SGD/MYR is now 3.19, what can you do as a Malaysian?

“Time is more valuable than money. You can get more money, but you cannot get more time.”
Jim Rohn

The ringgit depreciated to its weakest level against the Singapore dollar (SGD) on Tuesday (May 24) 2022, after the exchange rate surpassed 3.1993. As a Malaysian, it is heart-breaking to see MYR has been on a continuous downward trend against SGD for years. Will the trend continue?

Looking back at what I have gone through for the last 40+ years in my life, I have a rather pessimistic outlook for Malaysian Ringgit (MYR). Even though Singapore does not have abundant natural resources like Malaysia, it charted its own progressive path after being separated from Malaysia in 1965.

MYR has been on a downward trend against SGD for the last 40 years. While Singapore has pursued a more aggressive monetary policy by appreciating the SGD at a faster pace and at a higher level, Malaysia still obsesses with the idea of cheap ringgit to promote export.

Our Politicians Are Useless

The irresolute blow of racial politics and widespread corruption inflicted leaves Malaysia in the hands of a washed-up cabinet mouthing grandiloquent promises it cannot honour.

No matter what our politicians tell us otherwise, we as Malaysians must think out of box what to do next in order to secure our own future.

If Malaysia is to avoid a bleak future it must grasp reform. That will require a once-in-a-generation show of political will power, persuasion and policy ingenuity. I am doubtful what current and future administrations can do for this country by judging what they have said recently ( HERE and HERE). They are either have minimum brain cells in their heads to survive as a vertebra or are just total a**holes.

But as a ordinary Malaysian, you can do the following to hedge against a free-falling MYR.

Invest in SGD-denominated Stocks

As I said numerous times before, after putting your hard-earned money every month in EPF, I see no reason for you to invest further in Malaysian market.

Look beyond to Singapore and invest in Singapore Stock Exchange ( SGX). Put your money in Singapore blue chips REITs and bank stocks and get reasonable dividends regularly in SGD.

You can actually buy Singapore stocks via IBKR as well. Open an account today and convert your MYR to SGD and start your first purchase today.

Invest in USD-denominated Stocks/ETFs

As a strong believer of ETFs investing, you might have know by now, I invest mainly in broad market equities ETFs ( namely VUSD and VWRD) and bonds ETFs ( namely IGLO) which are domiciled in Ireland.

For the last few weeks, I have allocated 2-5% of my total portfolio value to purchase some technology stocks.

You might want to give Webull a try since it provides commission-free US stock, ETF, and options trading with no inactivity fees.

And you can get up to USD100 worth of Apple (AAPL) fractional shares if you transfer up to SGD2000 by end of this month.

Start an online business

Starting a business of any kind is hard but internet has changed how business runs today. If you were to ask your grandfather many years ago ways to start a business, he would probably ask you to open a grocery shop.

In the era of high speed internet and globalization, earning foreign currency via online business is no more a delusion.

You can find out 29 easy ideas of starting an online business HERE.

Get a Freelance Job

When you’re good at what you do, you might want to get a freelance job during your spare time. You set your own hours, and as long as you have a laptop and internet access, you’ll enjoy the flexibility to work remotely wherever, and on your own terms.

And the best thing, you can get paid in whatever currency you want.

Conclusion

In Buddhism, we believe:” No one saves us but ourselves. No one can and no one may. We ourselves must walk the path.”

Take your fist step and start to earn some income other than MYR!