luckily i didn listen your advise to put my sgd to myr fixed deposit.
my wife always ask me put our money into myr fixed deposit.
You said your wife is malaysian, so it is worth doing so. You cited 4.1%pa fixed deposit from the best bank in Malaysia, Public Bank (also biggest bank by market cap)
So if you put in public bank for 10 years and keep rolling over the interest owned, you get 50% returns. For Singapore, the best fixed deposit now is 1.6%, 10 years, u get 17% returns. 50 minus 17 = 33%.
Ok, current SGDMYR is 2.70, 33% more = 3.60
Effectively, you hedged SGDMYR until 3.60, including a 1.6% SGD fixed deposit that you forgo, assuming interest rates stay stagnant for 10 years.
You win if SGDMYR is below 3.60 a decade later.
Wait, does it mean that you lose when ringgit is above 3.60 a decade later?
Not really, if ringgit is really above 3.60% (higher interest rates environment), public bank is very likely to give you more than 4.1% returns on fixed deposits along the way.
Besides, if interest rates is higher, then maybe it is cheaper for you to buy a shop or residential property in malaysia for your wife or mistress.
Because you got malaysia wife or mistress, that's why it makes sense for you. For Singaporeans, then no point, because you are betting against SGD when you place a foreign-currency deposit.
do u think malaysia will go into bankrupt not?
Malaysia will be weaker, but they wouldn't be bankrupt. 1MDB and proton is just like Greece.
GST saved malaysia from cashflow problems.
Then it is easy to save 1MDB, just give them a few more pieces of land for free, and wola! the balance sheet will be shored up.
