For Malaysia, where the Ringgit (RM) is concerned, 2015 was a year to forget. It was easily the worst currency within the ASEAN region or even Asia to hold for any investor. For Malaysians sending their children for overseas education, it became a nightmare. For the whole of 2015, the RM dropped nearly 19 per cent versus the US dollar. I have many friends who said that the RM was hurling down a path of no return. I simply told them to act according to what they believe. They should quickly sell their properties, or hold their money in another currency instead of RM. They could choose whichever currency they love. None did, fortunately, and today they are happier. The RM is performing well for 2016 thus far. As at 14 April 2016, it is at US$1 to RM3.89.

I personally believe, though, that the Ringgit’s volatility continues because a lot depends on the external environment, especially with the largest economy and actions from the Federal Reserve. Fortunately, China seems to have stabilised. With regards to volatility or knee-jerk reactions, many months back, someone called in to a radio station and said that it might be best for Malaysians to quickly exchange their currency into AUD, since Australia is a favoured destination for Malaysians, and because it has so many cities ranked among the most liveable in the world. I went to Perth not too long ago and I love it! My family loved it too, and we intend to visit again. However, taking the drastic action of selling all existing Malaysian properties, which would take a few months to complete, and then quickly buy Australian properties (which would take another few months to complete) is much riskier than riding it out. The awesome response from the radio deejay? She agreed to the absurd suggestion. Well, if that had happened, those who followed the advice would have lost some money depending on which city they bought in and how little they were willing to sell their Malaysian properties for (market transactions remain low and total transaction value has dropped for the first time in nine years.

When we are looking at the property market in Malaysia, it's best to compare it to property markets that are much more established today. One very good example is benchmarking the Kuala Lumpur property market to the few Australian cities like Melbourne, Sydney and recently, Perth. Understand the price per square foot for places nearer to the city, for places further away, and even for certain hotspots favoured by many Australians or other investors. Briefly, if we view the Malaysian property market as many years behind Australia’s, should we not then look closer and see if we could uncover some value? Diversification is a great strategy. Buying everything only in Australia could always be complemented by some great properties here in the few more established Malaysian cities such as Kuala Lumpur, Penang, and even Iskandar in Johor. Last but not least, let’s look at one of the major reasons why Australia is popular as a property destination: international students and their wealthy parents. According to the UNESCO Institute for Statistics, as at July 2014, Australia was ranked 4th in the world and Malaysia at 12th. Australia was the destination for 250,000 international students, while Malaysia hosted 64,000. I believe the numbers for those travelling to Australia would be increasing but it would definitely be increasing for Malaysia too. It’s also much more affordable to get a British or Australian degree by studying in Malaysia. Happy investing or diversifying, mate!