Malaysia’s Q1 GDP growth is at 4.2 percent. Note the word “growth.” This is the slowest ever since the 2009. Private-sector spending grew 5.1 percent. Gross exports increased by 1 percent. Many other key economic sectors slowed too. According to Bank Negara Malaysia new governor, Muhammad Ibrahim, Malaysia would still achieve its forecast growth of between 4% and 4.5% in 2016. Economic activity would pick up in the second half of the year. Recently, Fitch Ratings also said that 1MDB’s current default issue would not impact the government’s economic policymaking power. In brief, it’s still okay.
Since we already know what’s up with Malaysia, how about taking a look at some selected countries around the world, based on IMF’s latest projections? The world’s largest economy United States and all other ADVANCED economies. Oh yeah, now I remember, someone did mention before that these are all advanced nations, thus their growth rate has to be slower than all the emerging economies, including Malaysia. Well, IMF predicted South East Asian nations to grow at an average of 4.8 percent. These are the few countries within the South East Asian grouping. (Indonesia, Malaysia, Philippines, Thailand, Vietnam.) In other words, as long as all these neighbouring nations can somehow support one another, I guess we should do just fine.
Perhaps the only issue is China, which should only be growing at 6.1 percent for 2016. I do hope the Chinese government would be able to restructure its economy so that growth would be strong again in a few years’ time. IMF in a latest prediction said the world’s average growth would be 3.4 percent. Closer to home, our dear Singapore is predicted to grow at 1.8 percent. I personally see all these as still positive. What’s most important for us as employees would be to save and invest instead of spend and lose. With slow numbers throughout the world, any sudden change in sentiments in some of the more advanced nations would quickly affect everyone else. Happy reading.
written on 13 May 2016 (Yes, it’s another calm May 13 day for Malaysia)
next suggested article: IMF’s Lagarde: 2016 will be disappointing