Ringgit Malaysia as Seen by Some Chief Economist
Hey people!
Good news to some and not good news to others. This is on the back ground of the QE2 USD 600 billion by the Feds.
Likely that the ringgit will trend at RM 2.80 - RM 3.02 said those in the capital markets. These experts see this trend in the next 12 months on further downside of the greenback. This is in line with other regional currencies too.
In Malaysia the major risk is inflation next year, and other challenges may appear. It may be (the other challengers)in the form of capital inflows of hot money. So far hot money into Malaysia is not as big as other Asian countries. Thus hot money in Malaysia is still not a concern for Bank Negara yet.
So imposing capital controls in Malaysia is not needed as yet now. Question is whether the hot money inflows will become excessive.
Key point to note, Malaysia stock market at above 1500 is still laggard behind other Asian markets like India and Indonesia.
Till then and Merry Christmas!
Tj
No comments:
Post a Comment