Bleak future ahead for us and our future generations?

Reading this report by Bank of America Merril Lynch is a bit worrying.


Basically a short summary from the report would mean this: Malaysia’s relatively high population growth rate will see the country remain comparatively young over the next two decades but economic growth is not expected to keep pace with population expansion.



Of course most of us already know that current living costs here in Malaysia is already very high compared to most countries of similar GDP per capita. And this is despite us "enjoying" subsidies on many items. THings like Petrol, sugar, rice and etc are heavily subsidised by the government.


Looking at the simple statement that our salaries just does not adequately allow us to live a normal lifestyle. While the costs of food, housing and etc have risen significantly over the past 20 years, our salaries have not grown at the same pace. As a result, fresh grads today in actual fact, make less money (in real dollar terms) than their parents did.



So its no surprise to me that in 20 years time, the situation will be no different from now unless drastic action is taken by the government. In the end only ouir kids and grand children will suffer as we earn less and less, and possibly, be even considered poor by most other countries.

For too long now, we have marketed our country as a low cost country to do business. Its been the case for 25-30 years ago. That was when we really needed foreign investments in our country to boost our economy. Fast forward 20 years later, we are already becoming a strong economy desptie the crippling "Affirmative Action" policies by the government.



However, it has slowed our growth a lot more compared to other countries that didnt have these policies. A good example would be South Korea. They started industrialising at the same time of us but look at how big and strong their economy and companies are today. And this is despite them going through several huge recessions (esp in 1997) and mismanagement of the economy by the goverment.



They key for us to succeed and grow even faster is to remove all these crippling policies like quotas that have no specific benefit to the enitre nation (only to a certain ethnic group). Policies like these are no different from the Apartheid in South Africa except that in our situation, its making us disabled and uncompetitive compared to every1 else.




The sooner we lift all these restrictions, our local companies will be on the same level playing field as other international competitors. And I have no doubt that we have the entrepreneurial talent to compete against these big boys. Maybe one day we will see the likes of Genting, Maxis and et al becoming major household names like Samsung and Hyundai.



That way, our economy and our income can finally grow and catch up with our pace of growth. Just ask anyone, in most companies, the average rate of increment given is just about the same level as our inflation, if not lower. Our fixed deposit rates in banks are definitely lower than inflation rate. If this goes on, there can only be 1 way we are going. DOWN!








Boodyboy, out!!!