Quote:
Originally Posted by nitecrawllerr
Last week was at JB. The bank manager was so persistent and keep asking me to invest Rm70K and recd 4.5% interest yearly. Told her i would be making losses instead if i convert back to S$. So invest in S$ still the best. Btw Bro, SSB would be a better choice, imo. Can withdraw anytime and yet recd interest pro-rated.  |
Currently, Maybank Singapore is offering fix deposit interest of 3.2% per year and RHB Singapore is paying one of the highest fix deposit interest rate of 3.4% per year.
Given that malaysia fix deposit is only offering 4.5-3.4=
1.1% per annum higher interest than singapore fix deposit, but the
exchange rate loss per year is (3.35-3.06)divide by 3.06 X 100% =
9.5% (see below sing to ringgit exchange rate history)
In other words, the exchange rate loss is very much more than the extra interest that you earn in putting fix deposit malaysia.
As shown below, for the past one year period, ringgit has devalued from RM3.06 to now RM3.35 per sing dollar.
Therefore it will be better to place money in foreign currency fix deposit in those currency that is stable and offer high interest rate, so that when it matured after 6 months or a year, you get double earnings from the interest as well as the exchange rate.
But till date none of the foreign currency provide the above yet
Some of the reasons of the depreciation of the Ringgit may be due to:
1) Political instability - now no garmen
2) Drop in oil export revenue thus affecting the currency
3) US raised its interest rate and affected global currency
4) Msia do not want to raise country interest rate too many times afraid that the people may not be able to pay the loan.
5) Many foreign investor is selling off their ringgit and investment in ringgit.
6) Many malaysian also trying to place their money savings in foreign currency
7) Malaysia exporter who earn US dollar refuse to convert back their money profit back to ringgit afraid that it will devalue
8) Many malaysian worker who work in singapore who earn sing dollar would not want to convert their saving into ringgit. They will only change when they need to use ringgit.
Therefore, when US raised its interest rate again, the ringgit will be badly hit again given that bolehland has no strong reserve to back up the currency.
Singapore economy has a strong fundamental and MAS may continue to tighten monetary policy to strengthen the sing dollar..
