Malaysia Most Risky in Weathering Financial Crisis

UPDATED: Anil Netto wrote an excellent article entitled “Malaysia’s Ostrich Economics” much along the same lines of this posting (read here).  It was originally posted at Asia Times Online.

The Straits Times (Singapore) reported today (read here):

On a scale of zero for the least risky to 10 for the most, Singapore scored 2.76, followed by Australia (2.9) and Hong Kong (3.23). Most risky are India (6.87), Thailand (6.28) and Malaysia (6.07). They are vulnerable not so much to the financial fallout but due to internal developments, the report added.

Regardless of what Najib wants us to believe, come November 4 in Parliament, he will have to be candid and honest about the state of affairs in Malaysia.  If he is wanting to be the next PM, he has to be seen to know what he is talking about and do something affirmative and not skirt around the issue or remain in a state of denial.

Economic Problems Felt, Umno Politics Takes Front Seat

Today‘s NST front page:

KL Composite Index loses 3.6% to 859.11 … analysts say the markets haven’t seen the worst yet … the Malaysian market is not an exception.  The shares are oversold.  They no longer reflect their values.  We now have plenty of cheap, quality and undervalued stocks … but expect it to fall further next week,” a local dealer said.

This 32.2 points down is the KLCI lowest in 4 years.  We don’t want to be duped and lulled into a dream that Malaysia is not in a problem state.  At the same time, we should not be doomsday prophets either.  We just need to be honest and do something about the economy NOW!

But is the Government SEEN to be doing much?  We’ve been hearing a lot about not to worry but economics is not requiring counselling.  The Malaysian economy requires definite strategies and actions.  But is there any?

Can Pak Lah Be PM and not Umno President?

Cheeky thought indeed.  A fellow blogger had posted a similar thought here.  After all, we had assumed that when Pak Lah announced he wasn’t defending his Umno Presidency.  We assumed the next Umno President will traditionally be the BN Chairman and then the PM of Malaysia.  And that person perhaps may be Najib himself.

What Pak Lah clearly said was that he wasn’t defending his post in Umno but he didn’t say he was stepping down as the PM.  Is what he didn’t say important?  We should not assume too much

State of Denial?

The US markets have been tumbling due to the crumbling of mega financial institutions.  Their government has taken swift action to shore up the impact.  The European markets are having the tremors.  The Asian markets are significantly impacted.  Even Singapore announced that they are in a technical recession.  But our Malaysian Government says we are still well protected and we will not be hit as bad as other countries.  What other countries?

Is this true or are we too busy with party elections?  Are we in a state of denial that our economy won’t be impacted much and is still very resilient?  Certainly, we want to believe that to be true.  But is it?

Why is DPM Najib innocent if PM Badawi is faulted?

Mahathir along with a host of Umno Supreme Council members have continuously blamed Pak Lah for the historical loss in the General Election in March 2008 as well as the homecoming win of Anwar at Pematang Pauh in August 2008.  The general tenor of the fury points to Pak Lah’s inability to win votes and garner the support of the people anymore.

However, did we all forget that behind Pak Lah has always been Najib, the DPM, current Finance Minister and former Defense Minister.  In a team of PM and DPM, why is the finger only pointed at the PM and not the DPM?  In fact, the strangest thing is that the one who may have instigated the finger and pressure on Pak Lah is Najib himself.  The DPM is considered blameless in his supposedly unwavering support of the PM?  How can it all be the PM’s fault, if any, and none on the DPM?

Malaysia – A Failed Nation?

This article was written by an UNKNOWN writer and was posted at MalaysiaToday on 11 October 2008 here.  It is very insightful and an eye opener to us Malaysians looking towards 2020 to being a developed nation.  We can’t divorce the politics from the economics of the country as they are so intertwined.  Politics dictate economic policies in Malaysia and so far, we have not been duly impressed with them.  Malaysians anticipate much more from our elected leaders to do the right and best thing for the country.  We keep being hopeful!  But is that all we can do?

Here is the reproduction of that article with some reformatting.  We may not agree with everything written but we can’t ignore the facts either.   Enjoy!

* * * * * * * * * * * * * * * * * * * * * * * * * * * *

Malaysia 2020?

Those who started work around 1973, a 1.3 Litre Japanese car was RM7,000.

Today the equivalent, let’s say, is RM60,000 … 8.5 times or 850%

In 1973 a double storey house was about RM 45,000 … or less.

Today it is about RM300,000 … 6.6 times or 660%.

In 1973 an Engineer’s pay was RM1,000.

Today it is about RM2,000+/- … 2 times or 200%.

From 1973 to 2008 … 35 years … what is the Trend?

Bearish !!!!

In a stock market when the trend is bearish, what do we do? …

Omnia Latest Prices – October 2008

Since the Omnia was launched, there has been much interest on this device.  Please don’t be alarmed that it heats up a bit during intense usage or even during the charging phase.  It’s normal for all PDA devices.

For the Omnia, it has given many new Phone-to-PDA converts a grand time.  Although there may be complaints that the screen color resolution could be better, that’s for us to wait for the next model.

For now, my take is that getting an Omnia 8GB is the best buy because

Pak Lah’s Legacy? He doesn’t care?

This indeed so strange for a Prime Minister to say.  Pak Lah says he is not bothered with what people will think of him as the PM of Malaysia in the years to come.  Legacy is something everyone should be concerned about.  It is what the individual has done to make the world a better place.  What more a PM who has the power to make a lasting impact on Malaysia as a country.

Pak Lah made many election promises in 2004 which resulted him winning the most votes any PM had done so in the history of Malaysia.  During the four years, none of the reforms he promised which won him those votes materialized although they were much publicized for the wrong reasons like the Lingam scandal.  This year, 2008 March, four years later, Pak Lah again made history winning the least votes any PM had done so in the history of Malaysia.  Not only that, he also lost 5 states (Selangor, Perak, Penang, Kedah and Kelantan) and the KL Federal Territory.  That’s also the most territory a PM in Malaysia has lost, these being the most developed and richest states.

Is this the only legacy Pak Lah is leaving?  Winning the most votes and also the least votes in the history of Malaysia?

Check Your Reaction Time To Save Your Life

Finally Pak Lah Says It

Today, Pak Lah finally said it.  He will not defend his Umno President post come next March.  The MalaysianInsider reported (read full article here)

“I will not stand for the presidency of Umno in the coming elections. My current term as Umno president ends in March next year,” he told reporters after the meeting.