Friday, August 17, 2012

An economy in good hands

Malaysian Economic Plans Defy Global Woes, Financial Times, 16/8/12

Original Posting:-
Strong domestic demand in 2nd quarter
What the 5.4% growth means. I was waiting for Anwar Ibrahiim to belittle Najib Razak's administration over the 5.4 per cent GDP growth. He didn't because as the former Minister of Finance, he probably knew that Malaysia's second quarter expansion is no small feat. While five-point-four is not exactly a whopper by the high standards Dr Mahathir had set in order to achieve the 2020 developed country status, it is a more-than-decent performance, indeed. Most governments this week could not convey the same kind of good news to their people. Singapore reported a 0.7 per cent contraction for the same quarter, the only good news was that it was better than it had feared. Japan grew 1.4 per cent, signalling a slowdown. The European economies are still paying dearly for all sorts of mistakes - things will get worse before they get better.

There were more good tidings. According to the Economics Malaysia blog, the inflation rate is also decelerating. 
"The overall index is down, core inflation increased slightly on the month, but was offset by a decrease in the pain index. In fact the annual rate of increase in food and transport prices is now at its slowest pace in more than two years (since March 2010)." - July 2012 CPI: Still Retreating
Yes, we the citizens of Malaysia would still like cheaper education, cheaper petrol, and cheaper cars. But talk has also become even cheaper now that we know for sure that the economy is in very good hands.


  1. Anonymous6:07 am

    Ya the pakatan politicians are also becoming more cheapskates.

  2. Ellese6:53 am

    Hear YE. Hear ye. I thought the etp plan creating domestic demands was good. It's too bad all pr supporters are too full of hatred to see this. To them they think bn deficit budget will make us bankcrupt but a similar deficit budget proposed by PR is not. To them bn billion dollar handout is making the economy worse but pr proposed billion dollar handout is ok. What utter illogical non sense these pr supporters. They think what bn does are stupid but their argument reflects how sick stupid mindset they have. There are just too many idiots in Pakatan who like to compliment the idiocy of another idiotic supporter. Everything is politicized. From religion to race to education to election to even our own water. When tell them this fact, they tried all manners censoring and banning these views. All pr bloggers are like that including din Merican don play puk malaysian insider etc etc and yet proclaimed they believe in freedom of speech. Utter bollocks. Enough is enough.

  3. Anonymous7:39 am

    no no no no this is not right. not at all right. how can this happen? we are not in power yet. yes i know what this is. this is election feel good. i know it.

    as long as we are not in power, everything - i mean every single thing - done by the government is BAD. ranting ranting ranting ranting more ranting


    you see. people are forgetful. worse still some people are not honest. there are honest people but nobody wants to be friend with the nuns because being good isnt at all fun. thats why devils are going to the hell with so many believers.

    if you are bother to look at data, the purchase of new car is still up there very high. that means, people are buying new cars/ vehicles which in turn proved that the economy is good. yes they all took loans but with stringent bank rules these days, and still the rate of purchasing new cars is high, then this show the people are enjoying a good economy!

    the lucrative C segment (1.8L) is being opened up. and people have more choice that ever.

    so what this news telling you?

    1) the domestic economy is holding up rather well. and the people are feeling it. the middle millions are feeling it, while bottom millions are being aided well.

    2) opening up market by the government is a good strategy. and proven.

    3) for (1) to happen, the economic policy must be right. so the government did a right call.

    but (1) - (3) are not going to get mentioned even slightly.


    no no no no. we cant agree. otherwise we have no function. we need rafizi and co to highlight some things in very negative ways for a short period of time so that people dont remember all the good things.

  4. Anonymous7:42 am

    Wow Rocky!

    Hari Tu Jadi Lawyer...

    Hari Ni Jadi Economist!!

    Growth by Handouts! That's Najib's Blue Ocean Najibnomics!

    Joe Black

    1. Well Jo Black, what can I say, when you're good, you are good, right? In any case, these "handouts" are very prevalent in Singapore. The PAP government has been "sharing" the spoils of their good economic performance with the people in the form of cash payouts for years. Kim Guan Eng tried it but he became a laughing stock because instead of giving Sing dollar 2000 to each citizen, he could afford to pay out 20 ringgit each to selected taxi drivers and 100 ringgit to senior citizens. Moral of the story - you have to have money to give handouts!

