slightly dire for them which worries me a little (for I was born in Penang). Because everytime they need a diversion, we will always revisit the water supply issue. (SAID IN JEST, PLEASE DON’T SHOOT ME !!)