British Prime Minister in his speech (Labour Party Conference) said, -
"................... We abandoned the ridiculous, self-imposed dilemma between principle and power.
We went back to first principles, to our values, our real values, those that are timeless, and separated them from doctrine and dogma that had been ravaged by time.
In doing so, we freed Britain at long last from the reactionary choice that dominated British politics for so long: between individual prosperity and a caring society.
We proved that economic efficiency and social justice are not opposites but partners in progress.
We defied conventional political wisdom and so changed it.
Around that we built a new political coalition......"
I'm hoping one day, all of our politician has this foresight and vision....
Wednesday, September 27, 2006
Monday, September 25, 2006
Water and Diamond Paradox
"Water and Diamond Paradox" - Adam Smith 1723-1790
This simple economic situation come to strike me recently.
Solve this problem then you will know why we are where we are?!
This simple economic question is "Water and Diamond Paradox"; Why diamond is more expensive than water, while without water we can not live, but without a diamond we will not die?
Some economists suggest that its because there are two type of 'VALUE', one is known as 'value in use' while the other one known as 'value in exchange'. In this case water is obviuosly high in its 'value in use' than its 'value in exchange'. Unfortunately, this reasoning is less convincing.
Forgeting the above reasoning, we may argue that it is because of differents "Subjective Valuation of individual' that lead to this
conclusion that diamond is more valuable than water.
So far, the given reasons seem merely pointing to worthless fact, just like saying the sun rises from the east.
I'll rather suggest that there is no such thing as subjective valuation, but rather it's the basic principle of demand and supply. In this case the 'Demand' is definately subjective! Since the "demand'is subjective, we therefore can never 'Fix A Price' for a certain commodity, the action of control a fix price on a certain goods will bound to create more problems.
Mind you, this is known in 18 century!!!!!!!!!
This simple economic situation come to strike me recently.
Solve this problem then you will know why we are where we are?!
This simple economic question is "Water and Diamond Paradox"; Why diamond is more expensive than water, while without water we can not live, but without a diamond we will not die?
Some economists suggest that its because there are two type of 'VALUE', one is known as 'value in use' while the other one known as 'value in exchange'. In this case water is obviuosly high in its 'value in use' than its 'value in exchange'. Unfortunately, this reasoning is less convincing.
Forgeting the above reasoning, we may argue that it is because of differents "Subjective Valuation of individual' that lead to this
conclusion that diamond is more valuable than water.
So far, the given reasons seem merely pointing to worthless fact, just like saying the sun rises from the east.
I'll rather suggest that there is no such thing as subjective valuation, but rather it's the basic principle of demand and supply. In this case the 'Demand' is definately subjective! Since the "demand'is subjective, we therefore can never 'Fix A Price' for a certain commodity, the action of control a fix price on a certain goods will bound to create more problems.
Mind you, this is known in 18 century!!!!!!!!!
Sending Sugar By Navy Ship
"I am sending my 'battleships' to Sabah and Sarawak......" said Minister Datuk Seri Shafie Apdal, in The Star 25th Sep 2006
I just wonder what had happened to Malaysia's state of economy nowaday? Using a navy ship to distribute sugar? This is not even happened in the poorest country like Bangladesh nor does it happen to the most populated country like India or China.
Here in Malaysia, we yet again blaming and pointing finger to each other, but refuse anf deny the basic principle of the Free Economy!
Malaysia was blessed by its large pool of natural resources, but wake up man!!! We can no longer depand on it any more, it's especially so in this globalisational of economy.
The sooner we synergIse into the track of global economy the easier we can survive or even excel, if lucky.
Of course to bite the bullet is never easy, but beware of the consequence of not doing it, we are heading to disasterous end economically and hence politically.
I just wonder what had happened to Malaysia's state of economy nowaday? Using a navy ship to distribute sugar? This is not even happened in the poorest country like Bangladesh nor does it happen to the most populated country like India or China.
Here in Malaysia, we yet again blaming and pointing finger to each other, but refuse anf deny the basic principle of the Free Economy!
Malaysia was blessed by its large pool of natural resources, but wake up man!!! We can no longer depand on it any more, it's especially so in this globalisational of economy.
The sooner we synergIse into the track of global economy the easier we can survive or even excel, if lucky.
Of course to bite the bullet is never easy, but beware of the consequence of not doing it, we are heading to disasterous end economically and hence politically.
Tuesday, September 19, 2006
State of Malaysia Economy
Just get a news about Government promoting agriculture industry in Kelantan by giving out RM90M, planning to create another 1000 successful agriculture entrepreneurs in 5 year time.RM90M to create 1000 new enterpreneurs?
By simple calculation of 90M divided by 1000 person, its like each person can get RM90K, assuming not a single cent is wasted or abused.
