KL CHRONICLE: Latest World Bank report bad news for Malaysia

Sunday, October 7, 2018

Latest World Bank report bad news for Malaysia

THE latest World Bank report shows that Malaysia’s economy is growing weaker. Much weaker.

Out of the 15 Asian economies analysed in the report, Malaysia was downgraded the most. Nikkei's headline said *"World Bank _sharply_ cuts Malaysia 2018 growth view"* while other countries forecast remained relatively unchanged.


Surprisingly, none of our local media carried this story last week even though it is of great significance to all of us.

The World Bank forecasts that under current conditions, in 2018, Malaysia’s growth rate will lower to 4.9% (compared to the 5.4% forecast earlier) and in 2019, decrease further.

Malaysia also released our August 2018 foreign trade figures and it was a bloodbath.

*"Malaysia's August trade surplus shrinks most in 45 months"* said Nikkei. Exports actually fell 5% month on month while imports surged due to PH's tax-free holiday causing consumers to binge-buy on imported goods and cars -  leaving us with a meager RM1.6 billion in trade surplus.


This monthly trade surplus had plunged from more then RM10 billion before GE14. Even this small surplus in August was made possible only because oil prices had risen. if not for the surging oil prices due to USA sanctions against Iran oil. If not, Malaysia would have registered it's first trade deficit in 20 years.

Of particular concern is that our government tells us that the fall in our palm oil exports has continued to worsen in August. Thy tell us palm oil exports fell 27% compared to a year ago.

Also, last week, BNM announced that our FOREX reserves at the end of September has dropped yet again by US$1.3 billion - the 5th month of continuous drop which further confirmed that foreign outflows from investors continuing to pull money out of Malaysia after the elections has not stopped. 

Our Forex Reserves were increasingly sharply before GE14 but immediately after it reversed directions to continue to fall.

This is also reflected in our Ringgit which has continue its drop to RM4.16 vs the US Dollar which is a 30 sen drop before May 9.

There is less than three months to go until 2019.  Instead of progressing, the new Malaysia is falling behind its Asian neighbours.

The new World Bank report describes Malaysia’s economy: “The main risks to growth arise from the policy uncertainty in the local and major economies, geopolitical developments, populist policies, slowing investment growth and commodity price volatility.”

While most Asian economies are coping well, Malaysia’s is in sharp decline, because it has not adapted to both global and domestic economic conditions.

The report also singles out Malaysia as one of only two Asian economies where household debt “exceeds 70% of GDP”. Many economists have concluded that Malaysia’s debt bubble is about to explode.

International ratings agency Fitch also noted that this household debt ratio has increased sharply during the 3 months tax-free holiday spending spree and warned that consumers loaded up on new car loans and credit-card debt will see slower consumer spending in the next few years as they try to repay their debts.

Let's take aside the numerous manifesto promises that have not been delivered and look at the only substantial one that has actually been delivered, abolishing GST.

We wanted to abolish GST because we wanted lower prices. Unfortunately this has not happened and the reverse actually happened instead when SST replaced GST.

Two days ago, the Domestic Economy and Consumer Ministry said it had done a month long survey on 384 goods and services typically bought by Malaysians since SST started on 1st September. 


Out of these 384 items the Minister surveyed, they found that 51 items actually increased in prices between 5% to 10%, 29 items reduced a pitiful 4% to 6% while the remaining 304 items experienced no change when compared to the prices during GST.

The popular wisdom is that more items will increase in prices over the next months as retailers and distributors deplete their tax-free inventory and replace them with inventory that now attract 10% sales tax.

Malaysians are now waking up and asking why we bothered to replace GST with SST in the first place since it has not achieved its main goal to reduce prices and the prices continue to increase while putting our government under immense revenue strain?

During his failed visits to China, USA and UK,  Mahathir had said that Rich countries should not bully poor countries". Along with his confrontational stand and his reluctance to accept the CPPTPP free trade agreement, the increasing protectionist policies will mean that Malaysia will continue to isolate itself from the world economy and hurt ourselves economy.

One analyst warns out that if we do not sign this free trade agreement, we will lose out and even fall behind Vietnam within the next few years. 

Yes, the communist country that was in a decades-long war not too long ago will soon over-take us as they have now embraced free-trade while we isolate ourselves and make as many enemies in the world as we can.

We have offended China, Singapore, USA, Israel, Saudi Arabia and the UAE so far. How many more enemies do we want to make? Japan alone cannot save us.Neither can the 3rd national car which Japan seems hell-bent in convincing our PM to do.

Should we suffer economically and isolate ourselves from world trade for the next few years just so that we can feel proud that we were brave enough to have scolded the richer nations?

Instead of progressing, the new Malaysia is falling behind its Asian neighbours.

Is PH more focused on continuing to assign blame to the previous BN government, more focused on continuing to unleash their political vengeance on Najib and his family. 

Will PH continue to tell sweet stories to pamper to their supporters who are now fast losing hope now. Can you blame us? 

All Malaysians should read the new World Bank reports and our trade figures to draw their own conclusions about whether Pakatan Harapan is managing the country correctly.– October 7, 2018.

