Recession is coming.....
Recession is coming ... make your own judgment, don't panic !! Do what is wise.
The recession looks very eminent. It is really time to take pro active steps to avoid a painful time in the next two years which is how long the recession is expected to last.
Suggestions:
Stay cool, wait, and if you took all of the above actions and more, you probably will be better off then many.
This is not a rumor. Bear Stearns is the first of many banking and financial institutions that will start falling in the not too future. If Bear Stearns can fall, so can JP Morgan, Citibank, HSBC, and the whole world.
US economy falls, the rest will crumble. India and all those self economies will be the most protected, but not gullible. Europe may be a little stronger, but not China , another giant! Malaysia will see significant impact.
Think tank warns of recession risk in Malaysia
The Associated Press
Thursday, October 16, 2008
KUALA LUMPUR, Malaysia: A private Malaysian think tank Thursday cut its 2009 economic growth forecast for the country to 3.4 percent and warned of a possible recession if the U.S. economy deteriorates.
The influential Malaysian Institute of Economic Research predicted the economy would expand 5.3 percent this year after a strong performance in the first six months.
But it expected growth to slide to 3.4 percent in 2009, down from its earlier forecast of 5 percent, due to the knock-on effects of a flagging global economy. This was sharply lower than the government's forecast of 5.4 percent.
Executive Director Mohamad Ariff warned that growth in 2009 may slump further if the U.S., one of Malaysia's top trading partners, goes into recession.
"There is a 40 percent chance that Malaysia will enter technical recession in 2009, meaning two quarters of negative growth and a 30 percent chance it could be a real recession lasting more than two quarters depending on what happens in the U.S.," he said.
The institute said the global credit crisis showed no signs of abating despite concerted interest rate cuts and massive liquidity injection by governments and central banks worldwide.
It said consumer and business confidence in Malaysia has dipped and warned conditions would worsen if the credit squeeze dries up funds for investment and household spending.
Ariff said there are heightened concerns that the current global economic slump could drag on until the end of 2010 or 2011.
Given the economic pressure and declining oil prices, he warned Malaysia's budget deficit may exceed 5 percent of gross domestic product this year and more than 4 percent in 2009.
The government raised development spending in August which it said will push the fiscal deficit to 4.8 percent of GDP this year and 3.6 percent in 2009, from 3.2 percent in 2007.
Finance Minister Najib Razak earlier this week said Malaysia can still grow 5 percent this year but the government may need to revise its 2009 forecast. He has said he would announce a "stabilization plan" on Monday to prop up the economy.
Najib, who is also deputy premier, is expected to take over from Prime Minister Abdullah Ahmad Badawi in March.
The quicker-than-expected transition follows the ruling coalition's poor election results in March and is aimed at thwarting opposition leader Anwar Ibrahim's threat to oust the government through parliamentary defections.
(Source)
The recession looks very eminent. It is really time to take pro active steps to avoid a painful time in the next two years which is how long the recession is expected to last.
Suggestions:
1. Don't take any loans, buy homes, properties with loans, or even cash. Keep as much cash as possible.
2. Pay off as much of personal loans, private loans, as debt collection will be hastened.
3. Sell any stocks you can even at lower prices.
4. Take money off from Trust Funds.
5. Don't believe in huge sales forecast from customers, be extremely prudent, lowest inventories, reduce liabilities.
6. Don't invest in new capital.
7. If you are selling homes/ properties/ cars , do it now, when you can get good prices, they are going to fall.
8. Don't invest in new business proposals.
9. Cancel holiday plans using credit cards.
10. Don't change jobs, as companies will retrench based on 'last in first out'.
Stay cool, wait, and if you took all of the above actions and more, you probably will be better off then many.
This is not a rumor. Bear Stearns is the first of many banking and financial institutions that will start falling in the not too future. If Bear Stearns can fall, so can JP Morgan, Citibank, HSBC, and the whole world.
US economy falls, the rest will crumble. India and all those self economies will be the most protected, but not gullible. Europe may be a little stronger, but not China , another giant! Malaysia will see significant impact.
Think tank warns of recession risk in Malaysia
The Associated Press
Thursday, October 16, 2008
KUALA LUMPUR, Malaysia: A private Malaysian think tank Thursday cut its 2009 economic growth forecast for the country to 3.4 percent and warned of a possible recession if the U.S. economy deteriorates.
The influential Malaysian Institute of Economic Research predicted the economy would expand 5.3 percent this year after a strong performance in the first six months.
But it expected growth to slide to 3.4 percent in 2009, down from its earlier forecast of 5 percent, due to the knock-on effects of a flagging global economy. This was sharply lower than the government's forecast of 5.4 percent.
Executive Director Mohamad Ariff warned that growth in 2009 may slump further if the U.S., one of Malaysia's top trading partners, goes into recession.
"There is a 40 percent chance that Malaysia will enter technical recession in 2009, meaning two quarters of negative growth and a 30 percent chance it could be a real recession lasting more than two quarters depending on what happens in the U.S.," he said.
The institute said the global credit crisis showed no signs of abating despite concerted interest rate cuts and massive liquidity injection by governments and central banks worldwide.
It said consumer and business confidence in Malaysia has dipped and warned conditions would worsen if the credit squeeze dries up funds for investment and household spending.
Ariff said there are heightened concerns that the current global economic slump could drag on until the end of 2010 or 2011.
Given the economic pressure and declining oil prices, he warned Malaysia's budget deficit may exceed 5 percent of gross domestic product this year and more than 4 percent in 2009.
The government raised development spending in August which it said will push the fiscal deficit to 4.8 percent of GDP this year and 3.6 percent in 2009, from 3.2 percent in 2007.
Finance Minister Najib Razak earlier this week said Malaysia can still grow 5 percent this year but the government may need to revise its 2009 forecast. He has said he would announce a "stabilization plan" on Monday to prop up the economy.
Najib, who is also deputy premier, is expected to take over from Prime Minister Abdullah Ahmad Badawi in March.
The quicker-than-expected transition follows the ruling coalition's poor election results in March and is aimed at thwarting opposition leader Anwar Ibrahim's threat to oust the government through parliamentary defections.
(Source)
Labels: Malaysia
posted by Ah Yun Wong at
7:35 PM
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