Preparing for challenging times ahead

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With the Malaysian economy badly affected by external factors, some planning should help to cushion the blow.

The external macro environment for 2016 remains challenging for Malaysia. Being a small and open economy, Malaysia – and Penang along with it – is highly dependent on the health of the global economy. Key risks in 2016 include the prolonged slump in oil price, the effects of El Nino, the full impact of the GST implementation, ringgit vulnerability due to US interest rate increases and the slowdown in China.

Headwinds from external global developments

In 2015 Malaysia had to face up to the oil price collapse, the slowdown in the Chinese economy, the fall of the ringgit to its lowest levels since 1998, the loss of international confidence in Malaysia's political and economic landscape as a result of the 1MDB scandal and, of course, the introduction of the GST.


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