Friday, December 08, 2023

China's rating downgrade have impact on Malaysia

AP reported on Moddy's downgrade of China's debt yesterday here.

For Malaysia, the bilateral trade with China for 2022 is US$203.6 billon and a delicate situation arising from the semi-conductor boycott. May need to read Edge's June 2023 article:

According to a 2019 study, a 1% slowdown in the Chinese economy will translate to a fall by 0.11% of the Malaysian economy. 

Tengku Zafrul proudly announced recently FDI commitment of RM212 billion, in which the bulk of it, RM170 billion is from China. It will mean some of the commitment may not come to realisation just like what is happenned to Country Garden in Johor Baru. 

Can only expect finger pointing from the politicians instead of cooperating to save and solve the probem of the nation. 

If China will be problematic, look at Taiwan across the straits. Those in position, please be smart and not be arrogant to not ask from those in the know. Do not be clueless and theoretical, Bangsar Bubble. Feet on the ground. 

Look to Japan too because there is a plan to replace the global economic role of China with Japan by weakening the Yen. Lately USD/Yen has corrected from the high of 151 to 146.80. Still got time to work it. 

There is a mad dash scrambling. No time for newbies to still figure things out.

Read in its entirety on Thick as a Brick here

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