There are growing worries about what the economic future holds. Those sectors of the Malaysian economy which are dependent on industrial exports to the US and UK will suffer and companies will have to shut down their operations. Western Digital in Kuching is one example.

Sabah isn't dependent on industrial exports. Not sure about Sarawak.

Generally, the economies of Sabah and Sarawak are neither that big, nor that sophisticated, and so can be expected to escape the brunt of the current crisis.

Singapore industries will be badly hit but the government there is readying an economic stimulus package.

Malaysia will be hit by workers returning from Singapore and elsewhere. Sabah and Sarawak will be hit by workers returning from Peninsular Malaysia as well. This would be an opportunity for local employers to utilise these skilled workers and venture into new areas.

In the case of Sabah and Sarawak, the respective state governments must make sure that the federal government lives up to its promise of funding for the 9th Malaysia Plan targets in the two states, the economic corridors and the special RM1 billion each allocation promised in May last year to "reward" both states for their performance in the general election last year and to compensate them for their poor representation in the federal government.

In the case of Sabah, the federal government promised RM20 billion for the 9th Plan and RM2.3 billion for the Sabah Development Corridor, besides the RM1 billion.

Not a sen of the RM1 billion has been received. Of the RM2.3 billion, only RM10 million was received last month. Not sure about the 9th Malaysia Plan funding.

Overall, the Malaysian financial system is liquid and healthy after the 1997/98 Asian financial crisis.

It is clear that the state governments of Sabah and Sarawak would have to play a role in insulating their respective economies from the financial tsunami and economic crisis sweeping the developed world and creating contagion effects in Peninsular Malaysia, Singapore and elsewhere.

Cash is king. Those who have cash need not worry. In fact, this is a time of unprecedented opportunity to pick up bargains in the market at rock bottom prices, if not in Sabah and Sarawak, at least in Peninsular Malaysia and Singapore.

Those who are working with the government and dependent on government contracts need not worry either.

Commodity prices are down but here you have to take the fat years with the lean ones. The rural areas will be relatively immune.

Tourism is a fairly recession-proof industry and there should be greater emphasis on domestic tourism as well.

The education industry will continue to do well. Re-training during an economic downturn and education will continue to be vital. Here, the government should pay for unemployed workers to go back to school. While the total bill will be peanuts to the government, it will make a big difference to these ‘students’.

BRIC (Brazil, Russia, India, China) economies are booming and will continue to boom irrespective of what happens in the US and UK, which are suffering the brunt of the financial tsunami and economic crisis. Europe remains positive.

The US can be expected to come out of the financial tsunami and economic crisis within the next two years. The financial system is being re-capitalised and once credit starts flowing again, businesses will pick up.

What is important is not the level of debts but whether you have the ability and willingness to repay your debts. A good credit rating and access to credit are vital in today's business world. In that sense, no one doubts the credit rating of the US government.

The big problem in Malaysia will be the continued political uncertainty in Peninsular Malaysia.

BN is a good organisation but not the racist anti-Indian, anti-Borneo and anti-national Umno which continues to mismanage the economy through cronyism and nepotism and where a minority continues to squat on the rest of the population to finance their indulgent lifestyles.