HIGH INCOME ECONOMY

1. The Government has announced the intention to make Malaysia a high income country. I assume this means people will receive high wages, salaries and profits.

2. But if wages and salaries are to be increased by the private sector, the cost of doing business would have to increase as well. To cover this increase, prices of products must be increased. This will mean that the consumers will have to pay higher prices for whatever they purchase. There would be, by definition, inflation.

3. The increase in prices of goods and services should cover the higher wages and salaries and the profit margins from the business. But this will not be all. The cost of transport, fuel and raw materials would all increase as these businesses will also experience increased overhead costs as they too will have to increase wages etc. So the increase in product prices must also cover these costs.

4. Generally the cost of living would increase as prices increase. The rise in income may not increase the purchasing power of the wage earners. Higher incomes would not mean anything then. We know of many countries where people get higher incomes in terms of currency units but are extremely poor.

5. If there is to be an increase in income, it must be carefully managed so that it would result in increases of purchasing power and not just more money.

6. This can happen because the added cost of doing business may trigger unreasonable increases of prices for raw materials, goods (products) or services. For example a 10% increase in wages and salaries should not result in an increase of 10% in the prices of goods and services. This is because wages and salaries do not constitute the total cost of production.

7. Their contribution to cost of production varies. This has to be determined by careful scrutiny of all the cost of production including material cost, power cost, transportation, advertisement and promotion costs etc. If it is found that wages and salaries at all levels make up 20% of the cost of production, then a 10% increase in wages should contribute only 2% to the cost.

8. Similarly the increases in the other costs i.e. power, material, transport etc may increase by a much smaller percentage according to their percentage contribution to the cost. Assuming that together they contribute 50% of the cost, but the increase in their prices is 5%, i.e. 5% of 50% = 2½ %, the total increase in cost inclusive of wages and salaries should be 4½ %, or say 5%.

9. Thus the increase in wages by 10% will not increase overall cost by 10% but will only increase by 5%, after including increases of other costs.

10. The margin of profit varies. For wholesale and fast moving items the margin can be as low as 2%, while for some slow-moving luxury goods the margin may be as high as 300%. Assuming that the cost of production increases by 5% for a 10% increase in wages and salaries, there can be justification for only a 5% – 6% increase in price of products and service for those with low profit margins. For high profit margins there should be no increase in price at all.

11. The wage earners with a 10% increase in income should therefore have a 5% increase in purchasing power only; not 10%. In other words their increase in income would make them only slightly richer. Still with increase in purchasing power they would be able to contribute more to businesses. Eventually the Government would earn more by way of taxes to pay for the increases in wages and salaries in the Government service. Generally economic activity would be enhanced and there would be growth as the salary bill in Malaysia runs into hundreds of billions every year.

12. The above are some of the ways for preventing unfair cost increases when wages and salaries are raised. But there are also many other ways of reducing costs so that the cost of goods and services to the consumer is not increased much as a result of increasing incomes.

13. In manufacturing, a careful study of cost can result in ideas on cost cutting. The Japanese “Just In Time” manufacturing process is a good example. In this system the parts and components are produced just in time for them to go into the assembly of the final products. This eliminates the cost of storage and holding costs.

14. Automation and robotics are costly but they can work 24 hours a day and would reduce the cost of the three shifts of work by workers in one day. In ship-building, whole sections of the ship can be produced separately and then assembled. A lot of time can be saved this way. And time means money.

15. The classic case of reducing cost was invented by Henry Ford – namely mass production on assembly lines. Economies of scale can also contribute to lowering costs. We see the progress in retailing goods. The single specialised shops have given way to the supermarkets. Now the supermarkets are being replaced by the giant wholesale hypermarkets. These help increase volume and lower purchasing costs. Self-service also help to reduce costs in restaurants and supermarkets.

16. Various electronic devices can help in reducing costs. Because of additional capital needed for these devices, they contribute much when the volume is big.

17. Incomes can also be increased by better education and training. It is said that the Korean worker is three times more productive than the Malaysian worker. This is not just due to education and training but more because of work ethics. Obviously when a worker is more productive he should be paid higher wages.

18. Most manufacturing activities add higher value to basic material. Generally exporting raw material gives less return than exporting manufactured products. But other costs have to be taken into consideration.

19. The Malaysian strategy on industrialisation is also not conducive to reducing costs. Japan and Korea acquire foreign technologies and set up their own companies to produce their own products.

20. Malaysia adopted a different strategy. To create jobs for a large number of the unemployed, foreign investors were invited to set up labour intensive industries. Naturally wages were very low. Increased profits for the foreign owned industries did not necessarily result in increased income for Malaysian workers.

21. Over the years Malaysians had acquired the skills in manufacturing and the capital to invest. Today there are a lot of successful Malaysian companies. Should the Government help these Malaysian industries to grow they can become world class players. This means better income for the Malaysian entrepreneurs and better wages for the Malaysian workers.

22. We must not follow the route taken by the developed countries of the West to achieve high income. In the days when technology was exclusive to the European countries and North America increases in wages were largely due to the demands of the workers. To cover the increased cost of production prices were raised quite indiscriminately. This was sustainable when the Europeans were the only producer of manufactured goods.

23. But then the countries of East Asia, began to produce almost all the products of the West at lower cost. The workers of the West continued to demand for continuous increases in their wages. Very soon the high prices for their products caused them to lose the market.

24. Malaysia must never take this route in order to achieve high incomes. Instead it should study the other ways of increasing incomes which will not lead to inflation and loss of purchasing power.

106 thoughts on “HIGH INCOME ECONOMY”

  1. Salam Ayahanda Tun,
    Saya terpanggil untuk komen tentang ‘High Income Economy’ topik kali ini memang menarik sekali.
    1.Beruntung yg makan gaji dapat naik gaji, kalau itulah target PM kita untuk tingkatan Pendapatan Tinggi tapi mustahillah boleh dicapai… Ingin saya suarakan keperitan hidup untuk cari makan bagi kami yg tidak makan gaji, cuma ‘commission earner’amat terasa sekali, dengan income yg tak konsisten, keadaan barang yg melambung harganya, kena kerja kuat double tripple lagi mcm keja makan gaji jugaklah …agen mcm kami ( unit trust, insurance dan agen koperasi) memang terasa yg komisen kami semakin hari semakin mengecil, tak nafikan ada agen yg make money tp tgklah usahanya macam mana…kebanyakkannya Active Income.
    2.Di US kebanyakkan rakyat mereka hampir 60% memang tak minat nak makan gaji, mereka lebih suka buat bisness sendiri yg lebih kpd Passive Income atau Residual Income, sbb tu mereka lebih aktif kepada Internet Marketing MLM. Di Malaysia rata-rata ramai yg masih tak tahu tentang dunia Internet Marketing dan amat kecil peratusannya.Dan saya pun baru berjinak2 dgn dunia IM tujuannya untuk tingkatkan pendapatan (Residual Income)
    3.Jika yg dilaung2kan PM kita tentang High Income, adakah matlamat ini akan tercapai? Apakah nasib Agen2 yg commission earner akan juga terbela? Bila gaji naik sudah pasti harga barang pun naik, yg terasa kami yg tiada pendapatan tetap dan golongan yg berpendapatan rendah juga akan terasa keperitannya.
    Ke mana Arah tuju sebenar Malaysia Hari Ini? Generasi kami akan datang bagaimana keadaan mereka ?
    Sekian wassallam…

  2. 1. We have proposed for greater KL but majority of the money is invested in the MRT.
    2. Is there a need for MRT? The answer is no. Unlikely Singapore and Hong Kong we still have plenty of undeveloped land. If the MRT is built and if the there is an operating losses who is going to pay. If it is viable I am sure a lot of operator would bid for the concession to build operate and transfer. Instead of doing the tunneling work which cost a huge sum of money I am of the opinion that building more high speed rail connecting the whole country is more viable to spur the economy in the interior of other states. How sure are we that the majority public would want to use the MRT otherwise this project is doomed to fail at the initial stages.
    3. Our money should be used for project which is non

