Economic Views

If you were a medical doctor who is trying to diagnose the health condition of a patient named ‘Global Economy’, you will frown when looking at his medical report. First, his body temperature is above normal. A couple of paracetamols every six hours would do, you might think. His blood pressure is also on the […]

With Brent crude oil prices dipping below USD60 per barrel in late-November, concerns over the possible impact of this phenomenon on the Malaysian economy have naturally emerged. For one thing, Malaysia’s economic performance has always been closely tied to crude oil price trends. Plunging prices in mid-2014 and in 2015 had caused growth to soften

As the government explained prior to tabling Budget 2019, this is not an ordinary Budget. Budget 2019 is meant to put Malaysia on a clean slate and move forward by removing some imbalances and excesses and strengthen the fundamentals of the economy.   As such, we can label it as ‘the new beginning’ for Malaysia’s

“This Time is Different: Eight Centuries of Financial Folly” is a breakthrough and eye-opening publication by prominent economists Carmen Reinhart and Ken Rogoff. Reinhart and Rogoff argue that the common belief of today’s economic conditions bearing little resemblance to past disasters is misleading. In fact, crises tend to recur because people have short memories of

The US economy looks fabulous at the moment.  The job market remains solid with unemployment at its lowest in almost two decades. Prior to the year 2000, one has to go back to the Nixon administration to see a jobless rate of less than 4%. The improvement is also broad-based, i.e. by gender, race and

Malaysia’s second-quarter economic growth somewhat surprised many. Save for economists who have looked at leading indicators during the period, laymen might not have foreseen the rebound in economic activity during the quarter. Hence, the 4.9% expansion that topped the preceding quarter’s 4.5% growth came as a surprise. Where did the growth come from? This is

It is hardly surprising that the debate on the future direction of the US dollar and emerging market currencies continues to heat up in the news. The dollar’s strength in recent months has grabbed the attention of many, particularly investors, exporters and economists. Greater optimism about the greenback’s prospects has evidently induced portfolio investors to

When Argentina did not secure a victory in its first showing at the 2018 World Cup against Iceland, many of their fans started to feel queasy. We can’t blame them. After all, victory only eluded Argentina three times in the past 40 years since Mario Kempes crushed Holland’s hopes by scoring twice in the memorable

The sudden change in policy with regards to the Goods and Services Tax (GST) after the 14th General Election last month was met with mixed reaction. Although “GST abolition” was one of its election pledges, not many expected the new government to move swiftly to zero-rate all products and services under GST by June. It

We are almost there, according to the World Bank. Malaysia’s aspiration to become a high-income country will be realised in the next few years. The World Bank’s 2017 estimate of Malaysia’s average per capita gross national income (GNI) of US$9,660 is roughly 21 percent below the level needed to achieve high-income-nation status, i.e. US$12,236 or