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Economy Malaysia: “Outlook is looking bright”

Investment

Economy Malaysia: “Outlook is looking bright” This was what Moody’s Analytics said.

Why the economy must do well for most investors?

For majority of all investors, when the economy does well, then the investment returns would usually be higher. No GDP growth… how to have more jobs… without more jobs… how to have more people earning money…and then spending that money… buy things online, buy things at the mall, travel and of course buying cars as well as properties too.

What’s the latest then about Malaysia’s economic outlook?

Now that we know why economic growth is important, let’s look at the one latest view about Malaysia’s economuc outlook. If you like to know what happened in 3Q 2021, here’s that earlier announcement by Bank Negara Malaysia (BNM). (click here to read) Very briefly, it was a contraction in 3Q 2021. In other words, negative growth where GDP is concerned. We were in lockdown… remember?

Article in themalaysianreserve.com Moody’s Analytics said this about the economic outlook for Malaysia. ” “Nonetheless, the economic outlook is bright.” It expects Malaysia’s fourth-quarter growth to rebound because of a strong export performance and also a pick up in private consumption as borders reopen.

It said this about 3Q 2021 growth. “Domestic consumption, which contributes to two-thirds of the GDP, was hit by measures which shut non-essential businesses and restricted social activities and dining out while retail sales have been declining in yearly terms since June, although we expect spending to pick up towards the year-end holiday season.” If you like to read more: Article in themalaysianreserve.com

Pent-Up Demand is definitely happening for 4Q 2021 for economy Malaysia

Actually we do not need any reports to tell us that as soon as lockdown is lifted, people would restart their travelling. This is why hotel bookings are up again. Yes, I know because I have a small condo in Cameron Highlands.

People would start to visit malls again. They will be tempted to spend money buying something they have missed for many months. Yes I know because I do visit malls too.

People would love to enjoy dining in their favourite restaurants. More often than not, they will order extra few dishes even if they may not be able to finish everything. Yes because I was doing the same in my first few visits.

Finally, even more importantly, people could resume their property purchase too. Now they could visit property developer sales galleries again. They could now have a cup of coffee with their real estate agent friends to know more about that RM930,000 property for their next upgrade.

All these would happen in the quarter right after the lockdown quarter. Thus 4Q 2021, we will definitely see a positive 4Q in terms of economic growth. In order to have this growth to continue, we will need to ensure the Covid-19 cases are under control. Else, everything will again slow down and we will be back to the starting line. Let’s wish economy Malaysia all the best.

Happy anticipating.

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Charles Tan The Founder The Writer Kopiandproperty
Charles Tan

Charles is Founder of kopiandproperty.com He writes from his investment experience for the the past 20 years in investments including property, stock, unit trust and more as well as readings and conversations with many property gurus in the industry. kopiandproperty.com is an independent property blog which is not affiliated to any media company, property developer or even real estate agencies.

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