Forex Trading Malaysia Illegal

Despite Malaysia being a net exporter of palm oil, petrol crude oil, fruits and rubber, its currency trading trend is not heavily linked to commodity prices, as compared to the Canadian Dollar or the Australian Dollar. One reason could be the political instability in the country. Barisan National (BN), which is the incumbent political party in Malaysia for centuries has been steadily losing popular support and there are now concerns if they can form an effective majority in the next general election to bring the nation forward.

The country is also plagued with corruption scandals. Concerns if billion dollar projects like the Port Kluang Free Zone (PKFZ) and Iskandar Malaysia (IDR) can contribute to the growth of Malaysia still lingers on, which make investors unwilling to part with their funds, resulting in a low demand for the Malaysian Ringgit (MYR). Forex Trading Malaysia Illegal

As a result, the Malaysian Ringgit is not within the top 20 traded currencies in the Forex Market. Even Singapore, its much smaller neighbor has its currency (the Singapore Dollar – SGD) being the 13th most traded currency in the world. Many forex traders tend to buy into Singapore Dollar using the Malaysian Ringgit.

Contrarians however, are holding out that the new Prime Minister Najib can bring out the true potential in Malaysia. With abundant natural resources, cheap labor as well as an increasingly educated population, there are high hopes that Malaysian will be able to overcome its obvious deficiency – corruption, high crime rates as well as low productivity towards a more progressive nation. Forex Trading Malaysia Illegal