1. We are facing the global recession, Malaysia export will be negative. As global commodity price decrease & electronic product demand reduce, which is one of the main export of Malaysia.
2. When global demand reduce, the manufacturer will produce less products, capacity of the factory will reduce, this may increase the risk of factory to retrenchment the workers.
3. Manufacturer less production, profit of the factory will be reduce, if the company listed at the Bursa Malaysia, share price may come down due to adverse of profit.
4. When retrenchment then the unemployment rate of the national will increase.
5. When high unemployment, it will increase the social welfare problems.
6. In order to prevent economy recession, government should take further government spending to improve the overall economy.
7. Government spending more, businessmen have more business to do, this will lower the unemployment, company profit will be more stable this will overall improve the economy.
8. But by pump-priming nation's budget deficit will expand and the country credit rating adverse.
9. With the lower credit rating of the nation, if the country have foreign loan, the cost of borrowing will go high.
10. As we all focus on driving the economy, the nation's budget deficit should not be overlook. And the government spending should use it wisely as that can benefits all the nation.
