Our economy in 2Q14

Folks,

The latest article I wrote was about Malaysia's economy in the second quarter of 2014 (2Q14). Apparently, our economy has recorded robust growth which beats the Bank Negara Malaysia's GDP 2014 forecast between 4.5% and 5.5%.

And in an interview with them last week, Nomura Securities economist projects that our economy will expand to 6% in 2014.

Source: The Edge Financial Daily, Monday, August 18, 2014, page 6

Our economy grew 6.2% and 6.4% in 1Q14 and 2Q14, respectively.
In the six month of this year, (1H14), the economy grew by 6.3%.

You can read the statement by Bank Negara Malaysia for 1Q14 here, and 2Q14 here.

For other research reports on analysis of the 2Q14 GDP, please find it here:

#	Research House	Research Report Title	GDP Forecast
			Previous Forecast for 2014	Latest Forecast for 2014
1	BIMB Securities	Malaysia’s economy accelerates in 2Q (click here to read)	5.2%	5.8%
2	Hong Leong Investment Bank (HLIB) Research	2Q14 GDP: Surprise On the Upside (click here to read)	5.7%	6.0%
3	DBS Research	Daily Breakfast (click here to read)	5.2%	Will be announced in September
4	M&A Securities	Najibnomics is Working: 1H14 GDP at Solid 6.3% (click here to read)	5.0%	5.5%
5	AmResearch	Malaysia sustains robust growth in 2Q14 (click here to read)	5.3%	5.7%
6	CIMB Research	2Q14 GDP: strong growth spells rate hikes in Sep (click here to read)	5.5%	6.0%
7	JF Apex Securities	2Q GDP: Surprise, surprise (click here to read)	5.3%	5.5%
8	AllianceDBS Research	2Q sizzles on stronger exports recovery (click here to read)	6.0%	5.5%
9	MIDF Research	2Q 14 Real GDP stronger-than-expected, growth to moderate in the 2H 2014 (click here to read)	-	5.5%

Source: various

GST and Our Economy

All,

Recently, our Prime Minister Najib Razak announced a very unpopular move of introducing Goods and Services Tax (GST) in our country in his budget speech, which is scheduled to be implemented nation-wide beginning 1 April 2015.

There are many noises and brouhahas coming from two sides of the political divide - the right and the left wing.

However the noise may sound, I am all for GST. I will not argue much on why we need GST, but I will say only this - however unpopular it is, we need them to save our economy. Our ailing debt that is ballooningly high.

Let's be real: our debt-to-GDP ratio is speculated to hit 54.8% by year end, and some sort of measures must be taken to reduce thia percentage.

While GST is NOT the only measure it will nevertheless increase government's coffers in terms of revenue. That should at the very least, reduce our public debts.

Of course there are many other economic theories that could justify to support GST, but I am not economist. I don't intend to be one, but I leave it to the expert to explain it to the rakyat (citizens) on why we need a GST.

The introductory rate of 6% is fair to me, although I was hoping that it should be 1% lesser. But nevertheless, it is an experiment, and it is the duty of the government to explain on the many benefits that can be reaped from introducing this GST system in our country.

Many economists and practitioners have written and argued for the case of GST. It is a necessity and any delay will only affect our economy.

GST is introduced to broaden our country's revenue and the same time -- hopefully -- will reduce our public debts.

Below is one such good article that defends the need for GST in Malaysia. It is an excellent article written in a very simple language for all the layman to understand.

On the other hand, the present government must also implment some other measures to reduce excessive leakages in our public finance system.

The first two steps to be taken are:-
(a) address all queries and issues in the latest Auditor-General's report, and
(b) introduce few economic initiatives to transform our public expenditure and finance systems.

This is my two cent's worth of unqualified economic opinions.

Image source: The Edge Weekly, Issue #987, Nov. 4th - 10th., Page 59.

GST and Our Economy

All,

Recently, our Prime Minister Najib Razak announced a very unpopular move of introducing Goods and Services Tax (GST) in our country in his budget speech, which is scheduled to be implemented nation-wide beginning 1 April 2013.

There are many noises and brouhahas coming from two sides of the political divide - the right and the left wing.

However the noise may sound, I am all for GST. I will not argue much on why we need GST, but I will say only this - however unpopular it is, we need them to save our economy. Our ailing debt that is ballooningly high.

Let's be real: our debt-to-GDP ratio is speculated to hit 54.8% by year end, and some sort of measures must be taken to reduce thia percentage.

While GST is NOT the only measure it will nevertheless increase government's coffers in terms of revenue. That should at the very least, reduce our public debts.

Of course there are many other economic theories that could justify to support GST, but I am not economist. I don't intend to be one, but I leave it to the expert to explain it to the rakyat (citizens) on why we need a GST.

The introductory rate of 6% is fair to me, although I was hoping that it should be 1% lesser. But nevertheless, it is an experiment, and it is the duty of the government to explain on the many benefits that can be reaped from introducing this GST system in our country.

Many economists and practitioners have written and argued for the case of GST. It is a necessity and any delay will only affect our economy.

GST is introduced to broaden our country's revenue and the same time -- hopefully -- will reduce our public debts.

Below is one such good article that defends the need for GST in Malaysia. It is an excellent article written in a very simple language for all the layman to understand.

On the other hand, the present government must also implment some other measures to reduce excessive leakages in our public finance system.

The first two steps to be taken are:-
(a) address all queries and issues in the latest Auditor-General's report, and
(b) introduce few economic initiatives to transform our public expenditure and finance systems.

This is my two cent's worth of unqualified economic opinions.

Image source: The Edge Weekly, Issue #987, Nov. 4th - 10th., Page 59.