  3. Saya foresee rancangan PM sekarang untuk jadikan Msia negara high income country mungkin tidak akan berjaya.
    Kerana:
    1) Ukuran negara maju – lihatlah apa yang diexport oleh negara itu.
    Jika hanya export pisang seperti Filipina – negara itu tidak maju
    Jika hanya export minyak,seperti Arab Saudi- negara itu tidak maju.
    Jikan export mesin dan robot memproses pisang – negara itu agak maju
    Jika export mesin gerudi minyak, peralatan komputer untuk explore minyak, pelantar minyak,engin, kapal laut – negara itu maju
    Jika export tenaga pakar untuk explore minyak, memberi khidmat guaman, menghasilkan jurnal dalam bidang akademik berkenaan dgn kimia dan petroluem – negara itu maju.
    Rancangan Pm sekarang:
    2) Hanya banyak berbelanja untuk tambah infrastruktur seperti MRT, cantikkan sungai.
    Fokus tarik MNC untuk buka operasi di Msia dan banyak buat liberalisasi untuk pelbagai sektor seperti kewangan dan lain2. Liberalisasi mungkin baik sebab mungkin ada knowledge dan technology spillover. Ini adalah kebaikannya. Tetapi produk yang dihasilkan bukan produk Msia dan keuntungan MNC akan dibawa balik.
    Fokus tarik ramai orang negara luar yang profesional datang bekerja di Msia. Mungkin akan ada sedikit knowledge spillover tetapi output nya bukan milik Msia dan dia akan pulang ke negara nya satu hari nanti. Orang Msia tetap kurang kemahiran.
    Kesimpulan
    Rancangan PM sekarang lebih bersifat rancangan short cut untuk menjadi negara maju. Tiada jalan singkat.
    My suggested solution
    Make education in science and technology more rigorous dari peringkat sekolah rendah lagi.

    Make invention a subject part of a curiculum in schools especially from primary schools, as primary school students are more creative and imaginary. This will make invention a culture.
    Creativity and cutting edge knowledge in science and technology – ingredients for production of high value added products.
    Government then support this with institutions that support in funding, marketing, and others.
    There is no short cut to being a developed country. 10 years is not enough. Follow Japan and Korea with their own brandname of Panasonic, Toshiba, Sony, Hyundai, LG, Samsung. Our Proton is a good effort. Try to work more on Proton, improve it and expand more industry with our own brandname.
    Amir
    Semasa berlajar di Jepun, seorang kawan orang Malaysia yang belajar kejuruteraan di sana berkata dia terpaksa struggle dalam tahun pertama di sana kerana ilmu matematik pelajar Jepun peringkat A level jauh lebih tinggi daripada pelajar Malaysia. D

  4. saya kerja makan gaji; cukup bulan kena bayar cukai pendapatan paling maksima; sama seperti orang yg bergaji rendah…hhahhah…tak ada makna.

  5. Tun; Salam sejahtera dan bertemu lagi.
    Untuk mencapai tahap ekonomi Berpendapatan Tinggi, rakyat Malaysia harus mengamalkan budaya kerja yang jitu (rajin, kreatif, inovatif, ketepatan dan bertanggungjawab) seperti diamalkan oleh orang Barat, Jepun, Korea & China.
    Disamping itu harus sanggup mengaplikasikan budaya baru cara bekerja yang lebih kreatif dan inovatif, diikuti dengan kerajinan agar kesinambungan warganya dan kelangsungan hidup sesuatu bangsa dapat di kekalkan.
    Untuk bersaing di pasaran antarabangsa, Malaysia harus mencontohi China yang dikagumi kerana begitu cepat menyerlah mengeluarkan berbagai barangan (sprt.Construction Machinery, Transportation dll) pada harga yang murah dengan kualitinya yang bagus (mengikut tahap gaya hidup) dan membayar gaji pada kadar yang berpatutan agar lebih kompetitif, iaitu China meniru cara yang diamalkan Jepun satu ketika dahulu.
    China kini telah berkembang maju dengan cepat, beralih dari zaman pudar satu ketika dahulu kepada zaman cerah pada masa terdekat. Ini ialah kerana China begitu komited dan bekerja keras mengembangkan berbagai industrinya untuk maju menjadi Negara industri Naga Asia. Antara industri China yang sedang berkembang dapat dilayari dalam web ( http://www.made-in-china.com ).
    Tidak ada gunanya jika bayaran gaji mahal tetapi dalam masa sama harga barang naik dan akan melonjakkan inflasi, yang akhirnya tidak mendatangkan apa-apa makna kepada kenaikan gaji yang tinggi itu.
    Oleh itu; pertingkatkan produktiviti (melalui berbagai alternatif) dan kualiti agar barangan dan perkhidmatan itu dapat dihasilkan dengan lebih banyak, bermutu dan murah, iaitu satu cara membendug inflasi. Tq.
    Juga layari (http://www.made-in-china.com/products-search/hot-china-products/Electric.html).

  6. Tun; Salam sejahtera.
    Untuk mencapai tahap ekonomi Berpendapatan Tinggi, rakyat Malaysia harus mengamalkan budaya kerja yang jitu(rajin, ketepatan dan bertanggungjawab) seperti diamalkan oleh orang Jepun, Korea dan China.
    Disamping itu harus sanggup mengaplikasikan budaya baru cara bekerja yang lebih kreatif dan inovatif agar dapat meningkatkan kesinambungan warga dan dikekalkan kelangsungan hidup sesuatu bangsa itu.
    Untuk bersaing di pasaran antarabangsa, Malaysia harus mencontohi China yang mengeluarkan barangan pada harga yang murah dengan kualitinya yang bagus (mengikut tahap gaya hidup) dan membayar gaji pada kadar yang berpatutan agar lebih kompetitif, iaitu satu cara yang diamalkan Jepun satu ketika dahulu.
    Tidak ada gunanya jika bayaran gaji mahal tetapi dalam masa yang sama akan melonjakkan inflasi, yang akhirnya tidak mendatangkan apa-apa makna kepada kenaikan gaji yang tinggi itu.
    Oleh itu; pertingkatkan produktiviti (melalui berbagai alternatif) dan kualiti agar barangan dan perkhidmatan itu dapat dihasilkan dengan lebih banyak, bermutu dan murah, iaitu satu cara membendug inflasi. Tq.

  7. Dear Tun,
    I’m from Universiti Malaysia Terengganu. I hope you can help our government so that our country will successful as the reign of your’s.
    TQ..

  8. Salam sejahtera kepada Tun sekeluarga yang dikasihi serta semua pejuang Che Det.
    Nampak gayanya 1Malaysia “Rakyat Didahulukan,Pencapaian Diutamakan” dan juga Ekonomi Berpendapatan Tinggi akan menjadi sama waktu dengan Islam Hadhari,”Ku Cari Damai Abadi”,”Bekerja bersama saya,bukan bekerja untuk saya”.
    Apa maknanya bila gaji naik sikit semua barang naik harga.Siapa yang kena?Saya melihat selepas era Tun tidak ada siapa yang pedulikan soal etika.Kepada PM tolong buat bagi setiap kementerian bergerak konsisten antara satu sama lain.Satu contoh,bila Kementerian Kesihatan keluarkan senarai produk yang tipu rakyat,macamana pula produk-produk ini boleh dapat kerjasama stesen TV kerajaan?Stesen swasta apatah lagi.

