Is our economy stable as claimed by PM?

Azmi Taufik — Sun, 14 Dec 2008 04:26:16 +0000

I watched the TV3 Buletin Pagi 7.30 am today. Our PM said that our economy is OK. He also quoted the First Phase of ther Iskandar Develepment Region plan is on track with 86% or RM42Bil FDI already materialised.

I feel something is not right somewhere after looking at the falling trend of Kuala Lumpur and Asian Stock Market bourses. When the bourses closed last Friday most of the Asian bourses did not regain but losses more index points.

As reported by Busines Times, KLCI is struggling to maintain the index above 850 points.

Don’t you feel strange that while the world economy is slowly going into recession out PM and DPM is saying something of the opposite.

The statistic released by the Department of Statistic indicate the declining trend of Industrial Production Index (IPI) and worst it dipped into negative in October 08. Refer to The StarBiz for details.

This obviously means that our export volume is shrinking and so will the revenue. I believe that many small factories and industries will have to retrench their workers in 2009 due to smaller or no demand for their respective products. There are already reports of no overtime and mandatory non-pay leave enforced in a few factories in Melaka.

I hope this economic turmoil will not hit us hard as in 1997 Asian economic crisis.

Picture: Courtesy of StraitTimes.com

Is economic turmoil hitting our shores soon?

Azmi Taufik — Sun, 19 Oct 2008 02:38:13 +0000

The effect of Wall Street free fall is taking its toll to bourses around the world. Our KLSE index were also affected and had dipped further to 905.23 point on October 17, which is the lowest so far. The worst is yet to come since more than 30% of our exports are for the US market. With high inflation begins hitting the US population it will not be long for our export to US will be slowing down.

If this really happens then will the factories and manufacturing plants for the export market lay-off their workers? How many thousands of them will be affected and jobless?

The sudden increase of fuel price from RM1.92 to RM2.70 in lat May not only has decreased our purchasing power but also left many petty traders and small contractors to wind up their business. And to add salt to the injury the price of goods had rised so much in the following months and failed to drop even when the price of fuel has been reduced to RM2.45 recently.

The price of goods are not likely to come down (I believe it will not happen anyway), plus the possible impending global recession that will hit our shore soon we have yet to hear any measures from our new Minister of Finance. I hope that MoF and Bank Negara will implement the best strategy and action plans to cap the recession thay may hit us in the coming months and next year.

I don’t want to be one of the people to line-up to receive hand-outs from NGOs or government agencies when the the turmoil hit our shores. Do you?

MBAKL network » Economic Turmoil

Is our economy stable as claimed by PM?

Is economic turmoil hitting our shores soon?