Saturday, April 05, 2014

Is Malaysian Ringgit Currency Strong?

A lot of people say Malaysian Ringgit (MYR) currency is not strong and will be depreciating in long run and it is better we convert to foreign currency if we want to maintain the value. Is that true? So I dig a little bit research on the MYR currency trend in the past 10 years for your reference here.

The following graphs show you how much 1 MYR can be converted to foreign currency in the past 10 years. I list down the countries that I"m interested in. If the trend goes up, it means MYR currency is stronger and vice-verse.

AUD (Australia $) per 1 MYR

USD (United State $) per 1 MYR

EUR (Euro) per 1 MYR

GBP (British Pound) per 1 MYR

Well if you look at the starting point and ending point of these graphs, MYR currency is either stay stable or appreciate. To AUS and EUR currencies , MYR currency is stable. To USD and GBP, MYR currency is doing good (mostly due to subprime crisis I think).

Let's continue to see our neighbors...

HKG (Hong Kong $) per 1 MYR

SGD (Singapore $) per 1 MYR

CNY (Chinese Yuan) per 1 MYR

TWD (Taiwan New $) per 1 MYR

KRW (South Korea Won) per 1 MYR

IDR (Indonesian Rupiah) per 1 MYR

Compared to all our neighbours, MYR currency is doing good in the past 10 years except for for CNY (so, my previous prediction on RMB/CNY is correct? lol)  and SGD.  We only lost to these 2 countries. :)

Source: all charts are from


I"m not expert in Forex but just want to emphasize the perception on MYR currency has no value (or depreciate) in long run may not be true at least based on the past 10 years data, MYR currency is doing fine. Well, you can shorten to 5 years, it is not that great as 10 years but it is still considered okay in my opinion.

If you are really scare and don't trust MYR currency, it seems like CNY (Chinese Yuan) or SGD (Singapore Dollar) is the currency that you want to convert to based on the past 10 years trend above.

So, is Malaysia (MYR) currency strong? I think yes based the past 10 years. Just only 2 countries are doing better than Malaysia which is Singapore and China, I will consider that is doing quite good already. Agree?

Sunday, March 30, 2014

Careful with 0% Interest Loan

When someone (it could be bank) offers you 0% interest loan, think twice!  In Chinese (Cantonese), we like to say "where could there be frog jumping around the street?" It basically means "how could that possibly true?".

I just want to share with this very good post from @knowthymoney, check it out here. In this specific example, the interest (not really interest, that's why the bank says is 0% interest) is at least 7.5% (assuming you take RM 200, not less than that) and if you are late for the payment, it can go up to 12%. So be careful, it is not really "FREE"! :) Not frog simply jumps around. lol

This is a very common trick used by bank. They sometimes call this "Cash on Call", "Petty Cash" or whatever. It basically, means you can just pick up a phone and call them, they will give you this petty cash. They sometimes proactively call you too to offer you this service. The loan amount is usually small so you can keep using it when you need it until you don't realize how much you have used already.

By the way don't worry, although banks create this trick, they also create a solution for you. This solution is called "AKPK" - you can read up my previous post here to know more about it. I also discuss the detailed AKPK walkthrough application here in case you are interested.

Well, what else do you still need since the complete solution is out there? :) So, don't worry, be happy!

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