Economic Review 4 Sept 2009

It is a relief to learn that the American economy is producing positive signs for recovery. Though it is not yet certain, positive signs is a good indicator. It is my view the impending recovery is due partly to the "cash for clunkers" program.

As noted in my previous article, the same scheme in Malaysia is called the "car scrap program" whereby anyone with old cars would be given RM5,000 discount to buy Malaysian Made Cars i.e. Proton or Perodua. The "cash for clunkers" program in the US does not limit to buying American made cars only but also other brands. If Malaysia is really serious in Proton and Perodua then the Malaysian government must allow the car scrap program for Non Malaysian made cars too. There is no room for fear as the newly launched MPV the Exora has already 20,000 in advanced bookings.

I hate staying in Malaysia BUT I am really proud of Proton and Perodua.

Quarter 2 GDP at -3.9%

MERDEKA

Today August 31, 2009 is the 52 year Malaysia celebrates her independence from Britain. The Melaka Sultanate came to an end in 1511 when Portuguese invaded Melaka. In 1641 Melaka was under Dutch rule while the Japanese ruled during the second world war.Yes my country is an independent nation BUT NOT ME.

GROSS DOMESTIC PRODUCT

The Malaysian economy grew at a surprisingly stronger -3.9% for quarter two 2009. Sincerely I thought quarter two would be worst than quarter one (-6.2%) but it turned out better than my common sense calculations. The Minister of Finance has hinted another bleak negative growth for quarter three 2009. The spread of H1N1 influenza where the deaths have surpassed 70 lives would indirectly affect quarter three GDP.Malaysians are more health conscious nowadays. Normally during Ramadan people would break fast at outdoor restaurants but this year it was different.Last Friday I broke fast at a restaurant in Seremban. There were not many customers and I was treated as usual by rude Malaysians.