I am not speculating over here – this is based on facts and figures from Malaysian Institute of Economic Research. Here’s what happening during Q3 2012: business is generally in contractionary mode. If you are an employee, you know that capex spending is generally tight at this time. There are even rumours of paycut and retrenchment flying around for multinational companies. Now what have you heard recently?
But I got to salute the optimism in fellow Malaysians who are ever ready to spend, especially towards the end of the year. Proof? People around me are getting Samsung S3s and iPhone 5. Not to mention long queue at Tesco on weekends. You name it.
The good to know is that to date (up to Sept 2012) the inflation rate, according to Department of Statistics Malaysia, only hovers around 1.8 percent. This is way lower than the norm of around 3 percent (3.2 percent in 2011)
BCI = Business Condition Index, and CSI = Consumer Sentiment Index
- BCI dives below threshold to settle at 96.0
- Flagging sales growth
- Production drops further as new local and export orders dwindle
- Capital spending dips sharply
- Near-term expectation remains dim
- CSI surges to 118.3 points
- More bounce in current incomes
- Financial upgrade and more jobs expected
- Inflationary anxieties abating
- Consumers in the mood to spend
Anyway, always use your credit card sparingly – best as purchasing method, not to extend (too much) your purchasing power. Now on a lighter note – here’s another awesome infographics from the iMoney folks, on what happens in a split 10 seconds time frame every time you swipe your credit card.