Tycoon Tan Sri Francis Yeoh warned today of a global bubble bust within the next two to four years, attributing it to the first 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 today’s bubble is by far the largest, and the governments are printing money without productivity.
He said the US and the European countries have introduced inflation to the world but not in their own economy, by printing money.
In India, onion prices went up 300 per cent… nobody notices this.
In Malaysia, if the average wage earned is RM3,000, how can you afford a RM700,000 home? It’s 200 times your wage.
If we want a high wage to keep up with inflation, without increasing productivity, you’re going to have a problem,” he said during Pemandu’s 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. “In Asia, we’re beginning to have inflation pressure. If we don’t put our ringgit up, we may be importing quite a lot of inflation,” he warned.
He asserted, however, that property investment would be the best bet against the bust he is predicting.
“The next time it comes around, it’s going to be very bad. I’ve seen different bubbles and size of our acquisitions as I age and I’m saying this is the biggest ever.
“So some of you investing, watch out, you can buy YTL Corp shares,” he said in jest.
He said since he has already identified the problem, the company would have come up with a solution when it does happen.
Source : Malay Mail