  5. Bru, I beg to differ.

    They cannot fix MAS for the last 15 years (except for the many turn around and around), so I think this another spin from the Gomen in preparation of the GE.

    Remember, with annual revenue of RM 13 billion, MAS is a mini Malaysia and a mirror image how the country is run.

    Another mini Malaysia is Petronas without which, we could have been like the P.I.G.S (not yet pigs, God forbids)

    1. I think MAS is on the right track, finally. If the new team is allowed to undertake the tough measures to revive the airline, a quick turnaround is imminent. The Malaysian economy took some very drastic measures after 1998. The problem with our national carrier is that everybody wants to keep the cake and eat it as well.

  6. charleskiwi9:09 am

    Malaysia can disguise many things and come up with false figures just to fool the people before the GE but for how long ? But for how long ?

  7. Anonymous9:39 am

    Good news for us is bad news for Anuar and Pakatoons all over.

    Now the time for Pakatoon spinning...


  8. Anonymous9:51 am

    Hmmm... so it is time to celebrate. I wonder which few states generate higher domestic demand.

  9. Anonymous11:25 am

    There is a thing called creative accounting. The gov is trying to create a feel good factor before the next GE. SO don't trust all the propaganda especially from UMNO who wants you to believe that Malaysia is thriving.

    1. Is that the FT doing UMno's bidding, then? My, you guys are really scraping the barrel lately. Can't be fun, can it?

  10. Anonymous11:27 am

    Yup, we're in a good hands. 5.4 percent is actually more we could've been asked for.
    But there's always some quarters who try to look at it differently.
    That is by being selectively choosing 'analysts who??' whose only job is to find ways to discredit our growth and paint a bleak picture for the future.

  11. Anonymous11:28 am

    We also got cheap salary as well. The education is cheap but quality is pathetic. We can't say our petrol and cars is cheap because we are not comparing apple to apple. Our car is probably the most expensive in the world if you take into consideration of our pathetic salary that we get.

  12. pROTon11:49 am

    It means ummmNOthing to ordinary Rakyat...

    Why Rakyat Malaysia have to pay RM150,000 for a mighty 2012 VW Golf that cost only USD19,000???

    Keranamu celaka MAHAthir!

    1. Actually, we probably have the most number of cars per capita in the world! What we need is a wy to limit the number of cars on the road, especially in cities like KL, PJ and JB. I was in Kuching recently and the people there are complaining there were too many cars. Why is this so? Because petrol is cheap, maintenance cost is cheap, parts are cheap, road tax is nothing, and interest is cheap. Just because the Golf coats US$19k does not mean every Ameican wage earner can buy three of them. Have you checked how much nrhey have to pay for a litre of petrol?

    2. Anonymous9:54 am

      so rocky, are you seriuously comparing.the affordability of the average american with malaysians? you cant be that stupid...theb again maybe you are.

  13. Anonymous12:44 pm

    Apa punya Lancau Economy in good hand,,,,,e got no money baru betul,,!!!

    Those are inflated figures,,,lihat saja suasana Raya tawn ni,,,,ramai yang tak berduit,,,Kontractor kechil suda BUNGKUS,,kalu dula,Small Malay Company ada bagi BONUS, this time,,kena BALIK kampung minta duit dari BAPAK,,!

    Kena pergi MELAWAT sanak saudara di SPORE,,dapat DOLLAR and tukar RINGGIT daun Pisang,,BARU betul Banyak cikit!!

    Memang BSKL mencecah 1650 points tapi berapa ramai MELAYU yang enter the Market,,,,tanya UMNO,,berapa banyak ada beli Melayu nya COUNTER,,???? Counter WARRANTS memang ada naik tapi semua COUNTER yang tak HALAL je melambung!!!

    Dengar saja apa ATOK-ATOK FELDA nak cakap tang FGV,,,SEGAN betul nak melepas RM5.48,,baru nak naik kena PUKUL,,!!!


    1. Hoho. I see why you pick the pseudonym.

  14. Anonymous1:02 pm

    This is the classic tale of the Hare and the Tortoise.

    As we all know, the final winner is none other than the humble, easy going, consistent, steady, not at all arrogant Tortoise!!