* Athena Athena reads The Malaysian Insight.


Anonymous said...

Ni baru betul ucapan bertukar jd doa. Berthn thn ph kempen memfitnah malaysia diambang muflis, malaysia bankrap pung pang pung pang.

Tak kira pemimpin ph ka pentaksub ka pengikut ka ulang ulang kata yg sama suruh rakyat percaya. Lepas ni bolehlah percaya.

Masa ekonomi bagus kata teruk. Tak mustahil masa teruk kata bagus. Auta auta kena lebih baru rakyat percaya. Yg betul rakyat tak mau percaya.
Pemimpin bodoh lahir dr pengundi bodoh kata menteri kasut hitam + kolam renang.

Anonymous said...

Ya, kerana rakyat terlalu yakin kekelentongan PH terhadap ekonomi Malaysia, nah Allah makbulkan keyakinan itu menjadi kenyataan. Oleh itu sama-samalah kita bersyukur kepadaNya bahawa Allah telah benar-benar menerima dan memakbulkan doa kita. WaLlaahu-'alam.

Khairulryezal osman said...

Pala bapak kau.ph ambil dlm keaadan ekonomi malaysia hampir bankrap dikerjakn najib dn rakanya.

Khairulryezal osman said...

Bahlol,malaysia hampir bankrap ketika ph ambil.ph kerja keras nk pulihkn ekonomi ko plk duduk melangau 34 jam kedai kopi.

SAIFULSJ said...

Bangang ker ko ni... World bank yg kuar tu... Tgok sblm dan slps pru.. Apa indicator tu..

Anonymous said...

Kepala bapak kau.. bodoh kau belajar ekonomi jamban.. dungu kau mcm lge umum bangga berdegor degor indeks ekonomi malaysia bagus. Menteri kewangan hkong. Bln yg diumum bln thn umno bn masih perintah.

Sebelum menang ekonomi teruk menang je boleh pulak ekonomi dlm keadaan teguh. Jual belacan penang? Fitnah 1mdb. Ringgit jatuh kerana 1mdb. Dah menang 1mdb bkn penyebab ringgit jatuh dan tdk menjatuhkan ekonomi negara. Maknanya ekonomi kuat. Kepala bapak dan kau sekali kuat pembohong.

Anonymous said...

Pi jepun nak pinjam duit. Bolayan. Org jepun kata gila ka ni olang. Jepun berganda hutang dr malaysia. Jepun tak bankrap. Kepala bapak kau.

Anonymous said...

Pi china pun sama. Sngapore usa uk semua hutang berganda dr malaysia. Apala kau ni khairul bodoh sgt.

Kah kah kah.. hari hari menteri badut buat lawak. Cybertrooper dedak 3rb dah tak tahan hari hari kena hentam.. hentak kepala tu ke dinding biar cair bkn cair berak tercirit cirit prottt.

Bankrap utk rakyat. Bantuan hapus. Projek mesra rakyat dibatal/ditangguh.. utk pemimpin tak bankrap. Jln jln hotel mewah.

Anonymous said...

Nek jijah mintak maaf, mengaku manifesto tak dpt ditunaikan hanya utk menarik undi. Senangnya jd pemimpin. Nak berkuasa sanggup buat apa saja. Tak peduli cakap apa saja dlm kempen dlm youtube dlm alam maya.
Kau ingat semua org mudah je maafkan. Hoiiii kalau tak mampu letak jawatan. Bantuan dah hapus. Projek rakyat dibatal. Kerajaan melayu islam jatuh. Kau naikkan dap. Nak buat masjid tak boleh dah batal. Padahal dana dah lulus. Dana pi mana, buat byk sek cina? Byr gaji lantikan politik yg berlambak?

Anonymous said...

Kaji kaji kaji. Akhirnya
Pm kata manifesto bkn kitab suci bila org tanya janji janji.

Tpm pulak setakat mintak maaf. Padahal janji ditabur berthn thn jd bhn kempen.

Dah tak tunai apa yg dijerit masa kempen, pemimpin dan menteri sibuk padam selfie, katakata ajaib, janji dan video youtube yg dah dicanang.

Modus operandi diulang ulang. Buat kenyataan disambut org bawah yg main peranan melalak lalak bagi rakyat percaya. Pemimpin dah tak berbunyi bila pekung dah terbukak satu persatu aikkk pentaksub ph masih dok melalak pekung yg bernanah.

Anonymous said...

Dap puji singapore melangit. Hutang singapore jauh lebih tinggi. Singapore tak bankrap. Apa ke bangangnya kau khairul. Org kata bodoh tu simpan sikit, bagi aku bodoh engkau tu jgn disimpan dibuang mandi air longkang 7 jenis longkang.

Anonymous said...

Masyarakat dunia faham benar bagaimana modus operandi Mahathir untuk kekal berkuasa melalui duta2@spy2 mereka. Dulu Mahathir guna ISA kini guna AMLA untuk memenjarakan musuh politiknya. Seluruh dunia juga tahu bagaimana ramai ahli2 politik PH dibebaskan oleh AG tanpa melalui proses penghakiman. Mereka juga tahu menteri kewangan Hong Kong juga dibebaskan tanpa melalui proses penghakiman. Mereka semua kini menjauhkan diri dari Malaysia...

