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 thatof 1998. Notwithstanding the differences, the country was not spared of thenegative setbacks. Many sectors of society felt that the impact. The impact of aneconomic crisis on export and industrial output deteriorated and investmentsdeclined. At the national level, income reduction could be due to lower demandfor goods and services, rising unemployment, and reduced investment orremittances. 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 mayexacerbate economic and social instability in times of economic shocks. Thispaper remains a review examining Malaysia’s setbacks caused by the 2008crisis. The focus would be on the financial sectors and the implication the crisishad on society at large. Following the review, the paper suggested thatgovernment advance comprehensive social safety nets programs and jobplacements to improve the living standard of the citizens. The programs shouldbe based on special training and education and implemented with agovernment- private collaboration.