Economy news Malaysia: 2024 will be a stronger year says MIDF
2023 is past, 2024 is the focus
Some people are waiting for the 2023 economic growth numbers. I think it’s important that we have a formal number for the economic growth but the right way to move forward is to know what’s coming and going forward to grab the opportunities. Just need to remember that if the economy is not growing but the property market is growing fast, something is wrong somewhere yeah. Speculative purchases will not last long and if we bought too high, it’s too high. Period.
Just yesterday evening, someone was telling me that the whole property market is not doing well. The reason? His property could not be sold at a price he wanted. I did not bother to ask him what price he bought but my guess is that he may have overpaid for it during the 2008 – 2013 years and is now struggling to sell it at an even higher price than what he has paid. By the way, this has nothing much to do with the economy yeah. It’s just a wrong buy at an inflated price. Now the question is this, is the economy growing for 2024?
Article in themalaysianreserve.com MIDF Research projects Malaysia’s economy to grow stronger at 4.7 per cent this year amid improving growth momentum.
In its monthly economic review for January 2024, the research house noted that the pick-up in growth will be supported by the external trade recovery, on top of the sustained growth in domestic spending.
“However, we are cautiously monitoring potential downside risks, such as escalation of geopolitical tensions, another round of supply (and global trade) disruptions, fluctuations in the commodity and financial markets, and the possibility of economic recession in the United States (US), which could adversely affect Malaysia’s external demand and overall growth outlook. Please do read the article in full here: Article in themalaysianreserve.com
A growing economy but I could not feel it?
“The official estimate for Malaysia’s GDP was $1.007 trillion at the end of 2023 in puchasing power partity terms.” Source: https://www.worldeconomics.com/Country-Size/Malaysia.aspx
Frankly, I also could not feel this trillion number… However, I can see these thus far. When I go my few favourite malls here in Greater KL, it’s tough to get a parking space and most of the F&B places I love to go is usually full. I know my friend is still waiting for his new car, a SUV from a Japanese brand for the last 3 months. In other words, people can still afford to buy this and the waiting list is long. I also know that a few of my real estate friends are now travelling overseas. I think maybe they managed to sell and gotten good commissions.
At the same time, I was at a mall without many customers, where I could park my car easily. I also know that there are so many people buying cars they could not afford. I also know that the application approval for home loans is still around 40 percent and not 90 or 100 percent. I also have real estate friends who have since left and now moved back to their corporate roles too.
What do I get from all these things I noted? The economy is definitely growing yeah. Else, all these cannot happen lah. How can new malls thrive if they are not taking away customers from other malls? Just relying on new customers who have never been to malls? :) How can my real estate friend rejoin the corporate world if these companies are not hiring or paying him a salary that he is comfortable with? How can people still buying cars despite them barely qualifying for it if they know they will lose their job very soon? I rest my case.
Reminder. Whatever we believe, take appropriate actions yeah. Do not just talk and no action. We think economy is not good, then reduce the property price that we want to sell lah. If we think economy is not good, then better save the money and stop thinking of a new car lah. If we think economy is not good, then please stop going to the malls yeah, just stay home, read more books and enhance ourselves or even taking up an extra job to earn more income.
Please do share if you believe others could benefit too. Thank you.
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