Last week I heard that some top government officer(a minister if I’m not mistaken) tells us that Malaysia will not enter into recession next year.
Nation economy growth will slow down a bit but it will not to make a multicultural country like Malaysia fall into recession just like some developed nations start to experience.
Just how true the statement it was because merely two weeks ago I met with this employee of some well-known chemical company in Gebeng tells me that his employer has to stop production(means to stop operations) from the factory due to the economic slowdown in USA.
The chemical company(partly owned by Petronas) produce some part for a car component and it heavily depend on demand from outside country, in this case USA. Everyone including me knows that US automotive industry is badly hit by economic crisis just like it banking sector.
US big three of automotive industry, GM, Ford and Chrysler were badly hit and need it government to save the three company from fall deep further. I even heard one CEO from the 3 company said that it company will fall into bankruptcy if the government don’t help them.
So the demand from these company for manufacturing component has shrunk or stop completely. So production for car component has been stop for time being and will continue when economy condition improve
This Gebeng-base chemical company employee told me actually the factory has stop the operation since October and don’t know when it will start it business again.
With grim face he told me he did not know his future because it is usual for a company to lay off some of it employee to reduce the effect from economy slowdown.