They said:(1)Malaysian don't do financial planning;
(2)Most Malaysian in their 30s & 40s are caught in the debt trap;
(3) 4,000 had sought help from Bank Negara to intervene on debt management; and
Up till October 2006, $640 million of credit card debts outstanding.
WHY? WHY? Tell me why! Many groans and mourn, yet there is no simple answer. The problem must be look at in a wider perspective in the light of the philosophy of objectivism and the Domino Theory.
Let's take a simple case study:
In 1970s, when I graduate, the government salary scale for degree holder is RM825, Diploma is RM625, and certificate holder is RM350. So, an outstation graduate working in Kuala Lumpur will need to rent a room (RM50), ride a secondhand motorbike (cost around RM200-$500; new bike is about RM850-1,000). The price of petrol is then around 65 cents per litre; A cup of coffee in a coffee shop is 50 cents; newspaper is 20 cents; mini-bus fare is 20 cents; lunch is between 80 cents-one dollar; no toll to pay; car-park are mostly free and if not, it's 10-20 cents; medical cost at GP's clinic is about RM5; and there ain't so many entertainment places and bistros.
My Monthly expenses is around RM400-450, and I could give my mother RM100-150 each month and save around 200-250 a month.
By 1980s, graduate salary scale is around RM1,250 and Diploma holders should earn RM825 based on government salary scheme.
Now, in the 21st century, the fresh graduate earns a salary of about RM1,500; paying rental for a room at RM500; paying car installment of about RM600 per month; pay tolls of around RM100-200 each month; car-parking per month may cost RM150-200; petrol is now RM1.92 per litre and fuel cost per month should cost around RM200-300; a cup of coffee at SS2 or PJ is around RM1.40 and in Coffee Bean or Starbuck, it's RM7-12 per cup. Lunch will cost around RM5-6, even at university campus.
Total expenditure should exceed RM2,000 each month for a bachelor. If he is married, he will buy a house and the home loan would cost him another RM600-900 per month. Therefore, a man have to marry a career woman, for if not, they will be in deep financial trap. All these, that man can only survive if he don't lepak, don't go to entertainment outlet unless it is paid by someone or can claim from the company and no holidays at resort except going to Genting Highland and lepak at the outdoor playground only. For the Chinese, they had to budget for 4-D lottery and some beers.
How could they survive? What's the problem?
The fact remains, is that, inflation is around 500% since 1980s (at around 4% per annum), and salary adjustment between the two corresponding period is about 200%, that is, doubled. To add salt, we now have to pay tolls and it keeps going up to fulfill the pleasures of the concessionaires, making them ultra rich; City and town councils keep adjusting the assessment taxes and quit rent upwards and car parking at council plots are so expensive.
Cuepac was actually right, for in essence, the salary scale for employees at the current salary scheme must be adjusted by at least 40%-60% to be in tandem with inflation and only then can employees be able to match their budget against expenses based on objective standard of living of the common good.
It will be interesting if an economist will do a comparative study of the salary scheme of Singaporean civil servant and Malaysian civil servant and see how inadequate our system is, which is the root cause of the financial debt-trap.
Therefore, we can summarized and understand the objective fact that corruption and the need for supplementary income had become a necessity for those people to bridge the gap of adequate survival.
That's the reason why many chose uniform services such as police, immigration, customs, land office, JKR, DID, town councils, as these institutions were given discretionary and arbitrary powers to rule over businessmen and commoners by which they could derive pleasure of side-income for offering their "Customers" a kind of efficient or effective services; Otherwise, the process will be slowed down, intentionally or unintentionally, and the application files will be slotted down deep in the piles of files awaiting decision or approval.
Even in public Universities, the lecturers are doing part-time profession as multi-level marketeers whereby, if the students would pay for the products for sale, their assignments will score higher marks. Other extra income can come from the privatization programmes and moonlighting services, including strategic partnerships of post-graduate courses and short courses.
In primary and secondary schools, the teachers have a better way to earn extras - they could offer "specially written" notes and sample answers for sales to the students; they also offered tuition to their students and income from these far exceed their salary each month. My sisters and brother-in-law, who are all school teachers, earns between 7,000-10,000 each month, just on those tuition fees alone.
In JKR, DID, JPS, and construction-related authorities, most of the institution's employees will look for extra income from sub-contracting, collaboration or what we called "Strategic Partnership", Over-time claims (contractors had to pay the cost to have the clerk-of-work or technician present if they work overtime), variation order adjustments and tinkering, and the "processing fees" to award projects to Class F contractors. As regard the town council, extra earnings are easy as almost everything they do, will cause some inconveniences to the general public and specific public who submitted application in compliance with the rules and regulations.
I do not intend to conclude or offer solutions from the analysis. It's best left to the prime minister's department and his cabinet at 4th floor to do a further study and see for himself what is wrong with our system of government - a government by the people, for the people, to the people.
(2)Most Malaysian in their 30s & 40s are caught in the debt trap;
(3) 4,000 had sought help from Bank Negara to intervene on debt management; and
Up till October 2006, $640 million of credit card debts outstanding.
WHY? WHY? Tell me why! Many groans and mourn, yet there is no simple answer. The problem must be look at in a wider perspective in the light of the philosophy of objectivism and the Domino Theory.
