2009 - A New Year With New Challenges...

2009 is most likely to be a year of continuing global economic meltdown. Almost all countries will experience symptoms of recession. A recent article in Malaysian Business (January 1st-15th) provided a forecast for the year ahead for a range of key sectors of the economy. The view is one of slowing down, increased competition and poorer fortunes for the likes of Sime Darby (the worlds largest plantation company but also with major interests in property, motor and industrial operations). Tenaga Nasional Bhd (Malaysia's national electricity provider) is likely to reduce its capital spend. Despite a fairly resilient banking sector and news of KFC Holdings expanding their resteraunts and CIMB opening new branches, the concensus is that the effects of recession will hurt the construction sector with abandoned or deferred projects and property launches. The focus must be on identifying those sectors and businesses that may offer opportunities. The food and beverage sector seems relatively unscathed and there is potential in expansion of the private healthcare business given opportunities in the health tourism market. The construction industry has been encouraged to develop its international strategies through the Construction Industry Masterplan 2006-2015 (http://www.cidb.gov.my/cimp/). Firms will look beyond national boundaries at potential to market their services abroad. The key question is, do they have the necessary know how and skills in promoting themselves given this new and challenging environment?