How To Profit From Interest Rate Hike In Malaysia

Keep quiet and calm.

A lot of people are speculating that our Bank Negara in Malaysia-Land will increase the interest rate by end of the year. They are 2 reasons that I could think of on top of my head:

1. Malaysia was given a negative outlook (Bolehland chalked up alot of debts) by Fitch, hence foreign money will start to exit their investments. So in order to attract their attention, interest rates must go up on our debt securities.

2. The need to stem the 'bubble' in our property market and also inflation. We all know that property is a bubble as most degree holding fresh graduates cannot afford a decent property and also the talk of the much dreaded 2-generation loan where you and your off-springs will need to pay for the loan. I heard this is quite normal in Hong Kong but in Malaysia?? We are still cheap comparatively to Hong Kong & Singapore. Even in Singapore, there is no such thing which is largely thanks to their government policy on HDB ownership, etc. 

We are still too soon to see any success story from PR1MA plan, where i think even that is NOT affordable and the banks are unwilling to loan out the money. So how does the people 'afford' PR1MA in the first place? Unless, our government decides to do setup a government controlled financial institution like Fanny & Freddie Mae. With the lessons learn from the US, it might be a very very bad ideas (scrap that idea please) especially our Bolehland regulations & enforcements can be very weak.

So the question on my mind is to "How To Profit From Interest Rate Hike". Where there is danger, there are opportunities. "MaoXian".

I have a few ideas playing inside my head and still firming up my thoughts. Always be prepared to catch that opportunity that arises. Now I know why there are things called 'Trade Secret', that special edge over your competitor that is scrambling for the same piece of pie.

*NO, putting your money into Fixed Deposit for the higher interest rate is not a good idea.

*I will not consider to buy more properties in the coming years (unless there is 'firesale'), even though a lot of Gurus out there are shouting BUY BUY BUY with no clear plan of an exit strategy. 

Perhaps they know something I don't know. But I know myself financially.

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