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Category: Malaysian economy and BNM

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BNM and Economy

Cutting interest rates show economy is good, right?

Yes, it has been increasing and increasing and increasing within just a period of 2 years. From close to zero (0.25 percent), it has risen to current 5.5 percent. If you know a country is about to keep increasing their rates, institutional investors would be attracted to their currency, especially if they are the largest reserve currency in the world. Even if they run deficits and they need to keep borrowing money to pay off their debts which now stands at US$34 trillion.

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ABCs of Personal Finance

Big Mac as an ‘inflation’ measurement. Cheapest and most expensive countries are…?

The Big Mac PPP is an informal measure of exchange rate valuation created by the Economist in 1986. It uses the price of a McDonald’s Big Mac as a benchmark to compare the purchasing power between different currencies. Source: investopedia.com

There are limitations to using this as a benchmark but since then, this has been widely regarded as another popular measurement to determine the strength of the currency. So, let’s look at the latest measurement today and see what is the price of Big Macs all around the world and also where is Malaysia?

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Malaysian economy and BNM

Land Bridge? Financing? 15 years later? ECRL is ready in 2 years.

Many years ago, someone told me that Thailand is building Kra Canal. This is a 100km water canal from the Gulf of Thailand to the Andaman Sea, cutting across Thailand. Somehow, I confidently told him that this is not as easy as simply building it. Who will finance it? If it’s Thailand, they will be facing budget deficits or needing a huge loan in order to make it happen.

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Malaysian economy and BNM

Do you know what’s the minimum salary around the world?

Earning a salary allows us to buy things we want and need. It’s also how demand for goods and services start which then drives more jobs and the circle continues. This is why we have multiplier effects when we speak about economic growth. Today, we look at minimum wage / salary in Malaysia and also around the world. It’s interesting actually.

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Basics - Property Investment

Knight Frank Malaysia: Digital Economy Push will fuel rush for industrial property

I noticed recently that there are now more news about industrial properties. I think this is a good sign that the economy is moving along and usually, all these would have to happen in order for more jobs to happen and when more jobs happen, then more people would have salaries to spend and well, then the demand for residential properties would also be moving up.

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BNM and Economy

International Monetary Fund: Modest Growth Over the Next Two Years

I really have no idea why people prefer to read bad news and tell the world versus reading about good news and treating it as if nothing happened. Ask any business owner or working professional and they will tell you all the issues with their business and how they are underpaid in their company but at the same time, we kept seeing car sales going up.

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BNM and Economy

Oh dear. Ringgit vs other currencies, up or down?

Suddenly, we have good news about Ringgit. Okay, actually there has been some good news here and there within the past few weeks. However, suddenly every media is reporting good news about Ringgit yesterday (12 July 2024). Here are some of them:

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Interest Rate

Interest Rate Latest News: Homeowners pay the same, Depositors get the same.

Briefly, nothing has changed. Bank Negara Malaysia (BNM) has decided. So, homeowners would not not need to pay more every month and depositors (fixed deposit) will get the same every year since the rate has not changed. Want to know what happens if the rate was increased? Here’s that article: Home Owners, you may have to pay more Do read the full policy statement release below.

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