FINANCIAL CRISIS IN US TO REMAIN IRRESPECTIVE OF WHO IS ELECTED PRESIDENT,

KUALA LUMPUR, Nov 4 (Bernama) -- The Malaysian Investors' Association (MIA)
says that, irrespective of who is elected the 44th President of the United
States, the current financial crisis in the country will remain a thorny issue
for some time.

Its president, Dr P.H.S. Lim said the economic problems of the US had
become a global issue, resulting in financial markets turning volatile.

"The US is facing a recession as its manufacturing activities are now at a
25-year low. Consumption will remain low and unemployment which is also up, may
reach 9% by Christmas with two million workers out of jobs," he said in a
statement released to Bernama here Tuesday.

He added that the basic problem of the US is the high labour cost.

He said its end products or services carry an average of 60 percent labour
cost.

He also said the US economy is no longer competitive. At the same time, its
banking system had low savings and deposits while banks were greatly dependent
on Federal Reserve Bank loans for lending.

Three decades of easy credit in the US had caused many of its housing
loan companies, banks and insurance companies to be bailed out during the
present financial crisis.

According to Lim, the United States had a national debt of US$10 trillion,
mostly spent on wars and for 2009, the deficit may exceed US$800
billion.

"Such a financial situation makes it hard for the new President to cut
taxes," he said.

Barack Obama and John McCain are the two presidential contenders in the
election which began today.

Meanwhile, Lim said that stock markets all over the world had lost US$10
trillion in value in October.
-- BERNAMA