Friday, April 10, 2009

Is The Worst Over ?

Back to my title above ... is the worst over ? It's the trillion dollar question. After the G20 Summit is over, it seems that everyone is happy. The stock market is going up and gold prices is going down. So .. is the worst over ? or we are just in the eye of the storm, where it is calm.

Signs Of Recovery ?

It seems that the global stock market is in it's uptrend again, people start to buy shares battered in the previous months due to the uncertainty of the market. We got some positive numbers on the American companies, dying banks such as Citibank and Wells Fargo started to post some earnings. So is the global economy on the path of recovery ? I still have some doubt. Why ?

1. Bank Positive Reports

Citibank, Bank Of America and Wells Fargo is reporting that the banks are doing better in this quarter. They are reporting positive income. Why ? That is the question which is need to be asked. Is it because the bulk of the toxic assets burden has been shifted to the public ? Eventhough they are reporting positive income, are the banks still solvent ? How can banks positive income is a sign that the economy is improving ? If the value of the shares in the stock market is increasing, does it mean that the company is profitting or doing well in its operation ?

2. The Effect of Economic Stimulus Package

The stimulus package basically is the government spending to pick up where the market is slacking. By creating demand in the market for goods, it is dispersing funds to the people and when people get money and a sense of well being, people will start to spend again. It is some sort of economic grease. However, I fear the sustainability of the idea on a long term basis. I think it might delay pr ease the full effect of the recession.

3. Printing Money

The US, British, Swiss and Japanese Government is printing money, which is inflating the currency and decreases its value. When inflation really hits, it going to be huge. It's going to drag the price of everything higher.

In my opinion, the rally we are seeing now is just a bear market rally. What the government has achieved is just delaying the process. Good news might brighten up the mood for investors longing to see the bottom in search of entry position. However, with weak economic fundamentals, it does not look like the economy might be recovering very soon. The market lives on demand for goods, without any demand, there is no market. However, the market could not live on fake demands powered by cheap debt. Debt is not good for the people, more debt is even worse. When money is cheap, it does not worth a lot isn't it

Tuesday, March 31, 2009

G20 and The New World Order

G20 and The New World Order

This week the G20 will sit down in London for its meeting which will affect our lives and direction of the world economy. We are basically at an economic crossroads, why?

The Ditching

1. China and Russia are campaigning to ditch the US Dollar for another super currency which is more stable and they would like gold to be in the basket. The uncertainty of the US Dollar has been the major factor for this move after the US opts for quantitative easing in order to lower down interest rates to stimulate its dying economy.

2. The Chinese government is ditching the US Dollar to reduce its exposure to the US Dollar since it carries a significant risk factor.

3. When major government such as the US, UK and Germany has conducted fail bond sales. It shows that investors are losing faith in such bonds. Thus it is why the US and the UK government have resorted to printing money.

4. The act of printing money or also known as quantitative easing carries a high risk of creating hyperinflation due to the devaluation of the currency.

Inflation VS Deflation

5. Up to date, we have seen the weakening of the pound while the US Dollar is still maintaining its value which many says it is due to deleveraging.

6. Even though many economists are crying deflation, people in the main street are experiencing price hikes on food and essential goods.

7. The price of real estate is incredibly high in the US due to the cheap credit that the Fed has allowed. Thus it sparks a housing mania funded by cheap credit. Therefore the price o does not represent the real value of the property. I believe the call on deflation is just an excuse to allow the inflating of the currency.

False Claims

8. The US has claimed that the past few years their economy is growing at a good pace and we must note that consumer expenditure is also accounted inside the GDP calculation. However, when the crisis broke, we already knew that all this consumer expenditure is due to cheap credit and it is false. It does not reflect the productivity of the US. Besides its false GDP, US has a big trade deficit with all other countries especially China. China has been using its trade deficit to buy US Treasury Bonds. This shows that the US cannot pay its debtors.

The Stimulus and the Collapse

9. With the new stimulus package which has been announce not so long ago. I wonder where they got the money. If they failed to sell those bonds, who are funding them?

10. From what I have written earlier, it is concrete evidence that the US has no longer had the economic power. When they opt for quantitative easing, it is evident that most of their previous plan has failed, and quantitative easing is their last option or Nuclear Option.

11. Before the Nuclear Option start to show its effects, it is essential for all to ditch the US Dollar before its value drops and rendered useless … maybe it still has a use … as a toilet paper.

12. I fear that this economic downturn will spark a new era which will lead to world war 3. A war to secure limited resources.

