Monday, October 08, 2012
Such times as these
Two weeks ago I was invited to a CIMB function whereby selected clients were invited to One-World Hotel and briefed on investment opportunities in Myanmar, Thailand, Indonesia and Cambodia where CIMB has a presence or connection and was able to be not only be your banker but offer assistance to you through their ASEAN Business Club.
During the lunch lecture, the Research Economist from CIMB gave us an outlook of the global economy. He stated the obvious that there is no light for Europe in the next 10 years and the US economy appears to be sluggish and unable to generate enough jobs but he still will bet on a stronger Greenback for various reasons. He said there is no external demand and Malaysian exporters were suffering and neither is there internal demand besides what the GLCs were spending.
More interesting was an official from Indonesia who presented Indonesia's economic outlook. They report a GDP growth of around 6% and a debt-GDP ration of 25%. The official debt-GDP ratio in Malaysia from Bank Negara is 51% and nearing the debt ceiling of 55% imposed by several acts.
The Malaysian national debt level is governed by various laws that impose a debt ceiling for the government. Act 637, which is the Loan (Local) Act 1959, and Act 275, the Government Investment Act 1983, state that combined loans raised domestically should not exceed a ceiling of 55 per cent of the nation’s GDP.
The Indonesian official however said Malaysia had a debt-GDP ratio of 100% like the US. This is plausible if you take into account of the debts raised by our GLCs which circumvent those restrictions.
In times like this I will choose to listen to the Lord on where to put our limited resources. God told Abraham to move from his homeland, he did and the Lord prospered him. Likewise through several men of God, I have been told that my destiny is in China. These include internationally renowned prophets. Of course God has already spoke to my heart and these are just people He sent to reconfirm His will for me. Sure it is not an easy road and doubt sometimes creep into my mind. Sure there are critics but we need to only listen to God, not the critics even those at home. You may have to endure some people speaking against you, but if you can stay on the high road, you will prove their criticism invalid.
During the lunch lecture, the Research Economist from CIMB gave us an outlook of the global economy. He stated the obvious that there is no light for Europe in the next 10 years and the US economy appears to be sluggish and unable to generate enough jobs but he still will bet on a stronger Greenback for various reasons. He said there is no external demand and Malaysian exporters were suffering and neither is there internal demand besides what the GLCs were spending.
More interesting was an official from Indonesia who presented Indonesia's economic outlook. They report a GDP growth of around 6% and a debt-GDP ration of 25%. The official debt-GDP ratio in Malaysia from Bank Negara is 51% and nearing the debt ceiling of 55% imposed by several acts.
The Malaysian national debt level is governed by various laws that impose a debt ceiling for the government. Act 637, which is the Loan (Local) Act 1959, and Act 275, the Government Investment Act 1983, state that combined loans raised domestically should not exceed a ceiling of 55 per cent of the nation’s GDP.
The Indonesian official however said Malaysia had a debt-GDP ratio of 100% like the US. This is plausible if you take into account of the debts raised by our GLCs which circumvent those restrictions.
In times like this I will choose to listen to the Lord on where to put our limited resources. God told Abraham to move from his homeland, he did and the Lord prospered him. Likewise through several men of God, I have been told that my destiny is in China. These include internationally renowned prophets. Of course God has already spoke to my heart and these are just people He sent to reconfirm His will for me. Sure it is not an easy road and doubt sometimes creep into my mind. Sure there are critics but we need to only listen to God, not the critics even those at home. You may have to endure some people speaking against you, but if you can stay on the high road, you will prove their criticism invalid.
