Zeti says ringgit significantly undervalued amid growth
Publish date: Thu, 12 Nov 2015, 03:25 AM
KUWAIT CITY: The Malaysian ringgit remains "significantly undervalued" and risks to economic expansion are unlikely to materialize with exports still strong, Bank Negara Malaysia Governor Tan Sri Dr Zeti Akhtar Aziz said.
The ringgit doesn't reflect fundamentals with the nation's current account in surplus, unemployment at about 3 percent and inflation within Malaysia's long-term average, Zeti said in an interview in Kuwait City on Wednesday. The currency may recover when the U.S. Federal Reserve normalizes interest rates and as "domestic issues" in Malaysia are resolved, she said.
Malaysian policy makers have been struggling to boost confidence in its economy and finances since oil prices started to fall last year and as allegations of financial irregularities at a state investment company hurt sentiment. While the ringgit recovered alongside emerging market currencies in October, it's still down about 20 percent this year, the worst performer in the Asia Pacific region.
"Our export growth remains fairly strong, it has not moderated to the extent that we expected," Zeti said.
Malaysian exports and industrial production beat economists' estimates in September.
On expectations of a Fed rate increase, "investors have already anticipated this and have already priced it in, so we have already seen, we believe, most of the outflows," she said. -- Bloomberg
Discussions
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Zeti is correct!
Ringgit is now very undervalue.
A Check with Big Mac Index Value Will Reveal that Malaysia is among the cheapest countries in the whole world to buy a Big Mac!
My Johor Buddies who bought Singapore Dollars earlier are now converting Sing Dollars back to Ringgit.
MALAYSIA THROUGH TPP WILL BE AN EXPORTING POWER HOUSE!
WHILE SPORE ID FACING IMMINENT RECESSION. MORE THAN 50% OF BUSINESSES IN SPORE WILL HAVE FLAT EARNINGS AND ZERO GROWTH.
THE HOTTEST GROWTH REGION IS ISKANDAR!!
ISKANDAR WILL GROW 7% to 8% YEARLY FOR THE WHOLE DECADE!!
2015-11-12 20:48
Most Expensive to get a Big Mac is Switzerland
5th Cheapest Place to buy a Big Mac is Malaysia.
See www.statista.com/statistics/274326/big-mac-index-global-prices-for-a-big.mac/
2015-11-12 21:13
Zeti is a pure economist,what she said is based on economic analysis.
You don't believe what politicians said,however,you should trust Zeti.
2015-11-12 23:32
calvintaneng BTW, while check with Big Mac Index Value, please check the SIZE of Big Mac too. I believe the size of our Big Mac might be the smallest too :)
2015-11-13 06:51
Zeti is right. Our currency is undervalued. Fair value should be nearer 3.70. The weak Malaysian ringgit is hurting certain businesses.
2015-11-13 09:36
Any tom n jerry normal EQ or IQ people even sleeping PM to be the govt also better than the current one
2015-11-14 09:36
Ringgit significantly undervalued among World's currencies
These Stocks are significantly undervalued among Bursa stocks
1) PPG (Selling at 45% discount to NTA.) Very defensive
2) KPSCB (Selling at 60% Discount to NTA) Very defensive
3) Mui Bhd ( Selling at 80% Discount to Real NTA). Loaded with gold mines.
4) Multico (Selling at 55% Discount to NTA) Great Prospect.
5) Yilai (Selling at 35% Discount to NTA) Plus Cash Rich & debt free
6) White Horse (Selling at 30% to NTA) Great Growth Stock
7) GMutual (Selling at 50% Discount to NTA) A hidden gem
8) Kamdar (Selling at 65% Discount to NTA) A hidden gem in Reits.
8) MPHBCAPITAL ( Selling at 70% Discount to Real NTA) Astounding Value!
Why High NTA a Must?
Answer:
Ben Graham advocates buying Stocks with Significant Discount to NTA as a margin of safety.
But check out the NTA first
What are they?
Not rotten machinery or ships of Hubline
Not lousy obsolete steel stocks like Lion ind
Not useless lands located in Bkt Beruntung like Talam
THEY ARE PRIME, PRIME REAL ESTATES, LANDS, FACTORIES, SHOPS, HOUSES LOCATED IN HIGHLY DESIRABLE HOT BOOMING REGIONS LIKE PENANG, KL OR ISKANDAR!!
Calvin Tan Research specializes in finding hidden gems of great treasures overlooked by the maddening crowd.
No. 1 - Search for them among the thousand of KLSE Stocks.
No. 2 - Quietly buy them while others are selling or giving up
No. 3 - Wait until Value Appears One Fine Day
Then It will be taken private like Kulim
Kaboom
Upward
Limitless
In
Malaysia
Missed Kulim?
Never mind
One more coming
KPSCB
Kaboom
Power
Surging
Cash
Berhad
BUYING STOCKS SIGNIFICANTLY BELOW THEIR TRUE INTRINSIC VALUE IS THE WAY TO GO!!
THEN HOLD ON TO THEM AS LONG AS POSSIBLE TILL VALUE EMERGE SOME DAY!!
HIP HIP HOORAY!!!
2015-11-14 18:40
Hoping for ringgit to recover is as best hoping Zimbabwe dollar to recover
We shall see the outcome
2015-11-14 23:15
With retirement in next year, I doubt her voice alone can change the market direction. Want to blame someone? Blame those stupid minister spewing crap statement everyday. Heck replace them with monkey better. In scientific value, even monkey have iq and eq much more higher than those minister.
2015-11-17 21:06
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charlesp
sure or not?
2015-11-12 20:13