Uncertainty and The New World Order

13. In this time of uncertainty, we will see that people will become jobless, hunger will reign, and people will do anything to feed themselves. This will lead to restlessness and lead to fascism. This terrible uncertainty will create anarchy and government will be turned over due to their failure to control the situation.

14. This uncertainty will be a great opportunity to extend the notion of a New World Order where the world is dictated by a single government and use the same currency and economic structure.

15. They will plunder everything from you and your nation

Saturday, March 28, 2009

Good commentaries

To all my dear readers, I would like you all to listen to the Financial Sense Newshour, which is a good online radio show. It covers a broad perspective in various economic sectors.

Best Regards


The Malaysian Economic Front

Friday, March 27, 2009

The End of Dollar Hegemony ?

On the April, 02 2009, the G20 summit will be organized. I think, this summit will draw the line on the direction of the US Dollar. More and more country members are trying to ditch the US Dollar such as the US Dollar ( China calls for full-scale financial system overhaul ). Some has called for the formation of a new currency or using the IMF's SDR ( Special Drawing Reserve ) as a new currency since the value of the currency is calculated based on a basket of currency. Such move will reduce the reliance on US Dollars heavily thus reducing the value of the US Dollar.

This move has been initiated since the US Federal Reserve and it Treasury has resorted to quantitative easing in order to stimulate the dying US economy. Besides the US, other countries has also start to resort to quantitative easing such as UK and Switzerland. SNB has taken such measures to prevent their currency from rising in order to make swiss exports to be competitive in the world market. The US and UK has resort to such move due to failure on bond auction. Therefore, their respective central bank has resort to bought those bonds.

wait and see ............

Tuesday, March 24, 2009

To Americans : You Just Have Been Robbed !

Dear fellow Americans, you just have been robbed by the greatest scam ever to took place on earth. Treasure Secretary Timothy Geithner just paid those big fat cat of Wall Street trillions of dollars just for taking your country into the new depression. Things are not just going to get better now, its gonna get even worse. By bailing the major banks, buying toxic assets at rediculous price and they will charge you all for all the follies these banks made. They are not the ones suffering, its the average joe is the ones who suffer, the ones who toiled day and night and finding themselves had to pay it back in taxes. What the fuck is that ! They're gonna print money out of the presses and reduce your currency into merely toilet papers. Are you gonna work for them if they gonna pay you toilet papers ? To hell .... you can use it to wipe your asses. It is time for a revolution in the US, the government is working for those who paid them fat cash and sponsors during the election. America has become a police state. All the Al Qaeda bullshit is just merely stories they sell just to justify their moves and to misdirect the public from the real issue is. I'm not anti America but i think you just got scammed big time into paying taxes to pay a perpetual debt which is only going bigger and bigger by the day.

Inflation & Deflation

These few days, something is boggling in my mind. Inflation or deflation ? From what I understand is inflation means inflating the money supply, when money supply is expanded, it decreases the value of money and the result is the price of things seems to be increasing. However, people are shouting its deflation since they are seeing that prices of things are going down. Lets analyze this situation :

  1. You go the market to buy groceries and you found out that the price of vegies and poultry product seems to be higher. So is that inflation ? how will it affect you ? of course it will make feel unhappy since groceries are necessities in life.
  2. You went to a fashion house at this time and you found that the price of designer cloths and wears are decreasing. Is that deflation ? the price of those things might be lower but you still can live happily without those items.
So when people scream " deflation" since designer cloth, SUV's and luxury items are decreasing, how bad can that be. Those items are expensive anyway and people can still live without them. People only buy them when they have the money. However things like groceries, vegies and poultry are necessities, if you live in the middle of a city, you cant afford to grow your own and you will be dependent on the farmers in the countryside. If these things are going to be priced higher, people will start to feel uneasy.

So ... what are you experiencing right now ? inflation or deflation ? is it threatening your lifestyle ? by now i think you already know what to think when the government is shoving information into your skull !

Friday, March 20, 2009

Quantitative Easing ( Money Printing )

On the 18th of March, the US Federal Reserve Chairman, Ben Bernanke annouced that the Federal Reserve has made plans to purchase as much as $1.15 trillion in U.S. bonds and mortgage-backed securities. These measure are also known as quantitative easing.

What the US Federal Reserve is similar to what the Bank of England (BOE) is doing. For those who are not familiar with these terms, they are basically printing money just to meet payment demands. By doing so, they are basically devaluing the US Dollar.

