Global economy is suffering the impact from subprime mortage and financial crisis, admittedly ,Malaysia also not survive from this "prevalent"issue. The crisis, which has its roots in the closing years of the 20th century, became apparent in 2007 and has exposed pervasive weaknesses in financial industry regulation and the global financial system. A succession of policies and actions were conducted such as implement an expansionary fiscal, decrease the overnight policy rate (OPR) from 3,25% to 2.5%, seven hundred million was disembogue into the stock market to shun the market from sustained further downward tendency. Stabilize the market and investor confidence is the uppermost goal and will take into account by Bank Negara Malaysia (BNM) no matter what policy will be formed in times to come. But, the effort of preventing Malaysia economy further slip down is not only rely on question: which policy, i.e: monetary or fiscal policy should be implemented? But also must attach important to the comprehensive and magnitude of the policy. Several inspiration and question throwed out here are be worth to take into consideration by Barison National Government as well as BNM.
i) Is that our government sustained economic growth stimulation package series are able to be implemented efficiently? The corruption, innovation, effisien and political willingness are dominate here.
ii) Monetary policy conventional tools besides money supply and interest rate, must think over whether should take into account the perspective of assets and property value stabilization into mechanism adjustment. Usually, when economic crisis was happened, it has correlation between bubble assets and property price (which will lead to bubble economy) and shattered of the bubble phenomena. Formerly, the public believe that the bubble economy happened due to market behaviour, no need further augment the governance, but it's seem that the authorities must think over on this issue during current global financial crisis. In addition to stabilize the common goods price, the monetary authority 's goal whether should comprise perspective of assets and property price stabilization, must weight cautiously.
iii) Financial crisis only can solved through creativity multilateral scheme. Financial crisis reveal the shortcoming of global finincial institution, therefore, worldwide community must dicuss and cooperate to reform the Bretton Woods System. Similiarlly, the structure of IMF and others global institutions might need to reshuffle. Malaysian government must involve aggresively in any financial crisis forum and forsake the preconceived idea (especially with USA) and together confront the economy challenge.
iv) The statesman must recongnize the roots of the problem. This is the only way to formulate the "remedies" precisely and effectively to rescue our private enterprise and workers which vulnerable to economic downturn. Failing to support them could severely endanger the long term economy growth and poverty reduction prospects of our nation.
I would like to apply the talk from our former Prime Minister, Tun Dr. Mahatir Mohammad here. I cannot remember the date precisely, but if i not mistaken, the talk was gave on this early January - He appeals Malaysian to boycott together the products and services imported from USA by stand on his perspective on Israel-Gaza war issue. It is absurd and terrible for me when i hear it!!! I curious to know his basic economic knowledge degree on domestic labor market and i start to query myself, a person like Tun Dr. Mahatir who held the PM position and Minister of Finance simultaneously for so long time, still have a stupid mindset and speak as bark on the important economic issue facing by our country now. Could it be said that he doesn't know that if we act to boycott the product and services from USA, ultimately, it will harm our economy and our labor force will bear the burden of unemployment? Let we take an example, KFC, Mc Donalds, Starbucks Coffee Cafe, all this is the restaurant and franchise from USA and locate throughout Malaysia. Have you discover American waiter or waitress in all of these franchise? I to be doubtly sure that all the employee are Malaysian. So, if the product and services in all of these fanchise are unable to sold out and the business performance slip from day to day, of course they will cut down the number of person employed and it be bound to worsen umemployment problem in our nation. When the number of umemployed increased, the purchasing power on good and service produced by local enterprise also will be affected (in term of effective demand decreased). So, the action to boycott foreign product which might not only will lead to foreign enterprise close down, but also will worsen the unemployment problem in local manpower market as well as endanger our local effective demand and thus economy growth thanks to erodent of laborer's ablilty to consume.
Haih~~~the basic economy concept he also can misunderstood..so, was he really contribute to our nation economy when he was PM? I think this is a doubt and only can be answered after 10 or 20 years later because the positive and negative impact of the policies which implemented by him on social, economy and politic only will become visible later and not just in 1,2 or 5 years. So, don't too hasten to conclude his contribution on our nation yet.
i) Is that our government sustained economic growth stimulation package series are able to be implemented efficiently? The corruption, innovation, effisien and political willingness are dominate here.
ii) Monetary policy conventional tools besides money supply and interest rate, must think over whether should take into account the perspective of assets and property value stabilization into mechanism adjustment. Usually, when economic crisis was happened, it has correlation between bubble assets and property price (which will lead to bubble economy) and shattered of the bubble phenomena. Formerly, the public believe that the bubble economy happened due to market behaviour, no need further augment the governance, but it's seem that the authorities must think over on this issue during current global financial crisis. In addition to stabilize the common goods price, the monetary authority 's goal whether should comprise perspective of assets and property price stabilization, must weight cautiously.
iii) Financial crisis only can solved through creativity multilateral scheme. Financial crisis reveal the shortcoming of global finincial institution, therefore, worldwide community must dicuss and cooperate to reform the Bretton Woods System. Similiarlly, the structure of IMF and others global institutions might need to reshuffle. Malaysian government must involve aggresively in any financial crisis forum and forsake the preconceived idea (especially with USA) and together confront the economy challenge.
iv) The statesman must recongnize the roots of the problem. This is the only way to formulate the "remedies" precisely and effectively to rescue our private enterprise and workers which vulnerable to economic downturn. Failing to support them could severely endanger the long term economy growth and poverty reduction prospects of our nation.
I would like to apply the talk from our former Prime Minister, Tun Dr. Mahatir Mohammad here. I cannot remember the date precisely, but if i not mistaken, the talk was gave on this early January - He appeals Malaysian to boycott together the products and services imported from USA by stand on his perspective on Israel-Gaza war issue. It is absurd and terrible for me when i hear it!!! I curious to know his basic economic knowledge degree on domestic labor market and i start to query myself, a person like Tun Dr. Mahatir who held the PM position and Minister of Finance simultaneously for so long time, still have a stupid mindset and speak as bark on the important economic issue facing by our country now. Could it be said that he doesn't know that if we act to boycott the product and services from USA, ultimately, it will harm our economy and our labor force will bear the burden of unemployment? Let we take an example, KFC, Mc Donalds, Starbucks Coffee Cafe, all this is the restaurant and franchise from USA and locate throughout Malaysia. Have you discover American waiter or waitress in all of these franchise? I to be doubtly sure that all the employee are Malaysian. So, if the product and services in all of these fanchise are unable to sold out and the business performance slip from day to day, of course they will cut down the number of person employed and it be bound to worsen umemployment problem in our nation. When the number of umemployed increased, the purchasing power on good and service produced by local enterprise also will be affected (in term of effective demand decreased). So, the action to boycott foreign product which might not only will lead to foreign enterprise close down, but also will worsen the unemployment problem in local manpower market as well as endanger our local effective demand and thus economy growth thanks to erodent of laborer's ablilty to consume.
Haih~~~the basic economy concept he also can misunderstood..so, was he really contribute to our nation economy when he was PM? I think this is a doubt and only can be answered after 10 or 20 years later because the positive and negative impact of the policies which implemented by him on social, economy and politic only will become visible later and not just in 1,2 or 5 years. So, don't too hasten to conclude his contribution on our nation yet.
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