    Hurray the super efficient, super fast, super arrogant Harry has lost to the country cousin.

    See folks when you approach nation building like the sprint you will lose breath and start to pant. But life and nation building is very much like the extended triathlon.

    The one who laughs LAST, laughs the best.

  15. Anonymous2:17 pm

    Economy in good hands or the result of Najib's spending sprees? The BR1M $500, $200 book vouchers, taxi drivers' tyre subsidies, the pay raise of the civil servants....When the government digs into deficits to spend, when we are spending our future generations' money, the 5.4% growth is nothing.

    Given me the authority, I could even jack up the growth rate to over 10%...just issue more government bonds, tap into our EPFs, Petronas's coffer, privatize all government assets etc and spend, spend, you need a rocket scientist to do that??

  16. Looks like the 2nd quarter's result is good news for most, bad news for some. I have decided to provide a link on the posting to the latest FT article on Malaysian economy. Generally, the analysts admitted that they were skeptical about Najib Razak's economic plans, too ... Until the numbers prove them wrong, that is.

    Sounds like some of my dear commenters, here, really.

    Selamat Hari Raya, Maaf Zahir Batin

  17. Anonymous3:36 pm

    Everything in good hand,,,,!!

    Dalam masa 5 hari MONORAIL suda 2 kali rosak,,!!!!! Must be tyre dia punya angin MELETOP,,!!!

    Another HARI RAYA jokes!!!


    1. I can see why you pick this pseudonym his time.

  18. Anonymous3:37 pm

    economy in robbers hands?? why highest car prices in region>> why 500 billion national debts>> why PKKFZZ billions dollar scandal-- n missing cows-- why high inflation n high food costs?? how did millions illegals walk into our nation-- aliens from MARS>> no corruption-- only perception-- semua OK

  19. Anonymous3:43 pm

    GAJI masih murah. growing gap between kaya dan yg kais pagi makan pagi.Ramai yg buat tak tau jer.

  20. IT.Sheiss3:47 pm

    While politicians, media and bloggers on both sides of the political
    divide and their associated commentators will haggle over reports of
    Malaysia's 5.4% GDP growth in Q2 over Q1 2012, IT.Sheiss noticed
    something very interesting - i.e. no mention of the information
    technology (IT) sector among the top contributors to GDP growth in the
    Department of Statistics Malaysia figures from which all these reports,
    blogs, etc take their figures.

    IT comes under services which expanded 6.3%, and in this sector,
    Wholesale & Retail Trade, Finance & Insurance and Business Services
    (i.e. professional services related to engineering but not IT) came out
    tops in this sector.

    The other leading sectors were Final Consumption Expenditure (8.9%),
    Manufacturing (5.6%), Construction (a whopping 22.2%), Agriculture
    (4.7%, Mining & Quarrying (2.3%).

    But where's IT despite all the bullshit & ballyhoo by its spin doctors?

    Below is a parody of the government song Sayang IT (Love IT) broadcast
    over radio & TV some years back.

    Sayang IT (Love IT)
    Makan IT (Eat IT)
    Muntah IT (Vomit IT)
    Berak IT (Defecate IT)

    Department of Statistics report follows. (I do believe in getting it
    from the horse's mouth, rather than second, third, fourth, fifth....

    Thus I am yours most truly



  21. Anonymous4:21 pm

    Yeah Rocky Selamat Hari Raya, mohon maaf zahir dan batin.

    Semoga manusia hati kaudu dan hati busuk mendapat cahaya kebenaran.

    Terlalu ramai yang simpan racun toxins dalam otak dan badan.

  22. Haha...suddenly everybody becomes economist and try to belittle the economy growth and with surprising theories.

    If the number can be easily jacked up, we already become developed country long time ago and will never contract. Some people's brain seize to function.

    Now I understand the meaning of "idiots are born every second" and the Pakatan Rakyat survival heavily depend on these idiots.

    1. Spot on there! Next quarter we should ask Zeri to announce double digit growth!

  23. Anonymous4:29 pm

    In China, the worse round of economy posted 9.5%

    I repeat the worse was 9.5%

    By Rocky standard 5.4% is heavenly because he is the katak di bawah mulut tempayan.

