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GROUP MEMBERS :

Noor Azirah binti Ismail (2011978829)

Siti Nabiha binti Zupli (2011784289)

Fatin Fatanah binti Mazlan (2011924911)Nurul Shidah binti Zailani (2011574173)

Nurul Fatihah binti Shahruddin (2011370681)

PREPARE FOR : PUAN IZATUL FARRITA

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An economic recession is simply defined as a

significant decline in the economic activity spread

across the economy that usually lasts more than a

few months. a recession is a decline in a countrysGross Domestic Product or a negative real economic.

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Inflation refers to a general rise in the prices

of goods and services over a period of time.

Recessions are caused

increase in interest rates

decline in consumer confidence.

Firms reduce output and lay off workers,which further decreases demand, and

the economy slows even more.

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Rise of Unemployment rate

Stock market plummet Real Estate plummet

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Lose your job

Cant afford to pay back your mortgage

Watch your investment portfolio shrink in

value

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Fall of the World Trade Cause Sudden

contraction Gross Exports and Manufacturing

Production Malaysia

Export-Oriented Manufacturing Sector

Receiving Worst Effects

Weaknesses External Sector Specific to the

disadvantage of the Wider State Sector in

the Economy in First Quarter 2009

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IMPACT TO CONSTRUCTION

INDUSTRY

The Malaysian-German Chamber of Commerce (MGCC)exposed the construction industry growth level in MarketWatch 2009.

Due to economic this result to higher price of buildingmaterials, especially in cement and steels prices followed by

the abandoned projects in 2008,

In the previous recession, the Malaysia government hadallocated RM 18 billion under 2000 Budget to theconstruction sector. The results have been favorable as

reflected in the growing optimism and rise inconstruction activity

According to Construction Industry Development Board(2008), government budget and expenditure reacting toeconomic tidal may well portray the condition of industry as

well.

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IMPACT C.I (CONTD) In year 2008, RM 63.15 billion worth ofprojects was awarded (of which

43.7 per cent of RM 27.60 billion, is from government coffers) compared

to 2007 and 2006 values of RM 47.48 billion and RM 22.45 billionrespectively.

As fuel prices, cement makers were more reluctant to supply theirproduct to outlying regions because of the costs involved with transport.

The outlook for construction is poor for 2009. The global economicdownturn bodes ill for exports and economic growth in Malaysia, so privatecommercial construction will be undermined.

As construction projects are often initiated according to stated goals andobjectives, most of the lists were based on a particular project scope andpurpose

On the other hand, other sectors with the exception of construction,recorded negative growth in the first quarter of 2009

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Histogram shows total number of projects awarded to by category as ofDecember 2009 (Construction Industry Development Board, 2010).

2006 2007 2008 2009

NO OF

PROJECT5854 7358 6327 5281

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Create a worst-case scenario

Build up an Emergency fund

Have a consistently rebalanced investment portfolio

No matter what field of your profession, always striketo be the best

Diversify your income source

Know your funding sources and manage the

relationship properly Learn to live on less than your income

compromise on your lifestyle

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These measures focus on;

fiscal policy - government revenue in collectiontaxes and expenditure),

monetary policy control the supply of money.Targeting of interest rate to promote economicgrowth and stability. Included stable prices andlow unemployment.

government mechanism provides socialsupport from social sector and set up targetedprogram to the poor and lower income group.

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As a very open economy, Malaysia was

affected by the global recession started in the

third quarter of 2008 and continued into the

first quarter of 2009. with the stabilizationglobal financial markets and the subsequent

recovery in the advanced economies, the

policy response the rapid and monetarypolicy fiscal have played an important role in

maintaining domestic demand over the

period.