I'll bet on the opposite of the coin that this project is bound to fail! Two reasons:
1) This industry must be run in big scale to be able to profit
2) Malaysia is lacking in term of technology application and geographical resources (we have too many mountain!)
This industry is just not our niche.
It can only create stable household income for the farmer, nothing more.
Monday, February 20, 2006
Malaysia economy Vs. London
I think it's more interesting to walk the market, rather than to short on politic.
Having just coming back from London after i left 15 year ago, i feel like i need to record down some lines for later reference.
1) I am always told that Malaysia have make a good efford in attracting different kinds of tourists into our country, people from all over the world come visit Malaysia. Well, compare to London, we are nut, i can not even see much British in their street!
2) China town: Well, London's buildings hardly change for ages. China town is still China town 15 year ago, but the waitress changes from Hong Kongee to Malaysian, because they know not only Cantonese, English but also Mandarin. There are so many Main Land chinese students!! You just can't ignore them, they are all around!
3) Main Land Chinese students: It show the strenght of China growing economical power, sadly nothing else yet!
4) Booming Real Estate: The housing is up 3-fold from just 4 year ago. If you bought an one bed room apartment in Dorkland 10 year ago, it will cost u $100K pound (about RM$400K), now if you sell, it's $300K pound (about RM$2Mil), you make a handsome RM$1.60 mil.
5) Burst? HaHaHa, you might make a big mistake!
6) Harrods: This hundred year household name is own by a muslim. Just imagine Mas own by a Christian (Or may be Glocal Malaysian Indian)? HaHaHa, how can this kind of free economy burst??
7) Transport: I spend $24 pound for 7 days transport fee and can not finish it! It's no way you can do this in Kuala Lumpur, sadly. Can we improve? No, no way, for the reason we all know why.
8) Living expenses: Basic salary for school leaver is $1200 pound per month, graduate is $1600 - $1900 pound, a Doc degree $4k to $7K, remember most of the work force will not want to become there own boss. Two person lunch or dinner in a proper restaurant cost about $30 - $70 pound. McD basic $2.99 pound. Bedsit from $20 pound per week, studio from $70 pound per week, basically $200 pound per week you can get good accomodation for 2 -4 persons.
It's not expensive at all considering if you are a local.
9) Car: God Dame it! A brand new Volve cost u $18k pound (about RM$117K), Jaguar $28K pound (about RM$180K) God Dame it!
10) Limited company can be set within 5 hours, cost u $100 pound!
I'm so speechless....
Sunday, February 19, 2006
Glocal Malay? Or Glocal Malaysian?
Feeling uneasy not to make a comment about what The Deputy PM just promoting - Glocal Malay - a globalised local Malay race.
I'm sure there will not be any negative comment coming out from local newspaper tomorrow morning, after all, how could you? The deputy PM is not only the Deputy PM in his standing as Malaysian second powerful man, but he is also representing the strongest community base upon race in Malaysia, namely UMNO.
I, as an individual, however, have an alternative view on this issue.
1) I believe for you to keep your house clean, you can not just hide your rubbish under the sofa; it's noncent to suggest we shall not open up our debate on issue related to our basic priciple of constitutional right given to us.
2) A person of such high ranking shall not mix up his higher duty of representing all of Malaysian's interest with the narrow race issue. These appear to have conflict of interest and create and promoting unfair policy. Well, i will never show my preference amoung my sons, unless the other is not mine!
3) To help a particular community is not wrong, because we are not a full beliver of capitalism, unlike the American. But helping one community base upon race is itself unproductive toward the developing of a country. My opinion is, it's even worst for the development of those being helped! The fact is, sadly, we all know this.
4) To have a fair society, we shall chose to help the poor regardless of their races. Even this, there might still be misbehaviour in administration of its goal.
5) But politic is politic, as we all know it. I'm hopeless as to the changes of this issue in Malaysia. Let wait and see how thing unfold. At the mean while, we are silented.
I'm sure there will not be any negative comment coming out from local newspaper tomorrow morning, after all, how could you? The deputy PM is not only the Deputy PM in his standing as Malaysian second powerful man, but he is also representing the strongest community base upon race in Malaysia, namely UMNO.
I, as an individual, however, have an alternative view on this issue.
1) I believe for you to keep your house clean, you can not just hide your rubbish under the sofa; it's noncent to suggest we shall not open up our debate on issue related to our basic priciple of constitutional right given to us.
2) A person of such high ranking shall not mix up his higher duty of representing all of Malaysian's interest with the narrow race issue. These appear to have conflict of interest and create and promoting unfair policy. Well, i will never show my preference amoung my sons, unless the other is not mine!
3) To help a particular community is not wrong, because we are not a full beliver of capitalism, unlike the American. But helping one community base upon race is itself unproductive toward the developing of a country. My opinion is, it's even worst for the development of those being helped! The fact is, sadly, we all know this.
