1. I will not pretend to be a Professor in this sector but there are certain things that are quite clear to everyone.
2. The Malaysian Ringgit can no longer buy the same amount of goods as 5 months ago. Its value has went down and the price of everything, from a can of baked beans to a bunch of oranges has risen leaps and bounds.
3. This is due to the price hike of petrol and diesel by 72 sens and 1 ringgit respectively a few months ago amid promises of no price hikes just a week before.
4. Then, as the price of oil came down, the Malaysian Government lowered the price of petrol and diesel in an effort to gain the support of everyone.
5. However, it failed as only the price of oil fell. Everything else stayed the same.
6. Lets face it, small business owners, retailers and manufacturers sought to maximise their profit. When the Government raise the price of oil, it was a perfectly wonderful opportunity and excuse for them to raise their prices as well.
7. Now, although the price of oil has fallen and the Gvernment lowered the price of oil, these businessmen really see no reason to lower their profits. They had an excuse that is hard to come by and they will not be that stupid to throw away money.
8. While all these happen, a global financial crisis erupted. The Dow Jones Industrial Average plunged by more than 10-20%, the FTSE 100 and all the European stock markets fell like a deck of cards. The Nikkei Index was smothered as well.
9. However, most Asian countries were quite lucky to receive minimal effects, except those countries with huge reserves in the USD.
10. Singapore for example is now in a technical recession.
11. Even when a global financial crisis is errupting like a volcano and the KLSE dropping from 1300 to 1000 to 900++, the Malaysian Government still believes that the fundamentals of our economy are strong and they are in a complete state of denial.
12. The Malaysian leaders prefer to concentrate on the upcoming UMNO elections and political games.
13. This is extremely dangerous, especially when the top 2 leaders in Malaysia are scheming against each other and plotting against each other.
14. It does not help when Anwar is around pouring fear into the investors' hearts.
15. Although the effects may not seem huge now, it will in 2009. The national growth is slowing down, investors are slowly avoiding Malaysia, the people's income buy less nowadays, the businesses are slowing down, lesser government projects and people are unable to pay their credit cards.
16. We are heading into a recession, maybe not in Q4 this year, but in Q1 in 2009.
17. So ladies and gentlemen, wear your seat belts as 2009 is gonna be a turbulent year!
Labels: Socio-Politics