Due to the US Federal Reserve actions, investors has become wary and striking fears on the credibility of the US Dollar and its treasuries as a safe haven. Since the announcement, the US Dollar has started to depreciate.

Investors might flee from the US Dollar to other types of assets such as precious metals in order to preserve their wealth. The announcement has triggered the price of gold back to the USD 940 to USD 960 range since gold has been know to be a safe haven.

Tuesday, March 17, 2009


Please follow to the link , interesting read

The fallacy of " Economic Growth Engine "

  1. In the light of the this economic recession. We start to see that letting the US to be a growth engine for the world economy is a very bad idea. When the engine stops moving, we are not moving anywhere.
  2. Since the Bretton Woods agreement, the US dollar has been treated as if it was gold itself since it is promised that the US dollar could be redeemed in gold. However the gold standard has been put to death after the some nations started to redeem their dollar reserves with gold, which has caused the US stockpile of gold to decline. Since then the US dollar has been a fiat currency.
  3. What gave the US dollar its value is its acceptance as a reserve currency and the use of the US dollar in the international trade. Without this special status, the US dollar is merely just a piece of toilet paper which can be used to wipe your ass.
  4. Countries like Russia has already started to question the viability of the US dollar as reserve and its usage in international trade.
  5. Warping back to the current economic crisis, we have seen that the US government has decided to stimulate its economy by throwing money at the problem. Trillion of dollars has been pledged in attempt to keep their economy alive. Where does this trillion of dollars come from ? They are planning to get all this money by issuing treasury bonds.
  6. China has started to question the viability of these treasury bonds and financial instruments. After all these years, China has bought billions of US Treasury Bonds. By buying bonds, they are providing more money for the US to spend on its goods. However, looking into the current economic situation, and the new US protective economic measures. The policy doesn't seems to be in the favor of the Chinese.
  7. If the Chinese is buying US treasury bonds, and the US government failed to revive their economy. I believe that the Chinese will stop buying US Treasury Bonds. If this ever occurs, it means that the US government will not be able to generate enough funds to revive their economy. The US government will have to sought to " Quantitative Easing " or in other words, printing money as if it is printing the daily newspapers.
  8. The result of of quantitative easing is the devaluation of the currency. As the US dollar loses its value, those who holds US dollar will also suffer the losses. How about all those US dollar reserves in most central banks ? I think you can figure it out.
  9. We have to take note that, fiat money is not true wealth. The value of the US dollar depends on the economic situation. By printing money, it is evident that the US dollar has lose its credibility as a reserve currency. Even though at the moment, we see that the value of the US dollar is exceptionally high due to mass deleveraging in the world economy. I believe that the US dollar is going to crash down in the long run. When the pledged fund is monetized we will see that the market is flooded with US dollars.
  10. I am sure most of us still remembered what happened to the Zimbabwean Dollar. Can you get the picture ?

Monday, March 16, 2009

My Opinion on the RM 60B Stimulus Plan

Last week, the government has finally unveiled its RM 60 Billion stimulus plan which is supposed to help to revive the economy by initiating force spending by the government to pick up on slacks by the public. The mini budget presented was for a duration of 2 years which is 2009 and 2010. After gone through some reading in the newspapers, I think that what has been presented was merely a rough estimate of the plan. There is no in depth details on how it is going to spend.

I think it will be too harsh to comment or criticize anything on the stimulus plan since I do not know the specific details on how the stimulus funds will be disbursed. What we should really take note is, the stimulus plan is basically a plan to ease the people's burden in this deteriorating economy since the stimulus plan is not the absolute answer to our economic problem. It is known that, Malaysian export has started to decline, therefore it is important for the government to take measures to provide alternative solutions from the problems which is going to arise soon.

We must consider that government spending will never be able to restore or create demands to match for the demand of our goods before the economic downturn occurs.s. Due to the lower exports, our manufacturing sector will contract and capacity will be cut down to a sustainable levels Therefore plans must be laid to absorb retrenched workers from the affected sector.

The stimulus package must be able to grease the local economy. The velocity of money must be increased so that everyone in the economy will feel the effect of the stimulus. By doing so, the public will no be threatened by unemployment or any adverse affect of the economic downturn.

It does not necessarily means that things will get to normal anytime soon. We all need to spend, but we need to spend below our means and not lavishly. This is important in order to maintain sustainability. Creating a boom in our economy will not solve our economic problem. We need to know that if there is a boom in our economy, the bust will come afterward.

