It’s a simple fact. Wirth higher salary comes higher spending. If Malaysian household spending is to increase in 2021, it means that the Malaysian household income is stable and Malaysians feel positive about spending. If their salaries go up (bonus and increments), the spending goes up too. Fitch Solutions Group Ltd has just forecasted that Malaysian household spending will be growing again in 2021 after a contraction in 2020.
In 2020, our unemployment number moved upwards and it was even higher than 1998 (read here for the earlier article on how high did it go up) and this was compounded by the fact that the Movement Control Order (MCO) meant that no one could spend money and most businesses were shut. So, yes, this meant that many did not get to spend their money and many businesses were shut which meant that more people lost their income and the spending goes lower as a result. This has been recovering and perhaps this is why the projection for a higher spending in 2021 by Fitch Solutions.
Article in themalaysianreserve.com FITCH Solutions Group Ltd has forecasted the Malaysian household spending to grow in 2021 after a contraction in 2020. It said one reason is because of the government stimulus measures which will support the economy.
It said, “We forecast real growth in household spending to bounce back over the year, growing by a real rate of 9.2% year-on-year (YoY).”
“This is a significant improvement from the -1.6% YoY contraction we projected for household spending during 2020 and an improvement on the 7.7% YoY growth we estimate from a pre-Covid-19 environment in 2019.”
“The dynamics behind our improving forecast outlook for consumer spending in Malaysia in 2021 are in line with our country risk team’s forecasts that the Malaysian economy will grow by a real rate of 6.3% YoY over 2021, a recovery on the -4.6% contraction over 2020.”
“This will help reduce the unemployment rate in the country, which rose to 5% of the labour force as a result of the economic impact of Covid-19.” It’s a long and comprehensive article, please read it here: Article in themalaysianreserve.com
Yesterday, I was chatting with some good friends and we were suddenly reminded that 2020 is coming to an end in less than 3 months. COVID-19 has taken away a lot of our time, a lot of potential opportunities too. Time to move forward in the very near future. Yea, perhaps 2021 will be a year for us to make things amazing again. (nope, don’t say make things great again…)
Will you be spending more in 2021? I hope all kopiandproperty.com readers would earn more, spend more and enjoy more in 2021. Keep connecting and learning.
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