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by Mad Scientist » Fri, 20 May 2011 4:45 pm
During the 1997 meltdown. the SG rate to MYR was something like $1 to 2.4 or 2.5. Maybank Malaysia started to offer TD for 9 or 10% rate. I cannot remember the exact rate that time, then DBS and the local banks counter offer the rate to I think 10 or 12 % ( I really forgot the exact rate but it was huge diff. This was to counter react the flow of SG dollar out of SG to Malaysian Bank. It was something like $ 200 million(approx) was transferred from SG account to Malaysian account within one week by consumers. Money was going out of SG to Malaysia and Indonesia with huge interest rate on TD.offered overseas. Indonesian local banks were offering 60% pa and even Citibank Indonesia offered 40% pa. I had $100 K placed in BCA Indonesia. After 5 years on 60% pa. Go figure !!
Anyway we were doing the same thing but trying to avoid the capital control law enacted by Malaysia Government. The only diff is we were carrying substantial amount once every two weeks. The saving is phenomenal so it is worth the risk . I cannot remember his exact shop name as it has been awhile but he still operates as I am told.
The positive thinker sees the invisible, feels the intangible, and achieves the impossible.Yahoo !!!