I was taken aback by Tun Dr. Mahathir views on the Malaysian ambition to achieve high income economy. A very thoughtful message that makes me want to share more about this issue on my essay.
High income is easily defined as higher salary gained per worker. This not means that a janitor should pay more from what they are currently obtained, but more towards the specialize industries with specialize skills and qualification. This so-called professional will eventually representing the statistic to achieve a high income nation and flourish the economy.
This ambition is not just an ambition anymore as Malaysian government has made several programs and plans to stimulate this idea. By creating more mega projects where locals can participate, attracting FDI to Malaysia to invest into Malaysia as it will offered more professional Malaysian to work, et cetera. The number of degree holders in Malaysia are also increasing, whereby most corporate sectors and companies need this professional labor force.
But, when Malaysia has achieved a high income nation status, the so-called current cost of living will eventually altered. No more the old days price and inflation are the subject that can't be pushed away.
Inflation happened. Every years, and the most healthy increment rate will be at 2-5% per year. We can look back to the time when we were a little kid, the price of the goods that we use to pay are not the same price anymore. Like my late Granpa told me, on his day, a 5cent (Malaysian currency) are sufficient for a bowl of noodle and a loaf of bread. Yes, it is the old days. But this is how the inflation effect. We seems not realizing the increment as we all has improve our way of life and improve our living standard.
So does having a high income nation status means nothing to the Malaysian? (Technically Yes)
Having a high salary community doesn't means the spending power is increasing? The prices of products and services are also follow the hike, so how does this phenomena happened? and how to minimize the effect?
Merchant, businessman, service provider are all opportunist. When the level of affordability has risen, so does the price will be. We can't avoid it unless a strict intervention from government who will govern the ceiling price for each products and services. This approach is merely impossible and difficult to implement. After all, we must accept inflation.
But there's a way to minimize this effect. And this role are played by the government. A strict regulation on prices of product and service will be a priority in this case, a lowering tax from what are currently imposed to the vendors to ease the probability and reasons for them to increase the price, allocating a fraction of nation wealth to subsidize the cost of raw material, and educating citizen and promoting local made products and services.
A high income economic and nation are good in a sense it can promote Malaysia to another level of perception, but bear in mind that inflation is always following us. No matter how hard we steer the wheel of economic, inflation is up there to catch us. Let's Tan Sri Zati Aziz do her best to curb this phenomena
No comments:
Post a Comment