The world economy is reeling in its worst self lately and to some extent, many even equate it as a potential crisis of the world depression in the 1930s. Many governments of the world today are beginning to prepare for the worst case scenario and plans have been put into place to mitigate the risk of a total financial system meltdown. All these economic jargons seem huge and mesmerizing but the most important issue right now is what does this mean for the man on the street and how it will impact him? Like it or not, the impending doom of the financial crisis will hurt every individual regardless of one’s standing or status in the community. The have-nots will definitely bear the brunt much worse than the haves. No one in this world will be spared by the onslaught and Malaysians will not be an exception.
Already we are hearing about possibilities of retrenchments, spiraling issues of people’s quality of life diminishing and even bankruptcies. It is certainly a scary scenario if all these events do take place. The government of Malaysia has come up with various initiatives to cushion the financial crisis but the one million dollar question every citizen will ask, are they sufficient? Most of us are considered laymen when comes to these economic jargons and initiatives. We basically can’t tell from head to toe of what is being done but one thing is for sure, if it hurts our pockets, then we know the country is in deep trouble.
The first announcement made by the government is to prepare a so called stimulus package to boost the companies listed in the KLSE. How will that help the ordinary people in the streets is still a mystery to most of us but the rationale communicated to us is to stabilize the Malaysian economy as a whole. This could be true since the US is doing the same thing by providing assistance to failing conglomerates there. This is normally referred to as corporate bailout. However, the stark difference is in the US there is this entity called Congress. The functionality of this entity is to scrutinize every expenses incurred by the taxpayers to boost the faltering economy with the sole purpose of ensuring the expenses are justifiable and fair for the benefit of the entire nation. Is this check and balance process practiced here in Malaysia? The opposition bloc is harping on issues concerning bailouts of companies that are considered cronies. This scenario definitely will frighten every man on the streets since the bailout fund is taken from EPF, every citizen’s savings for old age. Is the ruling government so powerful that it can use the stimulus package as it deems fit without any scrutiny or transparency? We the rakyat definitely hope this is not true but what guarantees we have that this does not happen; none.
The subsequent initiative is to reduce the percentage of EPF contribution of a working rakyat to 8%. The rationale for this is to ensure the rakyat has additional disposable income to spend and in the process, boost the economy. Who in his right mind will want to spend frivolously in these uncertain times is way beyond our layman’s comprehension. However, in economics, this is supposedly to be a way to boost the economy. The downside to this will be, the rakyat will have fewer savings for their retirement later.
If one has a sharp mind, he can see that all these initiatives actually have one thing in common; the rakyat bearing the full brunt all by themselves to save the economy. The politicians can sit in their cozy seats in the Parliament while devising initiatives and plans. Upon finish doing so, they can go back to their big houses, big cars, yachts, private planes and a fat employment package borne by the rakyat. They buy stakes in companies and if the companies do not perform, they can always use the stimulus package to bail them out; if there are no approvals required by a selected committee. Why must the diminishing of wealth be the burden of the normal rakyat alone but never the politicians or their fellow corporate cronies? The rakyat that supposedly to be the master in turn become servant to these self serving politicians. Guess that is the beauty of capitalism in a democratic, free world. Only downside is, if you’re at the other end of the equation and be a normal rakyat, you’re screwed.
Think the best solution right now is just to take the reduction of EPF contribution and put the additional income into bank savings. At least the government can’t take extras to put into the stimulus package. At the end of the day, we the rakyat at least know where our money is going to. God bless our money.
Already we are hearing about possibilities of retrenchments, spiraling issues of people’s quality of life diminishing and even bankruptcies. It is certainly a scary scenario if all these events do take place. The government of Malaysia has come up with various initiatives to cushion the financial crisis but the one million dollar question every citizen will ask, are they sufficient? Most of us are considered laymen when comes to these economic jargons and initiatives. We basically can’t tell from head to toe of what is being done but one thing is for sure, if it hurts our pockets, then we know the country is in deep trouble.
The first announcement made by the government is to prepare a so called stimulus package to boost the companies listed in the KLSE. How will that help the ordinary people in the streets is still a mystery to most of us but the rationale communicated to us is to stabilize the Malaysian economy as a whole. This could be true since the US is doing the same thing by providing assistance to failing conglomerates there. This is normally referred to as corporate bailout. However, the stark difference is in the US there is this entity called Congress. The functionality of this entity is to scrutinize every expenses incurred by the taxpayers to boost the faltering economy with the sole purpose of ensuring the expenses are justifiable and fair for the benefit of the entire nation. Is this check and balance process practiced here in Malaysia? The opposition bloc is harping on issues concerning bailouts of companies that are considered cronies. This scenario definitely will frighten every man on the streets since the bailout fund is taken from EPF, every citizen’s savings for old age. Is the ruling government so powerful that it can use the stimulus package as it deems fit without any scrutiny or transparency? We the rakyat definitely hope this is not true but what guarantees we have that this does not happen; none.
The subsequent initiative is to reduce the percentage of EPF contribution of a working rakyat to 8%. The rationale for this is to ensure the rakyat has additional disposable income to spend and in the process, boost the economy. Who in his right mind will want to spend frivolously in these uncertain times is way beyond our layman’s comprehension. However, in economics, this is supposedly to be a way to boost the economy. The downside to this will be, the rakyat will have fewer savings for their retirement later.
If one has a sharp mind, he can see that all these initiatives actually have one thing in common; the rakyat bearing the full brunt all by themselves to save the economy. The politicians can sit in their cozy seats in the Parliament while devising initiatives and plans. Upon finish doing so, they can go back to their big houses, big cars, yachts, private planes and a fat employment package borne by the rakyat. They buy stakes in companies and if the companies do not perform, they can always use the stimulus package to bail them out; if there are no approvals required by a selected committee. Why must the diminishing of wealth be the burden of the normal rakyat alone but never the politicians or their fellow corporate cronies? The rakyat that supposedly to be the master in turn become servant to these self serving politicians. Guess that is the beauty of capitalism in a democratic, free world. Only downside is, if you’re at the other end of the equation and be a normal rakyat, you’re screwed.
Think the best solution right now is just to take the reduction of EPF contribution and put the additional income into bank savings. At least the government can’t take extras to put into the stimulus package. At the end of the day, we the rakyat at least know where our money is going to. God bless our money.
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