Has the recession hit us?

I was out mall browsing for 2 solid days – Friday and Saturday. It’s been a while since I hit the malls and I noticed that most stores are now on sale. Not surprising because its about time for the annual Mid year Sale that Malaysia has.

What surprised me was this – many stores were empty although there were big SALE announcements on the store windows. Most noticably, department stores like Isetan and Metrojaya were quiet. This was worrying.

Based on previous experience in Singapore, stores having sales are usually bustling and there are people walking in and out buying things all the time. In fact, while I was at Takashimaya one Saturday afternoon, they even made a special announcement that the store was very packed and that people were to be careful. Not so here. Here, I see the sales assistants standing around looking bored as a handful of shopping browse in the aisles.

As I said, its worrying. Has the recession well and truly hit us? Is it because people are more careful with their money now that petrol prices are so high and other consumer goods prices are expected to rise? I suppose now would be a bad time to invest in any real estate be it commercial real estate or residential. Someone told me that the stock market is dropping so it would be a good time to pick up some bluechip stocks are good prices. But I wonder if it’ll be worth the risk, especially if a recession hits.

Now is probably the best time to hold cash in hand. What do you think?