The causes and effects of the current global and Malaysian slump

Abstract

The current recession in Malaysia is clearly the result of the worldwide recession. This paper therefore firstly examines the sources of the global slump and its effects on developing countries in general. It then discusses the development, manifestations and effects of the slump in Malaysia. Finally, the paper brings out some of the key policy implications of the recession in Malaysia, and outlines some suggestions on longer-term structural changes in the economy to cope with what is seen as a long-term period of structural global stagnation.