the gloomy outlook

Several days ago I wrote about the effect on credit(or economy)crisis on a Malaysian.

Now after a few reading I realize that the effect is much bigger.

From a newspaper I found that from January until now, about 28000 has lost jobs

That’s an average of 3000 workers laid off a month. Some business are reported have canceled contracts and reduced demand.

While other factories and employers are cutting down on expenditure.

I also found that Malaysia’s export are expected to decline into 2009.

The gloomy outlook indicate that demand in recession-hit economy would take a deeper-than-expected hit.

The decline in consumer spending has start to kick in with some big multinational company like Sony has exercise lay off on it manpower to cut rising cost.

The automotive industry also not spared, the big three automotive company in USA(Ford, GM and Chrysler) and has pleaded government to bail them out

or they will be the next “Lehmann Bank”. If one or all three company were force to go into bankrupt then it will be a disaster because the auto industry is a key element in the economy.

The interest rate cut still not helping as companies collapse on after another notably in USA.

It’s purely not my intention to scare anybody here but the effect from global economy slowdown has really makes me to think deep about future.

The financial crisis may impacts every country and individual, both rich and poor, in varying ways and degrees.

But I just hope we can survive or at least control the damage.

Economy slowdown has start to effect Malaysia economy

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.