PPISMP PSV 09 SEM 2 Nur Syazwani binti Sanusi Nazifa binti Hanipah Azijah binti Jaang Nusrah binti

Kamaludin

Production and income have been hit, and this was led by the fall in exports in manufacturing, oil and agricultural products. The falls in the key figures have been surprisingly steep, showing that the Malaysian economy started stalling and then falling in the last three or four months of 2008. Although recessionary conditions have affected the Western countries which are the origin of the financial crisis, in fact they have affected Asian countries even more badly. This is vividly brought up by a graph in the Financial Times of 26 February, showing that the exports in the latest month (compared to 12 months previously) fell in Japan by 46%, Taiwan 44%, the Philippines 40%, Singapore 38%, South Korea 34%, Indonesia 20%, China 18%, Thailand 16%, Malaysia 15% and Vietnam 5%. The most worrying fall has been in manufacturing exports, and within that in the exports of electronics, electrical machinery and appliances. When the financial crisis began in the United States and Europe in 2007 and worsened in the first half of 2008, there had been little effect on Malaysia or other Asian countries.

 Measures

to reduce price. Budget expands. Stop establishment committee handle employee issues. Enhancing employee skills through retraining.

Government has taken steps to reduce prices of essential goods such as petrol and rice in line with the reduction in world commodity prices. Diesel subsidy will be given to specific groups such as fishermen because they aim to reduce operating costs and indirectly the price of fish in the markets. Floor price of petrol will be fixed and savings that could result from reduced government subsidies will be channeled to the people. For example RM7 billion stimulus package that was announced as the savings from the fall in oil prices.

The government also expanded practice budget (expansionary) and not contracted for by inserting money into the pockets of the people. Although forced to spend more than income and raise the deficit to 4.8 percent, the government do so because it best for the country and people. Second Finance Minister has stated 1-2 years of high deficits are not a problem to the country. In the 1997 crisis, the government deficit has reached 5.5 percent

Government took initial steps to establish two committees for special problems retrenchment by the employer in the country following the global economic crisis. Two committees is the Committee on Retrenchment Assistance Committee and retrenched workers.
Human Resources Minister Datuk Dr S. Subramaniam said

Retrenchment Committee will issue a guideline regarding the management of retrenchment and the steps to be taken by employers when confronted with the global economic crisis. He said the guidelines will be available before December this and other monitoring economic conditions, they will also help find jobs for retrenched workers regardless of their field work. Assistance Committee retrenched workers will play a role to protect the welfare of the question and formulate a program to train the employees who had been fired. Training will be given through Human Resources Corporation Berhad (PSMB) under the provisions of RM5 million and efforts to apply the provisions additional from the Ministry of Finance are currently being cultivated.

The Government will enhance the skills of approximately 750 000 employees in small and medium industries through retraining to enable the industry to compete in the market and greater selfreliance. Datuk Dr S. Subramaniam said that the retraining will be given before the end of this year, will be funded by the Human Resource Development Fund. The ministry will identify appropriate training programs that benefit the employee, the employer From 11.396 to contribute to a fund managed by Human Resources Development Ltd (PSMB), more than 70 per cent are SMEs, he said. SMEs are mainly from the manufacturing sector which has less than 150 employees and the services sector which has less than 50 employees.

Intelectualities capital must be strengthened. This means that all the expertise and specialized knowledge related to the country's financial and economic management must be reinforced to enable the government to make decisions and be in the right place and time. Need to increase efficiency of the most basic level to the more sophisticated. In this context, the Ministry of Finance as the central agency also provides services to other agencies. Therefore, if a file can be completed with a shorter example, the efficiency will be achieved. In the challenging world of today, all parties need to digest the idea of a more innovative and creative. To achieve it, they can no longer wear a long way in the current environment. No longer can see the work carried out solely because of provisions that provided 100 percent has been spent. In contrast, must assess and view factor based production work. Need to ensure that every product and service produced includes spent actually carrying value of the ringgit to the government. Avoid corruption and continue to hold the values of integrity.