recession 2008 and 2009
TRANSCRIPT
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GROUP MEMBERS :
Noor Azirah binti Ismail (2011978829)
Siti Nabiha binti Zupli (2011784289)
Fatin Fatanah binti Mazlan (2011924911)Nurul Shidah binti Zailani (2011574173)
Nurul Fatihah binti Shahruddin (2011370681)
PREPARE FOR : PUAN IZATUL FARRITA
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An economic recession is simply defined as a
significant decline in the economic activity spread
across the economy that usually lasts more than a
few months. a recession is a decline in a countrysGross Domestic Product or a negative real economic.
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Inflation refers to a general rise in the prices
of goods and services over a period of time.
Recessions are caused
increase in interest rates
decline in consumer confidence.
Firms reduce output and lay off workers,which further decreases demand, and
the economy slows even more.
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Rise of Unemployment rate
Stock market plummet Real Estate plummet
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Lose your job
Cant afford to pay back your mortgage
Watch your investment portfolio shrink in
value
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Fall of the World Trade Cause Sudden
contraction Gross Exports and Manufacturing
Production Malaysia
Export-Oriented Manufacturing Sector
Receiving Worst Effects
Weaknesses External Sector Specific to the
disadvantage of the Wider State Sector in
the Economy in First Quarter 2009
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IMPACT TO CONSTRUCTION
INDUSTRY
The Malaysian-German Chamber of Commerce (MGCC)exposed the construction industry growth level in MarketWatch 2009.
Due to economic this result to higher price of buildingmaterials, especially in cement and steels prices followed by
the abandoned projects in 2008,
In the previous recession, the Malaysia government hadallocated RM 18 billion under 2000 Budget to theconstruction sector. The results have been favorable as
reflected in the growing optimism and rise inconstruction activity
According to Construction Industry Development Board(2008), government budget and expenditure reacting toeconomic tidal may well portray the condition of industry as
well.
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IMPACT C.I (CONTD) In year 2008, RM 63.15 billion worth ofprojects was awarded (of which
43.7 per cent of RM 27.60 billion, is from government coffers) compared
to 2007 and 2006 values of RM 47.48 billion and RM 22.45 billionrespectively.
As fuel prices, cement makers were more reluctant to supply theirproduct to outlying regions because of the costs involved with transport.
The outlook for construction is poor for 2009. The global economicdownturn bodes ill for exports and economic growth in Malaysia, so privatecommercial construction will be undermined.
As construction projects are often initiated according to stated goals andobjectives, most of the lists were based on a particular project scope andpurpose
On the other hand, other sectors with the exception of construction,recorded negative growth in the first quarter of 2009
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Histogram shows total number of projects awarded to by category as ofDecember 2009 (Construction Industry Development Board, 2010).
2006 2007 2008 2009
NO OF
PROJECT5854 7358 6327 5281
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Create a worst-case scenario
Build up an Emergency fund
Have a consistently rebalanced investment portfolio
No matter what field of your profession, always striketo be the best
Diversify your income source
Know your funding sources and manage the
relationship properly Learn to live on less than your income
compromise on your lifestyle
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These measures focus on;
fiscal policy - government revenue in collectiontaxes and expenditure),
monetary policy control the supply of money.Targeting of interest rate to promote economicgrowth and stability. Included stable prices andlow unemployment.
government mechanism provides socialsupport from social sector and set up targetedprogram to the poor and lower income group.
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As a very open economy, Malaysia was
affected by the global recession started in the
third quarter of 2008 and continued into the
first quarter of 2009. with the stabilizationglobal financial markets and the subsequent
recovery in the advanced economies, the
policy response the rapid and monetarypolicy fiscal have played an important role in
maintaining domestic demand over the
period.