  9. By Shen Yee Aun
    Dalam blog Tun Mahathir bertajuk ‘untuk bersifat perkauman atau tidak’ telah jelas menunjukkan beliau sendiri sudah melupai banyak fakta, sejarah dan kebenaran.
    Menurut Tun Mahathir, kuasa politik tidak boleh berada di tangan Cina kerana Cina sudah pun menguasai ekonomi negara kita dan Melayu kita masih jauh ketinggalan walaupun selepas hampir 40 tahun Dasar Ekonomi Baru telah diperkenalkan. Tun Mahathir sudah lupa dalam 40 tahun tersebut 22 merupakan kepimpinan dan pentadbiran beliau sendiri. Matematik mudah menunjukkan lebih daripada separuh daripada 40 tahun DEB diperkenalkan merupakan zaman pemerintahan beliau sendiri.
    Jika beliau pada hari mengemukakan isu kelemahan dan kelembapan ekonomi Melayu dalam ekonomi disebabkan oleh pelbagai faktor dan antaranya juga disebabkan oleh kaum Melayu mereka sendiri namun tidak sesekali Tun Mahathir menyebut bangsa Melayu gagal dimajukan olehnya walaupun merupakan pemimpin Melayu yang berkuasa paling lama di dunia.
    Tun Mahathir juga sudah lupa bahawa jutawan-jutawan Cina hampir kesemunnya wujud pada zaman pemerintahan beliau. Jika tidak silap saya tiga Perdana Menteri sebelum Tun Mahathir hanya mendiang Lim Goh Tong sahaja yang kaya. Namun keadaan mula berubah apabila Tun Mahathir mengambil alih kuasa pemerintahan negara. Jika cina-cina jutawan dikayakan oleh kamu sendiri maka isu Cina kaya dan Melayu miskin disebabkan kehebatan dan kebijaksaan kamu sendiri.
    Jangan lupa bahawa gabungan nilai beberapa jutawan Cina yang dihasilkan oleh kamu walaupun hanya beberapa orang namun angka tersebut lebih banyak daripada gabungan KDNK ratusan ribu Cina di Malaysia. Maknanya Cina Malaysia majoriti berpendapatan sederhana dan ada juga ramai lagi yang miskin dan yang menguasai ekonomi negara bukan Cina Malaysia tetapi gabungan jutawan Cina Mahathir.
    Jangan lupa juga tidak semestinya sekirannya Cina yang memegang kuasa politik Melayu akan lebih terpinggir berbanding pemerintahan pemimpin Melayu. Sejarah dan fakta telah membuktikkan pemerintahan Cina Lee Kuan Yew di Singapore telah menjadikan ramai Melayu Singapore yang bukan sahaja lebih kaya daripada Melayu Malaysia malahan ramai juga lebih kaya daripada Cina di Malaysia.
    Natijahnya, justifikasi dan hipotesis awal tidak tepat menggambarkan gambaran sebenar. Banyak Melayu di Malaysia pada hari yang berpendidikan Cina diketuai oleh guru besar Cina jauh lebih bijak dan berjaya berbanding Melayu di sekolah Melayu. Ramai juga Melayu pendapatan dan gaji mereka jauh lebih tinggi berada di bawah pemerintahan Cina di Sektor Swasta berbanding pemerintahan Melayu di sektor awam.
    Bukan niat saya untuk menunjukkan bangsa mana yang lebih layak memimpin. Bagi saya soal kepimpinan bangsa tidak seharusnya dijadikan kayu ukurnya tetapi kebolehan dan kemampuan yang seharusnya lebih diutamakan. Keadaan ini juga menandakan ada juga pemimpin Melayu yang berkebolehan yang bukan sahaja boleh memimpin Melayu dengan baik tetapi semua kaum di Malaysia.
    Namun yang menjadi persoalan rakyat pada hari ini bukan Melayu yang menjadi pemimpin tetapi Melayu zalim, rasuah dan tidak berkebolehan yang menjadi pemimpin mesti digantikan dengan pemimpin Melayu yang baik, bersih dan berkemampuan. Apabila Cina meminta jawatan tertentu dalam kerajaan bukan disebabkan faktor bangsa tetapi faktor kerjasama dan persahabatan politik.
    Apabila PAS sanggup bertolak ansur dengan Cina dalam isu ini bukan disebabkan PAS mengkhianati Melayu tetapi PAS cuma berpegang pada prinsip persahabatan dan keadilan yang dibawa oleh Islam. Dalam Islam bukan bangsa yang menjadi kayu ukurnya kerana Islam menentang sistem kabilah dan semangat assabiyah seperti PERKASA yang menjadi alat, senjata dan buah catur kamu untuk menghuru-harakan negara Malaysia.
    Islam sebenar yang dibawa oleh PAS percaya tiada perbezaan sesama kita melainkan takwa seseorang. Jika seorang bukan Islam dan Melayu lebih bermoral dan bernilai murni berbanding Melayu Islam yang tidak beradab maka bukan Islam itu mesti dipilih menjadi pemimpin demi kebaikan seluruh ummah. PAS berpegang pada prinsip muafakat sesama diri kita.
    Dalam blog Tun Mahathir juga menyebut bahawa PAS berkrompomi dengan Cina sehingga bukan sahaja mereka melawat upacara pengebumian Cina malahan membakar kertas kepada mayat yang sudah meninggal dunia. Tun Mahathir sudah lupa bahawa pembakaran kertas dalam upacara pengebumian Cina tidak sesekali berunsur agama tetapi itu hanyalah sekadar budaya pengebumian Cina.
    Saya cabar Tun Mahathir atau sesiapa membuktikkan kitab agama Cina mana, ajaran mana dan Tuhan mana dalam Cina yang mengatakan pembakaran kertas itu adalah tuntutan dan sebahagian daripada agama Buddha. Taoisme pula bukan merupakan satu agama tetapi lebih kepada falsafah. Sedangkan mereka yang benar-benar mengikuti ajaran Buddha di negara lain tidak mengamalkan upacara pengebumian sedemikian. Amalan tersebut hanyalah simbolik dan sebahagian daripada budaya Cina seperti budaya

  10. Assalamualaikum wbt selamat sejahtera untuk Tun dan para pembaca blog lain,
    Dah lama saya tak layari laman Tun. Hari ni saya tertarik hati dengan topik ‘high income economy’. Lumrahnya begitulah, mesti kita mimpikan pendapatan yang lebih baik apabila sudah bekerja. Salah satu cara untuk meninggikan nilai pendapatan ialah dengan bijak berbelanja. Oleh itu, saya ingin berkongsi serba sedikit tentang cara dan suasana penduduk tempatan di Dunedin, New Zealand yang berbelanja secara berhemat cermat terutamanya pembelian barang-barang keperluan.
    Mereka yang berbelanja di bandar Dunedin rata-rata termasuk dalam beberapa golongan penduduk. Golongan yang paling besar ialah pelajar universiti dan kolej. Secara purata, daripada 124000 penduduknya, 25000 atau kira-kira 20% adalah pelajar yang datang dari dalam dan luar negara. Mereka ini memperoleh biasiswa kerajaan tempatan ataupun daripada biasiswa dan keluarga di tempat asal masing-masing. Golongan tempatan pula terdiri daripada penduduk yang tinggal di bandar Dunedin itu sendiri, pinggir bandar serta mereka yang tinggal di pendalaman. Penduduk pendalaman adalah mereka yang bekerja sendiri sebagai penternak lembu tenusu/daging dan penternak biri-biri termasuk penanam buah-buahan dan lain-lain. Lebih dekat kediaman penduduk dengan bandar, lebih keraplah kunjungan penduduk ke kedai-kedai untuk berbelanja. Terdapat juga golongan pelancong yang melawat Dunedin kerana keunikan bandar ini yang menjadi pusat industri dan komersil utama selepas penemuan emas di wilayah Otago pada pertengahan abad ke-19. Namun peratusan golongan pelancong adalah amat kecil berbanding jumlah penduduknya.
    Oleh kerana gaji di new Zealand dibayar secara mingguan (hari gaji ialah setiap Khamis), perbelanjaan isirumah juga selalunya tertumpu pada hujung minggu terutama pada hari Jumaat dan Sabtu. Waktu urusniaga perniagaan dikawal ketat oleh kerajaan. Waktu urusniaga biasa ialah sehingga 5:30 petang kecuali bar dan restoran yang ditutup agak lewat. Para peniaga juga tidak dibenarkan sama sekali berniaga pada hari cuti umum seperti pada perayaan Krismas, Good Friday dan Anzac Day. Mereka yang melanggar undang-undang akan diberi notis peringatan dan dikenakan denda yang tinggi.
    Saya perhatikan yang promosi kedai-kedai runcit mereka juga sama seperti yang terdapat di negara kita. Naskah-naskah iklan yang dicetak diedar dari rumah ke rumah sekitar bandar. Iklan tentang jualan harga istimewa juga disiarkan melalui media televisyen dan radio. Melalui internet, para pelanggan selalunya dapat mengetahui terlebih dahulu barangan apa yang akan dipromosikan pada minggu tersebut. Mereka juga dapat mencetak sendiri kupon-kupon tertentu untuk ditebusnilai di kedai apabila berbelanja nanti. Lazimnya, barang-barang yang diberi harga murah ialah barang-barang keperluan di rumah termasuk roti, susu, daging, ayam, makanan yang diproses seperti keju dan keperluan lain seperti serbuk pencuci pakaian dan pinggan mangkuk. Adalah sesuatu yang sangat janggal kepada orang luar apabila plastik sampah hitam khas perbandaran juga dijual dikedai-kedai sekiranya kita mahu sampah kita dipungut secara tetap dan berjadual oleh pihak majlis perbandaran. Alternatif lain ialah dengan membuang sampah kita didalam plastik biasa tetapi tong sampahnya perlulah yang diiktiraf dan dibeli dari pihak majlis. Tong kitar semula juga perlulah seragam untuk sistem pengumpulan barang-barang kitar semula (plastik tertentu, kertas, aluminum dan kaca) yang teratur dan efisyen.
    Yang sangat mengagumkan ialah cara penduduk di sini berbelanja. Jika terdapat tawaran harga murah, barangan tersebutlah yang akan habis dulu di kedai-kedai tersebut. Rata-rata, jenama tidak terlalu mempengaruhi pilihan pengguna. Pengguna juga sanggup menunggu sehingga barang-barang yang diingini dikurangkan harganya. Ini lebih terbukti dengan barang-barang bermusim seperti pakaian, kelengkapan sekolah dan peralatan musim sejuk. Dan, mereka lebih gemar berbelanja untuk mendapatkan nilai yang tertinggi untuk wang yang dibelanjakan. Perancangan perbelanjaan amatlah penting. Kayu api akan dibeli pada musim panas lagi supaya dapat disimpan sehingga tiba keperluan pada musim sejuk yang harga kayunya dinaikkan satu atau dua kali ganda. Makan direstoran hanya dilakukan apabila meraikan sesuatu peristiwa penting keluarga seperti majlis graduasi, hari lahir, atau ulangtahun perkahwinan. Mereka lebih suka menyediakan dan memasak makanan sendiri daripada membeli makanan yang siap diproses. Hatta roti sebagai makanan rujipun dibakar sendiri kerana roti berkualiti yang dihasilkan di kilang sangat mahal (harga sekitar RM12.00 sebuku). Bagi mereka yang kreatif, bolehlah mencuba membuat yogurt berperisa tersendiri dengan adanya penjualan kit pembuatan yogurt dirumah.
    Diakhir sesi membeli-belah, kupon sebanyak NZD0.20 sen setiap liter minyak akan diberi sekiranya jumlah pembelian melebihi NZD40.00 yang membolehkan pengguna menikmati diskaun harga minyak petrol di stesen-stesen minyak tertentu. Pembelian yang lebih banyak akan melayakkan para pengguna mendapat diskaun petrol yang lebih tinggi. Dengan cara ini, pengguna akan setia datang ke kedai-kedai kegemaran mereka supaya dapat menikmati diskaun barang-barang keperluan dan petrol yang berterusan.

