Monday, September 1, 2008

Don’t knock the economy — it’s fine

Hantu Laut

Malaysian Insider is getting popular as an alternative and independent news portal.I have followed this news blog from its inception to its growing popularity. A news portal with balanced and non-partisan reporting.

The left-wing Malaysia Today (unfortunately blocked by the government but you still can be accessed at http://mt.m2day.org/2008/) and Malaysiakini(by subscription only) which have been around for much longer are more popular due to the increasing unpopularity of the government and the people desire for political and social changes.

Below is an article on the state of the economy:

Don’t knock the economy — it’s fine

KUALA LUMPUR, Sept 1 — Contrary to all the pessimism, the Malaysian economy is far better than most people give it credit for. The reasons for pessimism are understandable. Global oil prices are surging, inflation is persistently high, the stock market is torpid, the sub-prime problem continues to bedevil Western financial systems, there is political uncertainty and Malaysians generally do not feel good about the country’s economic health.

The concerns could be misplaced. For the first half of 2008, Malaysia’s gross domestic product grew at a very reasonable 6.7 per cent. The second quarter’s trade surplus clocked in at a whopping RM40.8 billion compared to the first quarter’s RM27 billion. Gross exports grew at a healthy 21 per cent although it was admittedly due to the high prices of commodities like oil and palm oil. Even so, manufacturing exports grew 12 per cent, which isn’t half bad. And domestic demand grew 8 per cent, slightly lower than the 10 per cent growth experienced during the first half.

Fundamentally, the Malaysian economy remains resilient. In the past, Malaysian GDP growth used to track the leading indicator of the Organisation for Economic Cooperation and Development countries; in effect, when the OECD leading indicator plunged, Malaysian GDP growth followed suit. That is no longer the case with Malaysian growth rates remaining at between 5 and 6 per cent even as the OECD leading indicator fell, as evinced in recent years. This is, in part, due to the country’s luck and the high prices of its natural resources like rubber, palm oil and petroleum. Another factor is the emergence of tourism as a significant growth sector: last year, visitor arrivals hit 21 million, a new record high.Read more.....

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3 comments:

kittykat46 said...

Whoever wrote the article obviously doesn't run a real business in Malaysia.
OK, I'll be fair. Its not as bad as the Opposition paints it, but its absolutely, definitely NOT fine.

The claimed GDP growth rate of 6.7 percent is just a mathematical calculation. The benefits are most certainly not flowing to the ground. I rather suspect the growth benefits flow to a very small privileged few in the country - the number is possibly in the thousands, out of a population of 26 Million.

SM said...

Credit Suisse is telling its Investors not to invest here (it seems we are as politically unstable as Thailand!).
So, unfortunately we are becoming as bad as the Opposition is saying we are!
As for the numbers they churn out...can you believe them? Ya rite!
Give it a few more months & see what happens.
Our PM, his DPM & his top UMNO men are all concentrating on their Political Careers & their TOP posts.
MCA, MIC & Gerakan are all licking thier wounds & trying to "re-invent" themselves (how long must we pay for allowing these idiots to lead us?!).
So who's running the country?!

Anonymous said...

strip off the growth generated from boom in commodities, the GDP growth will abysmal. moreover, multiplier effect from higher commodity prices is fa less compared to say the manufacturing sector.
take the above into account, the economic picture aint too rosy.