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Weakening US Dollar Hurts Malaysian Webmasters

Posted on 12th June, 2007

Anyone who is not a US citizen, working on the Internet and get paid in US dollar is feeling the pinch of the weaker dollar.

At the same time, the local currency, Ringgit Malaysia is moving in the opposite direction and is getting stronger by the day. That means the checks I get from Google AdSense, or affiliate commissions from CJ worth less today than they were just a month ago.

If you are a blogger doing pay per post at your blog, you are actually making less money for the same amount of work.

You can choose to receive payments in Ringgit Malaysia if this option is available but from my experience, the service charge for such service and exchange rate they use are probably costlier than when you opt for US dollar payment and exchange it yourself at your local bank.

On the other hand, I can afford to spend more on Internet advertising now such as in my AdWords campaigns. But there’s no escaping that the amount of advertising dollars I could put aside will continue to shrink because of the weakening US dollar. The only way to get around this is to work harder.

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Those who just got started probably do not see this as a bigger deal as those who have been paid in US dollar for years. But trust me – it hurts.

That said, because of the higher value of the US dollar, I am still earning more than if I were to get paid in Malaysian Ringgit. So it’s not the end of the world.

A US 5,000 for example is still worth about RM17,000 today. Bottom line is you have to work harder to earn the same amount of money today than before.

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  • pablopabla says:

    It’s okay to me because these monies earned through blogging are side income only. Just for the thrill of it rather than as my rice bowl.

    • Shawn says:

      Do you think the USD will get better against the MYR any time soon?And does anyone think the USD will go below 3.00?

  • ezams says:

    MYR3.4 for 1USD is still good enough for Malaysian. Even Sing Dollar we still can make twice.

    As we look at Ringgit getting stronger day by day, perhaps this is the right time looking for the new local prospect. Anyway, I just hope it won’t be speculated again as what we’ve been facing before. It’s really hurt.

    • Gaman says:

      The market is too small to accommodate everyone as far as making money online is concern. Anyway, what do you mean by ‘local prospect’

  • ezams says:

    It could be anything in terms of internet marketing & advertising legally.

    Maybe we could get an idea from Nuffnang.com.my and Advertlets.com on what they have been done as an example. Do you think they could go far Gaman?

  • wandira says:

    indeed, for full time blogger, it is little bit annoying

  • Sazkul says:

    Hope george soros strikes again…

  • Felex Tan says:

    Undeniably weaker dollar valuemight affect some of the webmaster.But,back to very basic question,although we are earning USD but when it converts to RM ,is really a lot,eventhough not as much as last time 1USD=RM3.8.We have to think positively.Now,the value is weak,we can use for investment like advertise through google adwords-CHEAPER than last time,buy some e-book to enhance our knowledge-Discount for us….and so on.Think about it!

  • mansid says:

    I need to help those who has little knowledge on exchange rate. When we say USD is weak againts ringgit, it means ringgit is strong againts USD. Mathematically, it is an inverse relationship.

    It is not necessary true the webmasters will be adversely affected by weak USD againts ringgit or other currencies. Yes, it is true your USD affiliate income in term of ringgit will be reduced when dollar is weak againts ringgit.

    But, Malaysian webmaster who pay monthly by credit cards on subscription fees or advertisements to US citizen will find it is cheaper in term of ringgit when dollar is weak againts ringgit.

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