Falling into Recession

The Malaysian and Singaporean governments are preparing for recession. In Malaysia yesterday, the prime minister advised government linked companies must prepare for a possible global recession. The Finance ministry in Singapore said that the republic may slide into a recession as slowing global economic growth.

A recession is typically two consecutive quarters of economic contraction. Below are the quarterly performance of these two countries stock market, based on the benchmark indices.


COMPOSITE.KL and STI.SI performance chart since March 2008 using NextVIEW Advisor

Both Malaysia's Kuala Lumpur Composite Index (COMPOSITE.KL) and Singapore's Straits Times Index is down 17.6% since March 2008, 2 quarters ago.