2008 economics crisis in Malaysia: Implications on the economy, society and safety nets

Malaysia`s experience with the 2008 financial crisis was very different from that of 1998. Notwithstanding the differences, the country was not spared of the negative setbacks. Many sectors of society felt that the impact. The impact of an economic crisis on export and industrial output deteriorated and investments declined. At the national level, income reduction could be due to lower demand for goods and services, rising unemployment, and reduced investment or remittances. Crisis also vividly affected private or public spending on education, health, and even food. The non-existence of comprehensive social safety nets (SSNs) for formal and informal sector is a cause of concern as this may exacerbate economic and social instability in times of economic shocks. This paper remains a review examining Malaysia’s setbacks caused by the 2008 crisis. The focus would be on the financial sectors and the implication the crisis had on society at large. Following the review, the paper suggested that government advance comprehensive social safety nets programs and job placements to improve the living standard of the citizens. The programs should be based on special training and education and implemented with a government- private collaboration.