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Posts Tagged ‘malaysia gst’

Malaysians, when they see MLM, property or gold flourish, they flock to it like there’s no tomorrow.

Lesson #1: Because, we, as a people are driven by emotions and sentiment. 

Malaysians, when the MLM, property or gold market crash, they run away like crazy.

Lesson #2: Because, we, as a people fail to see the actual / reality of something. 

I’m sure we have seen our friends who flirted with beautiful girl and yet when they got married they fall into divorce (some not all) Why so? Because the man is driven by sentiment, and when he understood the actual attitude of his wife, he made the “market” crash (metaphor for divorce).

What do this have to do with the Malaysian budget?

Everything.

  1. We Malaysians are driven by emotions, we want that subsidies but yet we don’t want to pay for it.
  2. We Malaysians want large welfare programmes, which lead to such a big government, yet we blabber on wasted spending.
  3. We Malaysians want higher income yet we do not work to advance our skills & education through lifelong learning.
  4. We Malaysian SMEs complain of minimum wage yet we do not focus on productivity to cut costs and increase profits.

We don’t care, yet we want it. Period.

Who cares if the government couldn’t pay, I’m the rakyat. I should get it.

If the rakyat continues to have this attitude, it’s perfectly fine for capitalists.

When a country is strong emotionally but weak in it’s structure, our economy can go into a recession.

How so? I’ll sum it up in economic terms: US recession, QE, capital inflow, QE tapering, capital outlflow, Ringgit weakens, Interest rate increase, NPL increase, tightening of credit, Malaysian recession.

In layman terms: rumah kita tak cukup simen tapi kite nak duduk tingkat 3 sbb ade bilik paling cantik dalam rumah. Bile rumah retak, semua lari dari tingkat 3. Kalo nak semua duduk tingkat 3 kene kuatkan simen, etc.

Same with our beloved Malaysia.

Our investors will pull out their money when they are left with no money (because US kurangkan print money) and they see something retak, they run away from tingkat 3. When that happens we are left with an economic recession.

Our economy is always positive because of the government control of media. Actually it is fueled with debts. All this businesses flourish because consumers use debts (credit card, personal loan, refinancing, easy credit for business, etc). Not to say we are still manufacturing low value things, same to 20 years back.

GST is just meant to reassure our investors not to lari from tingkat 3. That we are putting in more simen so don’t worry.

It’s just reassurance (sentiment).

And GST is only a short term measure to avoid collapse.

We Malaysians need to work hard on implementation, transparency in spending, being accountable for every 1 cent spent and understand the “real” picture is what matters the most. Our human capital as well needs dire attention. I know the new blueprint is good in terms of performance based culture.

But I worry of the implementation. We are known for great policies but implementation = fail. For example: tabung usahawan siswazah for graduates take 6 months – 1 year for disbursement. Imagine the reality, business cannot afford to waste time because they will fail.

I worry GST is good, but when they method implemented is bad, there goes everything. At that time, Pakatan Rakyat may have been right about this, but I don’t agree on them not doing GST now.

I sum it up in 2 things:

  1. Sentiment: people are herds. they are driven by sentiment. This is short term.
  2. Structural: people are by nature forgetful, they xbersyukur. This is long term.

When you do something like invest, do business, choose to do MLM, buy minions at McD, classify it. Is it no. 1 or no. 2?

If it is no. 1, it will likely fall soon. If it is no. 2, it will stand for a long time.

Like Luxor MLM and Amway MLM. Amway has structural, while Luxor have sentiment.

That’s why my business focus so much on the structural (management systems, people planning, product enhancement), etc. Burger Bakar as a trend itself, should have been dead 1 year back. That’s the formula why we are still profiting every single month now.

Singapore have both no. 1 and no. 2.

Malaysia unfortunately, judging from our rakyat and our government, have more of no. 1.

Sad.

Warren Buffet can sum this up with his quote:

“Be Fearful When Others Are Greedy and Greedy When Others Are Fearful”

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