Get ready for the gloomy times ahead
News Updates: DPM announces mini budget worth RM60bil over two years
It's time to be honest. An honest assessment of the Malaysian economy with no need for a positive spin from anyone. The Malaysian economy is tied up with the global economy and until the United States recovers, there is really nothing the world can do. That is a fact and certainly a lesson to those who talk about boycotting American products. I think the coming financial tsunami is a reminder that we should not go overboard with our "Malaysia Boleh" slogan.
Our exports are expected to fall, as much as 50%, with dropping orders for our rubber, palm oil and crude oil as global production falls. Our stock prices have declined and so has foreign direct investments. All these have serious impact on our economy. What the mini-budget can do is to arrest our economy from heading towards a recession. And after spending the money, said to be up to RM50bil for the next two years, it's essentially still a touch and go situation. That means we are not even sure Malaysia would not go into a recession. No one can be sure now, with businessman Warren Buffet saying the American economy has fallen off the cliff. It's on a free fall and everyone is being dragged down.