    Muhammad ibrahim Ali

  24. Haha...suddenly everybody becomes economist and try to belittle the economy growth and with surprising theories.

    If the number can be easily jacked up, we already become developed country long time ago and will never contract. Some people's brain seize to function.

    Now I understand the meaning of "idiots are born every second" and the Pakatan Rakyat survival heavily depend on these idiots.

  25. Anonymous5:09 pm

    i wonder how are penang, kedah, kelantan and selangor doing?
    penang - great! (obviously federal is doing the job for them)
    selangor - better than BN! (no water, 1,9Bil reseve lost)
    kelantan - we have TESCO (no water, reserver go to excos)
    kedah - awat?

  26. Anonymous9:52 pm

    if the economy is not good, the local and foreign banks will not be reporting good fat audited profit recently.

    They are dependent on the economy, the first to feel any pinch

    but alas the opposition pied piper followers are too engrossed in hearing pumped up internet and ceramah lies from their idols....(which are difficult to be answerable to any form of libels and official backlashes)

  27. Ellese6:02 am

    Look at how insensical pr supporters argue thinking we're stupid. They argue we should not to believe bn propaganda but welcome pr lying propaganda. Say that GDP numbers are cooked not even knowing what constitute GDP numbers. Want better economy by having cheaper cars???. Man. Never a day these pr supporters (actually if I adopt PR SOP, I should use PR paid cyber troopers) amaze us with their hatred irrational argument. Where is the love? Why can't they argue pr better because pr does or will do these and these? Oh! I know why. Coz Pr has nothing to show but just plain dumb hatred lie.

  28. Bru, I may not be an expert in economics but I know mathematics very well.

    Do read what the expert is saying here

  29. Anonymous8:04 am

    s'pore govt give handouts thru actual performance, just like Hong Kong. Bolehland manufacture growth numbers to justify handouts. just a matter of time before the truth comes out that the numbers have been massaged. then it'll be too late and we'd be in the drain.

  30. Anonymous10:35 am

    anon 3:37

    you are just another katak under the coconut shell. food prices high? but fast food outlets making tons of money, how much much you want for a car? RM1.00? national debt - read up facts, not listen to people who dont know economics.

  31. Anonymous10:41 am

    3:36 > space shuttle pernah postpone launching 12 kali. american joke? habis kereta kereta orang putih tak ada spare tyre? di disneyland tokyo landasan roller coaster pernah di dapati tidak selamat untuk di gunakan baru 3 hari selepas mula dibuka. matanglah sikit!!!!

  32. Anonymous10:43 am

    charleskiwi >>>>

    show me where figures are disguised?

    show me.

  33. bourne identity11:15 am

    well..if you do like selangor and pay peanuts for an economic advisor in the form of Al you think the country will register good growth? Selangor cannot even explain in simple terms what the Talam fiasco is all about..especially from that blundering tony phua kah kah and that stammering menteri perut besar khalid!!!!
    Bet you fuckatan rakyat will be blaming BN for the huge traffic jams during these days leading to Hari Raya too....

  34. Jasper Bloodstone12:41 pm

    Well, Bru - the Singapore government can afford to give cash handouts to Singaporeans because it has a strong fiscal position.

    And no subsidies, apart from those for education and healthcare.

    Throw in a triple-A credit rating, a strong currency and substantial reserves to complete the picture.

    Selamat Hari Raya Aidilfitri. May you have a safe balek kampung!

  35. Anonymous1:12 pm

    Wah Rocky kini sudah jadi Economist !!! Bravo !!... tapi Rocky ni Economist kepala berotak udang, UMNO/BN kuat rasuah tapi masih di sembah-sembah oleh Rocky !!

  36. Anonymous9:25 am

    If we really had this growth which can be believed, why hasn't the RM strengthened against most currencies ? why hasn't there been billions of speculative inflows to drive interest rates down ? heck, outflows still exceed inflows, so what does that say ? Rating agencies warn about our fiscal deficits, so why do that when we have 5-6 pct growth ?

    the answer is simple - these numbers produced by a syiok sendiri gomen cannot be believed.