  11. “1Malaysia” and “High Income Economy”
    Salam Tun M,
    Apa maknanya kenyataan/tulisan Tun kepada saya/rakyat Malaysia
    seperti yang semua tahu, yang di atas makin kaya,yang susah makin susah, ungkapan ekonomi pendapatan tinggi hanya dongengan untuk mengaburi orang-orang kampung/luar bandar. saya amat terasa bahang pedihnya keadaan ekonomi sekarang, perkerjaan saya(Syrkt Enterprise) hanya bergantung kepada mendapat peluang membekal secara kecil-kecilan LO/PO nilai cukup makan ada kerja,dan isteri sebagai kerani N17 di sutu Jabatan.
    Apalah maksud ungkapan kuranag bijak pemimpin di atas,apa yang dapat membantu kami di bawah yang kecil ini?

  12. SALAM TUN,
    PADA PANDANGAN SAYA EKONOMI BERPENDAPATAN TINGGI TIDAK SEMESTINYA MEMBERI MENAFAAT DALAM KONTEK MASYARAKAT DI MALAYSIA YANG MANA BERBILANG BANGSA DAN BERBEZA LATARBELAKANG TAMADUN. TIDAK DIBAFIKAN DALAM KEADAAN PENDAPATAN YANG BERTAMBAH SEMESTINYA MAMPU BERBELANJA LEBIH DARI YANG BIASANYA.
    APA YANG SAYA NAK CUBA JELASKAN, SELAIN MEMPEROLEHI PENDAPATAN YANG TINGGI SETIAP BULAN, SETIAP ORANG PERLU ADA KEMAHIRAN UNTUK MENABUNG SEJAK DARI AWAL BERKERJAYA. TETAPI MALANGNYA DARI PENGAMATAN SAYA ILMU MENABUNG DALAM MASYARAKAT MELAYU SANGAT JAUH KETINGGALAN BERBANDING MASYARAKAT LAIN DI MALAYSIA TERUTAMA ORANG CINA, INDIA WAIMA PENDATANG BANGLADESH.
    SERING KITA DENGAR UNGKAPAN MENGATAKAN SEKIRANYA KITA TIDAK MERANCANG UNTUK MASA DEPAN YANG CERAH, BERMAKNA KITA MERANCANG UNTUK MASA DEPAN YANG GELAP.
    SEMUA ORANG AKAN BERDEPAN DENGAN PENINGKATAN KOS SARA HIDUP BERBANDING PENDAPATAN BULANAN. APA YANG DAPAT MENAMPUNG KEKURANGAN INI HANYALAH PENDAPATAN TAMBAHAN YANG DIPEROLEHI SECARA SENYAP MELALUI PELABURAN HASIAL DARI TABUNGAN YANG DILAKUKAN SEPANJANG MASA BERKERJA. TANPA ILMU MENABUNG DIKUASAI ADALAH MUSTAHIL UNTUK SESEORANG ITU MENDAPAT MENAFAAT HASIL SAMPINGAN SEPERTI YANG SAYA NYATAKAN.
    BERBANDING MASYARAKAT CINA DAN INDIA YANG MEMANG MEMILIKI KEMAHIRAN INI SEJAK BERZAMAN, AKAN MEMPEROLEH MENAFAAT BERGANDA APABILA MEREKA MAMPU MEMBUAT TABUNGAN LEBIH BANYAK DARI BIASA DALAM EKONOMI BERPENDAPATAN TINGGI. DALAM TEMPOH YANG TIDAK TERLALU LAMA IA SUDAH TENTU MENGUJUDKAN JURANG PERDAPATAN YANG BESAR DIANTARA ORANG MELAYU – CINA/INDIA.
    JIKA KEADAAN INI BERLAKU LAGI, DIKHUATIRI KERESAHAN DIANTARA KAUM AKAN TERUJUD. OLEH ITU ADALAH SANGAT PERLU KEMAMPUAN MENABUNG DALAM MASYARAKAT MELAYU DIPERTINGKATKAN DI SAMPING MENINGKATKAN PENDAPATAN.
    SEKIAN TERIMA KASIH.

  13. Dr Mahathir,
    The subject of High Income Malaysia is a very tough nut to crack.
    What does come to mind when attempting a bite at the inner, usually edible seed of a nut is how will the US Dollar dominated exchange regime factor in this Malaysian quest for a more civil and caring society under the habit and fashion of a high income country. As usual, when the subject of the US Dollar is called into question, the whole gamut of exquisite preemptive economics action is more times than not made available primarily to the not quite defunct G7.
    The unemployment rate of the neo-Keynesian economics theory will now now 10-20% of the populwation as full employment and national credit worthiness. Recent news indicates that the private sector are not as able to provide new employments as the public sector can even though this is the new model being drove around in the G20. However, I still have to understand the GCC, Russia and China aspirations, Tun Dr Mahathir.
    We have to crack the nut however to get to Vision2020 – through 1Malaysia, and thus we must be clear of what we have to do and having the ability to carry out what need to be done.
    Yes, Tun, a paradigm shift. What do we do with Langkawi?
    Salam hormat dan Salam Kasih

  14. Well I just hope that the present government is fully aware of what they’re doing. Anwar’s silly ideas were killed because you were around. But who’s gonna stop these buggers now? I really hope they know what they’re doing. I’ve a feeling we’re gonna be left behind by other SEA countries in terms of development.

