Malaysia’s credit profile: Diversified, Competitive, Strong Medium-Term Growth Prospects
Please always remember that the property market MUST NOT be vibrant if the economy is in the doldrums. No matter how convincing the property speaker may be, ask them for their thoughts about the economy. If their answer is that they knew nothing about the economy or that economy does not matter, then they are LYING. Very briefly, a growing economy supports jobs growth and jobs growth supports demand for goods and services and this will include demand for property. It will never be the other way round.
Same question applies to other experts outside real estate
Oh yeah, remember to ask the same question to any personal finance experts too. Skip them if they have zero answers to give you about the economy. Worse still, if they say you should invest because the economy is dying, then… Think really objectively yeah. If economy is dying, what are you investing? Into some other countries stocks and shares or properties? I would wish you all the best yeah. Now coming to what Moody’s Investors Service said about Malaysia’s sovereign rating.
Article in thestar.com.my Moody’s Investors Service says Malaysia’s (A3 stable) credit profile is underpinned by its diversified, competitive and moderately large economy, ample natural resources and strong medium-term growth prospects.
It also said, “Credit challenges include the government’s narrow revenue base, which limits fiscal flexibility in response to shocks such as the coronavirus pandemic, as well as political noise that may distract from policy priorities.” (My thoughts since very beginning for those who read kopiandproperty. Please understand that GST is way better than SST. We should stop politicizing and go back to the best way. Period.)
Moody’s Investors Service also said the following: We do not expect the coronavirus pandemic to have a sustained negative impact on Malaysia’s economic model; as such, the current and any subsequent waves of infections will delay, but not materially hinder the economy’s eventual return to high growth rates. Please do read the full article yeah. Very comprehensive. Article in thestar.com.my
For now until medium term, your investment should be fine
That’s what Moody’s said yeah. It’s based on their study. If you have no confidence with their study, then please read Fitch Rating’s study when it is out or even S&P. I really do not understand how people can kept saying that the economy is ‘dying’ and that everyone is losing their jobs and all will become jobless very soon but at the same time tells everyone that their investment will give great returns. Seriously, GDP comes from demand for goods and services. Businesses prosper and expand when there’s an increase in demand for goods and services. Then they hire more people. if everyone is losing jobs, that means businesses are all shutting. If all businesses are shutting, what we are we investing into? Hmm…
Happy understanding. Yes, as usual, kopiandproperty.com has no links after this article for you to buy property (which we could get commisison…), or runs any courses to help you earn more money (coz the founder himself is trying his best to earn more, no time to teach and not qualified to teach as well) and we do not share negative news to get higher clicks. We feel there’s already too many negative news floating around. We will let those sites get higher clicks instead. We know, that’s why our clicks do not increase tremendously. We are okay with that. Cheers.
Next suggested article: Why do they say cut rates will help the economy?