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.
