Happy Chinese New Year to everyone who is celebrating it.
Disclaimer: All the prediction here is based on if Malaysia continues to based on the current policy or plan without any changes. It is solely based on what information I know.
Last year I predicted that how things would turn out in Malaysia at the end of 2020. Now I going to predict what is going to happen for our Malaysia 2021.
There are 3 things I predict will happen.
Many Malaysian will lose their home or car on March
March will mark the 6th month for those who did not receive the 2nd moratorium. For Malaysians who did not receive the 2nd moratorium, they will receive a red letter from the bank.
The bank will claim the house or car if the person who received this failed to make any payment.
The food and Beverage sector will have a Mass Extinction event
Right now the Food and Beverage sector is in an overcrowded situation. It is not just the jobless that join the F&B sector. Even the petroleum company are joining it.
One example the Shell company is opening many Deli branches at LRT station.
It is not that competition is not good but when too many people are selling the same thing. It will cause many businesses to close down due to sales unable to sustain the business's daily operation.
At the moment all this can go on because of the money withdraw from the Employees Provident Fund (EPF). Once the withdrawal is over around 4 to 5 months from now, many will likely close due to lack of sales.
Malaysia export profit will likely drop due to US 1.9 trillion stimulus money
Recently the US Biden Administration just release 1.9 trillion stimulus dollars. Now, most Malaysian would think it does not matter to us since this news is about the US, not Malaysia right?
The answer is no.
With the Tourism market gone due to Covid-19, the only few ways left for Malaysia to generate money is now export.
This US stimulus money will devalue the US dollar making our ringgit strong. Malaysia is a mostly export country, the last thing you want is your currency becomes strong.
Our Country now depending on export to tank the economy. If the export profit is also reduced, the effect from it will have serious consequences.
I dare to say the only pillar left holding our country's economy is the manufacturing sector. If the manufacturing sector is also gone, I can't imagine how bad the situation will be.
Winter is coming
Malaysian be prepared for the finance winter. If our government continues with the same policy or plan, what I predict will likely happen. Do whatever it takes to protect your wealth.
