Singapore Dollar hits 14-year high vs Malaysian Ringgit

Discussions General
#1

Approximately 3 months ago, I made a post stating that SGD may rise above 2.50 MYR at the end of this year (http://www.miricommunity.net/viewtopic.php?f=1&t=50541) Well, it seems we don’t have to wait that long.

Singapore dollar at 14-year high vs Malaysia ringgit

http://www.livetradingnews.com/wp-content/uploads/Singapore_10000_yusof_front3.jpg

The Singapore dollar hit a 14-year high against the ringgit on Wednesday as offshore funds continued to buy in the currency, seeking relatively safer assets in midst of financial turmoil, and on views that Malaysia may allow a weaker currency to spur growth amid global economic slowdown. The SGD rose 0.7 percent against the neighboring unit to 2.5170, the highest since July 1998.

That came as yields on Malaysian government bonds stayed much higher than Singapore bonds. Spread between 10-year Malaysian bonds and 10-year Singapore bonds has widened 15 basis points (BPS) so far this month, reflecting that investor confidence in Singapore has strengthened vis-a-vis its neighbor.

“Investors really like Singapore assets due to the safety and stability of Singapore dollar,” said BNP Paribas currency strategist Thio Chin Loo in Singapore. She said the Singapore dollar, which is now one of the most stable currency in the world, may head to 2.55 per the ringgit.

http://moreintelligentlife.com/files/Singapore%20pic%201.jpg
Massive fund inflows into Singapore as investor confidence rises

Singapore is the only country in Asia with a credit rating of AAA and its currency has been the second best-performing regional unit after the Philippine peso with a 2.5 percent gain versus the US dollar.

Saktiandi Supaat, head of FX research at Maybank in Singapore, said the Singapore dollar is expected to remain firm against the ringgit this year. “The ringgit may see more volatility and its weakness may be more pronounced compared to the past, while the Singapore dollar is locked in a band. Inflation differentials may potentially lead to some speed of change in policy responses too,” Supaat said.

He expects the Singapore dollar to stay around 2.51 versus the ringgit by the end of the year, although it may head to 2.55 before that. But Maybank’s Supaat said it may be difficult for the Singapore dollar to extend gains versus the ringgit from the current level much further in the longer term, adding the city-state’s currency on Wednesday was boosted by a higher Australian dollar.

http://mole.my/sites/default/files/images/bank%20negara%20malaysia%20-%20national%20malaysian%20bank.jpg
Malaysia is expected to further weaken currency to boost export competitiveness

“Inherently there is the risk of capital inflows into Singapore bonds and property markets for safe haven reasons and also for expected appreciation. This may feed into asset price inflation. At worst, these are hot money inflows, there is always a risk of sudden outflows,” said Supaat.

He however, predicted that the Singapore dollar will retreat back to 2.40 versus the ringgit by the end of 2013.

Source:

http://in.reuters.com/article/2012/07/1 … CV20120711

http://economictimes.indiatimes.com/mar … 818848.cms

http://www.brecorder.com/top-news/1-fro … ixed-.html

#2

when i used to work in Singapore before, exchange was around RM2.77 - RM2.8+ to the singdollar. but that was 15 years back i think.

the economy both side went downhill and i could get only around RM2.20 so no point continue working in Singapore due to the foreign worker levy and vehicle levy and less bonus.

at the increasing exchange rate now, young people in Miri should consider heading to Singapore to find work if still jobless.

#3

In January 1981, it was around 1.0592, in January 1991 it was 1.55

Just before the collapse of MYR in mid-1998, it was 1.80

The highest level was reached in January 1999, which was 2.6478

From then till 2002, MYR recovered to 2.06, but from 2002 onwards it begins to fall again, towards the 2.51 now.

