I talked to a few friends in various industries in major cities in Malaysia if they felt the recession setting in. They tell me that no, they still have business and orders to fulfill right until the end of the year. Well, that is if the orders aren't cancelled!
Those in the restaurant business did not see any slowdown as well. Maybe no matter if we have a job or not, we still need to eat, right? Those in the real estate and construction business tell me that business continues as usual. The pace did not slow down but in fact, they are busier than ever. Perhaps those with cash to spare are picking up cheaper properties, which require renovation.
I spoke to a friend in the finance sector and I asked him why these people tell me that they do not feel a difference this year compared to a couple of years back before the global financial crisis and this friend says that this is because people still have their jobs which means they are able to continue to support their lifestyle.
According to him, when more companies are forced to close and more people lose their job that is the time when people will feel the effects of a global recession. Hmmm that sounds bad, doesn't it?
Those in the restaurant business did not see any slowdown as well. Maybe no matter if we have a job or not, we still need to eat, right? Those in the real estate and construction business tell me that business continues as usual. The pace did not slow down but in fact, they are busier than ever. Perhaps those with cash to spare are picking up cheaper properties, which require renovation.
I spoke to a friend in the finance sector and I asked him why these people tell me that they do not feel a difference this year compared to a couple of years back before the global financial crisis and this friend says that this is because people still have their jobs which means they are able to continue to support their lifestyle.
According to him, when more companies are forced to close and more people lose their job that is the time when people will feel the effects of a global recession. Hmmm that sounds bad, doesn't it?
8 comments:
Hmm, my UK based company had reduced redundancies across regional offices, except KL (probably due to us being the lowest cost running office) since last year.
The first half of 2009 seems sustainable, but i'm not very hopeful for the 2nd half of 2009. A friend of mine working as Quantity Surveyor, told me that many real estate projects were put on hold or canceled. Semi-con industries are down-sizing, or closing their plant down.
Things are more obvious in KL i supposed. MNCs freeze their hiring. HP already got their salary decrement in place.
Somehow, i think the situation in Malaysia is being played down. I remember reading somewhere, Temasek Sg, lost billions. Now i'm curious what's happening to our Khazanah, since not much news from them.
The stimulus by Govt, might be able to slow down the bubble burst, or worse, enlarging the bubble.
US is printing USD like there's no tomorrow, pumping trillions of dollars into their country. This just doesn't look good, knowing USD isn't peg to gold. Take a look at Google Ads' revenue and their stock value.
Our country has not move into technological research in any areas. We are pretty much still stuck with trading, manufacturing and natural resources exports.
The economy in Malaysia is bleak.
Hi Eibla,
Thanks for this lengthy ground report!
I supposed it is the same everywhere so we just have to ride the tide. Economy goes in cycles so there's always ups and downs.
Yes, the second half of 2009 will be tougher. We are expecting another two rounds of bank interest rate cut.
On the upside, it will be a good time for people looking to buy a car or house. :)
All the best to you, Eibla, and to me too!
All the best to you too. :)
Those who are cash rich at this moment, will be even richer after the economy recovers.
Thanks, Eibla.
It's true that the cash rich people will be richer but look at it this way: Those who aren't as rich have a chance to catch up thanks to the downturn. LOL
Yes! And i am inclined to believe that you are belong to one of the mentioned groups above. :P
No, Eibla, I wish I have more cash so that I could seize this opportunity but it looks like I will have to wait for the next downturn.
I may buy a used car, though. One of those under RM5K 20 year old cars. That's what I am willing to pay without being burdened with a car loan. LOL
Hehe, with the world economy slowing down. Consumers might want to look into cheaper products online. Just like how you wanted a car without paying loan.
Probably can try renegotiating cost for your products with your suppliers. :)
Eibla,
You're right that more people will shop online for cheaper alternatives.
However, I think that if the recession drags on for a few years, which is not impossible, we may see a second round of dot com burst. LOL
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