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GLOOMY Malaysia's Economic Outlook

Posted by admin

Thursday, 26 March 2009 21:41

Malaysia's gross domestic product (GDP) growth rate was forecasted to drop to zero percent as the global financial crisis evolved into a deepening sub-regional industrial crisis in Southeast Asia, according to the United Nations' regional arm, the Economic and Social Commission for Asia and the Pacific (Escap).

Escap observed that the crisis has moved rapidly from its first stage of a financial crisis emanating from developed countries and causing contagion in Asia and the Pacific, to a second stage of crisis for the real economy in the region based on plummeting exports and curtailed domestic demand.

The organisation believed that Southeast Asia could be among the most affected by the crisis, given its integrated industrial production base and linkages to the global supply chain, thus deepening unemployment. It expected an overall economic growth rate of 1.2 percent for Southeast Asia this year, the lowest among the developing Asia Pacific sub-regions.

This situation does not augur well for the country. Based on several observations, the unemployment rate is expected to climb to more than 5% by the end of this year. The economy is heavily dependent on FDIs and exports to support growth. Both of them have plummeted this year. A number of companies I have spoken too are taking precautions by averting financial and investment risks. Most of them will not make any new investment this year.

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Comments (6) Add Comment

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written by ahmadneil, March 26, 2009 21:52:02

With FD now at 2-2.5%,everyone is looking abroad for better investment.Why malaysia!

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written by red1, March 26, 2009 21:55:01

Those are just statistics created by speculators. They walloped our hard earned money in speculative bonds and stocks, then liquidated over to their hands. Now they wait until its safe before we worked harder and save more again, to do it over and over again.

The economy has always been fine since days of Madinah and Venice. People still eat, clothe, work and thrive. Those who do not know how to work outside the factory floor are just victims who have forgotten how and what decent jobs existed before.

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written by JaguhKampung, March 26, 2009 23:03:47

Zero growth? When Singapore says they're going to have minus 10 percent? When Hong Kong says they're going to have negative 5%? We will be lucky if we can have zero growth.

Zero growth will be a fantastic achievement when most developed nations foresee negative growth. We will still be moving faster than them. I am quite sure they will revise their forecast again after the first quarter statistics.

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written by Kopi37, March 27, 2009 00:01:23

What is more important now for the mediocre Government Umno led is to focus on how to win the top posts and how to 'unite' the party members so as they will stay in power unperturbed! Can we see any suggestive measure in the 'keynote' address of either the defunct PM or the PM upcoming?!

They are good in politics but lousy in economy! The rakyat will create the economy and they enjoy pocketing it! The stimulus packets are mainly prescribed to stimulate the selective sectors and only privileged group will be the beneficiary! Where and where shops have been closed, factories have been shut down seemed like not an issue which only the whining rakyat are exaggerating!

When the poor rakyat are desperate in where to get jobs and to buy meals for their families, meals aplenty are laid in front of the goons participating in the grand assembly, in the 5-star luxurious ball room, victory dinners are served! They eat and they loot as if there is no tomorrow! Woe is the rakyat in common!

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written by unomalaysia, March 27, 2009 01:48:27

Zero growth is better than contraction. I thought someone predicted -5%. And while Malaysia's economy is flowing down the drain, umno and bn continue to play politics and pissed at the rakyat. They rather gain power by foul means than doing something about the economy. Look at the RM60 billion bullshit conjoured up by the Najis. It cronies oriented. An example: See how much the RM5k rebate for Proton can stir up the car markets? It was designed to help an inefficient Proton and supporting cronies industries. How much goes back to stir the economy and create demand and eventually jobs? We are an exporting economy. When our markets overseas are screwed, we are screwed. Why not much effort to generate internal consumption instead? The banks are already closing their doors and letting the dogs out. Hey, it raining and its also time they take back the umbrellas. We need a safe and friendly place for investors to park their money fleeing from the upheaval in the West and what do we do? Umno/BN went on to perfect the art of corruption, cronyism, disrespecting the law (as in Perak), imposing Nazi style and police rule, murder, and now nepotism (they think the PM job belongs to their families). We seem hell bent on outperfroming the likes of Burma, North Korea and Mugabeland. Ptooi!

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written by asguard, March 27, 2009 08:44:46

With the economy is going to posing a problem it better the governement starts to send back in excess of illegal worker. Please refer to below solution!
I would like to suggest how can we eliminated the illegalâ€™s workers workforce.
Conduct raid at the bus hub area in early morning and late in eveningâ€¦ a common area for them to wait for buses . If successful done can detain up to 50 -70 people. Conduct a raid on komuter trains in early mornings and late evenings â€¦ will be able to get a least a few hundreds of them. Spot check on construction sites where most of illegals work . And other places like Petaling street and Chow kit and other areas where frequently hangout and seem to be favorite spots among the illegalâ€™s foreigners. Also conduct raid into place where there is large population of illegals which is staying eg. Segambut Dalam, Segambut, Old Klang road areas and other place. These place can easy get about few thousands of them. Have them deported together with their families specially the Indonesians which bring most of their families here illegally!.And have a tighter procedures when comes to involved hiring the foreign workers. We may not wanted to have a over excess of foreigners staying illegally and may cause a huge burden latter if they were not to find a proper job.

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