Despite Malaysia Government's constant state of denial, the statistics couldn't lie!
Last Friday the GDP data announced for the fourth quarter of 2008 came up short of expectation....only a mere 0.1%. That is to say, Malaysia's economic growth had plummeted from the previous quarter's 4.7% to no growth in the last quarter!
It seems the RM7 billion (US$2billion) were not sufficient to save the economy (as expected), as a result of the larger than expected fall in exports.
The world is suffering from global recession and every country is now scrambling to revise growth outlook and desperately trying to stem the collapse through various stimulus packages.
In Malaysia's case, the Government is going to announce another stimulus package before mid March. Given it's timing (being announced in March and assuming implementation within 3 to 6 months), the effects on economy will mostly likely take place only thereafter. This could well imply that Malaysia could well be in recession in the first and second quarter of 2009!
It's regrettable that the Government took so long to realize the current miserable state and to come up with positive new measures to tackle the economic problems! Ironically, they certainly appear more interested to tackle the various political issues and to safeguard their own political agenda for the past one year up to this present moment!
Monday, March 2, 2009
Malaysia Going Into Recession?
Subscribe to:
Post Comments (Atom)
2 comments:
After what is said in your post, I wish to point out that the RM &7bn stimulus package is of very little use! Majority of the money goes to PNB's and Govt. linked corps! So very little goes to the real private sector! As such there is really little impact isn't it?
Hi Bokjae,
I agree with you. Worse off, we don't even have any idea where and how the money was spent! The Government claims 70% was spent but where's the proof?
Just like what you said, the money could have gone somewhere else where it has delivered little or no impact on private sector and consumers.
As usual, the Government are doing things in the dark. As always and likewise, we are in the dark too!
Post a Comment