  15. Today Malaysia is put on par with countries like Cambodia and Philippines; even Thailand and Indonesia is outperforming Malaysia when it comes to a performing economy.
    A “high income economy” by its definition is a misnomer in the Malaysian context for the foreseeable future. Some of the policies being devised and implemented by the government is simply astounding. Until and unless, there are competent and worthy individuals put in positions of responsibility, we will remain a nation that remains at borderline “middle income”.
    As one small example of ‘putting the horse before the cart’, one has to simply look at the stupid move by the government to increase the threshold for foreigners buying a property in Malaysia by 100% – While there remains a glut in the property market and supply outweighs demand, someone please explain the wonderful reasoning behind this nonsensical move?
    Malaysia wants to act like a “high income” economy while it battles less developed countries in the region to secure FDIs and the type of industry it needs to move higher in the chain.

  16. well, mr Jeng Jeng Jeng….
    corruption happens anywhere but is there any action by UMNO.
    At least DAP sacks their councillor and investigating Ronnie Liu. Police is free to investigate as long as they are not in a witch hunt.
    Dont talk about sand mining issue. this is being done by UMNO ppl all over the country…
    All these pegawai kerajaan even in PR states are working for UMNO to sabotage….all ppl know this…
    Those 2 adun PKR in perak charges were dropped after they join BN….what u think of this ????
    Lu Tolong gua,….gua tolong sama lu ????? Najib Sibu

  17. Tun,
    In my opinion, the increase of income is proportional to inflation. When demand is up, so does the price. I think the better approach is reduce the rate of inflation so that the purchasing power is maintained highest possible.
    Ensuring a healthy competition in our current market will also ensure prices of products remained low.
    At present, in Malaysia, local products, such as groceries is reasonably affordable except for automobile. I think the low and average earners is burdened a lot with the high cost of vehicle that they cannot avoid to buy. Vehicle is much cheaper in other countries.
    I think the government can do a lot to ease the financial burden of the people such as improving the public transport, reducing the toll and etc.
    The present rate of salary for the government and private sector cannot be maintained very long as people will no longer afford with current salary. External sources such as the oil prices can also drive the prices up. Salary and wages are not the only variables that can effect inflation.
    We are not a sole nation in this planet. As such, I think there is nothing wrong in emulation developed nation how they run the country.
    In UK for example, their purchasing power with the salary earned is high, public transport is very good, food is affordable and vehicle is wonderfully cheap. Hence the people can live quite comfortably. I think that is what we should have.
    Sallam
    JB_FROM

  18. High Income Economy?
    Owh yeah, the government’s latest ploy. Another monthly agenda for the government guys to work for.
    You know what? This is just another fabricated truth. A lame joke.
    High Income Malaysians? My foot!
    The rakyat knows that “High Income Economy” is an excuse to set new tax policies and other horrendous rulings.
    We have seen recent hike in fuel price and other items (and this is just the beginning).
    “High Income Economy” is not meant for the normal rakyat and will never be.
    This is how the current regime holds our thought and every hard earned penny we have. You must be day dreaming thinking the government gonna allow some average Joe to have even the slightest bliss in his life.
    “High Income Economy” is designed to cater the needs of the corrupted elites to grip on our balls much tighter.
    We are growing sick and tired of the current government.
    The only way for Malaysians to released themselves from this endless continuous cycle of lies is to change the government.
    Maybe by then, at least, if we are not safe, at least our children and grandchildren and our great-great grandchildren will be spared from this destruction!

  19. Salam Tun Dr. Mahathir sekeluarga, harap sihat-sihat hendaknya..
    Memandangkan topik kali pasal High Income Economy, bolehkaj Tun bagi komen tentang industri sarang burung walit (swiftlet farming industry) ?
    Kita banyak bercakap tentang cara-cara meningkatkan pendapatan rakyat tetapi kerajaan pada masa sekarang ini seperti tidak mahu rakyat meningkatkan pendapatan mereka. Sebagai contoh, industri sarang burung walit ini boleh menjana pendapatan besar kepada pengusahanya, tetapi syarat pemberian lesen rumah burung walit adalah sangat ketat. Memanglah ia diketatkan bagi memastikan kebajikan spesis burung terancam ini terpelihara, tetapi disebabkan segelintir pengusaha yang tidak berperikemanusiaan (seperti membuang anak burung semasa mengambil sarangnya) , pengusaha walit yang lainnya menerima tempiasnya, sehinggakan pada satu tahap dimana perusahaan burung walit ini diharamkan sama sekali di Sarawak. Saya cadangkan peraturan pemberian lesen yang sedia ada perlu digubal agar lebih fleksibel dan ‘mesra pengguna’.
    Sekiranya undang-undang pemberian lesen burung walit ini dilonggarkan, pasti lebih ramai bakal usahawan yang menceburi industri lumayan ini. Ini juga secara langsungnya menyumbang kepada peningkatan GDP negara kita dengan cara menambah satu lagi hasil eksport yang bernilai tinggi iaitu sarang burung walit.
    Apa pun, keputusan untuk menggubal undang-undang / syarat pemberian lesen burung walit yang sedia ada terletak di tangan kerajaan. Undang-undang buatan manusia bukanlah seperti hukum Tuhan di mana ianya tidak boleh diubah atau dipinda sama sekali.
    Kerajaan perlu fleksibel dalam hal ini. Undang-undang sebenarnya tidak salah, tetapi manusia yang membuatnya yang salah, kerana fitrah manusia itu sendiri tidak dapat lari daripada melakukan kesilapan.

  20. Salam Tuan,
    Pendapat saya yang naif ni lebih kepada berikut,
    1. Kita tiada pemimpin yang efektif dalam merealisasi penyelesaian rumahtangga negara khususnya ekonomi.
    2. Think tank pemimpin hari ni lebih kepada jenis “nak selamat diri”
    3. Polisi dan implimentasi mempunyai jurang yang luas sebab yang buat polisi mungkin tak pernah “hands on” ataupun tak tau apabenda yang dia buat walau sijil berjela2 dan cakap power asal janji nampak ada keje.
    4. Budaya kerja produktif lebih kepada slogan. KPI, benchmark, TQM, ISO, Kaizen, bla2 sekadar satu modal nak cakap macam bagus. Pemikiran kritis dan kreatif lebih kerap dibincangkan dari “digunakan” untuk hasil yang efektif. Yang pasti modal dan sikap lama (bodek power, cakap besar tanpa asas, idea bombastik xboleh pakai, janji gula2, wayang hindustan nampak bagus) lebih meyakinkan orang ramai (cth paling ketara yang gemar pakai teknik lapuk ini : Yg Berhormat Anwar Ibrahim dan Lim Guan Eng)
    5. Pembuat polisi mungkin macam katak dalam cermin..Agak-agak sahaja dan skill nak fikir jauh dan mendalam pun dah penat. Monitoring and counter checking ??????
    6. Integriti dan keikhlasan sekadar modal politik.
    7. Ramai masih tidur dalam fantasi dari melihat hakikat masalah yang sedang dan akan melanda.
    8. Modal insan ????
    Minta maaf tuan, sekiranya ayat saya gunakan kurang sesuai tapi itulah seadanya yang mampu dari saya golongan marhain di Malaysia yang kaya sumber alam ini.
    Penat hidup di Malaysia hari ni tuan. Penat dengan keliru nak buat yang terbaik dan tercemerlang. Unless you are the “Holier Aristocrat” then it’s all just gift and gift and gift and gift…simply because we are anonymous, modern slave and ordinary people with small voice and narrow options. Born to listen the same song title “Empty promises and False Hope”.

