The Shrinking Ringgit

http://www.theborneopost.com/2013/12/22/the-shrinking-ringgit/

From 1980 until 2012, Malaysia GDP per capita PPP averaged US$9,336.30, reaching an all time high of US$14,774.60 in December of 2012 and a record low of US$5,063.40 in December of 1980.

Maximising your ringgit

With all these in mind, what then can you do to stretch your ringgit to its fullest? Sjimons lists eight tips to help the average consumer trim costs and spend wisely:

A. If you have savings beyond two or three times your monthly income, don’t let them sit idle in a low-interest deposit account.

1) Invest a portion of your monthly income in Amanah Saham Bumiputera/National schemes. These have provided average effective yields of 8.81 and 6.11 per cent respectively over the past three years. Although there is no upside through capital appreciation, there is no risk of capital depreciation either.

2) Invest a portion of your savings in Real Estate Investment Trusts (REITs). By law, at least 90 per cent of taxable income is required to be paid out on a quarterly basis. Some REITs even have monthly payouts to unit holders. Yields range between 4.58 per cent  to 7.52 per cent across all 14 Bursa-listed REITs. This is an especially good project for people looking to retire who want to create a regular income stream.