Malaysia Unlikely to Enter Recession???

The second Finance Minister commented today that Malaysia is unlikely to enter recession. Reason given was that our banking system is still intact despite the banking crisis affecting US and Europe. Nor Mohamad said that the government is still optimistic of achieving economic growth of 5.7% this year and 5.4% next year.

I hope the Second Finance Minister's optimism would not disappoint us. No doubt Malaysian economy is diversified, but which are the sectors performing well at this point in time? Plantation industry is affected by low CPO price, construction and manufacturing businesses are not moving as well. So despite of the diversification of our economy, can we be resilient enough to sail through this worldwide financial turbulence safe and sound?

I hope all politicians do not create any more chaotic conditions. As it is now, the livelihood of commoners have already been badly affected by the current uncertainties due to a possible recession in US. The sharp declines in major share markets around the world for the past few days is already scary enough.

During a crisis period like this, the common people are those affected the most. The rich people and big business tycoons may see their wealth reduce substantially, but they can still continue enjoying luxurious life. The common people could be out of jobs, and thus the livelihood of the whole family is affected. The people who are running small business such as hawkers, taxi drivers, restaurant owners will tell you how bad is their business being affected now. Hopefully the smooth transition of power to Najib would ensure political stability in the country as instability in politic would not do any good to our economy.