Read, digest and emphatize this from Hasmeon Barbarossa....damning real and present implication to the nations economy, thus the prosperity of each and everyone of us. Abstract from Deutsche Bank Research. 1. Malaysia External debts matric worrying. Foreign ownership highest now on bonds and central bank bills. 2. BNM defended RM at 3.5 against USD in Dec but gave up on early Jan 2015, Used up USD 5bn in 2 weeks in Dec. Sharp drawn down which is already been declining reserves on recent months. 3. Thus reserves now only able cover short term external debt liabilities making Malaysia the worst debt cover profile. 4. Malaysia entities offshore borrowing surge lately. 5. Fiscal policy likely to miss govt target of 3% deficit. Though subsidies cut, but revenue drop more than 20%, deficit could rise to 3.8%. 6. Household debts is 87% of GDP as at 2013, highest in the region. Slowdown on household spending will decelerate Malaysia as private consumption is the source of growth for Malaysia. 7. Trade balance only support current account. Importing outpacing export. Malaysia need at least 1.7bn/m to avoid current account deficit, but last 3 months fall short of this threshold. Its Time NOW for everyone to wake up & advisable to seriously start to look for a PLAN B, preferably to earn in US dollars, too. 😕?? Our Cost of Living will be increasing. Please be made aware that Our Government will have no choice but to resort to increasing the prices of essential foodstuffs & services in next coming months. Not being pessimistic but realistically JUST BE PREPARED for a worsening of our economy. Clearly seen by the world... Poor leadership by our Government Leaders... Weakening economy...
Posted on: Thu, 22 Jan 2015 09:20:19 +0000