Thats right, those are the lyrics from rihanna's umbrella.True enough the dowjones and the world markets are crashing down like rain drops..woooo global recession is coming soon. But the funny thing is most malaysian still do not know whats coming. Just a few days back, me and two of my fellow RA colleagues went to a few shopping malls to do consumer sentiment survey.
One of the question was "Has the recent economic situation affected ur spending habits ? "
And guess what, a number of people actually said our economy were still doin fine, and there is no reason to worry about. Besides malaysia depends alot on china what..so we wont be affected by america rite ?
Gosh, they are soooo wrong. The government aint telling the truth on our economic well being..the truth is our country's economic had never really experience any substantial growth ever since the boom in 1997. After that, things have been gloomy for malaysia.You could ask any of your parents who are in the business, they would tell you malaysia's market has never been good for a long long time. And now to the china part. Yes, we've been trading alot with china over the past few years. However, bear in mind that china is just a manufacturing country which produces goods. Thus,ultimately the end buyers are still the fellow yankees. So,if the americans dont buy,china dont get to manufacture and if china dont manufacture they wont trade with us.( still with me ? )
Nevertheless, we would be better prepared in this economic crisis compared to our neighbour, singapore. Reason being we are less depandant on our financial or service sector, but more to a commodity driven country, exporting steels and palm oil. Plus we are currently practising a 4% budget deficit compared to 1997 where we're at 5% budget deficit. Thus, making it possible for us to extent to an additional 1% budget deficit to boost the growth when times are bad. Besides that , Govt's decision to choose smaller projects thru out the country over major projects are also seen as a positive move to stabilise the market, as more contracts are being given out thus creating a bigger multiplier effect to boost growth.
One can expect a rise in crime rates,due to major unemployment in the near future as share market crash.Thus,we must be extra careful with everything. Cheaters and robbers are ready to pounce on any opportunity the've got,especially when times are so bad.. Tho, on the brighther note, in economic terms, theres always an opportunity to get rich when shares are low..So, to those potential share buyers out there, good luck and hope you get the right shares. And to us, people with no income, lets just hope the mega sale will be better this year. * DANG, should i get my mercurial vapor boots now,or wait for the prices to drop..zzzz