Economic Balance in Malaysia After Recession

With Bank Negara Malaysia (herein referred to asbarrel and the producer price index showed decline
"BNM") declaring in the month of September that itscompared from January - August 2008 and 2009.
Monetary & Financial Developments August 2009,Some of the other exciting figures are also
the Malaysian economy faces stable interest rates,unemployment rates, commodity prices, global stock
demand for financing in the housing industry ismarket prices, foreign currency exchange value and
sustained and the capital market moderated, it seemsmanufacturing output of vital Malaysian exports.
positive that Malaysia may be looking at a veryInterestingly, the balance of payments figures are
positive economic outlook coming 2010.depicted as below.
There were previous speculations about the dominoBalance of Payments - Malaysia for 2007 - Q1 2009
effect this Great Recession has on Malaysia will lastAccording to the Malaysian Department of Statistics,
about 2-3 years; albeit its heavy political activities andThe current account recorded a surplus of RM28.8
shrewd financial stability mentality that was placed onbillion (equivalent to 17.8% of GDP) in the second
Malaysians by various mass and alternative media.quarter of 2009, down from RM31.4 billion from the
Locally speaking, Malaysia is seen to be performingpreceding quarter (-RM2.7 billion or -8.5%). The
quite well in this recession - BNM's net non-performingdecrease was as a result of lower surplus on goods
loans ratio remains at 2.1% as of August 2009, asof RM33.1 billion from RM37.0 billion in the earlier quarter
many other banks stood at an approximate figure of(-RM3.8 billion or -10.4%), and services of RM1.0 billion
3.65%. Deutsche Bank however, was forecasted to a(Q1 2009: RM2.5 billion). Meanwhile, other components
high of 15% non-performing loan ratios (herein referredin current account showed an improved performance
to as "NPL") for the next 12 months starting Octoberas follows:
2009.- a lower net payments on income account of RM1.5
The Average Base Lending Rates (BLR) in Malaysiabillion (Q1 2009: -RM3.9 billion); and
stands at 5.53% on July, decreasing to a low of 5.51%- a lower leakage on current transfers of RM3.9 billion
at the end of August.(Q1 2009: -RM4.2 billion)
For more almost a decade now, citizens of the worldMalaysia vs. Other economies Household debts are still
mainly financiers and political leaders have alwaysworryingly high in United States, and healthcare is often
craved for economic stability, sustainability anda concern. It has been said 'worryingly' for many times
predictability: Even depicted in the G20 summit. Butthat Americans are spending too much, wanting a lot
what is the shape of the economy after this recentof amenities but are not paying enough for it.
economic turmoil, and how would we reshape it?Consumer spending has dropped, but cost of capital
Economy Focus: Malaysia The GDP chart above (byand consumer prices index has increased. This
Dept. of Statistics Malaysia) shows a very sharpnegatively effects the economy as prices will be
decline at the expected bottom-out -6.2% in Quarter 1higher and consumers do not spend as much -
of 2009. Over the period of time, output for exportsLeaving local monetary circulation volatility at a much
have declined, oil price was down to a low of US$48lower rate.