Start Jan 1 with financial planning to beat 2023 recession, experts say

SHAH ALAM - Plan, make a list and spend wisely, experts have advised Malaysians amid prediction of global recession in 2023.

Economist Dr Barjoyai Bardai of Universiti Tun Abdul Razak said Malaysians should spend wisely and create a 12-month planning to manage finances.

"I am suggesting that Malaysians make a financial budget for next year and it should start in January," he told Sinar Daily.

He recommended to list assets and liabilities, cash flow and sources of income which include allowances, dividend and bonus.

He further advised Malaysians to pay utilities, healthcare and kids' education on time.

Meanwhile, economist Prof Dr Yeah Kim Leng of Sunway University echoed the same, stating despite many dire predictions of a challenging economic outlook next year, consumers should continue to spend wisely and live within their means, especially for the 'have-nots' who lack adequate savings.

"For those with a stable income, they can open their wallets as widespread cutbacks in spending will result in a more pronounced slowdown of the economy," he said.

At the same time, it will be considerably more difficult for those whose income fall short of the increase in the cost of living, which differs among households based on factors such as the size of families, demographics, geography, spending patterns and lifestyle.

"They will have to seek supplementary income sources, "smart" buying and reducing discretionary or non-essential expenses," he added.

Economists have been forecasting a recession next year. However, the debate on how deep or shallow, long or short, is up for debate, but economists agree that the economy is going into a period of contraction.