#4

mevotex, i got the rate of RM2.77 and above from money changers in JB. maybe official rate different but that was the rate we got from money changers located less than 100 meters from the Causeway, back then.

the money changers rate fluctuates depending on the time of the day.

your figure says highest was 2.64++ so how come we got 2.77++ ?

now dont tell me my memory is going? :smiley:

#5

Are you buying or selling SGD at that time? If you’re converting MYR to SGD, the rate could even be 2.80+ due to the instability. If you’re exchanging SGD to MYR, 2.77 is a very high rate, I can’t recall any instance official rate above 2.7, the only reason may be due to that the money changer wish to unload as much MYR as possible, whose value was collapsing in 1998.

#6

[quote=“gorshan”]when i used to work in Singapore before, exchange was around RM2.77 - RM2.8+ to the singdollar. but that was 15 years back i think.

the economy both side went downhill and i could get only around RM2.20 so no point continue working in Singapore due to the foreign worker levy and vehicle levy and less bonus.

at the increasing exchange rate now, young people in Miri should consider heading to Singapore to find work if still jobless.[/quote]

i couldn’t agree more…if don’t PIA now, wait til when?
i used to tell myself give it a 5years in Singapore then move back to Miri but its been 7years now…i don’t think i could anytime soon… :frowning:

#7

n i happen to travel to SG when the exchange rate is the highest…cis! staggering 2.516!

#8

Those of who who work in Brunei will also benefit from this as Brunei & Singapore share their currency…

#9

wootz … sui already … if can drop to 2.7 … funding two condos in Penang isnt any problem already … :smiley:

#10

malaysia BOLEH!!! soon our currency will be another Rupiah…

WTF, what has become of malaysia…everything we are behind S’pore & Brunei. Considering that our neighbouring countries are only fraction to malaysia but in term of economic development…we are so far behind. this is what happens when the BN is the govt.

#11

Singapore was once a member of Malaysia Federation. But pull-out last minute. And now they are more developed compare to Malaysia plus their currency are higher than ringgit. Where and what went wrong? :frowning:

#12

and the answer to your 2 million dollar question is…

(drum roll)

Be End!!!

(ka - chunk)

#13

and Brunei had stated they have no intention to end the ‘Currency Interchangeability Agreement’ with SG…susah lah Mirian,soon Excapade Sushi also cant afford to eat d…

#14

and the answer to your 2 million dollar question is…

(drum roll)

Be End!!!

(ka - chunk)[/quote]

a.k.a Blue Nation. Only know how to frame their enemy for “liwat”. Wonder if Sarawak will be on par with SG if seperated from Msia Federation same time as SG. But we’ll still have the greedy Pekmo at helm of the G.

#15

If Sarawak was given independence now, I dare say that most Sarawakians like myself will come back. Cos there are too many opportunities … pekmo wun be at helm cos he will be removed as Sarawak will be needed to form their own govt … Pekmo belongs to the BN …

#16

they didn’t pull-out last minute, they were being chased out. even LKY dropped on his knees with tears when it was announced.

that’s what i watched in one of astro’s documentary about singapore sometimes last year.

#17

Singapore… is the only country in the history of the modern world to gain independence against its own will. Malaysia, is the only country in the history of the modern world to kick out its own territory without a fight. It was planned that Singapore would come back begging to re-join the federation, who know…

KL learnt its lesson, it will never allow Penang, Sabah or Sarawak to go independence again.

From the stats, the greatest loss is Sabah, descending from the second richest state to the second poorest (after Kelantan) today

#18

they didn’t pull-out last minute, they were being chased out. even LKY dropped on his knees with tears when it was announced.

that’s what i watched in one of astro’s documentary about singapore sometimes last year.[/quote]

Forced Pull-Out. hehehe :slight_smile: thanks for the correction anyway. I bet they thankful they’re not in the federation. Look at how develop their country are compare to us. And compare MYR and SGD. SGD is more than 2 times better.

#19

No Problem. Excapade is opening a branch in Miri soon…

#20

they didn’t pull-out last minute, they were being chased out. even LKY dropped on his knees with tears when it was announced.

that’s what i watched in one of astro’s documentary about singapore sometimes last year.[/quote]

and that’s what the government want us to think…it’s Singapore who is at fault…and LKY’s wife was one of the main reason too :stuck_out_tongue: