Mon Apr 07 08:50:00 UTC 2025: ## Falling Aussie Dollar Doesn’t Ease Burden on Malaysian Students in Australia

**Kuala Lumpur, October 5** – While the Australian dollar’s fall to a five-year low against the Malaysian ringgit might seem beneficial for Malaysian students in Australia, the reality is more complex. Despite the favourable exchange rate, the high cost of living in Australia, particularly soaring rental costs in student hubs exceeding overall inflation, continues to burden students.

Malaysia ranks 13th among countries sending international students to Australia, with 16,364 students in 2024, according to Australian government data. Australia has long been a popular destination for Malaysian students due to its proximity, English-speaking environment, and quality education system. However, rising inflation, increased job competition, and tightening visa policies are impacting their experiences and finances.

Some families are taking advantage of the current exchange rate to expedite currency conversions and remittances, aiming to lower overall education costs. Students, on the other hand, are forced to cut back on living expenses, postpone rental upgrades, or reduce leisure activities to cope with rising prices.

The Australian dollar’s depreciation reflects broader economic pressures in Australia, including slowing exports, weak consumer spending, and central bank policy challenges. While students aren’t policymakers, they are bearing the consequences. Continued weakening of the Aussie dollar could prompt more families to reconsider studying in Australia, unless inflation and living costs fall significantly. The seemingly cheaper option could simply trade one set of pressures for another.

Over the past year, the Australian dollar has fallen more than 14% against the ringgit, reaching its lowest point since the pandemic at 2.67 on Saturday, down from 3.17 in July 2024. While this presents a seemingly opportune time for families to send their children to Australia, the high cost of living negates much of the savings. Australia’s Q4 2024 inflation rate was 4.1%, with rental costs up 7.3%, energy costs (electricity) up 13.2%, and significant increases in groceries and household goods. In cities like Sydney and Melbourne, rental increases in student areas have outpaced national inflation. A Malaysian student in Sydney, Mr. Wang, for example, found that exchange rate savings were quickly offset by increased rent and living expenses. Many Malaysian students already paid tuition fees at a higher exchange rate, meaning the current favourable rate only affects new remittances, not the overall cost.

**Brazil Benefits from China’s US Tariffs**

**Brasília, October 7** – China’s imposition of a 34% additional tariff on all US goods is expected to boost agricultural exports from countries like Brazil and Argentina. Increased tariffs are driving China to reduce US soybean imports, increasing demand for Brazilian soybeans, particularly with a bumper harvest. This is projected to lead to record-high imports from Brazil in the second quarter. Carlos Mera, head of agricultural markets research at Rabobank, indicated Brazil will be a major beneficiary, potentially supplanting the US as China’s largest soybean supplier. Other countries, including Argentina and Paraguay, are also set to benefit, along with Australia and Argentina in wheat exports.

Read More