Deflation won’t impact consumers if short term, say analysts
MIER executive director Zakariah Abdul Rashid said that current price deflation should not be construed as recession yet but the deflation was to a certain extent a manifestation of weakening demand and slowing down labour productivity growth. ― Picture by Miera Zulyana
“In other words, our disposable income increases. Prices going up and down is an indication that the markets mechanism is working rather well,” he said.“Actually 45 per cent of goods listed are non-durable and perishable items, one can buy more when it is cheaper but is it possible to stock? Most of those are once-in-a-while purchase. You don’t buy clothing every day just because it’s cheaper, unless you are rich and addicted to shopping.
“This is where the impact will be felt. If a person is selling things at low prices, he may not be able to sustain the business, and this will result in laying off employees or shutting down. “The faster rise in wage growth over that of labour productivity recently seems to not exert any inflationary pressure at all. On the contrary, the current price deflation signifies prevalence of ample room for further wage increase in order to stimulate private consumption expenditure, thus simultaneously addressing the cost of living problem,” he said.
However, Alin said that Malaysians for now need not be too concerned as the country has been through deflation before and will emerge stronger.
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Muhyiddin: Pakatan always strives to protect privileges and rights of Malays, Islam | Malay MailSEMENYIH, Feb 27 — Pakatan Harapan (PH) deputy president Tan Sri Muhyiddin Yassin stressed that the government will always strive to safeguard the rights and privileges of the Malays and Islam. He pointed out that the PH government was currently being accused of selling out the rights of Malays...
Read more »
Under fire, Nazri defends allegedly ‘racist’ remark on Malay rights | Malay MailKUALA LUMPUR, Feb 25 — Datuk Seri Mohamed Nazri Abdul Aziz defended today a remark he made while campaigning in Semenyih, after it was slammed for being “racist”. Mohamed Nazri courted criticism after he said that non-Malays should not question Malay privileges as the former also enjoys...
Read more »
Suhakam denounces Nazri's remarks, repeats call for IcerdPETALING JAYA: The Human Rights Commission of Malaysia (Suhakam) has denounced the statement by Datuk Seri Nazri Aziz regarding the appointments of non-Malays to the positions of Chief Justice, Attorney General and Finance Minister.
Read more »
Deflation hits Malaysia for the first time since 2009 | Malay MailKUALA LUMPUR, Feb 22 — The economy entered deflation in January for the first time in almost 10 years since November 2009 as consumer prices declined 0.7 per cent from a year ago. UOB Global Economics and Markets Research, however, expected the drop in the consumer prices index (CPI) to be...
Read more »
Bloomberg writer: Putrajaya skirting deflation issue with 2008 talk | Malay MailKUALA LUMPUR, Feb 27 — Finance Minister Lim Guan Eng should not have compared the current deflation to the 2008 financial crisis, said a Bloomberg ex-editor. Former Bloomberg executive editor Daniel Moss said this would prevent the necessary attention on the issue. “Lim’s Great Recession...
Read more »
Pakatan has good chance of retaining Semenyih seat, says political analyst | Malay MailSHAH ALAM, Feb 27 — Pakatan Harapan (PH) is seen to have a good chance of retaining the Semenyih state seat in the by-election this Saturday, said Prof Dr Mohd Azizuddin Mohd Sani of Universiti Utara Malaysia (UUM). According to the political analyst, the coalition has a bigger chance...
Read more »