Corruption

As I personal see lot of deal in Malaysia, corruption has spread wide and deep into every people. This is a social and economy problem which will brings unstable and unhealthy to both of the issue.

Corruption means stop developing and improving, worst will reverse the progression. It encouraging mistake. It widens the gap between rich and poor. Rich become richer while poor become poorer.

At first, government gives out project for tender. Which proposal is the best, lowest cost, highest performance, suppose government award the project to the proposal. This is just to make sure everything is lowest cost and highest quality among the choices.

When corruption come into the picture, the project award to who propose higher under table money amount. There is no cost, quality, and performance taking into consideration. The result will be collapse building in construction sector, bad dept in financial sector, low quality and affected sale in long run in manufacturing sector, unhygienic food from food and beverage sector, doctor who have to don’t know how to diagnose and cure, a city development with square, triangle, round and other shapes and so on.

When higher authority starts corruption, their subordinate will follow. This will spread to every society level, diffuse to everyone mindset, and enter to deal. Those who get rich with this method will keep this method to conquering other deal. Rich will get richer; it didn’t encourage quality and ideas. Therefore, everyone start to stop improving and learning, they start migrate out since no opportunity, or start to build relationship with money. Soon, whole country left corruption people stay in the position and get wealth.

Recently Malaysia political tsunami, have prove that most of the citizen is out of the comfort zone. They feel not secure for their securities, their rights, and their income. All this begins from the corruption. Anyway, most of the wealth is in the person who apply corruption all the way, they will sure do lot of things just to retain their position, protect their money, stand on their pride. There are too many and deep. Everyone scare get caught and punish. They want their power and authority to safe themselves. This may rise lot of bleeding fight, money transfer out of country, scarify lot of life, running out of resources. A country or company ruin by a corruption.

Healthy economy means compete each other for deal by quality and performance. Let the supply and demand move freely. Everyone have the same right and opportunity.

Labours

Labours are the power of the development country. It is one of the resources in a company or a country, the human resource. The quality and the quantity of the human resources will directly give impact to the economy performance to the country.

Malaysia is a good place. It is out of the main natural disaster region and full of resources. Around Malaysia, lot of foreign legal and illegal migrant migrate to this place and work. What they want is to earn some living since their country is very poor. There are lot of people from Indonesia, Philippine, Bangladesh, Pakistan, Thailand, Vietnam, Myanmar, India, and China. Malaysia citizen also do migrate and go to Singapore working because of the better living and return. These people from different country come to Malaysia and substitute the cheap labour in agriculture, manufacturing, and mining. Anyway, Malaysia is governed by Malay from Indonesia, Chinese from China, and Indian from India. Just that after the independent from the conquering by the Great Britain, these 3 races becomes Malaysian in this place.

The development of Malaysia goes very fast and emerging since it has lot of natural resources such as tin, gold, petroleum, fishes, trees, stone, herbs, land and water. The land and good whether is suitable for lot of the agriculture activities such as coco, rubber, rice, vegetables, flowers, palm oil and so on. Therefore, Malaysia is once leading in coco, tin, lumber, rubber, palm oil, and good quality petroleum before. This brings the Malaysian lot of wealth and development.

The time Malaysian get wealthier, other country people migrate to Malaysia for better hope. Malaysian takes this opportunity to hire foreign worker. It is because it is cheap and a lot. Sooner or later, almost none of Malaysian work as a labour. No matter high education or low education Malaysian will be avoid to be a labour. All the labour consists of a foreigner, legal or illegal.

When times go by, resources will deplete, other country will improve. These foreign labours will have better choices in their own country, they starts to move back to their country with their earning in Malaysia. Do you agree that Malaysia will be paralyzing the economy and development due to this problem? Imagine that no person work in farm, construction site, house maid, factory worker, cleaner and so on. Does it sound like a death place?

Lot of money is moving out of Malaysia with the migrants, since other country improving. They go back their country. It also means investors and sales go to other country rather than Malaysia, that’s why other country economy is rising. From the resources deplete, paralyze labour work force, money moving out, and business change location, Malaysia will be in a very crucial and special situation.

Besides, corruption will also draw out the money to other country due to the reason it cannot be use in same country. It worsens the condition and hit heavily to the economy and development.

The only way to retain labour is higher pay. Since inflation, low profit, lot of business cannot afford to hire labour for their activities. It is a time to observe what will it happen next.

Seed Capital

Money saves in the bank or under the pillow which is not using urgently, can be a seed capital and potentially to grow. In business, seed capital is the initial equity capital used to start a new business or venture. The starting capital of a business is a seed being plant.

Give you an example. If the seed capital is $100, the business grows by 10% annually, after one year the capital grow from $100 to $110. In simple words, it is similar to your money put in the bank with the interest rate. If the initial saving is $100, the interest rate is 4% annually, after one year the saving grow from $100 to $104.

Global inflation is about 7.5% for the latest record. If the saving in bank is 4% for the fix deposit, this year the net capital is shrinking by 3.5%. This is why investors or company seldom put their money in bank. They do investment.

Besides putting money in the bank to get interest rate, investment of the capital can be either properties or equities. Properties can be free hold or lease hold land, house, apartment, condominium, office, factory, and warehouse etc. Equities can be mutual fund or unit trust, share, debenture, bonds, loan and derivative etc. Both of them have their similarities and differences. Before choosing the investment tools, better study and understand their advantages and disadvantages of each of them. This is because knowing little of knowledge can be kill by the market.

Money Value

I look at my pay slip. Deduct the ordinary expenses, there is not much left. Compare to last month wages, this month I get increment. I should have more for saving, but why the amount left is still same with previous month? I go back to check my expenses, it is fuel price increase. Sooner or later, other things increase price one by one due to the oil price increase. It is inflation. The money value I get from the salary, reduce! I spend same thing for same amount with more money. The value of the money is decreasing.

Life must have improvement and development. I have to buy house, car, medical fees, tour, entertainment, and luxury, etc. There are a lot of expenses. Price of everything is increasing. If increment same as inflation, that means I cannot improve anything and I have to remain as now forever? What if lost job or accident?

If the salary increment faster than inflation, life will be easier and better. This is assuming there is no interruption to this income sources. If my increment all spend to improve lifestyle, how to pass my remaining life after retire? There is no saving.

If I use the increment for saving and don’t improve my spending for my interest, I save money in bank. My saving will increase constantly but lifestyle must remain. It is for future. If I am discipline, my saving amount is increasing, but the value in the future is decreasing!

Although bank give interest rate, now it is about 3.05% for 1 month fix deposit, but the inflation is about 3.5%. This rate is for Malaysia and not taking consideration of the fuel price, toll price, rice price, cooking oil price, steel price, and cement price after election. The saving value in the back is decrease.

If my saving can grow faster than inflation, only then in the future I can get back the same value or better value of the money. For those under employment and no other income, increment is depending on employer. The saving is depending on their discipline and wisdom. For those doing businesses or sales, their income is depending on their sales and revenue. The saving of profits is depending on their discipline and wisdom too. It is because high earning with high spending or high costing is still end up low profits.

Saving is money; money is capital. Save now and spend in the future. What is the value of the money when you spend?