Outlook for 09

Recession. Unemployment. Wage/head freeze.

Its been a long time since I blog about such boring stuff, but yeah, all the major indicators are suggesting that our economy is heading SOUTH.

a) Unemployment crept to 3.3% from 2.8% (and expected to worsen). I heard alot of SMEs and MNCs are "restructuring" and firing after CNY. We shall see.

b) Our Gross Domestic Product (GDP) - total value of goods and services produced in Singapore is expected to contract: ranging from -1 to -4.5%. I dunno what our dear small Lee will say on 22nd Jan but dun expect him to say flowery stuff about our economy.

c) Expect a major wage cut from SMEs to Government sector. The annual/monthly variable wage should be drastically reduce to "preserve rice bowls".

d) Massive government spendings - education, health, construction sector are expecting to be the main targets for spendings. So why spending is also an indicator of bad economy? It usually means there are insufficient demand in the private sectors and hence, its the role of government to "spend in their place" to cover up the excess capacity unwanated by the private sector.

e) Falling in increament of price level. People always complain here expensive there expensive. But the worst has yet to come. If one fine day, when we experience everywhere price drop ( deflation ), I tell you that day will be laggi jialat. Cheap doesnt mean good. I rather things stay expensive, seriously.

What a gloomy year ah? Yea, I suppose this is gonna be a repeat of the 97 financial crisis / 03 Sars. Expect hardships ahead folks. Jiayou!