Monday, August 29, 2016

Malaysian Ringgit- Should you hold longer??

I have been absent from my blog for almost 3 years!! It has been a while since I wrote something about investment.

I joined private practice in 2012 and ever since life has been busy everyday and I must say I went through the hardest part in my life.

For my spare time, I always think about how to grow my wealth and make good return every year. Unfortunately our Ringgit Malaysia (RM) has been depreciating since I last wrote in this blog 3 years ago.

Looking at the graph before and you will be disheartened by the fact that our money has lost value almost 80% to Singapore dollars over a period of 20 years

Image result for rm vs singapore dollar

As a Malaysian, we have no choice but to hold on to our currency but can you do anything about this??

My answer to this-------------------------YOU CAN'T!! I anticipate our money will lose the value slowly over Singapore dollars as long as long investors have no confidence in our country.

As a humble and normal Malaysian, what can you do??
I will suggest you to do the following,

1) Buy some overseas shares especially in countries that you think the currency is undervalued. My first choice will be London Stock Market. After BREXIT, pounds has been under a lot of pressure and I anticipate it will rebound back in 1-2 years time.

2) Keep your currency in foreign currency fixed deposit, I have been accumulating NZD for a few years because there are only two currencies that pay good interest, AUD and NZD, however, NZD has appreciated against RM almost 20-25% in 18 months!! The only currency I am looking at this moment is AUD.

3) Buy a foreign property!! That sounds crazy to a lot of people but I think it is possible and do it while you still can because in next 5-10 years, you might not be able to buy one. Don't think about London, Melbourne or Singapore, Thailand seems to be an good choice. If you look at Thai Baht, the currency is much stable than our RM!!