As usual, another someone said I am too positive. Haha. Anything wrong with being positive yeah? By the way positive does not mean I am not objective yeah. Just that from the two sides of a coin, I see the brighter part more, that’s all. Some may prefer to see the more negative part, that’s fine for me. I will not go and accuse you of being too negative. We believe what we want and we just need to take the appropriate actions to follow through. How about having another party talking about the positive part then? Specifically, Fitch Group. (They say they have over 100 years of experience and employs more than 4,000 people across 30 countries)
Article in news.yahoo.com Fitch Group’s research unit said that after Malaysia’s “worst recession,” the recovery will be gradual in second half followed by “BOUNCING BACK” next year. (Actual description they used, not mine, ok)
This Fitch unit also gave an objective account of the outlook too. It said, “The severe downturn in Q220 as well as continuing restrictions on gatherings and people’s movements will continue to weigh on private consumption as disposable incomes shrink and malls and entertainment venues see less traffic.”
“Furthermore, travel restrictions are likely to remain largely in place, as negotiations to re-open travel are likely to be limited to essential business travel in 2020, with governments in Asia mostly taking a cautious approach towards the matter.”
“Malaysia will therefore be still unable to count on a return of tourism to aid the recovery, and this is a severe limiting factor, since tourism is a key part of the economy, accounting for 11.5 per cent of GDP (in both direct and indirect impact) in 2019.” Please do read the full and comprehensive article here.
Everyone ah, stock price of a company has to also relate back to the business of the company. Else, buying it is purely speculative. Meanwhile investments within a country has to also correspond to the economic growth. Extremely true when it comes to the property market, especially in thew capital city (Kuala Lumpur) or the most advanced state (Selangor) for example.
Please do not look into some property market where the property prices are already higher than Malaysia and say we are behind yeah. We need to also look at the affordability of those homes versus the people’s salaries too. Same thing applies to Malaysia. Prices cannot keep going up if people do not earn more. People do not earn more if the economy does not move up again. Happy understanding about the prediction for the economic growth in 2021 yeah.
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Next suggested article: GDP growth of 5.8% for Malaysia. Guess which year?