  21. SALAM KASIH DAN SAYANG
    AYAHANDA RAKYAT TUN
    Izinkan,
    By wan on August 2, 2010 11:45 AM
    Sdr Wan,
    Lagu ni, kami rasa terharu dengan KELUHAN DAN RINTIHAN saudara…dan perkara2 sedemikian bukan berlaku kepada saudara saja. Beribu2 lagi syarikat melayu/bumiputera juga telah dianiayakan..GULUNG TIKAR!
    HANYA KERNA PENDEKATAN KEBANYAKAN GLC KERAJAAN (DITUBUH UNTUK DINAUNGI OLEH SYARIKAT PERNIAGAAN BUMIPUTERA) TELAH MENGUBAH PENDEKATAN KEPADA ‘KEPALA AGUNG’ DAN INI TELAH DAN SEDANG BELAKU KETIKA DASAR EKONOMI BARU MASIH DIPERJUANGKAN!
    DAN JIKA MODEL BARU EKONOMI ( MULANYA MODEL EKONOMI BEROK) DILANCARKAN, KAMI BERASAKAN PAYUNG NAUNGAN AKAN DILELONGKAN TERUS KEPADA ‘THE HIGHEST BIDDER'(Cakap olang putih, ma?) DAN SELAGI AYAM MAKAN GANDUM(kautim, ma?)…
    KETIKA ITU GULUNGAN ‘ARISTOKRAT’ YANG TELAH PUN DIPERKAYAKAN DENGAN ‘DEB’ DENGAN ANGKUHNYA BOLEH BERKATA KEPADA GULUNGAN PERNIAGA2 BUMIPUTERA, ‘LU PIGI LULUK LIAM LIAM MINUM KOPI (MAMAK JUGA YANG DAPAT BISNES) ATAU PIGI KALAU-OKE, LAMAI2 NYANYI LAGU P LAMLEE…
    ‘BEGINILAH NASIB DIRIKU (MELAYU) YANG MALANG’…
    ‘KU SANGKAKAN PANAS HINGGA KEPETANG, RUPANYA HUJAN DITENGAH HARI’… PAYUNG DAH DITENGELAMKAN DITASIK PUTRAJAYA KETIKA ITU.
    APO NAK DIKATO…DUDUK MENGHITUNG HARI JE LAH
    MELAYU TAK HILANG DIDUNIA AKAN DIJADIKAN DENDANGAN… NAUZUBILLAH.
    ALFATIHAH, AMIN.
    Ps. Mohon maaf ayahanda Tun, guna HURUF BESAR… GELISAH, lagu ni!

  22. I totally agree with Tun:
    Quote “We must not follow the route taken by the developed countries of the West to achieve high income.”
    PERIOD.
    Finally Tun talked about the real truth behind NEM. Does the cabinet of DS Najib reading to this blog OR is DSN reading this blog or not?
    SO far, Najib has not talked about the details on how to prevent inflation with the NEM model.
    From news I can’t compute in my head on how actually this NEM model will really benefit malaysian when most major things in our life went up sky high in terms of prices.
    I just hope DSN can answer this worry of mine…I am really worried though…look at the price of a house now. Terlampau mengarut harganya cam nak jual negara ….
    Belum pon NEM berjalan 100%, the price went up sky high like nobody business.
    DSN, pls. take control of this situation before it’s too late.
    Many developer said, price of house will not be reduced over the years but look what govt of China has proven to the world. They managed to reduce their property price bubble. Now why can’t the govt of malaysia use the same way as China to combat the house pricing bubble???
    Pls. don’t give excuse with the new EPF housing scheme flexibility etc. It’s a sham.
    Shame on you DSN. Ppl. believe you to be the successor of Tun Mahathir, yet you are not showing as one real good successor.

  23. salam Tun,
    gunse007,
    you don’t call others ‘a disgrace’ when your comments are themselves pitiful and downright disgraceful, because they only show your shallow level of thinking.
    The same things you are accusing BN of doing is happening now in PR ruled states even as we speak.
    Where’s the integrity? Where’s the declaration of assets that PR promised to implement? Corruption is everywhere nowadays and it’s damn smelly in Selangor especially.
    I would really want to know YB Ronnie’s assets.Hmm….
    Jeng3

  24. Salam Tun,
    Untuk pengetahuan Tun, ada GLC konon naikkan harga perkhidmatan dengan alasan hendak naikkan gaji pekerja bawahan. Sebenarnya ada udang sebalik batu Tun. Tun tentu sedih kalau saya beritahu apa sebenarnya berlaku. Alasan sebenarnya ialah kakitangan bawahan naik gaji tak seberapa, tetapi pegawai naik !!!!!!!!!!!!!!!!!!!!!. Mereka hanya mengaburi mata rakyat untuk kepentingan mereka.
    Itulah antara masaalah di negera ku ini. Angkara ini menyebabkan rakyat akan menjadi lebih meluat dengan kerajaan, kerana pekerja bawahan adalah rakyat Malaysia juga.

  25. Emulate the singaporeans. They have a high income per capital, a modern economy and yet inflation is low.
    I dont know jack shit bout economics but i know singapore is doing in right. Shame on Malaysia and its leaders. expelling a country and starving it before only to let them have the last laugh now. Wah lau ehh, so stupid sia!
    I know Mr Mahathir secretly admires SG leaders 😉

  26. Salam Tun,
    May Allah Bless you with good health,
    agree with your views , to add point in simple and clear
    GOVERMENT SHOULD IMPROVE THE PEOPLE STANDARD OF LIVING,rather than focusing in high income,
    kenapa la pemikiran pemimpin kerajaan dan pembangkang lembap sangat, PEOPLE OF MALAYSIA LET US BE COUNTRY LIKE NEW ZEALAND, AUSTRALIA, Spain , Italy , UK, Paris, S.Korea keep our country green, don’t work like 3rd world country people 24 hours looking money, instead leave quality life, interms of time, family, creativity, values, culture etc ,look at Italian produce superbike in small factory in village area.

  27. The increase in prices of goods and services will make the tokey much much more happy, the rich become richer. The increase in prices of goods and services will be more significant compare to salary. I dont know what Im talking about.

  28. a comment By srid on July 31, 2010 3:23 AM interests me
    to add a few more ..
    SG Fast Food value meal $4.50
    MY Fast Food value meal RM 12
    SG Nasi Lemak Food Centres $1 to $2.50
    MY Nasi Lemak Food Centres RM 3 to RM 4.50
    SG Ramly Burger Nanyang Univ $2 to $2.50
    MY Ramly Burger Pasar Malam RM 3.50 to RM 4.50
    SG Roti Prata Kosong/Telor $0.70 / $1.40
    MY Roti Prata Kosong/Telor RM 1.30 / RM 2.10
    Najib should create a website or a giant board at Dataran Merdeka or better still a Program in National TV that compares Apple to Apple.

  29. Assalamualaikum Tun. If the standard set by World Bank is being considered, I think, Malaysia will be having a number of problems in achieving the status. This is because the main factor is the country’s wealth. EXcept Singapore.
    And by announcing such a policy, it will attract Singaporean. They will take steps to ensure that their position is being taken care off. Only then they will pass it to Malaysia, all their links and networking.
    Also, by having this policy, since Malaysia is not that wealthy, (further with the willingness to sell her wealth like the case of petroleum blocks) they will have to strive for all the capacities as existed like in Singapore. This is because Singapore achieved that status not by being wealthy, but due to their capabilities and networking, which is, extended all over the world.
    If Malaysia want to achieve something more substantial, economically, and less competition, then Malaysia should have a policy like ‘halal economies’. This will attract Islamic nations, and non Islamic states, since they also wish to have that Islamic cake of economy.
    But then, they will stop at 10% of the market only, like what is happening in Malaysia now, with her Islamic banking, monetary and other economic products.
    However, we have yet to harvess all the market potentials as existed in other Islamic nations.
    But one thing remain for sure is that other nations, including Singapore, will have their time consumed in trying to really get the meaning of ‘halal economies’, whereas, Malaysia is forging ahead with all the Islamic states and developing nations. Thus, our economy will grow, and may be to the extend of high income economies!

