Assalammualaikum warahmatullahi wabarakatuh, my dear blogreaders,
As we all know, anything that happens in life, there is always repercussions that can affect us from individual aspect, right to the people around us and then it affects the world perspective. Let's bring back the pictogram which I have included in my introduction post previously:
Repercussions of Recession (Macro to Micro perspective-Black Arrows):
From the world perspective, anything that happens to any part of the world, it has its very own set of repercussions to each and every country in this world. We call this a ripple effect. The damages from this repercussions can be detrimental to the country's economy.
For example, the decline of the Malaysian ringgit, results in a weaker dollar value, hence nations from countries with stronger dollar value buys the Malaysian ringgit at a lower rate as compared to previously. Not only that, they would travel and shop in Malaysia hence boost the economy in some way or another, but the Malaysians will face the side effects of rising prices in daily necessities, housing, transportation and other areas, which later translates in the high standard of living.
Another example that I can share is with the decline in oil prices recently. It has caused major economic slowdown which affects the Oil and Gas industry, the Banking industry, the labour market, right down to people like you and me.
Repercussions of Recession (Micro to Macro perspective-Blue Arrows)
From the micro perspective, having been the country being greatly affected with the recession, companies starts retrenching people, in the efforts of sustaining the business operations by reducing costs in every aspects of business. Therefore, the unemployment rates rises. When companies retrench people and not creating any new job, the pool of unemployed people rises. Not only that, every year, there sure are people graduating from school. It is a matter of whether they will get employed during the tough period of recession. To combat this issue, it is advisable for everyone to keep themselves updated with new skills and knowledge. Especially with the government providing Skillsfuture credits for upgrades, make full use of it.
When economy slowdown, with the high unemployment rate, more people are determine to work hard to protect their 'rice bowl' and even try to cut down on unnecessary expenses. With this move, retail outlets are affected. Thus, this somehow or another, affects Singapore's economy. However, with Singapore's increase in travellers into the country, "STB said expenditures for shopping, accomodation and food & beverage grew significantly..." (Article by CNA).
I will share with all of you in my next blogpost the final topic on recession. Till we meet again. In syaa Allah. Aamiin.
Wassalammualaikum warahmatullahi wabarakatuh.
Articles:
1) Cautious consumers, falling retail sales, high cost and strong dollar leading to empty malls.
2) What's keeping shoppers away from retail malls in Singapore.
3) Visitor arrivals in Singapore up 7.1% year-on-year in June.
