Monetary Policy,New GDP Forecast, CPI & SRR

I am stunned by the news that Microsoft would terminate only 5,000 jobs. I sincerely think the figure would be bigger. Moreover with Apple's Steve Jobs taking 6 months off to me is a signal of how bad the economy is (not just his health problem)

Bank Negara Malaysia reduced the Overnight Policy Rates 75 basis points to 2.5% thus the ceiling rate is now 2.75% and floor rate 2.25%. Commencing 1st February 2009 the Statutory Reserve Requirement for banks would be reduced further to 2%. However one figure which gave me a sigh of relief is the CPI for December 2008 - It has gone down to 4.4%

I could not but review my GDP forecast for Malaysia in 2009 to less than 1%. Considering the declining demand in computers I predict many computer chip factories in Malaysia would soon retrench their workers. When I was recuperating at the HTAN ward I met some factory workers who have been asked by their employers to come to work for 3 days instead of five.

The second stimulus package to be announced by Datuk Seri Najib Minister of Finance must look deeply into this matter. To me Najib is a more open figure considering he was a British graduate. The only way to overcome an economic crisis which started from the west is to think like the westerners but never ever forget the eastern and Islamic values.

Emphasize must be given to domestic economy now. Tourism is a good foreign income. I thank the people of Thailand for their recent demonstration and closure of Thailand two airports because foreign tourists have instead travel to Malaysia.Proton and Perodua must never ever be neglected because the National Car is the heart of the Malaysian Economy.

Gong Xi Fa Cai

Happy Chinese New Year to my Chinese readers. I am not sure what animal 2009 relates to according to the Chinese Calendar BUT I hope the Chinese fortune tellers could provide some happy news on the economy.