We need to ensure that the wheels of our local economy is well greased .We need to learn from this downturn that demands for our products may shoot up or decline and we must take measures if demand for our product falters.

my hope is :

  1. I hope that the stimulus plan will be able to meet it targets.
  2. I hope within this 2 years, Malaysia will be able to realign its economy from an export driven economy to a more sustainable type of economy. We could not rely on other people or nations to be an engine of growth. This is what happens when we are too reliant on other people or nations to buy our products.Once the demand falters, we're treading on water. We can see how Singapore is doing at the moment, their economy is contracting. Luckily they're are a very rich country.
  3. If the global economic situation is not improving, I don't really know what is going to happen. However if we manage to create a sustainable economy based on local demand which is not forced. I think we will have a good chance of surviving this economic downturn.
  4. BE PRUDENT !!

Tuesday, March 10, 2009

The New RM 60 B Stimulus Package

I will try to write my views on the new RM 60B Stimulus Package soon

Discussing on the Stimulus Package

The Malaysian Economy

  1. As most of us already knew, the economy is all about supply and demand of goods and services. Less demands, the price will fall and vice versa.
  2. The next step that we should analyze is where does this demand and our goods comes from. Why is this important ? It is because that by analyzing the source and cause of demand, we can project on the sustainability of the demand. From sustainability, it is possible to make an intelligent assumption to produce certain types of goods or services.
  3. Consider this story :
    Once, there was a man who owns a small coffee shop in a village. One day, a fun fair had opened just nearby his coffee shop. Since the opening of the funfair, his business prosper since the visitors of the fun fair would come and visit his coffee shop afterward. Due to strong demand, the owner decided to take a loan to enlarge his small coffee shop and hire more workers to serve his customers. After months passed, people got tired of the funfair and less people are visiting the fair, thus affecting the coffee shop owner business. Soon the fun fair packed up their tents and move to another village. The coffee shop owner was left alone with his recently upgraded coffee shop and extra pair of hands and his dedicated customer.
  4. Referring to story above, I would like to say that what is happening to our economy resembles to what the coffee shop owner. We have set up many factories churning out electronic products to cater the needs for people in the US, Europe, Japan and other countries. However as their demand weakened, we are suffering from overcapacity. Some people might argue that the demand was genuine and sustainable. But in my point of view, if those people was purchasing the goods that we produce by using money they did not have aka. credit. How was the demand can be deemed sustainable. All those people we're acquiring goods we have produced through credit. All those unsustainable demand was created due to cheap credit due to low interest rate policies. In the current situation, we could see that interest rate is nearly zero and people are finding it hard to make payment. It means that demand will collapse sooner or later. What I meant was, demand will drop to a natural level at what it was supposed to be and not due to the cheap credit.
  5. In the case of the current economic crisis, I think it is evident that the demand created was due to cheap credit.
  6. In order to make all our factories back in business, it is important to restore demand. However, in the current situation, I doubt that demand will come back at its "original" level. The Malaysian market is not big enough to consume all those things our factories can churn out.
  7. Therefore, I think is impossible to restore demand in the short term. What we will see is, demand will fall down to a sustainable level. Thus, layoffs of factory workers and sectors affected will be unavoidable.
  8. In my humble opinion is that we should embrace this recession and get back to the drawing board and plan on how we could get all these people back into the job market. We need to create new jobs from sectors unaffected or mildly affected. By doing this, we could ensure that people could stay employed and they will be able to make their loans and mortgage.
  9. If those people are left without work, it will continue to affect our economy systemically until the economy is halted to a standstill.

Sunday, March 8, 2009

Where is This Heading

Where is This Heading

  1. If we see the newspapers nowadays, we start to see grim news everyday. It has been bad news for the past few weeks. The problem is, it is only now that we have started to see the bad news. The news of the impending global financial meltdown has been circling around for a longer period than that.
  2. Shipping industries has started to suffer due to less shipping of Malaysian exported goods or shipping in of foreign imported goods. There will be more layoff in the industry soon and unemployment numbers will begin to rise.
  3. Next in line is the manufacturing sector, electrical and electronics to be precise. Electronic products has been a major Malaysian export. 30% of the Malaysian export is consist of electronic products. It is exported to the US, UK, Europe, Japan, China and etc. If the sector is in distress we can see more factories will be shut down and more people will be in an unemployed state.
  4. The process will continue on and on and it will affect other sectors as well. All these jobless people due to massive layoffs will be unable to pay their loans and mortgage. Thus increasing NPL's. Banks will start to suffer and we'd better pray that all those bank can stand the stress test. With bad loans in their books and lesser lending, their income will start to deteriorate. More banks will have to restructure, cut more jobs to reduce cost of operations.
  5. More commentaries later on hahaha ..............................

