The Era of Pre-Depression Cycle - Malaysia

It's been a long time I have not been blogging since 2009 and reflected and commented on various topics, 1997 Asian economic crisis and government reaction - currency peg; GM crisis and so on.

Today, the urge of writing just come back on top of my mind- can't help but to write it down. Malaysia Ringgit is close to 45% lower compare to 4th Sept 2014!!!

Dr. Zeti (BNM, Bank Negara Malaysia) governor mentioned that we should see the Ringgit should strengthen when the Goverment-linked Companies (GLC) withdraw their money or earnings from overseas.

The approach is rather passive than actively controlling. People, investors, institutions are selling off Ringgit quicker than you think. The question is how fast you can get to overseas money to return? How about fixed asset acquired like apartment in Australia? How much is it that is enough to counter the bleeding? would there be reduction of interest rate in Malaysia to boost the internal demand and counter the lack of consumer spending since the commencement of GST (since 1st April 2015)?

If there are no immediate action taken by the Government. It is going to hit us hard, more foreclosure and default are awaiting at the door steps. The governor's optimism is not enough to retain the money.

Peg the currency if you need to!