I received a news that many retail shops is closing in the US because of the slow economy which was dragged down by the global economic downturn. From the look of it, hard times which has been endured in other global region will hit USA as the Q1 growth in the US was slow and going into Q2, the momentum is equally bad.
The slow global economy have not spared Malaysia as I heard a lot of stories in KL that restaurant business was down 40 percentage points or more . It is not about inflation going up because of GST but a also the worsening of the global economy which cuts global demands.
Now it is quite obvious in Penang as I could see many shops in prominent areas are for rental and some of it has been vacant for months . In the past month, I noticed that most restaurant suffers business down more than the 40 percentage points but even to the extend of 70 percentage points. Many restaurants and café are empty and the traffic at the malls are also down very much.
I was at Gurney plaza last week and this weekend I was at Gurney Paragon. The traffic at Gurney Plaza was much better than Gurney paragon. But , the traffic have been very much low than the past long weekends.
If you walk the streets , the malls and the retail areas, you could feel that the situation is very much quieter. People are just not spending as many banks , factories and retail shops are laying off people or are closing. However there is a surge in the sale of second hand cars as those people who have got a big payoff choose to join the Uber team which allows a lot of free time for the family while earning enough pocket money to survive.
While waiting for the worst to come, I would like to advise all my reader to be cautious , thrifty and be aware of the investments using their retirement funds. Time is bad and don't make bad investment decisions. Otherwise, it will be worst for all of you.
Namaste.
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