Business

Friday November 7, 2008

Tough road ahead for man in the street

By M. HAFIDZ MAHPAR and RACHAEL KAM


Many doubt economy will improve much in next 12 months

KUALA LUMPUR: The recently unveiled RM7bil stimulus package doesn’t impress Tejvinder Singh Randhawa, 29.

He returned to the country in August after completing his MBA in Australia and has been looking in vain for a job since.

“The package would mainly benefit government projects, schools and civil servants. It is just a drop of rain on a dry land; it doesn’t help much. How can the economy improve when people have no jobs and no spending power?” he told StarBiz.

Tejvinder is one of many Malaysians who doubt that the economy will improve much in the next 12 months.

Paul Richmond

His views reflect the findings of a poll conducted by The Nielsen Company between Sept 23 and Oct 6.

According to the survey, the majority of Malaysians think the country is in a recession.

And of this group, a mere 20% are confident the country will be out of the woods in the next 12 months.

Tejvinder had returned to Malaysia in the hope that it would be easier to find a job here.

Australia was heading towards a possible recession, and he thought his MBA qualification would make him marketable back home.

“The far-reaching consequences of the global financial turmoil have quickly hit home for Malaysians,” said Paul Richmond, the managing director of The Nielsen Company Malaysia.

Malaysians like Tejvinder are getting more worried about the economic climate, as borne out by Nielsen’s Malaysia Consumer Confidence Index, which has sunk to the lowest level since its inception in 2005.

The latest twice-yearly Nielsen Global Consumer Confidence study covered consumers in 52 countries, including 500 Malaysians.

Over a 12-month period, the Malaysia Consumer Confidence Index slid 13% to 88, just slightly ahead of the global average of 84.

About half of the Malaysian respondents said their job and financial prospects for the next 12 months were “not so good.”

The Global Consumer Confidence survey in May had found that the top three concerns, in descending order, were inflation, personal safety/crime rate, and fuel price.

In the latest poll, inflation fell to third place – behind the economy and political stability.

The current economic uncertainty, coupled with the rising cost of living, is prompting Malaysians to change their lifestyle and spending patterns.

Asked how they would spend their spare cash after covering daily essentials, a whopping 67% said they were saving for a rainy day.

More than half are spending less on new clothes, cutting down on out-of-home entertainment and trying to save on gas and electricity.

But surprisingly, one in three Malaysians will still go on vacation to reward themselves despite the tough times.

“Despite a cloud of uncertainty, Malaysians still know how to have a good time and holidaying is the best way to recharge and face the challenges ahead,” Richmond said.

HOWARD TEE

Assistant legal manager

Howard Tee

Malaysia would not be an exception when the world is in a recession. Like others, I am concerned about political stability as it will affect the country’s economy too.

The high fuel price is also a worry as my car is my only means of transport from home to the workplace. However, I believe I will do all right in the next 12 months by tightening my belt a little.

I try to cut down my expenses on clothes and out-of-home entertainment and use the car less. My family also tries not to switch on the air-conditioner to save a bit on the electricity bill.

We have to change our vacation plan, perhaps taking only a local trip instead of going overseas. I think there will be very little improvement in the country’s economy in the next 12 months.

N. NAGARAJAN

Assistant IT manager

The country is in recession with high inflation. I am not confident to say when the economy will improve due to the political issues.

I am also worried about the high food and fuel prices. I think the next 12 months will be tough financially but I will try to make the best out of the situation.

Now I am not only cutting spending on clothes and out-of-home entertainment, but I also try to save on electricity and am deferring my holiday trip this year.

It is important for me to put spare money into savings and I tend to invest in the stock market and unit trusts when it is a good time to buy.

I believe the Government can do better than the recently announced stimulus package. The Government should also look into the country’s IT and agricultural development.

NG CHOON LIANG

IT executive

Ng Choon Liang

It will be tough financially in the next 12 months in view of the economic slowdown.

The political stability, the economy, and high prices of food and fuel are my concerns.

I spend more cautiously on things and other daily needs nowadays and will plan for local holiday trips only.

However, I am trying to improve myself by picking up additional skills related to IT like photography so that I can get some freelance jobs to get more income or perhaps get a better job offer in the future.

I will put spare money into savings and do not plan to invest in stocks due to the volatile market sentiment.

WONG JINROU

Law book sub-editor

I don’t think we’re in a recession yet as I haven’t heard of companies retrenching staff. But we won’t be safe for much longer because the recession has hit Singapore.

My friends and I have started to worry about our jobs so we try to be more diligent at work. I don’t think the stimulus package would help me personally.

I won’t ask for a reduction in EPF contribution because the future is uncertain and it’s better to save. Although the Government wants us to spend to stimulate the economy, who will cry with you if there’s a recession and you lose your job?

I compare prices in different stores before spending. As a consumer, we should weigh our priorities – whether what we want to buy is a need or a want.


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