Danger signs for the Malaysian Economy.

• Inflation is reported at 2.8% in the fourth quarter of 2014. This will rise when the GST is introduced. The government has long had a credibility problem with its release of figures related to the cost living.

• The Malaysian ringgit according to Bank Negara declined by about 12% against the US Dollar between September last year and February this year.

• The ringgit can be under attack if we do not make structural changes in the economy, like following more closely the New Economic Model and phasing away. We have to be more realistic under globalisation or just withdraw from it and face the isolation.

• Short termexternal debt is high at RM359 billion , especially when more than half of it is denominated in foreign currency. The foreign debt can rise if the ringgit falls further. Our international reserves can support only 1.1 times the short term external debt. 

• Household debt expansion may have slowed down to 9.9% in 2014 compared to a large growth of 15% in 2010 , but it is still unacceptably high and the banking system can be exposed to more risk.

we may not be crisis now , but we are facing critical times ahead. The major world economies are generally slow recovering or are still struggling to recover .