4) To have a fair society, we shall chose to help the poor regardless of their races. Even this, there might still be misbehaviour in administration of its goal.
5) But politic is politic, as we all know it. I'm hopeless as to the changes of this issue in Malaysia. Let wait and see how thing unfold. At the mean while, we are silented.
Sunkist story going on..
After having said that Sunkist has disappeared from Malaysia market for so long, i notice the advertisement of Sunkist by a local hypermarket just about two week after i post the last blog.
Well, if what i said is right, then Malaysian should celebrate its getting stronger economy?!
Of caurse, there might not been a single reason that the famous Califonia citrus fruit is back on the shelves...
See if i can find out more reasons.
Well, if what i said is right, then Malaysian should celebrate its getting stronger economy?!
Of caurse, there might not been a single reason that the famous Califonia citrus fruit is back on the shelves...
See if i can find out more reasons.
Monday, January 23, 2006
Sunkist and Malaysia Economy
I just come back from China recently, i now know why you can't find Sunkist orange in Malaysia hypermarket since 1998:
The reason is simple, Malaysia economy is, sadly, going south.
When the America producer can sale their products higher price else where, they will not look at those markets that are lack of buying power, Sunkist is selling at RMB$5 -6 perpiece in China market, and there are plenty of middle class buyers who can affort.
Ironically, one can seldom find that our economy is lacking its focus, no media, no economist, no report is pointing to it. There are still lots of conglomerate companies reporting their ever - better result every year, export grow at the rate of 18-22% annually, so do our domestic economy!
You ask me, "You must be joking to even suggest that our economy is going south! Look at our result, boy!"
Well, don't ask me, i'm not a so-called economist.
But, may be i can suggest you a line of thought. Will that be possible that the wealth of our economy have been hijacked by a small group of powerful people, at the expense of the majority?
You will say," How do you prove that we are being marginalised?"
Well, the fact that most of us don't feel we are being marginalised, does not mean anything by its own, Sunkist incident has proved that our cake are smaller, there is always a way to play around with it for 'the rule monitor'.
The laxing of credit will surely be the easy way to make you feel you are richer, by allowing you to own a proper house and car.
Please don't think that you are lucky too early. Calculate your total repayment on your liability you will understand you work a whole life, just to have 2 houses (one for own use and one for rental), a car (which is priced at the top 3 expensive in the whole world), a kid education (it come out to a million ringgit if your kid is suddenly so clever that, you decide only the best oversea university is his destination).
Let me tell you what. In most of the other part of the world, even though they don't own a car, the public transport is right at their door step (or pay a radiculously low price for their car); even though they are paying interest for their house as like us, most likely they don't need to borrow 90-100% of the purchase price (think about it, why?), their education is so minimum that most of us want to migrate to their country!
to be continue...
The reason is simple, Malaysia economy is, sadly, going south.
When the America producer can sale their products higher price else where, they will not look at those markets that are lack of buying power, Sunkist is selling at RMB$5 -6 perpiece in China market, and there are plenty of middle class buyers who can affort.
Ironically, one can seldom find that our economy is lacking its focus, no media, no economist, no report is pointing to it. There are still lots of conglomerate companies reporting their ever - better result every year, export grow at the rate of 18-22% annually, so do our domestic economy!
You ask me, "You must be joking to even suggest that our economy is going south! Look at our result, boy!"
Well, don't ask me, i'm not a so-called economist.
But, may be i can suggest you a line of thought. Will that be possible that the wealth of our economy have been hijacked by a small group of powerful people, at the expense of the majority?
You will say," How do you prove that we are being marginalised?"
Well, the fact that most of us don't feel we are being marginalised, does not mean anything by its own, Sunkist incident has proved that our cake are smaller, there is always a way to play around with it for 'the rule monitor'.
The laxing of credit will surely be the easy way to make you feel you are richer, by allowing you to own a proper house and car.
Please don't think that you are lucky too early. Calculate your total repayment on your liability you will understand you work a whole life, just to have 2 houses (one for own use and one for rental), a car (which is priced at the top 3 expensive in the whole world), a kid education (it come out to a million ringgit if your kid is suddenly so clever that, you decide only the best oversea university is his destination).
Let me tell you what. In most of the other part of the world, even though they don't own a car, the public transport is right at their door step (or pay a radiculously low price for their car); even though they are paying interest for their house as like us, most likely they don't need to borrow 90-100% of the purchase price (think about it, why?), their education is so minimum that most of us want to migrate to their country!
to be continue...
Sunday, January 22, 2006
Dedicated to all Malaysia SMI and SME
This blog is created solely for the united interest of all Small and Midium Size Industries and Enterprise of Malaysia.
HAPPY BLOGGING!!!
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