  37. Anonymous6:35 pm

    Remember who is the great spinmaster to add the flavours....?
    Idiots are made to believe everything is up and rosy !
    The country drain of hundreds of billions and this government says we are good for this quarter growth ...
    Rocky says Mas is getting better and is he kidding? Already they are losing our money till now is there hope man?
    This Raya perhaps will be the worst raya for those borderline wage earners and sucks ! Pointless for this government to paint a rosy picture...

  38. Anonymous12:42 pm

    Handouts in Singapore?

    The aim of affirmative action is provide a fair and viable solution to problems.

    - 42% of Singapore's population are foreign-born to buffer Singapore's workforce
    - Ethnic minorities cannot occupy more than 20% of every neighbourhood (to foster racial harmony - that's what the Singapore government says)
    - Do you know obese/overweight soldiers in the army receive extra training (kata meritocracy)

    UMNO corrupt? Here in Singapore you can't even play football: they put spikes on your walls, Malay footballers have to play with underperforming foreigners. Every Singaporean was excited rooting for Lee Chong Wei in front of our TV sets, because there's more to life than just dollars and cents.

    Selamat Hari Raya Rocky! - Pembaca dari Singapura ;)

  39. Anonymous3:36 pm

    U can doctor the growth numbers, you can doctor the inflation numbers, you can claim all sorts of FDI numbers but you can't outwit the market. The market determines what is likely and what is unlikely. The market determines interest rates and exchange rates. If that's the growth number, why is our BLR 6.40 pct ? Why do we pay over 12 pct for credit card outstandings ? Our interest rate regime shows us to be nothing more than a mickey mouse economy.

  40. Anonymous3:51 pm

    oh you very smartlah. already 55 years merdeka country still going strong. an economist can depend on a few theories. but a leader has the whole country to feed. so leave the mickey mouse economy to the economist. cant afford credit card outstandings dont use credit card. hutang mau. bayar tak mau. malulah!!! and some more want to blame gomen.

  41. Anonymous3:56 pm

    cars are cheaper in US. what about other things and cost of living? go to US and see for yourself. AND STAY THERE DONT COME BACK.

  42. We are not building factory space, investing in technology and capacity building like the Chinese...

    Nor are we exporting goods like in the 80s

    What is it our growth is based on? Hot air n announcements?

  43. Anonymous11:43 pm

    Latuk: will you be brave enough, or man enough, to post the latest report by Fitch Rating Agency ? Gomen agencies to borrow on federal gomen guarantees, and that doesn't qualify as national debt ? If we include that as national debt, then we are way past 60 pct of GDP. And we still want to crow about our growth ? And still spend like there is no tomorrow ? BRIM, FRIM, PRIM, and soon we will be DONG....

  44. Ellese12:33 am

    Some people like AZ and Anon 3.36 and 3.56 are epitome of malas membaca. These pro pr blind supporters only like to read myopic pro pr misinformative blogs. Like AZ. We've been building on domestic growth engine for a number of years already. Bacalah sikit, Then apply a bit of logic and reason. Orang macam ini lah argue bn deficit budget will bankrupt nation but pr deficit budget very good for our economy. Tak masuk akal.

  45. Anonymous8:58 am

    why admire the PRC when their products are ALWAYS tainted with mercury, lead, melamine, gutter oil, human meat, feces etc

    nobody wants to buy Made in China goods which is why the world's factory is closing down

  46. Anonymous10:49 am

    At US$19K, Golf VW is expensive for a small car and the average middle class American prefers SUV's or pick up trucks as their vehicles. Most people like me own a Merc or BMW...LOL. coz our gasoline price is about $3.70 per gallon for regular unleaded and to us it is damned expensive. So go figure for price in litre, Bru! I bet you your Malaysian gas price is higher than what we have here in the North East of America...ha ha ha

  47. Anonymous5:39 pm

    anon in North East of America @ 10:49 AM

    you must be a Malaysian coz you still have Malaysia in your heart

    why else would you want to visit Rocky's blog and leave a comment to boast about your Merc lah or BigMouthWoman lah blah blah blah

  48. Hahahhaha... still cant stop laughing even ive finished reading all the comments... u guys watched too much hollywood movies i guess... not even a good news from our government can pleased you anymore.. hati batu org kata....

  49. Anonymous2:17 am

    I suppose the Malaysians didn't have to worry about getting loan modifications for the third quarter then, eh?