Property market is only safe if the economy continues to grow. Imagine a country in crisis, what will happen to its property market? Anyway, I do not believe any minister fully when it comes to economic growth prediction. I think we know the reason why. If you do not know why, please do not ask me. It’s okay. However, over the past so many years, I have grown to believe that our Bank Negara Malaysia (BNM) is very proactive and their actions have always been proven to be relevant to the situation. Remember the recent articles about the potential of Malaysia falling into a recession. Frankly, I do not think it will happen but do not believe me. We listen to what BNM has to say.
Article in thestar.com.my Bank Negara director of economics Mohd Fraziali Ismail shared that Malaysia’s economy will still be growing steadily even with risks from the escalating trade war betweem the US and China. He said, “I think recession fears are overplayed. What we expect is moderate but steady economic growth as compared to previous years.” He added that growth may be slower as the economy is entering a mature cycle. BNM is forecasting the growth of between 4.3 – 4.8 percent for the Malaysian economy.
Fraziali said that the trade war between the two major economies has been negative for everyone but Malaysia was able to cushion the impact as it is backed by a well-doversified export portfolio both in terms of trade partners and products. He said, “Our diversified exports help mitigate the adverse impact of the trade tension.” He also shared that Malaysia’s exports outperformed that of regional economies in 2018 despite the trade tension. Please refer to the full Article in thestar.com.my
There you have it. BNM saying clearly that Malaysia’s economy is continuing its growth but that slowing down is expected as we move towards a mature cycle. By the way, for a technical recession to happen, we need to have two quarters of negative growth yeah. So, if you were afraid of the property market because of the economy, you may now proceed. If it was due to something else, then do keep on waiting until the sign is clearer yeah. Earlier article: Many are waiting for the best time to buy. Me too I am happy that despite all the uncertainties from the trade war between the two largest economies of the world, we are still growing. Be grateful.
written on 1 Aug 2019
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