Category Archives: Economic Analysis

Bumpy Roads Ahead For Banks

After enjoying a good run in the last few years, players in Malaysia’s banking industry are bracing themselves for a tougher operating environment ahead, amid growing headwinds in the external environment and intensifying competition.

Additionally, a tighter regulatory regime with the introduction of the Financial Services Act (FSA) and Islamic Financial Services Act (IFSA) in July is expected to bring about a change for the industry.

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China’s growth has slowed to 7% – 8% this year, from around 9% to 10% two years ago. Price bubbles are building up while bad loans and excessive lending are plaguing the banking sector. India, which has been growing above 7% in now projected to grow by just 4% in 2014.

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Why You Should Invest in Indonesia?

The market outlook is bright for the most nations in Southeast Asia. Indonesia is one of the biggest economies with the population of about 240 million people. The World Bank has forecasted the country will grow at 6.2% this year. Indonesia is a county that can be very crucial in the global economy. By the end of the decade, its position can be raised to the 10th largest economy and by 2030; it could be the top 5.


According to Fitch Ratings, Indonesia’s investment grade rating has been upgraded from BB- to BBB+.

During the global recession of 2008/2009, Indonesia economy grew at 6.2% in 2008 and 4.5% in 2009. Real GDP has been growing at 5% to 6% annually since 2002. Therefore, we can see that the Indonesia market grow at steady rate even in economic crisis.

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KLSE Market PE

As at 6th Jan 2012, our local market is valued at a P/E (Price per earning) of about 14.8x on 2012 earnings. In the other words, it is currently lower than the 10-year average P/E ratio of 16.7x. So, it would be good opportunity for investor to make own assessment and decision in the present market condition.

pe ratio

P/E ratio is commonly used by stock traders to value a company. It reflects whether a company’s share price is overvalued or undervalued.

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Is Your Employee Turnover Rate Acceptable?

employee turnover rate

For any organizations of any size, it is required to take staff turnover into account. This is to calculate the cost of doing business. Basically, it is a calculation of wastage whereby you take the number of employees who leave the company, to the total number of employees in one company.

For example,
Company Y: Employed 1,000 persons in January 2010. By January 2011, 300 had left. This gave a high turnover of
staff turnover

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Can China Overtake US Economy by 2030?

In my opinion, China could overtake US as the world’s largest economy if it maintain annual growth of 8% over the next 20 years.

china gdp

Last year, I had already overtook Japan as the number 2 economy, and set a growth target of 8% for 2011 and is aiming for 7% per year from 2011 to 2015. The reason why I said that China can become the largest economy by 2013 is because it has the potential market which measured by purchasing power parity.

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