DON'T YOU GUYS FEEL THE PINCH: The sad value of the Ringgit

http://www.barubian.net/2012/07/dont-yo … ue-of.html

Thursday, 19 July 2012 08:59
Written by Lim Sue Goan

The Prime Minister has invited the public to post suggestions for the 2013 Budget to his blog and I believe that many would ask questions of personal concern. However, the best approach would be a proper financial management to help the national economy out of plight.
It is timely for Datuk Seri Najib Razak to advice officials of the Finance Ministry to properly manage the country’s economy. The country is having a fiscal deficit for the 15th consecutive year, the priority should then be on striking a fiscal balance and reducing the deficit, or the debt will continue to increase and the country might end up in bankruptcy, like Greece.
Stock market record high but ringgit depreciating
The Malaysian stock market has repeatedly hit record highs, but the ringgit has been depreciating.
The strength of a country’s currency reflects its economic strength and competitiveness, as the currency exchange rate fluctuations are determined by the currency’s supply and demand. If everyone has no confidence and sell them, the exchange rate will fall.
For example, after world’s factory China was recognised as the world’s second largest economy, the yuan has been rising dramatically and it is expected to become one of the world’s three major currency in five years.
The ringgit recently depreciated to record low of 2.5 against the Singapore dollar. Malaysians working in Singapore were so excited whereas local importers suffered the bitterness.
Malaysians used to spend strong ringgit in Singapore during the good old days but the situation changed. Singaporeans have now become “rich men” in Malaysia.
Net capital exporter for 5 years running
It was reported that Malaysia has become a net capital exporter for five consecutive years. In the first quarter this year, Malaysian companies had invested RM 16.9 billion abroad, an increase of nearly 15% compared to RM14.7 billion in the final quarter of last year. The outflow of capital has intensified the depreciation of the ringgit.
There are many reasons for the outflow of money. In addition to the lack of confidence, the repeatedly delayed general election, the deterioration of local investment environment and the reduction of business opportunities have all caused enterprises and businesses to invest abroad.
It is baffling that if the country’s economy is really as good as described by political leaders, why aren’t the funds inflowing, but outflowing? Particularly when other countries are lowering their interest rates, Bank Negara still keeps our interest rate at 3%. It might be because investors are not optimistic about Malaysia’s economic outlook.
The outflow of capital will affect the Economic Transformation Programme (ETP) and thus, Najib announced the establishment of a RM1 billion Domestic Investment Strategic Fund to promote domestic direct investment. However, the tax structure is unreasonable, particularly the high corporate tax is a barrier to the efforts of attracting investment. Thailand adjusted its corporate tax from 30% to 23% this year, and 20% next year. Since we are unable to make ends meet, we are not able to cut corporate tax.
Revenue bottleneck but expenditure rising without check
The biggest shortcoming of the government’s financial management is, the revenue has reached a bottleneck, while the expenditure is rising rapidly. After the fall of international crude oil prices, oil revenues will shrink. Only less than 10% of employees are currently paying income tax, but political expenditure has been increasing day by day due to the delayed general election. Therefore, the deficit is more likely to expand rather than reduce.
The country is currently facing other problems, including the global economic slowdown in which even China is unable to escape. The strange global climate is also brewing another round of food crisis.
In the month of Ramadan, the seventh lunar month and before the 2013 Budget is tabled on September 28, the market is expected to be sluggish. Let’s see how Najib is going to stimulate the economy.
-Sin Chew Daily

It is obvious that economy of Malaysia is not doing well these days.
The ruling coalition, BN, keeps on introducing new fiscal policies such as BR1M etc.
According to wikipedia, “fiscal policy is the use of government revenue collection (taxation) and expenditure (spending) to influence the economy”.
Investors often use fiscal policy as an indicator that the particular country economic is in trouble.
Although weaker RM will do good for export, which ‘might’ create an job opportunity in local manufacturing and plantation industries, it is ironic in which most of the job is taken by foreign workers from Indonesia and Philiphine.
Ultimately, there will be a downward pressure for wages caused by influx of foreign workers.
Unfortunate, weaker RM also means bad news for imported product. For instance, Malaysia has to import rice to fulfill the demand of its people…, turn out most of our staple food is imported elsewhere.

