The Global Economic Crisis 2008: Impact on Malaysia
List of Authors
  • Muhammad Ariff Haziq Mohd Latiff, Noraini Zulkifli

Keyword
  • Capital Flows, Economic Crisis 2008, Economic Security, Malaysia, Recession

Abstract
  • This study analyses the 2008 Global Economic Crisis impact on Malaysia Economy and how Malaysia responds to recover its economy from further recession. The study argues, although the root causes of the Global Economic Crisis 2008 happened in Western Country, the impact still reach out to Southeast Asia Region and country especially Malaysia. The objectives of this study consist of three focuses, to Identify the factors that lead to the Global Economic crisis 2008, access the impact of the crisis on Malaysia and to analyse Malaysia response and strategies to mitigate the crisis. The methodology underpinned in this research was Qualitative method which focused on the use of secondary resources from reliable printed and online documents. Th Concept of Economic Security was used to explain the researched phenomenon. The finding of this research is that first, the Global Economic Crisis emerged from US are rooted from the Subprime Mortgage incentive, lead to the Housing Market bubble Burst and the involvement of financial institution like Lehman Brothers. Secondly, The Malaysia felt the impact during the second half of the crisis which affected Malaysia Financial system, its capital Flows, Foreign Exchange Rate, Banking system and Malaysia Exports and the industrial production. Thirdly, Malaysia responds by giving two stimulus packages to encourage spending, monetary policy adjustment and put its effort to stabilize the currency. This Study concludes that despites the economic security challenges that Malaysia faces from external factor from the Western Country, Malaysia still manage to recover its Economy with appropriate and fast solutions to curb the Challenges from spreading to far and secure its economy.

Reference
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