  30. Assalamualaikum Tun,
    Negara kita yang dicintai juga akan menerima kedatangan ramai rakyat asing untuk mencari pekerjaan kerana ekonomi dunia yang merosot di UK dan US. Kita perlu berhati-hati mengambil pekerja asing khususnya graduan yang baru tamat dengan PhD dari universiti luar negara kerana ketika ini mereka digalakkan untuk mencari peluang pekerjaan di luar. Di saat kerajaan Malaysia cuba meningkatkan jumlah graduan PhD di universiti tempatan, maka jangan pula kita tertipu dengan kebolehan graduan PhD negara asing yang hanya hebat bercakap bahasa Inggeris.
    Adalah menjadi tradisi kita terlalu kagum dengan orang Inggeris dan individu yang berkebolehan berbahasa Inggeris. Malah, kita sanggup membayar dengan gaji yang mahal berbanding graduan PhD Malaysia di dalam atau di luar negara sedangkan PhD Malaysia lebih berketrampilan dan berkeupayaan. Perlu ada standard dalam menetapkan gaji graduan asing khususnya bagi mereka yang tiada pengalaman pekerjaan. Itupun sekiranya kita masih mahu mengambil mereka untuk mengisi kekosongan tempatan yang sepatutnya kita perlu sediakan untuk graduan PhD tempatan. Sebaik-baiknya mereka sama dengan graduan PhD kita.
    Penswastaan pendidikan juga turut wujud dengan syarikat swasta menawarkan program pendidikan sama sepertimana yang ditawarkan oleh universiti-universiti tempatan yang lain dengan alasan untuk membantu generate ekonomi Britain. Begitu juga sistem pendidikan ijazah sarjana muda berusia 2 tahun yang sedang cuba untuk diperkenalkan di UK. Para pelajar diberi pinjaman pendidikan yang perlu dibayar setelah tamat pengajian pendidikan mereka. Golongan ini akan mensasarkan peluang pekerjaan di negara-negara yang pesat membangun dan memerlukan pekerja bagi melunaskan pinjaman pendidikan mereka serta mencari pengalaman pekerjaan. Sudah tentu Malaysia tidak mahu menerima graduan ‘mee segera’ untuk memenuhi kekosongan pekerjaan khususnya bila kita cuba mengantarabangsakan universiti-universiti tempatan.
    Jaga kesihatan Tun sekeluarga dan semoga Malaysia terus maju, Insyallah.
    M

  31. Strangely, while your statements equates that Malaysian industries must strife for efficiency and internationalizations.
    With examples of Japan and Henry Ford thrown in.
    But sadly, even your brain-child is under-capacity which means running at production rate of 50%, while the rest of it’s factory is sleeping idle.
    So much of 25years in car industries, but basically idle means loss.
    If loss incurred indirectly from under-utilization, how do Proton improves the quality which generates revenue. Subsequently, how to become profitably good enough to provide high-wages???
    Similar, the problem, is difficult to solve, since during your tenure had practically de-value MYR for sustance of the industries.
    While also having great loans with Japan.
    Basically, this is liability that cause our MYR value faceless and practically causing items to be costly.
    We now stood stuck in the middle, because we could not do away by selling off the GLCs or Equities for robust markets that eventually made Malaysia high income.
    There are too much too lose for the few privileged people.
    But with only fluid equity and fluid fundings, then only high income value will come.
    But mainly, valuable human assets now attracts investors, if Malaysian’s university keeps printing mechanical degrees, religious degree or valueless degrees, where are we then.
    Lastly, we are really short meritable and capable students to studies Charted accountings, Softwares, Complex design languages and etc.
    So, basically our difficult to attain high-income value is partly derived from tenureship of protective economies, which until today still dependent on protection.

  32. SALAM KASIH DAN SAYANG
    AYAHANDA RAKYAT TUN
    Izinkan,
    By gunse007 on August 1, 2010 9:09 AM
    tun mahathir,
    as Ling LS is charged in court, …
    Why you so quiet on this????
    Why you so scared to comment on this?
    Mr. Gunse007, please remain a follower and not try to challenge our macha ‘Ravi’ for the undisputed honour of ‘ THE HIGH PRIEST OF THE MUTTALS’..perhaps, as his deputy shud be wokkay lah..
    Mr. Ravi, nalle irreke?
    Wannekem, poitu warren
    ALFATIHAH, AMIN.

  33. Dear tun,
    for me business organisation in malaysia aren’t yet fiercely competitive as business organisation in developed countries. the market is yet determined by certain organisation (i.e TNB for electric supplies, Telekom,etc). without fierce competition, business organisation seldomly think about ways to reduce capital cost thus relaying the lower cost back to end user. sometimes even if lower cost is achieved, this gain only goes to investors pocket.
    why i said that are due to certain reasons. look at tun example of the JIT theory implied by Japanese, henry ford,etc. and nowadays we can even look to Fernandes, founder of air asia. their strive of improving effectiveness in production and services yet with one aim of providing lower cost to end user is remarkable feat and in the same time provides them with more profit. as for air asia success, this is a result of competition factors, due to one must think creative, strategically innovative and have a right mind to invest on something that are identified necessary in order for them to deliver their service.
    as for me which involve in construction sector, i personally feel that companies must look back of the rationale having building asset in their account. building are expensive to build, maintain yet even to demolish. in some research i saw building would contibute up to 70% of the total prodcuction cost. these cost are at the end transpired in the production cost. take for example JIT method, they aiming to reduce storage area because they want to save on building spaces and cost. when reduction excercise made by dato idris jala to save MAS, he sold the MAS building in KL to save cost. i even rarely see Air Asia have its so many office space or building (as they only provide a counter with a gorgoues lady with computer) due to cost saving. lowering these cost would enable companies to look to other matters, such as lowering their own services/production cost and maybe increasing workers wages.
    companies must be creative in finding ways to increase their competitiveness in the open market. but in order to force them to be creative, market must open up and let them compete among themselve and find ways to survive. bumi organisation must now learn how to run without being prop by gavernment. as a malay myself,sometime i do think and feel why the heck are we helping these certain organisation for such a long time and still not learning how to live themselves.

  34. Salam YAB Tun,
    Seperti yang saya bangkitkan dahulu, yang penting bukan berpendapatan tinggi tetapi kenaikan dalam tabungan bersih (increase in net saving) bagi setiap rakyat terutama yang berpendapatan rendah.
    Kadang-kadang pihak peniaga (termasuklah GLC) hendak keuntungan yang berlebihan. Apa yang berlaku, keuntungan hanya kurang 2% hingga 5%, tetapi kecohnya macam dah rugi.
    Saya harap pihak bijak pandai(“think tank”) boleh fikirkan perkara ini. Macam selalu katakan “think outside the box”/”think differently”. Jangan hanya ghairah cedok idea orang lain dan cuba gunakan di sini.

  35. YABhg Tun,
    …we don’t take well to changes. The world is constantly changing…but, sadly we don’t seem to have that adaptability to accept changes, even if it is intended to raise our competitiveness globally. A case in point was the teaching of maths and science in English…introduced by your government.

  36. Assalamualaikum YAB Ayahanda Tun
    Saya dan keluarga serta kaki tangan syarikat saya mengucapkan Selamat menyambut Ramadhan yang penuh dengan Barakhah kepada YAB Ayahanda Tun dan keluarga.Saya sentiasa mengikuti apa berita dan ucapan Ayahanda dan dengan rendah diri saya ingin bertemu dengan Ayahanda untuk meminta sokongan dan pendapat mengenai SYARIKAT GLC yang hendak menutup syarikat kecil bumiputra yang telah berniaga selama 25TAHUN di Pulau Pinang dan telah memberi KHIDMAT KEPADA SYARIKAT GLC TERSEBUT SELAMA 17TAHUN dibahagian Utara secara kontrak menyewa alat trunk radio dan mulai pada 1hb September 2010,kontrak kami akan diberi kepada GLC lain kerana GLC tersebut(Telekom)banyak kontrak dengan mereka dan syarikat saya hanya bertaraf PEMILIK TUNGGAL.Saya berharap dapat membuat temujanji dengan YAB Ayahanda Tun dan mendapat sokongan supaya syarikat Bumiputra tidak ditutup olih syarikat GLC.Untuk makluman YAB Ayahanda, saya teleh pun menulis rayuan kepada CEO dan beliau suruh sya berjumpa dengan CIO dan teleh pun berjumpa dan katanya semua Kontrak teleh pun diberikan kepada Telekom dan tidak bolih buat apa apa.
    Terima kasih dan saya hanya bolih berdoa kepada Allah SWT sahaja dan berharap agar dapat Ayahanda tolong.

  37. Salam Tun,
    Your article is educational especially to those whose grounding on economics are shallow. Just hope these readers do not assume what you have written are the whole truth and the only answers. You should highlight this to them.
    Economics is such a field that it is a science but not exactly a sciecne, it is and art and also not totally an art. The reason is simple, the dynamics that influence economics are so variable and diverse and any changes to these can cause unexpected outcome. For example, even a volcanic eruption can bring turmoil to economics. That why we never see economists and analysts spot on all the times.
    If our economy is to propel ahead, many domestics policies need review, such as NEP, education and race base politics. We need to clean up corruption and nepotism.

