Sunday, 12 October 2008

Will the Global Financial Tsunami Hit Us?

I was so glad to see in today's Star Online that someone, other than me, has noticed that our government has not made any mention of how it is going to handle this worldwide economic meltdown.

As Steve Oh from Kajang puts it succintly in his letter, there is no mention in any of our local newspapers of the steps our government is taking to address this issue. Oh yes, I forgot, a few days ago our Mr. Najib and one analyst said we won't be affected. 

Really? Let's look at some of the "facts" they used.

One, "our economy is domestically driven. Therefore, we're not exposed to world economy." While this is true, don't forget that MORE THAN 40% of our income is derived from exports. These exports are now affected, and there will be a ripple effect at best. 

And, if nothing is done to turn the world around, then the ripple effect might become a tsunami, too, affecting all other businesses which are domestically driven. 

Second, by our Mr. Najib, "our exports are diversified. We export mostly to China, not US, so we are not affected." Hello, Mr. Najib. China's biggest customer is US....and if you can't connect the dots, then I am extremly fearful for our country's financial future.

If our govenment does not stop distracting itself with who should be the next PM and DPM soon, and take an interest in our economy, we might one day wake up to find our country back to poverty status.

At least, Dr M took preemptive measures a decade ago and saved our economy from spiralling downwards.....did any of you remember that our economy recovered faster than our neighours, including Singapore's, due to Dr M's brilliance? I remember that Lee Kuan Yew and others laughed at Dr M's unorthodox measures, but at the end, we had the last laugh. 

14 comments:

cazzycazz said...

Blackie Dear,
They are too busying minding their own interests.... It is ok because they are all pretty much well fed, they won't suffer along with ppl like us..... It is ok, they can still afford to set the crisis aside, the country can wait, the most important thing now everyday when they wake up, they are very busy thinking of tricks, strategies and dirty games.... They have no time..... We have to be understanding, they are fighting for the country........ NOT!

Blackie Bond said...

Ya lor, Cazz, totally agree with u. They are not affected...they are not the common rakyat.

cbenc12 said...

at least we are not as bad as the zimbabwe..!

but hai.. de gov is not very efficient now eh..

Blackie Bond said...

Ya lor, cbenc12. I guess we should be grateful that our inflation rate is not 231mil% like Zimbabwe's.

Can u imagine being paid with petrol or food instead of money?

ms kay poh said...

ah hiang wondered how someone in zimbabwe would go to the laundromat. would they be standing there for many hours putting their coins into the slot.

Johnny Ong said...

if u had read one of my latest blog post which did quote the govt saying that we wont be affected by the recession.

since we wont be affected, why do we need to address the economy. just stay where we are .........

Blackie Bond said...

Ms kay poh,

I doubt zimbabwe has any laundromats now, if they had before. there are no business alive anymore, the last I heard (over the BBCNews). even grocery shops have closed down. so even if u're paid with money, there's nothing u can buy, because, if a cup of coffee used to be one dollar, it is now, 231 million dollars, and you're definitely not earning that much!!

The inflation rate really boggles the mind.

Johnny,

Just popped over to read your post...hahaha...well, they are not affected by the inflation, so definitely the common people are affected la...so this equates to nation not being affected by worldwide recession...we live in our own world mah, we're not part of the world....lol..!

Also, money not earned is not truly appreciated, so even if a loaf of bread costs RM100, they're not going to feel it....

Daryl Teo said...

Very well put Blackie, nobody stays unaffected by the global credit crisis, the gravy train is just too long. The ripples are definitely going to be felt right across, not just the financial system which we thought were insulated from the credit crisis. If we are not vigilant we might just find the rug pulled from right beneath our feet when the crisis rips across. Even China is seeing a slow down, so whence will our exports go? They should really think of pegging the Ringgit as advised by DR. M to mitigate external shocks but it perplexes me as to why they fail to adopt such a prudent measure & allow the ringgit to float! Just hopefully speculators will not start devaluing our currency. Really think that all the bickering should be stop for now & instead more thoughts be given to shoring up our economy against the economic turmoil or onslaught! Some analysts think that globally we're entering into a depression like in the 30s & not just talking about recession anymore. I hope his take is wrong for everybody's sakes!

Blackie Bond said...

Hi Daryl,
I heard or read that some analysts think that this time round, this depression is going to be worse than the one in 1939!!

Our govt's lack of action is really worrying....are they monitoring the situation, or have put some measures in place to monitor it??

Maybe we should go ask the PM in his blog, huh?

EddyBearChew said...

We are insulated lah.

Foreigner investor have long exited from malaysia market long time liao.

So whatever happen,it will bring only mini tsunami lah.

Now malaysia busy with election lah.(UMNO)(MCA)

SO buy buy buy...if not money buy using EPF...only 3% commission as compared if were to buy with own money which attract 5.5%,i think.

Buy Public Mutual Index and holddddd!!!
hehehe

Blackie Bond said...

Hi eddybearchew,

This reminds me of what Dr M said a decade ago when he tried to encourage the public to spend and not save so as to support the domestic economy...."beli lah kacang, beli lah ape pun, yang penting jangan simpan duit....". :D

Johnny Ong said...

najib has now came out saying that we will be hit next year but not as hard as in the late 90s ...... they always say anything before checking or verifying it then flip flop and change their statements

Blackie Bond said...

Johnny,

BN adopts the goreng ikan method laa....must turn over (flip flop) all the time mah, or else the fish gets burned....hahahah

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