MALAYSIA'S ECONOMY IN DECLINE

1. Introduction 2. The fall in national income -- Signs of the economic decline -- Drop in per capita income -- Fall in private consumer spending -- Decline in national income (GNP, current prices) -- Decline in Output (GDP constant prices) 3. Weakness in the External Sector -- The fall in export earnings -- Balance of payments improves, problems remain 4. Public sector finances deteriorate -- Increasing size of the public sector The Federal Government's budget deficit -- Jump in consolidated public sector deficit ---The public sector's debt mountain rapid rise in Government debt servicing 5. Crisis in the private sector -- Wrong business decisions -- Fall in company income and capital outlay -- Massive drop in private investment -- The failure of big companies 6. Foreign debt and capital flight -- The climbing foreign debt -- Effects of the Ringgit's depreciation -- The problem of capital flight 7. Social implications of economic decline -- The rise in unemployment -- Worsening of poverty -- Basic needs and facilities and social inequalities 8. Factors causing the economic decline -- The economic decline as a structural crisis -- Unfavourable world economic conditions -- Malaysia's overdependence on trade public debts, prestige projects and failed government companies -- Private sector's overbuilt property development and share speculation -- Weaknesses in the banking system -- Corporate malpractices and financial disorders 9. Policy suggestions to counter the decline -- Prospects for the Malaysian economy reducing trade dependence, towards greater self-reliance -- Reducing foreign loans and other financial measures -- Allowing the "People's Economy" to flourish -- Curtailing waste and misuse of public funds -- Cleaning up corruption and abuse of power -- A change in development strategy 10. External debt problem :How serious? -- Level of External Debt -- The rise in external debt service -- Malaysian debt compared with other countries 11. Public debt and luxury projects -- Government's overall debt position government loans and non-performing projects -- Examples of luxury and prestige projects 12. Towards public participation in economic decisions

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