Red alert for inflation it seems
Is a financial crisis on the way?
I have just finished a conversation with a good friend. A successful entrepreneur who’s now taking a break to take care of her baby in Penang. She mentioned that she heard that a financial crisis is on its way. She said the financial crisis will strike first so that the Malaysian economy can recover later after the crisis. My advice to her is a simple one. When it comes to predictions about financial crisis, one thing which will come true is that one day the prediction will come true. People just need to keep predicting it year after year. Surely one day it will come.
Meanwhile, I told her to continue to look for opportunities, if the financial crisis really did arrive, then that’s another round of opportunities. However, we must not wait and wait and wait until the crisis really come before looking for opportunities yeah. Then again, when we advice someone who already has everything and could afford not to work, then it’s a diferent story. She has a lot of time to ponder.
Here’s that latest article about the war between the interest rate and the inflation. Both are showing how high they could be!
The Global Inflation Outlook
Below are the projected annual inflation by country in 2022. Blue colour represents 5 percent and below. The darker the red, the higher the inflation. I think you have noticed too, red is everywhere. Inflation can be crippling to the economy and that’s perhaps one reason why central banks would do best to manage inflation before inflation managed to cripple the economy.
Malaysia’s inflation is still under control but…
Compared to the scary numbers in the image, it seems that we are doing fine. Just need to remember that if the whole world is facing an inflationary pressure, Malaysia would also feel it too because we needed to import goods and services too. One fortunate thing is that we have trade surplus; exports much higher than imports. However, the prices would still rise if there are no government intervention through subsidies.
Chicken is one major issue now
Currently, the major issue is with regards to chicken prices. I really do not understand why we still allow chicken to be exported if the shortage in the market is causing prices to increase. I am still wondering. Let’s hope this issue is resolved very soon and we can continue to eat our fried chicken with our nasi lemak again.
At the same time, start looking for more ways to increase our wealth. A good friend said this in my FB post the other day. “Property investment hedges against inflation. We could invest into properties or start a business or even find someone rich to marry.” All the best in doing something about it.
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Next suggested article: WAR between the interest rate and inflation