As the Ringgit weakens further, will ANZ & Ambank bigwigs be the next 1MDB victims?

As the Ringgit weakens further, will ANZ & Ambank bigwigs be the next 1MDB victims?

It looks like the Ringgit is headed for another round of weakening and it is no coincidence that it is happening with more 1Malaysia Development Berhad (1MDB)-linked alleged global money-laundering exposes.

With the 1MDB state investment company facing a claim for US$6.5 billion (RM26 billion) from Abu Dhabi’s sovereign wealth fund, how else not to panic.

With domestic and foreign investors fleeing in droves, how else do you expect the Ringgit to perform? (Read these for context: http://victorlim2016.blogspot.my/2016/09/1mdb-pm-najibs-worst-fears-begin.html, http://victorlim2016.blogspot.my/2016/09/oil-woes-haunt-1mdb-pm-najib-malaysias.html, http://victorlim2016.blogspot.my/2016/09/is-there-worse-than-bankruptcy-for.html, http://victorlim2016.blogspot.my/2016/08/maybanks-profit-down-27-malaysias-tip.html and http://victorlim2016.blogspot.my/2016/08/has-malaysias-federal-debt-surpassed.html)

And here are two Malaysia Chronicle postings that show why Malaysia is facing a domestic and foreign financial and economic confidence crisis:

"THE GREAT NAJIB-ROSMAH COVER-UP: ALL EYES ON AUSSIE REGULATOR & BANK NEGARA – WILL ANZ & AMBANK BIGWIGS BE LET OFF THE HOOK?

Politics | September 15, 2016 by | 0 Comments


Today it has emerged that Arianne de Rothschild, President of Edmond de Rothschild BPERE and a swathe of top brass at the bank handed in their notice on July 20th. That was the day of the US Department of Justice filing which implicated their bank in the laundering of money stolen from 1MDB.

The same indictment squarely implicated ANZ (of which Mike Smith was CEO at the relevant time) for managing a series of eye-popping transactions into Najib Razak’s billion dollar AmBank account.

ANZ is the major shareholder of AmBank and as part of Mike Smith’s ‘Asia expansion’ all the most senior officers in KL were staff on secondment from ANZ.

The former owner of AmBank, Hussein Najadi, had raised loud concerns about what was going on at the bank, but Mike and his team failed to take notice. They didn’t even bother to check further when Najidi was shot dead and his son began a crusade to highlight the suspicious circumstances linked to the bank.

Eventually, after Sarawak Report leaked the information on Najib’s shocking accounts and after several regulatory investigations were launched, Smith and his team sacked a couple of junior operatives who had managed Najib’s accounts. Later, in September of last year he too decided to take an early retirement.

But, now he is back preaching! He is plainly confident that Australian regulators will continue to look the other way over this disgraceful episode. But, those seeking his advice should remember it’s not about whether you should do business with Asia, but HOW you do that business which matters.

Bank chiefs say no need to panic, it’s time to accept market volatility

Former ANZ chief Mike Smith says there is nothing to worry about with a US rate riseJessica Shapiro

Despite criticism of Smith’s super-regional Asia strategy while running ANZ, the former senior HSBC executive is still one of Australia’s best-connected businessmen in the region …

Fresh from a three-month break in Europe and his 60th birthday celebrations over the weekend, Smith is turning his attention back to Asia in his latest “ambassadorial” role advising PricewaterhouseCoopers. It is not dissimilar to the advisory role he currently has with ANZ.
Smith’s successor, Shayne Elliott, is reining in ANZ’s investment in Asia although the bank says it is not back tracking. While his critics will point to Smith’s Asia strategy as a reason why he should not be advising companies on doing business in Asia, Smith shrugs off that kind of commentary as “uninformed” and that it was always an investment that played to the medium to long term. “We are oppressed by this social sound bite these days where next Thursday is long term. If you think like that you are going to come a cropper….

Smith believes Australian companies are in danger of missing the boat in Asia because they are more comfortable in the English-speaking market and see the region as too risky.

“It is not a question of should I get closer to Asia. The question the boards should be asking themselves is can they afford not to?”

http://www.sarawakreport.org/"


"DR M HITS BULLSEYE – GREAT PAIN & SUFFERING AHEAD FOR MALAYSIA: UNTIL NAJIB GOES, THE RINGGIT WILL KEEP PLUNGING LIKE A YO-YO
Politics | September 15, 2016 by | 0 Comments

This is yesterday’s news.

Malaysia’s ringgit fell to lowest in more than two months
decline in oil prices and controversy involving troubled 1MDB

currency weakened as domestic financial markets reopened Mon

Asian peers including won climbed
Brent crude dropped 0.7% adding pressure on RM
1MDB facing claim for US$6.5b from Abu Dhabi

1MDB political risk still at forefront

ringgit retreated 0.6% to RM4.0945 per dollar
reached RM4.0975, weakest since June 28
The Korean won advanced 0.5% against USD

1MDB and IPIC in tussle over repayments on bonds
1MDB and M’sia’s Ministry of Finance — haven’t performed obligations


My comments : I think that is yesterday’s news. The Ringgit has since fallen close to RM4.13 against the Dollar

The Ringgit has fallen. So what? Who cares?

Hello brader-brader bodoh, engko orang peduli apa? After all you can still melanc_p. Dapat duit buta, dapat projek buta. Can still play golf, visit the dangdut club? Yes or no?

Here is what happened. This morning we went to see a supplier. We had to order some goods for delivery a few weeks from now. We wanted to pay a deposit and secure the order.

The supplier refused to accept any deposit. It was an imported item, and because the Ringgit was not steady they did not want to “lock in” the price now. Dont blame them, blame the falling Ringgit.

There is a valid reason.

(Kepada brader-brader yang tak faham bisnes, its like this. When the Ringgit falls, the supplier has to increase the price to recoup the US Dollars they already paid for to import the items. So the supplier actually makes a higher profit (in Ringgit) because they imported the stock cheaper, when the Ringgit was stronger. They make bigger profit. So why are they complaining?

Because they must also reorder new stock to replace the old stock that has been sold. Bila stock lama sudah di jual, depa kena ganti dengan stock baru – sebab pagi esok kena sambung niaga lagi. Boleh faham brader? Tapi sekarang when they order new stock, they must now pay more Ringgit sebab Ringgit sudah jatuh !! Worse, if after they order the new stock the Ringgit strengthens back !! Then their profit margin is really screwed).

So the supplier said “Please come back later, closer to your delivery date, then we will accept payment and issue the D/O”. This is because the Ringgit is volatile. The supplier does not mind losing a customer. They want to avoid making losses.
So what happens to us, the buyers? Without accepting our deposit there is no assurance the particular goods we need will be available for us a few weeks from now.

Someone else can buy them in between. In which event there is also no guarantee the same goods will be available again. Or we may have to wait longer for the supplier to re-import their stocks from overseas. But we have a schedule, we have commitments to other people, the contractors, subcontractors who are waiting for us to deliver the items.

Or we have to find another source. More time, money will be spent. It may not be the same quality or pricing. So how? Semua orang rugi lah. All this is part and parcel of running a business. Brader-brader semua boleh fahamke? Janganlah melanc_p saja brader.

This is just one tiny negative impact of a falling or volatile Ringgit. There are many more. This is not good.

– http://syedsoutsidethebox.blogspot.my/"