What are the current business Threats facing the Malaysian economy?

THREATS FACING MALAYSIA

Malaysia, being a trading nation that highly dependent on international trade, our scotch performance is actually vulnerable to the performance of our major international trading partners. For decades, our economic growth has been overly reliant on external domain developments, foreign direct enthronization (FDI) and international trade. Domestic investment decisions are not base on economic bedrock but rather these decisions are very much influenced by the market behavior of foreign investors.

In view of the challenges arise from the globalisation effects, it is important for the Government to sustain growth and strengthen the macro-economic rudiments within the country. This is done by focusing on municipal business and industrial activities and increasing the purchasing power of our population. The governments monetary policies and embodied reforms have to be continued to create a condition suitable for a speedy recovery and sustainable growth. It is excessively important to ensure that the restructured loans remain performing. Emphasis must(prenominal) be placed on continuing improvements on corporate governance, transparency, accountability and strict enforcement of powers by the market regulators. There is also a need for the country to maintain its peaceful surround and security in order to secure the investors confidence.

Currently, the final terminal for most of Malaysian exports is the United States.



Therefore, the successful recovery of the US economy is pivotal to Malaysias continuing recovery. The current stagnation in the US economy, especially in the electronic chip industry, is a damper on economic recovery in Malaysia where electronics cerebrate exports make up more than 30% of the gross domestic product. With the American demand looking weak, we must look for alternative areas of growth and demand to increase the economic resilience.

The emergence of china

With China rising at such rapid rate, this means that the mid-sized economies of Asean (such...

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