But have you wondered why are there no locals willing to work in manufacturing/plantation industry? It’s not that the foreign labour took away locals jobs…

Just look closer here in Miri, the coffee shops almost all are indonesian workers…

[quote=“Eugene91”]But have you wondered why are there no locals willing to work in manufacturing/plantation industry? It’s not that the foreign labour took away locals jobs…

Just look closer here in Miri, the coffee shops almost all are indonesian workers…[/quote]

:lol: Except most of the coffee shops’ foreign workers in Miri is illegal.

Illegal immigrants basically don’t care how much they are being “abused” by employer.
They are willing to accept low wage and work overtime without extra payment. No EPF, taxes, medical cost etc.
Thy can’t complain nor “protected” by authority here.

Employers have “incentives” to employ them.
Ever wonder why the wage offered by employers are low? Simple, it is designed to discourage local ‘protected’ labour from applying for the job.

because we are too comfortable of what we are now. Government spoiled us with plenty of goods.
locals are REALLY picky with jobs. in the end, employers employ foreign workers to fulfill those positions.
i’m not surprised idris jala’s prediction that malaysia went bankrupt in 2019 went reality.

Hmm…frankly doesn’t feel any slight of pinch. At the moment laa…

the influx of foreign workers are liable to change anytime…

for example, to indonesian workers…
indonesia’s economy is going up.
if and when it comes to the point that earning money back home is much better than in malaysia,
malaysia will face a pretty serious problem in hiring such workforce in future…

all in all, I foresee that the ringgit will get deeper and deeper underground at the rate the government is going…

soon… the price of goods will going UP…UP

[quote=“JohnLai”][quote=“Eugene91”]But have you wondered why are there no locals willing to work in manufacturing/plantation industry? It’s not that the foreign labour took away locals jobs…

Just look closer here in Miri, the coffee shops almost all are indonesian workers…[/quote]

:lol: Except most of the coffee shops’ foreign workers in Miri is illegal.

Illegal immigrants basically don’t care how much they are being “abused” by employer.
They are willing to accept low wage and work overtime without extra payment. No EPF, taxes, medical cost etc.
Thy can’t complain nor “protected” by authority here.

Employers have “incentives” to employ them.
Ever wonder why the wage offered by employers are low? Simple, it is designed to discourage local ‘protected’ labour from applying for the job.[/quote]

With even minimum wage in place for both locals and foreigners, I bet foreigners will still be employer’s choice.
I noticed and heard locals always take their own off days, MC without cert, just leave a month or so and beg to come back to work, take long breaks, and later on say why pay so low.
I bet some members here experienced this as well.

Why Malaysian economy in such dire state ?
Because the Government is too obsessed with the 1 Malaisia ■■■■■■ … everything 1 Malaisia… free this free that.
Najib just play & fool around with the money

We will continue to remain as third world country…this is very sad…nowonder so many ppl migrate…where is the productive side of Malaysia?

take a look at your working environments, even your colleagues dont think too positive in any sense…in western countries, they just enjoy their life…no time for back stabbing…and pointing out to find scape goats…people who stay in Malaysia nowadays have dead brain cells, and tons of bad intentions…really sad~

+10000

All busy blaming people :roll:

dulu nampak orang miskin saja beli maggi mee.

sekarang orang middle class pakai lexus kah prado kah hilux kah juga ada nampak beli maggi mee sampai berkotak kotak.

kesian. berlagak orang kaya tapi hakikat miskin macam kita semua juga. :slight_smile:

looking at the bright side, we don’t have severe natural disasters like tornado, earthquakes, etc etc…

looking at the bad side, watch all our money all go down the drain and siphoned to ahem ahem pockets…

If Malaysia dont stop corruption, Malaysian will die. :cry:

If Malaysia stop corruption, BN will die. :smiley:

[quote=“ASD”]If Malaysia dont stop corruption, Malaysian will die. :cry:

If Malaysia stop corruption, BN will die. :D[/quote]

+99

http://a3.sphotos.ak.fbcdn.net/hphotos-ak-prn1/549061_374435375955544_1779242903_n.jpg

OMG!! I CAN"T HELP LAUGHING OUT LOUD IN THIS!!
LOL