Malaysia’s Economy Improves

Prime Minister Najib Razak’s ratings have diminished substantially since he came to power last year. Although, the general trend has been one of upwards for politics in the country and for the number of the Chinese population who root for Najib now than previously, there is still a lot that needs to be done in winning back support, both for the Prime Minister and for Barisan Nasional.

Many perceive that there is a possibility of racial tensions escalating, perhaps offsetted by a lack of integration for communities, which is a worrying concern, even more so when coupled up together with the fact that there is an increase for housing costs. Middle-income Malaysia is finding it difficult to stay afloat of all of the pike in expenditures, such as the affordability for rental properties on a loan.

Research suggests that the housing market is far worse-off than both Japan and United States. Despite mortgages still cushioning the financial blow for some, if residents are unable to return loan installment amounts as demanded on time, there is a risk of an American-style property bubble bursting here at home for us.

Najib needs to focus on the economy as well, because concerns for it has elevated since last year. Actually, his approval rating on polls banks on that so the sooner that a beter reformed economy as introduced by the Vision 2020 proposal unveiled by Mahathir Mohamad, starts to reap its benefits the better.

The economy has been performing a lot better than before and its full speed ahead right up until 2015, primarily because of a surge in domestic demand and a better than previously functioning economy. As the year progresses, so will the GDP at a stable rate, as introduced by the Budget recently.

However, if the ecnomy is to truly perform brilliantly, it needs to be offset by a growth for the Euro too, complimented by a reduction of deflation in other Western countries, and faster growth in developing markets. Furthermore, conflicts in various politcally-sensitive regions are also feeding into how the economy is recovering.

The manufacturing, trade, public service, supply chain industries are believed to be the drivers of economic stimulus here in Malaysia, as the country sets its wings in motion to grow globally. The Ministry of Finance has already labelled improving the economy as a top priority in 2015, and the deficit has already shown signs of amendment, amidst more and more private sector investment.

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