Powered by Blogger.

We Have Move To...

2009-07-15

Malaysia Set For U-Shaped Recovery?

The global economy is not quite out of the woods, but the good news is the worst is over. Backdrop of improving global economic data, Asia is expected to recover faster than the industrialized world.
They are some research house project a V-shaped recovery for Asia and I think V-shaped recovery likely to happen on China and India but for Malaysia, U-shaped is likely to happen after China and India recovery from crisis.

China and Singapore are among the top trading partners of Malaysia, the expansion in their PMI (Purchasing Managers Index) will spur demand for Malaysia's manufactured goods so with a V-shaped recovery from their, Malaysia will recover U-shaped. Be that as it may, domestic demand will still be the driver of Malaysia's gross domestic product (GDP) growth in the months ahead. Malaysia economy is expected to grow +1.3% in 4Q2009, but not enough to prevent the economy from contracting -3% this year before growing at +3.5% in 2010 said by CIMB

Going forward, the performance of the Malaysia economy hinges on political stability and a continued pace of economic reform to make the country competitive and attractive location for foreign investors. History has shown that economies that slip into a deep recession will rebound just as sharply as was the case in 1998 when the Malaysia economy contracted 8% and bounced back 5.4% in 1999, with the last quarter growing 10.6% y-o-y.

U-shaped recovery can still happen in Malaysia for several factors
  1. Asia now has China and India ( and to a certain extent Indonesia) to offset slackening export demand from Europe and US.
  2. Asian governments have all put in place aggressive stimulus packages which are beginning to take effect.
  3. Asian policymakers have begun to focus on boosting domestic demand since 1998 and last but not least, the developed world is already showing signs of recovery, thanks to aggressive fiscal stimulus actions.

0 comments:

Related Posts Plugin for WordPress, Blogger...

PostRank

My Blog List

Blog I Follow

Popular posts

Blog Archive

Templates

Stock Quote

Stock Quotes
KLCI Live Quotes
Lookup Stock Code/Name
Enter Stock Code/Name
FastQuote

Powered by zoomFinanceCorp.

Subscribe Now: Feed Icon

Home Page Home Page Home Page Home Page Home Page Home Page

Investment Idea

My investment with RM5,000 initial capital have been growing since 2005.I found the stock market appears confusing and complicated, but it is most definitely based on logic "supply and demand". However, the laws of supply and demand as observed in the markets do not behave as one would expect. To be an effective trader, there is a great need to understand how supply and demand can be interpreted under different market conditions and how to take advantage of this Off Market Transactions in KLSE.

Malaysia Gold Price

Gold Price Per Gram in Ringgits
Malaysian Ringgits per Gram

  © Free Blogger Templates 'Greenery' by Ourblogtemplates.com 2008

Back to TOP