ABOLISH THE GST. Economy Is Dying, Unemployment Increasing

The economic situation is getting worse. Unemployment is increasing. Here is more unemplyment news.

http://www.humanresourcesonline.net/37699-workers-terminated-malaysia-2016/?utm_campaign=20170224_hrdaily&utm_medium=email&utm_source=MY&utm_content=topstory

37,699 workers terminated in 2016

Human Resources Ministry, 86.3% (32,552) terminations local workers 

remaining 13.7% (5,147) foreign workers, Bernama reported.

14,848 (39.4%) via (VSS) 

22,851 (60.6%) laid off

hardest hit manufacturing (45.9%)

wholesale and retail (20.7%)

finance and insurance (12.1%)

mining and quarrying (6.6%).

Malaysian Employers Federation (MEF) say more workers lose jobs this year.

termination in 2015 dominated by financial insurance sectors (39.8%)

manufacturing (20.8%) 

transportation and storage sectors (14.7%) 

2015, 44,343 workers affected

19,891 (44.9%) VSS 

24,452 (55.1%) termination process.


Here is another report about supermarts shutting down.

http://www.theedgeproperty.com.my/content/1071518/aeon-big-getting-smaller

AEON struggling to improve bottom line

to close three stores in Klang Valley.

Kota Damansara, River City, Bangsar South close in 30 days
 

reduce AEON store count to 22 from 26 

AEON listing also derailed

GST . . impacted AEON performance. 

Consumers spending cautiously

only buying necessities

AEON loss RM65.74 m in (FY2015)

slipped deeper into red in FY2016

2015 AEON accumulated losses RM271.97 m 

total liabilities RM1.13b,  RM794.1m current

gloomy outlook taken toll on Mydin 

posted first loss in 57 years in 2016.

Mydin loss RM170.67m FY2016 

weak ringgit, Price Control and Anti-Profiteering Act 2011

rising costs, poorer sales, sombre sentiment, wiped out margins

My comments :  Things are getting bad folks. Bad to worse to really worse. Here are some statistices from the Statistics Department's website. 

As at December 2016 there were 512,000 unemployed people in Malaysia. Well these figures do not capture the whole picture. There is a group of people classed as 'not seeking employment' who I believe are not included. Then there are those 'self employed' - insurance sales people, encyclopaedia sellers who may also not be in this category. Also people who are employed but not in regular 9 - 5 jobs.

So the real unemployment rate I think is much higher.  From what I hear the unemployed graduates alone (diploma and degree) exceeds 150,000 people. 

I think the unemployment situation is bad. Next is a business confidence index (of sorts).  This is how different sectors feel about business potential in the near future. 

At the end of December 2016, the confidence levels in the Construction and Wholesale plus Retail were NEGATIVE 18% and 15% respectively (eyeballing the chart).

Here is another "confidence" chart. From 2015 Malaysia has been accelerating downhill.  This is what the Statistics Department says. 

That is why Aeon Big and Mydin and other hypermarts and supermarts are making losses and closing outlets.  If these bad business conditions continue, no hypermart or supermart can survive. They are big and suffer huge overheads.

In good times the big businesses can make big money but in bad times they can also make huge losses very quickly and loose their pants. No business can make losses of say RM150 million or RM200 million a few years in a row and survive.

The losses are just the final number.  Way, way, way before you incur such losses the business will face cashflow difficulties to pay suppliers, pay salaries and worst of all to pay debtors.

From the news above, Aeon Big owes RM1.13 billion debt of which RM794 million is current. Current means it is due within 12 months. Most supplier debt will be due in 3 months to 6 months max. 

This is what really kills any business - not enough real cash flow.   

The policy making Morons do not understand all these simple things about business. They have never really managed any business in the open market before (minus crutches). So they do not understand anything.

JUST ABOLISH THE GST.