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 www.xe.com
Conclusion
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?
7 Comments:
But one common trend from 2013 to 2014, MYR is moving downtrend. :)
My friend tried to convert the assets to singapore property, but decided otherwise due to the not so friendly policies regarding property investment in Singapore for foreigners.
So become a PR first, then only invest. :) Will still be a problem?
I remember you need to have 2 person(brother, sister or spouse), you can only buy a house? Is this the not so friendly policy? or other things?
I think in PR is also that easy now, unless you are rich and well-off.
For foreigner, if i am not mistaken/forgetten you can only loan like 50-60% of the loan amount and Singaporean banks will require to see all your assets & outstanding loans back in your home country.
My friends worked that after graduated and got their PR after that. Some even converted to Citizenship already.
I think SG does the right thing then to control the property market. :)
MYR sucks to the fullest la.. Hope one day our money dont become like Zimbabwe money lar..
Economy also like shit.. Good for you la brother run to Australia d.
ha ha
Ok la, not that bad la. :)
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