Sunday, February 22, 2009

Economic & Financial Meltdown Imminent

Economic and Financial Meltdown Imminent
Current mood: angsty

Economic and Financial Meltdown Imminent

1. Welcome again to my blog. After a while, I think we can see by now where the economy is basically heading. It's not going up, it's heading south ... as in Slayer's album South Of Heaven... Hahaha .. So what's the big deal ? everyone is suffering right.

Malaysian Exports

2. In the context of Malaysian economy, it is now established that the Malaysian economy has start to feel the pinch of the current economic turmoil. Recently after the Chinese New Year Holidays, we seen reports that factory workers has started being retrenched. The only thing is, we do not know the exact numbers of all these layoffs. By this time, reports on Malaysian exports and imports has been published by the Malaysian Statistics Department and the numbers are not encouraging.

Please visit to see the numbers

3. It looks like the numbers on our electronic goods exports has declined and we all should take note that electronic goods exports has been our biggest contributor to our exports. Therefore, it means that our income is decreasing. The deterioration of electronic goods exports means that the factories are producing less due to declining demands. This will lead to more layoffs. Once the factories could not sustain their operations, all these factories will have to shut down and lead to more layoffs. More layoffs will increase our unemployment rates. When people are unemployed, they cant feed themselves or their family. It will create restlessness among people and may break into chaos. It will increase crime rates since people are desperate.

4. Other than crime rates soaring, we need to understand that all these factory workers also have debt and mortgage. Once they are out of their jobs, they will not be able to pay their debt and mortgage, thus increasing Non Performing Loans. Basically its a long chain of event.

Mayhem In May

5. In April 2009, Malaysian businesses will start to report their first quarter operating results. If the numbers are grim, it is likely that the stock market will start to plunge more. The horrifying numbers will start to scare people out of the stock market. We will see that layoffs will start to infect to other sectors other than manufacturing. It is likely that it will affect the retail sector. People's earnings are affected and the can not afford to spend much. Therefore those in the retail sector could earn much and after a few months, they too will also have to close causing more layoffs.

Stimulating The Economy

6. At the moment, I do not see how the measures announced by our finance minister will help to stimulate the economy. From what I can see is the stimulus package announced by the government will help a little to mitigate the negative effect of deteriorating world economy by helping certain sectors. However, the stimulus package will not be able to assist every sector in the economy. The stimulus package will definitely help those in the construction line but I do not see if they will benefit the manufacturing sector especially in the electronics.

The Long Run

7. In the long run, I do not think that the stimulus package will be able to mitigate the adverse effects of the current global economic turmoil. I am sure that government spending will be able create new demands. However, there is a limit to what the government can do. The way I see the situation is, if the world economy is not getting any better in 1 or 2 years, we should start to embrace to the fact our condition will deteriorate further. I wonder if the government could afford a stimulus package if the situation continues for another 4-5 years.

Cash Crops and Commodities

8. It is clear by now that we have seen our commodities sector are adversely affected by the global economic downturn. The price of Crude Palm Oil has plunged from RM 3400 per metric ton to RM 1600 per metric ton. Crude Oil prices has plunged from an all time high of USD 148 per barrel to merely less than 30% of the all time high value. Rubber ? they do not stand a chance ....The only commodity which is rising in value in the current situation is precious metals such as Gold and Silver. At the time of writing, it is evident that the price of gold has reached USD 1000 and in my opinion will hovering at the USD 900 - USD 1000 level. I do not know will the current gold prices maintain at this level or fall to lower levels. However, if we see what the world governments are doing, it is likely that the price of gold is going to climb up higher and higher due to the distrust in all fiat currencies. The US government is printing money like mad, most EU countries are flirting or are already in recession. Their banks are basically failing due to their greed in the past years. How about the Malaysian Ringgit ? I do not know yet how it will effect our currency. Therefore I will not comment any.

Diversification My ass

9. All these while fund managers are saying diversify this and diversify that. But at this kind of economic turmoil, I can not see how diversifying is going to help. If you are into stocks and diversifying into different stocks, you are also getting pounded. Whether it is manufacturing, construction, plantation , I see every single sector in stocks got pounded to their knees. This is global recession at a grand scale. Malaysians never experience a recession at this magnitude of severity. The scale of this recession will belittle the one we had in 1997.


