The year of 2016 could be a challenging year for stock market investors, as the global market started in a panic sell-off from the first trading day of the year. For Malaysians, it could also be a tough year as the following factors are affecting the daily life of most Malaysians.
This is not a new thing! Since the GST implementation started in April 2015, all Malaysians are facing this issue. More expensive food from local supermarket and dining out; transportation, daily use products, clothing, medical bills and medicine. Even with the oil price tumbled to US$30; there is no reduction in our petrol price.
Normally when oil price drop, Malaysians should entitled a cheaper petrol price. However, with US$1 equivalent to RM4.30, we are still paying expensive petrol. The Ringgit is depreciated not only against USD, but against major currencies too. As a result, imported goods are more expensive and travelling abroad, we are paying extra overseas expenses as our Ringgit is very weak. Unless you are an exporter, you will benefit from the weak Ringgit. The glove manufacturers are the biggest winner!
Not only China is facing a slower economy; in Malaysia, we can feel the declining stock market and economy is moving in a slower pace after GST implementation last year. Banks are tightening the loan approval especially for the housing loan.
Unless you do not invest or speculate in the local stock market. The sell-off since last year is causing most Malaysians financially stranded and mentally drain.
Malaysia's property price appreciated dramatically since 2008, effects of cheap money flooding around the world. During the past few years, transactions increased no matter is brand new or sub-sale properties. Till now, buyers think it is too pricey to buy and looking for negotiation whereas sellers unwilling to let go at a cheaper price. Plus the tightening bank loan approval, this had become an unhealthy phenomenon and is affecting young couples especially those who just started a family.
1. Rising cost of living
This is not a new thing! Since the GST implementation started in April 2015, all Malaysians are facing this issue. More expensive food from local supermarket and dining out; transportation, daily use products, clothing, medical bills and medicine. Even with the oil price tumbled to US$30; there is no reduction in our petrol price.
2. Depreciated Ringgit
Normally when oil price drop, Malaysians should entitled a cheaper petrol price. However, with US$1 equivalent to RM4.30, we are still paying expensive petrol. The Ringgit is depreciated not only against USD, but against major currencies too. As a result, imported goods are more expensive and travelling abroad, we are paying extra overseas expenses as our Ringgit is very weak. Unless you are an exporter, you will benefit from the weak Ringgit. The glove manufacturers are the biggest winner!
3. Difficulty in applying loan
Not only China is facing a slower economy; in Malaysia, we can feel the declining stock market and economy is moving in a slower pace after GST implementation last year. Banks are tightening the loan approval especially for the housing loan.
4. Stock market crash
Unless you do not invest or speculate in the local stock market. The sell-off since last year is causing most Malaysians financially stranded and mentally drain.
5. Stagnant property market
Malaysia's property price appreciated dramatically since 2008, effects of cheap money flooding around the world. During the past few years, transactions increased no matter is brand new or sub-sale properties. Till now, buyers think it is too pricey to buy and looking for negotiation whereas sellers unwilling to let go at a cheaper price. Plus the tightening bank loan approval, this had become an unhealthy phenomenon and is affecting young couples especially those who just started a family.
The above might not affect all Malaysians, but if it does; we hope there is a solution for every problems. Sit down and figure out the priorities, workout a financial plan and act according to the plan.
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