Let's take a simple case study:
In 1970s, when I graduate, the government salary scale for degree holder is RM825, Diploma is RM625, and certificate holder is RM350. So, an outstation graduate working in Kuala Lumpur will need to rent a room (RM50), ride a secondhand motorbike (cost around RM200-$500; new bike is about RM850-1,000). The price of petrol is then around 65 cents per litre; A cup of coffee in a coffee shop is 50 cents; newspaper is 20 cents; mini-bus fare is 20 cents; lunch is between 80 cents-one dollar; no toll to pay; car-park are mostly free and if not, it's 10-20 cents; medical cost at GP's clinic is about RM5; and there ain't so many entertainment places and bistros.
My Monthly expenses is around RM400-450, and I could give my mother RM100-150 each month and save around 200-250 a month.
By 1980s, graduate salary scale is around RM1,250 and Diploma holders should earn RM825 based on government salary scheme.
Now, in the 21st century, the fresh graduate earns a salary of about RM1,500; paying rental for a room at RM500; paying car installment of about RM600 per month; pay tolls of around RM100-200 each month; car-parking per month may cost RM150-200; petrol is now RM1.92 per litre and fuel cost per month should cost around RM200-300; a cup of coffee at SS2 or PJ is around RM1.40 and in Coffee Bean or Starbuck, it's RM7-12 per cup. Lunch will cost around RM5-6, even at university campus.
Total expenditure should exceed RM2,000 each month for a bachelor. If he is married, he will buy a house and the home loan would cost him another RM600-900 per month. Therefore, a man have to marry a career woman, for if not, they will be in deep financial trap. All these, that man can only survive if he don't lepak, don't go to entertainment outlet unless it is paid by someone or can claim from the company and no holidays at resort except going to Genting Highland and lepak at the outdoor playground only. For the Chinese, they had to budget for 4-D lottery and some beers.
How could they survive? What's the problem?
The fact remains, is that, inflation is around 500% since 1980s (at around 4% per annum), and salary adjustment between the two corresponding period is about 200%, that is, doubled. To add salt, we now have to pay tolls and it keeps going up to fulfill the pleasures of the concessionaires, making them ultra rich; City and town councils keep adjusting the assessment taxes and quit rent upwards and car parking at council plots are so expensive.
Cuepac was actually right, for in essence, the salary scale for employees at the current salary scheme must be adjusted by at least 40%-60% to be in tandem with inflation and only then can employees be able to match their budget against expenses based on objective standard of living of the common good.
It will be interesting if an economist will do a comparative study of the salary scheme of Singaporean civil servant and Malaysian civil servant and see how inadequate our system is, which is the root cause of the financial debt-trap.
Therefore, we can summarized and understand the objective fact that corruption and the need for supplementary income had become a necessity for those people to bridge the gap of adequate survival.
That's the reason why many chose uniform services such as police, immigration, customs, land office, JKR, DID, town councils, as these institutions were given discretionary and arbitrary powers to rule over businessmen and commoners by which they could derive pleasure of side-income for offering their "Customers" a kind of efficient or effective services; Otherwise, the process will be slowed down, intentionally or unintentionally, and the application files will be slotted down deep in the piles of files awaiting decision or approval.
Even in public Universities, the lecturers are doing part-time profession as multi-level marketeers whereby, if the students would pay for the products for sale, their assignments will score higher marks. Other extra income can come from the privatization programmes and moonlighting services, including strategic partnerships of post-graduate courses and short courses.
In primary and secondary schools, the teachers have a better way to earn extras - they could offer "specially written" notes and sample answers for sales to the students; they also offered tuition to their students and income from these far exceed their salary each month. My sisters and brother-in-law, who are all school teachers, earns between 7,000-10,000 each month, just on those tuition fees alone.
In JKR, DID, JPS, and construction-related authorities, most of the institution's employees will look for extra income from sub-contracting, collaboration or what we called "Strategic Partnership", Over-time claims (contractors had to pay the cost to have the clerk-of-work or technician present if they work overtime), variation order adjustments and tinkering, and the "processing fees" to award projects to Class F contractors. As regard the town council, extra earnings are easy as almost everything they do, will cause some inconveniences to the general public and specific public who submitted application in compliance with the rules and regulations.
I do not intend to conclude or offer solutions from the analysis. It's best left to the prime minister's department and his cabinet at 4th floor to do a further study and see for himself what is wrong with our system of government - a government by the people, for the people, to the people.
5 comments:
You are absolutely right. The real income earned today is very much less compared to the 70s although the sbsolute sum is more. That graduates are perceived to be earning more these days is an illusion.
Ngam!!!
that is what happen to our country when the people chosen a MULE instead of a Prime Minister.
people dont realise that a MULE does not have to come in the form of MULE, it may also appear as a human.
hopefuly there will be some change in human and MULE in coming election.
but damn for sure, a sleepy MULE is worst than a dead MULE.
something to ponder yeah.....
You are quite amusing in your illustrations tho' it is theatrically.
If our semua boleh govt is to be believed, malaysians today have and tomorrow will still have the lowest inflation, cheapest tolls, cheapest petrol, cheapest electricity, cheapest water, cheapest phone, cheapest internet, cheapest newspapers, cheapest etcetera...(and also the cheapest leaders) in the whole wide world. When will the rakyat wake up and chase out of office the mad monkeys holding the reins of power in KL? The richest land in Southeast Asia is being plundered blind by the monkeys!
plundered by monkeys so long and until we the rakyat hear...
"...tokh tokh tokh..tokh... bing khor sei-zhor..., mou yan mou zhor..."
soooo...sah loh...
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