Malaysia’s economy is not good at all
I went back to my hometown Kluang for Chinese New Year break and I’ve noticed a lot of businesses were doing rather badly…even during CNY season. People are cutting down on their spending (not the rich ones of course, since they’re still buying posh cars, properties, etc). My neighbor who is a fish monger, told us that business this year has been very bad since most people would rather buy chicken or other meats and cut down on seafood.
Maybe we can change this to Malaysia Economy...but what about the IMF? Change to?
Even the wife, who is a hair stylist, told us that the number of customers have been reduced by 50% at least.
My dad’s friend (another person), who owns a factory, told us that he has to retrench 20% of his foreign workers because of bad economy. The number of orders have also been greatly reduced.
Well, at least, that factory fares better than some others who are forced to close down, thus increasing the number of jobless people.
I do expect our country to be badly hit somewhere in May or June 2009. Whether we like it or not, and whether our government and central bank like it or not……there are just too many things which we cannot really control – such as the closing down of those factories by the multinational companies. Unless our government can come out with $$ to support those jobless people…otherwise, we might just end up like what happened to US now – people don’t have money to pay back the debts/loans.
That’s why I am really afraid of investing anything in banking stocks. It’s just too risky for me. My speculation might be wrong but well…better be safe than sorry.
Did you enjoy this post? Why not leave a comment below and continue the conversation, or subscribe to my feed and get articles like this delivered automatically to your feed reader.
Comments
@ Damien
LOL, maybe they didn’t read the news? Or they’re being ignorant? If our country doesn’t rely on other countries (MNCs) that much…we should still be fine. Unfortunately, that’s not really the case.
You are from Kluang. I was there during CNY too, gf place. Haha. Yeah keep away from Banking stocks. If want to invest consider defensive stocks like Gambling and FMCG counters. During this trying times more people will tend to try their luck more and people still need to eat, so FMCG will be least affected.
This reccession will only affect those working for people but not the RICH. Only their net worth will be reduced but they will still have the purchasing power. For us, it’s better to save more. Cash is King when you have no job.
@ LawOfArabia
Defensive stocks, some of them, are kinda overpriced now since everyone is flocking over to defensive stocks. So if one wants to buy stock, one must be prepared to hold for very long.
Yeap, I’m actually looking at gambling stocks like TOTO, Resorts World and some plantation stocks (yaya, i know, it’s super risky, but I just love IOICORP).
Hmmm… I seem to recall a press statement made by your central bank governor and one of the ministers a couple of months ago that said Malaysia is the ONLY country in the world that will escape the global recession? Maybe that explains the crowds I still see in the shopping malls?
I still go back to my basic principle – a life without debt is the best life of all. In good times, zero debt means more money to spend. In bad times, it means no worries about unpaid bills. The one who smiles during deep recession is the fellow without debt.