Friday, December 5, 2008

Next year economic outlook

The Crude oil price dipped further, so where the price are really heading?

It seems that the price of oil is becoming a benchmark on the health of the economy. The demand for Oil has drastically shrink as the focus is now on the state of the economy.

Several giant multinational corporations and investment banks had collapse due to the credit crunch, but will there be another round of collapse among commodity trading firm involved in crude oil trade?

The US President in waiting Mr Barack Hussein Obama will having a hard time to improve the economy.

For Malaysia, next year will be much more tougher as the commodity prices of oil, palm oil, rubber had dropped so much. And at the same time the Ringgit had weaken against the USDollar at 3 years low of RM3.60.

The demand for E&E/semiconductors is in the declining trend and there were reports that several manufacturing contracts had been called off. Unemployment rate is on a steady rise above the sound figure of 5%.

Will there be another retrenchment or VSS? Most likely, if the situation in US persist.

The government of Malaysia depends largely on domestic consumption to sustain the economy but with the current economic uncertainty will Malaysian spend?

Whatever it is we must brace ourselves for the hard times...

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