GLOBAL GOVERNMENT-LED BUBBLE TO BUST IN TWO TO FOUR YEARS, FRANCIS YEOH WARNS
Tycoon Tan Sri Francis Yeoh warned today of a global bubble bust within the next two to four years, attributing it to the ï¬rst ever government-led bubble created by the US and European governments who have been printing money. The YTL Corporation group managing director said in the past, the bubbles were created by the private sectors and the government would step in and regulate but todayâs bubble is by far the largest, and the governments are printing money without productivity.
He said the US and the European countries have introduced inï¬ation to the world but not in their own economy, by printing money.
âIn India, onion prices went up 300 per centâ¦ nobody notices this.
âIn Malaysia, if the average wage earned is RM3,000, how can you afford a RM700,000 home? Itâs 200 times your wage.
âIf we want a high wage to keep up with inï¬ation, without increasing productivity, youâre going to have a problem,â he said during Pemanduâs Global Malaysia Series in collaboration with BFM radio at the Securities Commission here. The 59-year-old magnate said investors should be wary and prepare for when the bubble burst.
âIn Asia, weâre beginning to have inï¬ation pressure. If we donât put our ringgit up, we may be importing quite a lot of inï¬ation,â he warned.
He asserted, however, that property investment would be the best bet against the bust he is predicting.
âThe next time it comes around, itâs going to be very bad. Iâve seen different bubbles and size of our acquisitions as I age and Iâm saying this is the biggest ever.
âSo some of you investing, watch out, you can buy YTL Corp shares,â he said in jest.
He said since he has already identiï¬ed the problem, the company would have come up with a solution when it does happen.