Managing Malaysia S Economy With Secondary Education

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BANK Negara has many good brains, and under PH government, whatever they wish will come falling from the sky!

I just wonder why is BNM refusing to raise rates? Afraid of its consequences on Putrajaya? Managing the country's economy to the whim and fancy of the prime minister and his finance minister? Brilliant
Report says this year will see more emerging market countries raise interest rates than at any point since the pre-financial crisis uplands of 2006. JP Morgan predicts it that way. And a presentation by the U.S. investment bank showed 19 of the 24 emerging economies it follows are likely to lift borrowing rates
Only one country, Malaysia, will keep them on hold, while Nigeria, India, China and Turkey are set to cut their rates
We have money, I think. Since we agreed to revive Jambatan Bengkok, go on with the third National Car project, continuing the ECRL and many more mega projects, we do have money, that's for sure
However, our central bank is run on day-to-day basis. They must listen to Putrajaya first, and that explains to our declining foreign reserves, which now stood at US$91 billion. We have reason to be proud of our finance. Blame it on global trend but some countries have their own resistance mechanism while we don't
No need to mention what's Nikkei and Nomura said about the actual situation of our economy. Lim Guan Eng refutes it as lies. (Anybody who can school him on economy?)
Meanwhile, the World Bank is warning of increasing risks, or what it calls “darkening skies”, for the world economy. Malaysia is nit spared. We'll be hardly hit if the same pattern of economic management is still in used, and of couse the same bunch of 'dungu' are having hands on it.In its annual assessment of global prospects the Bank predicts continued, though somewhat slower, growth this year and next
The Bank’s forecast for the global economy is expansion this year of 2.9% and 2.8% in 2020
But overhanging the broadly favourable outlook are rising concerns that could mean economic performance falls short
There is certainly some good news in this report. While the global economy is slowing down it’s likely to be what the Bank’s economists call a “soft landing”. The slowdown started in the middle of last year and it has so far been “orderly”
The predicted slowdown is focused on the rich countries, particularly the US, although it will continue to expand more rapidly than either the Eurozone or Japan according to the Bank’s forecasts
The US slowdown is the result of the fading impact of President Trump’s tax cuts and by 2021 its growth will have almost halved – to 1.6% compared with 2.9% last year
On the other hand, growth in emerging markets and developing economies is likely to gather pace somewhat despite the continued cooling down in China – a process which began at the start of the decade
By 2021 growth in China is expected to be 6%, which is still pretty strong, but it is a marked change of gear for an economy that expanded by an average of 10% annually between 1980 and 2010
Franziska Ohnsorge, a World Bank economist and lead author of the report said in a BBC interview: “In China it’s policy engineered, a very deliberate slowdown towards more stable long term growth.”That is what the Bank thinks is the likely performance of the world economy over the next few years. But there are risks that could mean that it doesn’t work out so well
That is reflected in the title of this year’s report: “Darkening Skies”. Some of the clouds are familiar ones. International commerce is already weakening, and conflict over trade especially between the US and China is one of the major risks.These are the two largest national economies on the planet. The Bank has calculated that 2.5% of global trade is affected by the new tariffs – trade taxes – that were imposed last year, and it would be double that if the further tariffs that have been discussed were implemented
The risk of rising protection remains high, the report says. It could depress economic activity in these two giant economies. Slower growth in China is particularly an issue for developing countries that export industrial commodities, energy and metals, as China is such a big buyer of these products
Franziska Ohnsorge says between them the US and China account for 20% of global trade and 40% of global GDP. If their economies are both hit she says, “it’s something that’s felt all around [the world]”
But Malaysia is of no worries. We apply what was taught at secondary level

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