Are you feeling the heat in this current financial crisis. There are headlines in local news saying, “European nations in race against time to save their banks”. French president said “if not fixed, it’s a ‘game over’ . . ” in general World leaders are scrambling to finalise rescue plans for their banking systems.

So we in Malaysia will feel the heat soon. No doubt it is almost winter elsewhere and it is a rainy season in Malaysia, if we as consumer does not extra measures we will “melting down” too. We should be frugal in our spending to be in a better financial shape. How should we do it?

For those who are driving, now is the time to think seriously on carpool, postponing buying extra car or to change your car, and do travel domestically in the coming holiday season. I would advise do not over spend or buy unnecessarily but do not stop spending as this would not be good for the economy. The business activity should go on but we need to put extra cautious in spending. Looking at current scenario, oil prices is coming down so this would trigger a price reduction in consumer items.

Fresh graduates not to be too fussy about jobs as companies, in view of the global crisis, may not be hiring. Lay off is predicted in this current situation but the first to go are of course the foreign workers. Manufacturing industry will be badly hurt it seems.

Looking at the bright side, to those who have cash this is the time to make money (aahah! now you are waking up) . . . Those with cash may take advantage of the situation by buying cheaper stocks on the share market or even buying a cheaper property.

Malaysia does not expect to go down as bad as their counterpart in the US and in the Europe, because Malaysia has a massive surplus account. With the government support, our banks is safe and by experience our bankers know what to do based on the 1997 global financial crisis. Despite this strong credentials, Malaysia will have a similar effect due to several factors like the uncertain political scenario.

• http://www.france24.com/en/20081005-eu-leaders-call-looser-finance-rules-fight-crisis-financial-crisis
• http://www.ft.com/scramble_to_avoid_collapse
• http://www.ft.com/cms/greatest_shock_since_1930s

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