Will oil crisis dampen Malaysia’s feng shui?

By Khairul Khalid

The oil price collapse has been big news in the past six months. Will it prove a drag in the Year of the Wood Goat 2015 and stymie Malaysia’s economic feng shui?

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Feng shui experts are predicting a relatively sombre year for the year of the wood goat in 2015, with a less than rosy economic outlook.

One of the biggest factors influencing these cloudy forecasts is the ongoing oil crisis. Arguably, the collapse of oil prices has been the biggest economic news in recent months, tumbling by more than 50%.

According to David Koh, founder and honorary life president of MINGS (Malaysian Institute of Geomancy Sciences), the impact of the oil crisis on Malaysia in 2015 will have both good and consequences, although not always in equal measures.

Not all doom and gloom

“Malaysia will experience mixed fortunes. Even though the oil price drop is good for consumers and vehicle users, the ringgit has also been weakening.

The situation benefits exporters but not importers. The recent budget review by the prime minister Najib Razak could also have a significant impact,” Koh told KiniBiz.

From the giddy heights of US$115 per barrel last year, oil price has fallen to below US$50 per barrel. Some analysts are speculating that it may even go as low as US$40. Malaysia has already fallen prey to the oil crisis.

It recently had to restructure its budget expenditure for 2015, slashing RM5.5 billion, due to lower revenue expected from petroleum.

Although there is plenty of speculation whether oil price will drop even further than what it is currently, Koh predicts that oil price may bounce back in the middle of the year, highly likely at around the level of US$80 per barrel.

“What falls down will eventually go back up again, but oil price is highly unlikely to reach the previous high levels of six months ago, at least not for a very long time,” said Koh.

Nevertheless, Koh says that the oil crisis is not necessarily all doom and gloom, even though Malaysia has been heavily dependent on oil revenue for the past few decades.

“On the contrary, the slump in oil prices may present a good opportunity for potential investors in the stock market,” Koh said.

Bargains in O&G stocks

The oil & gas industry falls under the fire element, which is ranked number three for 2015, after metal and water elements in feng shui analysis. Like a few other feng shui experts, Koh is ranking metal as the top ranked element.

Feng Shui are studies of life and the environment based on the Chinese philosophies of Yin and Yang (negative and positive forces) the Five Elements (metal, earth, water, wood and fire) and the Trigrams (Gua).

Each element has its potentially productive or destructive impact on the other four elements. The interaction of these elements could cause auspicious or inauspicious effects in one’s life.

“It could be a good time to invest in oil & gas in the stock market. Share prices of many oil & gas companies have also fallen and there could be bargains to be snapped up. But it will take quite a while to rebound to its previous level. So, investors should be prepared to hold the stocks for the long term before reaping any rewards,” said Koh.

The feng shui master acknowledges that there are serious problems in the economy and market sentiments are weak. Nevertheless, he remains optimistic about the country’s prospects.

“It may not seem too alarming now, but the country’s problems are accumulating,” said Koh. “However, the Malaysian economy should still be healthy in the long run although it is experiencing several “illnesses”,” said Koh.

Property buyers still cautious

The MINGS founder also predicts that the market for some industries related to earth and wood, such as the property and construction sectors, will be relatively soft,

“Property buyers will be very cautious. People will still buy homes to stay but those purchasing them as investments will be wary. The cooling measures implemented by the government last year are still having effect. Implementation of GST (goods and services tax) is also expected to have impact on home buyers,” said Koh to KiniBiz.

He says that Penang’s property market will be reasonably good but in KL and Johor the sector will remain sluggish.

“The north will outdo the south. Penang and Kedah will perform better than other states, because of the water element,” said Koh who ranks water related industries as the number two most promising sector in 2015.

Iskandar not strong enough

He also states his concern about the seriousness of the oversupply problem in Iskandar’s property market in Johor.

“Although it is still a project with high potential, there is clear overbuilding in the area. There are thousands of expensive units being built in such a short period. Where are the buyers going to come from?” said Koh.

The feng shu master says that it is well known that most of the buyers in Iskandar are foreigners, such as wealthy Singaporeans and Indonesians. He fears that it is an unhealthy development that could lead to thousands of empty units, even though they may have already been purchased.

“Most buyers of property units in Iskandar are not dwellers, but pure investors who buy with the intention to resell for a profit or rent out their units. The industries and commercial sectors in Iskandar are not strong enough yet to support the sudden growth in number of units,” said Koh.

MAS could rebound

The feng shui expert also feels that although he rates the water element in feng shui as second best for 2015,  the transportation sector could be in for a bumpy ride. Last year’s twin tragedies that hit national carrier Malaysia Airlines (MAS) still looms large and has had a significant impact on local tourism.

However, Koh remains optimistic that MAS has an important role to play for the nation.

“I am a very patriotic person. Personally, if I travel by air I only use MAS. It is still a very good airline despite the unfortunate incidents last year.

The service is very good. It’s our national carrier. The problems with MAS are mostly business and management related, not safety issues. If the management problem is taken care of, there is no reason it shouldn’t rebound and make money,” said Koh.

Yesterday: Cautious consumers in Wood Goat Year 2015