Malaysian GDP for the 4th Quarter 2008 grew only +0.1%, compared to +4.7% in the 3rd Quarter 2008. That is a major setback to the economic figure, where earlier the government was confidently and optimistically forecast a +5.0% growth for the whole year 2008, instead when they announced it last week it was only +4.6%.
But the issue was downplayed and hardly noticed by the general public because the politicians and the mainstream medias were more focused on the political squabbles to control Perak state government. After all, an increase of 0.1% is still a positive growth!
What is more worrying is that the GDP growth against quarter to quarter grew -3.6%, I repeat contracted 3.6%, or decreased 3.6% but it was never highlighted in any mainstream articles. The figure is supposed to be very worrying for the business and corporate players, but everybody is just saying that the mini budget on March 10, will address the issue.
My main worry now is the impact of recession and probability of a deflation.
Anyway, as usual, the government is always in denial until the problems burst...
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