Keris berayon said...


Anonymous said...

Hahaha aku berguling baca komen pentaksub ph. Kena hentam sikit dah tersentap. Kalau bosnya pulak block aje. Masa ph jd pembangkang apa yg tak dimaki dihina. Segala caci maki, mencarut ke keluarga sampai ke kuturunan, sumpah seranah, segala benda dihina, semua diperlekeh. Kerja pembangkang menghasut. Sekarang kita lawan dgn fakta bkn fitnah. Tersentap gila ph takut rakyat tau kebenaran. Tu block memanjang.

Anonymous said...

Nak malaysia maju. Pi youtube byk idea geliga dap bagi rakyat senang dan negara maju. Org yg bagi idea dah hilang tinggal KEPALA BAPAK ENGKAU FUCK YOU KIKIKIKI..

Anonymous said...

Hal ehwal agama Islam dibawah YD AGONG dan Sultan negeri masing masing.
Hahaha menteri agama dah u turn. Kata katanya dah disalah erti. Keh keh keh u turn lagi. Berapa kali mau u turn. Pasal lgbt dulu pun sama. Asik org salah paham. Kalau dulu sesuatu yg dibuat dibawa berbincang dan rujukan dibuat kpd yg pakar. Labu labu.

Anonymous said...

Mcm mana tak lemah, sawit berlambak takde nak beli. Menteri suruh rakyat beli byk minyak sawit. Buat apa? Suruh rakyat berkorban guna duit beli minyak? Pi la ph beli byk byk longgok dlm rumah. Bangang punya idea. Konon hutang byk nak muflis, projek boleh pulak up harga. Dahlah janji mcm mcm dgn peneroka. Tapi tak ditunai. Sawit jatuh harga, peneroka yg kena tanggung.

Anonymous said...

Apa citer kapal layar jho lo. Ni brg kes. Mana boleh jual selagi kes belum selesai. Siapa punya? Rakyat nak tau auta ni.

Anonymous said...

Kondom dah free. Sonang sonang. Tunggu free bala.

Anonymous said...

Tolong bagi pencerahan jika ada sesape yg tau info byk. Nak buat kereta lagi tapi katanya dgn sykt yg rugi.

Kalau betul apa kejadah ni. Tak kan nak bail out lagi. Sape yg akan dpt tender tu semua? Kroni dan anak beranak kaum kerabat? Untung betul. Dulu dah bailout. Brp byk duit rakyat nak disalur?

Kata kata laungan sebelum pru.

Sekarang khazanah bkn kerajaan.

Anonymous said...

Jgn bimbang. Dah ada org pi china merayu beli byk brg dr malaysia. Pdn muka. Durian musang king apa cerita? Buah buah tempatan apa cerita? Dulu herge mahal import ke china. Minyak sawit jgn ceritalah. Berlambak 1kilo kat pasaran. Dah tak ribut lagi harga 5 kilo naik. Negara berdagang nak sama sama untung. Yg ni untung part a, yg tu pulak part b. Suka hati je berenti projek dah dilulus, dah ada perjanjian dipersetujui bersama. Dah keluar pun duit utk jln projek.
Padan muka.

Anonymous said...

Yeyyyyyyyyyy yahuuuuuuu yeyyyyyyy
Bank dunia telah menurunkan indeks pertumbuhan ekonomi malaysia.
Malaysia memilih
Malaysia baharu

Perrghhhhh HANCING3.........tepuk,tepuk said...

AMRIKA da "sound" madey

" jangan cube2" NGENDAP duit kitaorg utk DI PINJAM..

Unknown said...

Belajarr secara waras terima hakikat. PH tak berdaya úu negara. Tak pẻlu mârah keluar kata kéat. Fikir secara rasional.

Anonymous said...

Aku nak bersorak lagi..
Eksport turun ~ 5☆
Import naik ~ 10☆
Ph mendabik dada semasa menjd pembangkang.

Anonymous said...

Lawak antabangsa. Lapuran bank dunia hutang bkn 1t. Ph tetap fitnah bertubi tubi 1t. Tak lama lagi la kot. Tercapailah cita cita nak sgt 1t. Siapa mangsa?
Pedagang kaya?

Anonymous said...

Bawak balik telor ayam.
Kata byk pelabur nak melabur.
Auta auta auta
Selfie je.
Mulai sekarang sape nak jd pemimpin autakan rakyat dgn selfie.

MKAH blog sempoi said...

Pencacai PH Semua Bangang Tolol Biol.

Anonymous said...

Maka haji bakhil pun berkata...padan muka kau setaaaaaaan..kihkihkih

cr0ixe le_blanc said...

dannnn...padanla muka rakyat malaysia..semua kene..yg lg pedih penyokong kuat madey guan eng and the geng..kahkahkahkah..

Anonymous said...

Kan turun tu
Betul la janji sebelum pru
Ph menang semue turun

Anonymous said...

Duk ratib sangat muflis muflis, nahh Tuhan bagi, amek ko .... Bukannya masa Najib tapi masa matdey PM..

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