By Ramon Navaratnam | 25 Nov 2011
The Malaysian Insider
NOV 25 — At least two economic ministers, Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah and Tan Sri Nor Mohamed Yakcop, the minister in charge of the Economic Planning Unit, yesterday sounded greater caution on our economic outlook next year.
The European economy is weakening and the finance minister stated that government is “closely monitoring the European situation”. This shows his serious concern as to how low the European economies can go and how much we would be adversely affected.
The economic planning minister at the same time stated that “the global economic recovery is likely to stay weak and bumpy with a higher probability that things could get worse.”
We cannot therefore take it for granted that Malaysia can achieve a 5-5.5 per cent growth in our economy this year and anything near 5 per cent next year. Inflation could exceed 3.5 per cent next year and we could move towards stagflation which means stagnant economic growth and rising prices.
Continue reading “Government facing an economic dilemma”