In 2020, Malaysia’s GDP growth was a negative one. Minus 5.6% to be exact. We have not been in minus growth for a very long time. Let’s hope it’s only just for 2020 yeah.
What about the GDP growth by state? Which state is actually performing better than others and which are the states which will need to do better in 2021?
Anyway, for people looking for jobs, need to look at the states where they have the industry which you love to join yeah. By the way, the bigger the negative, it also meant that the industry was in a much more positive year in 2019.
A very good example, Services under Selangor, the only reason it is negative 6.8% is also because the lockdown as affected it the most since this is a major industry in Selangor. However, look at manufacturing and we should realise that it’s really not doing badly at all.
We also need to remember for overall economy, it grew 6.8% in 2019 overall. Thus even at minus 5.3% for 2020, Selangor was still growing versus 2018. So, get ready to make a comeback in 2021, hopefully by final quarter in 2021. Keeping my fingers crossed.
Positive – Exports
Our exports are growing tremendously. We also import more because we process these and then export them as value-added products. Overall basis, we continue to enjoy trade surplus. This means export is higher than imports.
Yes, based on NORMAL exchange rate, Ringgit should be moving upwards and that country which kept having deficits, the current value should be going down. Unless of course the currency is used for SPECULATIVE purpose and not based on trade yeah.
Positive – Labour Market
It’s okay yeah, until May. More people found jobs. June onwards may be getting worse but generally, jobs remain aplenty even if not everyone wants to do those jobs or could qualify for some of the more specialised ones.
Just take a look at jobstreet.com.my to understand that everyday, more than 20,000 titles are advertised. All these are PAID advertisements, so definitely not many companies like to post for fun and pay for it.
Positive – CPI a.k.a inflation lah
By the way, a negative CPI is not considered a good market indicator. It meant that demand for goods and services are very low and the supply side had to reduce price in order to sell. Of course on the other hand, high CPI is also not good. However, I think for now, I prefer to have the market start to show that it has resilient in demand for goods and services. So, I consider this as positive.
Wait till next time, will report again. Happy understanding.
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