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THE EFFECTS OF ECONOMY DOWNTURN IN MALAYSIA

In this modern era, our country, Malaysia experiences economy downturn due to inflation.
This has led to many drawbacks such as increase in the price of goods, capability of parents to afford
their children’s studies and affordability in getting good health care.

First of all, the effect of our country’s economy downturn is the increase in price of goods such
as rice, cooking oil and fuel, just to name a few. This will give more burden, especially to families with
low income as those things are the basic needs in our life. According to Charlaftis, significant increase
in the cost of living also give significant impact on Malaysian families. This causes problems to a lot of
people as they have to spend more money on things that used to be cheaper. Hence, it is undeniable
that families with low income are the most affected in this case. Therefore, it is clear that many people
are unable to fulfil their needs due to the increase in price of goods.

Secondly, economy downturn also affects parents’ capability to send their children to study
at tertiary level. Many middle-class parents even could not afford to provide financial support for their
children in local universities. They only depend on financial assistance for students but due to currency
crisis, financial assistance such as scholarships are provided to only top students. Some students
studying in overseas are also required to return and continue their studies at local universities.
Government agencies such as Majlis Amanah Rakyat (MARA), Jabatan Perkhidmatan Awam (JPA) and
Perbadanan Tabung Pendidikan Tinggi Nasional (PTPTN) do provide loans for unaffordable students.
However, as a result of economy downturn, less students are able to pay back the amounts loaned,
resulting in those agencies to run out of funds, hence affecting their ability to provide financial
assistance for the next generations. Hence, as a knock-off effect, less students are able to further their
studies due to economy downturn.

Lastly, economy downturn negatively impacted the society, in terms of access to good health
care. The health budget for public sector in Malaysia was cut down by 12% (Suleiman, Lye, Yon, Teoh
& Alias, n.d). The cost for medical treatment and medicines have risen due to the crisis. Treatment
costs in private hospitals are way more expensive as they provide better service compared to public
hospitals. Though public hospitals charge lower service cost, the process of getting treatments there
often take longer time as people are required to make an appointment beforehand. Most people
prefer private hospitals, but not for poor people without insurance as it will cost them an arm and a
leg. As a result, the society have lack of access to good health care.

In conclusion, increase in the price of goods, capability of parents to afford their children’s
studies and low access to good health care are some of the effects of economy downturn on
Malaysians. The authorities should play their roles in overcoming these problems to ensure that our
country’s economy return to a stable state for it is our rights to experience a better life.

(503 words)

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