10. My conclusion is, embrace for the worse. Stop using debt as a leverage at the moment. Cut credit card spending. Start to save more and stop pamper yourself with luxuries. Try to get your hand on tangible assets, not stocks or bonds. Try gold for a change. In case of inflation arises, gold will help to preserve your wealth.

Last Advice

11. Be prudent at ALL times !

Khairul Bin Mohd Noor

Tuesday, January 27, 2009

The Next Malaysian Stimulus Package

The Next Malaysian Stimulus Package


Recently the government is announcing a second stimulus package to stimulate the economy. From what i have read in the newspaper, the size of the stimulus package could be ranging from RM 7 - 10 billion. Basically, the government is operating in a budget deficit. We are planning to rescue the economy using funds we do not have yet. In my opinion, the government will fail on what they are planning to do.

The Current Situation

The current situation that we are in is that, the people who has been buying our products all these years such as the US, Singapore, Europe, Middle East, Japan etc. doesn't have the funds to pay us. They don't have the money because all of them are in an economic crisis. The economic crisis occurs because the US has been going on a shopping spree all these years with money they do not have. They have been spending money they do not have. Therefore, their pile of debt is soaring sky high nearing USD 10 Trillion. They have been spending money from the housing bubble which does not exist. Now, the bubble has burst and everything is going down.

What does it has to do with us ?

The US, UK, Europe, Middle East, Japan, China etc. has been our biggest business partners. These are all our buyers of our major exports such as crude oil, natural gas, rubber, crude palm oil, textiles, electronics etc. If they are in recession, they will consume less resulting to lesser exports. Lesser exports results in lower income.

Besides lesser consumption, they will have less to spend on traveling. Thus it will implicate our tourism industries.

The fall of commodity prices

The price of commodity items are also falling such as crude palm oil, crude oil, rubber, copper etc. is falling very sharply. The price of crude oil is crashing from their historical all time high of USD 147 to USD 45 today, Crude oil has lose 2/3 from its peak value, and the same thing is happening to crude palm oil. Falling commodity prices means our goods are cheaper on the outside relative to our currency. Therefore, less income for us Malaysian.

The decline of the US Dollar

The value of US Dollar has been declining all these years. Some people might not agree with this statement due to the rally that the US Dollar is having at the moment. The rally in US Dollar is just temporary and the greenback will for sure in a free fall state after the factors leading to the temporary rally ends.

The decline of the US Dollar will make the Americans poorer than they are now. They will have problem affording our products and services. Thus leading to lesser consumption.


I would like to conclude that the current economic crisis is not originating here. It's a domino effect originating from the US. The US debt ridden economy has burst and we are also suffering the aftereffects. Currently, the US Government is trying to resuscitate their economy by injecting more cash into the market. It is that because they still believe that by throwing money at people is going to solve their problems. However, as I have mentioned earlier. The US economy has been thriving on debt. How the hell that giving more loans will solve their problem ? Hell no. The act of the US Government is like trying to put out a fire by splashing more kerosene.

The act of Malaysian government to stimulate the economy by helping companies which is badly hit due to the recession in the US, Europe and etc. is like trying to resuscitate the dead.

What we need to do

1. We need to stop depending on the US and European economy. We need to find new market. However this needs time. Economic coorporation between Islamic countries is a good move to stimulate the economy.

2. We Malaysian need to use more local products. We need to consume less and save more. We need to import less in terms of electronic products, cloths, petrol, rice, wheat etc. We need to consume less to balance it with our imports. We are already on a fiscal budget deficit. If we do not control our imports, we will suffer from trade deficit also.

3. We must start producing goods that we import such as dairy products, rice, vegetables. The government must encourage farmers to start growing consumable crops and not just cash crops such as rubber and palm oil. The cost of importing consumable crops such as rice will rise too. If we are unable to produce our own food to consume, our import bill will rise pretty soon.

4. We need to let the economic slowdown take its turn. We are suffering this setback due to the unsustainable growth in the current global market. We must see this downturn as a correction phase in the economy. We need to help those affected with the downturn. However, injecting money to these company will not help them much. The money will only help them to pay their workers salary. Without business, they will not be able to sustain. The will have to come back for more funds later on. It is better for us to let them bust and put the funds into better use which have more economic values.

5. We need the government to be transparent on how the stimulus package is being used and where it is channeled.