Friday 29 Mar 2024
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This article first appeared in Personal Wealth, The Edge Malaysia Weekly, on Dec 28, 2015 - Jan 3, 2016.

 

PEOPLE should conserve their resources and wait for things to truly stabilise. This will not happen until the end of next year or even early 2017, according to tarot card reader Rohini Pathmanathan.

Rohini, who did a tarot reading on how the economy will fare next year, says the outlook does not look rosy and people should exercise caution and wait it out. The country will be inching its way back to more stable ground. 

“It is going to be a bit of a slow rise to regain our previous footing. Money will enter the country’s coffers in spurts. You will see marked improvements during certain periods of the year and at other times, things will either plateau or get worse,” she says.

In terms of international trade and relations, prospects do not look good. Rohini says foreign direct investments will take a beating because investors no longer trust the government. International relations too appear be fraught with conflict. 

“It looks like there will be a lot of strife with people whom we trade with at present. Malaysia’s reputation will take a beating,” she adds.

Rohini says the cards indicate that the country will spend a lot of time in the first quarter of next year trying to patch up its reputation as well as improve relations with trade partners. But she foresees that things will only get worse in the second quarter. This is also partly due to astrological influences as “Mars is going into retrograde in the second quarter of next year”. When this happens, it usually exerts a baleful influence on the country, both economically and politically. So, there could be political unrest at this time, she adds. 

“It should kick off at end-March and go on until June. During this time, economise, budget your spending and conserve your resources,” she says. 

In the third and fourth quarters, however, she sees things stabilising. As there won’t be money coming in from outside, the economy will be propped up by domestic demand. However, start-ups and small and medium enterprises are not going to do well. In fact, they will have trouble sustaining their existing businesses.

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There may be a few false dawns, where it looks like things are getting better, but Rohini advises investors to ignore these and tread cautiously. Those who think these positive signs indicate that the economy has turned the corner may be in for a surprise.

The country’s fiscal deficit is expected to remain high as government expenditure will exceed its revenue, she says. “The government’s projections to reduce the deficit for next year might be readjusted. The cards show that any progress will be minimal. 

“There are indications of some big local players offering monetary support. This is probably going to stabilise the situation, but no major improvements will be felt … it is about being comfortable with the small changes and maintaining that,” she says.

Rohini is more positive about the outlook for the insurance industry and segments of the property market in the first and last two quarters of the year. “Funds that feed into the insurance business will see a pick-up. As for real estate, there will be focus on residential properties, specifically projects that emphasise green concepts like eco-housing and horticulture.” 

She adds that there will be more interest in holistic medicine and the aesthetic side of healthcare, especially cosmetic surgery.

Any good news, in terms of returns on investment, especially mutual funds, can be expected in the third and fourth quarters. But Rohini does not have anything good to say about the upcoming alternative investment platforms such as equity crowdfunding. “It’s a lot of hype and they are being touted as something that’s really not poised to deliver.” 

The Malaysian economy will also take a hit from low commodity prices, which are not expected to improve next year. 

 

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