  38. Salam..
    Saya cadangkan kerajaan galakkan rakyat Malaysia membeli/menjual barangan terpakai. Banyakkan kedai-kedai menjual barangan terpakai yg juga boleh beli barangan dari org ramai, terutama yg ada jenama. Kerajaan tempatan boleh anjurkan

  39. Dearest Tun,
    You are a jewel of Malaysia. We love you, respect you and will forever be thankful to Allah SWT for giving Malaysia a leader of your calibre. The way your mind churns and tries to understand all aspects of life and business is a wonder to me. A minimal lot may not like you but don’t let their hatred and selfishness perturb your mission in life. I pray for your good health dearest Tun… and may you continue to contribute in making Malaysia a better country.
    xxoox

  40. /// By Praxis on July 31, 2010 12:14 PM
    Look at Singapore, which has gone the path of “high wage economy”, paying it’s senior minister the highest wages in the world for prophesies which do not come true. How robust is the Singapore economy? A generation or two behind us now? ///
    Praxis, which planet are you from? How about crawling out of the well?

  41. Dear Tun,
    You are inspirational. These are basic economy theories and management techniques that many forget. Way to go!

  42. The beras basmati of RM5/kg today is no longer of quality long grains as basmati (of same price) 6 months ago. That basmati is now at RM12/kg I was told.
    With floods in parts of Pakistan, China and India and soon Southeast Asian countries with the coming monsoon the price of rice of any grade is bound to rise due to shortage. Are not these calamities signs of impending food problems?
    Our politicians should talk more about food for the people and not about high income. When there is abundance of staple food especially our staple the common rakyat will be happy. The ruling government don’t have to put all kinds of antics and shallow talk to buy votes then.
    The government must make economic development and productivity happen and higher income will follow suit. Najib’s statement is ill-conceived. It is as if putting the cart before the horse. The ordinary rakyat (as opposed to the rich) has no option but to sweat it out to earn more income.
    Forcing high income is unnatural. In what way when many don’t have the means? The government is definitely not in a position to dole out to the lower income group not with RM2billion losses by Sime Darby! The elegant pretender must be held responsible also.
    Why Tun has to go all the way including the arithmatics to explain the ill-effects of artificial high income? Is anybody really thinking up there? Wasted votes.

  43. Assalamualaikum Tun,
    1. Semakin ramai yang merungut berkenaan ‘saman ekor’ dan juga pelbagai saman oleh pelbagai agensi.
    2. Sehingga ada yang mengatakan ini telah menjadi satu cara utama pengumpulan dana oleh kerajaan. Saya mulanya tidak percaya. Tetapi dengan cakap dari kakitangan agensi penguatkuasa yang kini kononnya telah ditetapkan kuota dan unjuran tertentu pada setiap bulan, nampaknya mungkin ada juga benarnya.
    3. Apakah begitu ‘desperate’ keadaan ekonomi negara sekarang? sehingga penguatkuasaan yang sepatutnya satu kaedah hukuman, pengajaran dan pencegahan telah diguna sebagai pemerasan.
    4. Hukuman saman telah dibuat terlebih dahulu sebelum terbukti kesalahan. Kerana lesen memandu atau cukai kereta tidak boleh diperbaharui, sesiapa yang ingin mencabar saman terpaksa melalui tempoh tanpa kedua-dua sehinggalah dibuktikan bersalah atau tidak.
    5. Kepada rakyat kebanyakan yang masih belum lagi tergolong dalam ‘high income group’, saman ekor adalah satu penindasan yang nyata, amat perit untuk diterima…
    6. Jika Malaysia berhasrat untuk menjadi negara yang berpendapatan tinggi, mungkin ianya akan berjaya…untuk tahun ini saja…
    7. kerana tahun hadapan selepas PU, kerajaan yang menindas ini tidak akan ada lagi…
    Tun mempunyai pandangan jauh dan pengaruh untuk memulihkan kepercayaan kepada kerajaan Malaysia. Hanya Tun harapan kami.

  44. Dear Dr M,
    In order to achieve a high income economy by 2020, there is a need to understand your thoughts on Wawasan 2020 and control of the level of salaries and wages in the public and private sectors during the tenure of your leadership as PM of Malaysia from 1981-2003. I will choose to brainstorm the following three issues:
    1. While the levels of salaries and wages were controlled, the prices of essentials items seemed to accelerate at a faster pace causing hardship to the middle and lower income group. The Rakyat may bear low income growth with low price increase but not low income growth with high price increase. This inbalance causes a higher cost of living with the same or declining standard of living. There is a need to address this issue to ensure our cost and standard of living while we enjoy high income economy.
    2. By controlling the levels of salaries and wages, the companies should be able to maintain their cost of production and compete in the global markets. The Rakyat may sacrify their levels of income for companies to compete in the global markets but cannot bear to see these companies being complacent in the domestic markets and neglecting the overseas markets. This complacent attitude need to be checked for us to increase our earnings from overseas markets. There is a need to encourage internationalisation of Malaysian companies to increase our nation’s earnings and enjoy high income economy.
    3. While the levels of salaries and wages were controlled, companies should invest in human capital and strife to increase productivity and enjoy economies of scale with higher production outputs. Sadly, many companies chose to depend and exploit on cheaper foreign workers and ignore human capital development. As a results, these companies will fail to increase their productivity in terms of quality and volume of production and will not afford any salaries and wages increase. There is a need to address human capital development in Malaysian companies to ensure we can compete globally and achieve high income economy.
    With controlled level of salaries and wages, the Rakyat will attempt to be thrifty to build our nation’s wealth and enjoy a desirable level standard of living. But the government and enforcers must play the role of checking the thefts and wastages of our nation’s wealth and resources by unscrupulous politicians, government servants, corporate leaders and managers, businessmen, workers at all levels. It’s also the duties and responsibilities of every Rakyat to check and build our nation’s wealth so that we enjoy not only high income economy but also high standard of living by 2020.
    Dr M, I am sure you will be around to guide us and enjoy with the Rakyat comes 2020. Good luck and good health.

  45. Salam Tun,
    Berikut adalah cadangan saya untuk meningkatkan KUASA MEMBELI rakyat Malaysia.
    1. Tidak perlu naikkan gaji pekerja, sebaliknya kerajaan mengawal perniagaan-perniagaan agar menurunkan harga barangan dan perkhidmatan mereka. Caranya adalah dengan kerajaan mengenakan cukai yang tinggi bagi perniagaan yang mengenakan harga barang dan perkhidmatan yang melebihi sesuatu penanda aras yang ditetapkan bagi mengembalikan kuasa membeli rakyat. Dengan cara itu peniaga tidak akan sewenang-wenangnya menaikkan harga barangan dan perkhidmatan mereka untuk mengelakkan cukai yang tinggi.
    2. Bagi membantu syarikat2 yang menurunkan harga barang ini agar masih mendapat/dapat meningkatkan untung, pihak kerajaan boleh membantu syarikat2 ini memperluaskan pasarannya terutamanya ke luar negara. Dengan cara ini, syarikat berkenaan boleh meningkatkan kuantiti barangan dan seterusnya dapat meluaskan penjualan bukan sahaja di dalam negara tetapi sehingga keluar negara. Oleh yang demikian peningkatan kos hasil kenaikan gaji pekerja boleh dihadapi oleh syarikat2 berkenaan.
    3. Cara yang ketiga adalah mengurangkan syarikat-syarikat swasta gergasi dengan pengambilalihan oleh Kerajaan supaya kerajaan mampu mengawal harga perkhidmatan dan barangan yang dijual oleh syarikat-syarikat ini walaupun gaji pekerja meningkat. Peningkatan kos gaji pekerja boleh ditampung dengan cukai yang diperolehi oleh kerajaan sekiranya kerajaan mengambilalih syarikat berkenaan. Dasar penswastaan yang dilaksanakan oleh kerajaan sebenarnya memberi kesan negatif dari segi kawalan harga barang.
    SAYA RAKYAT MALAYSIA SANGAT TERTUNGGU-TUNGGU DASAR KERAJAAN “RAKYAT DIDAHULUKAN, PENCAPAIAN DIUTAMAKAN”. Apabila kerajaan mengambil langkah menaikkan harga petrol dan gula, saya tertanya-tanya dimanakah prinsip Rakyat Didahulukan??? Sedangkan apa yang saya lihat adalah “Istana Indah” jutaan ringgit yang didahulukan, hanya untuk menempatkan seorang insan yang tiada bezanya di sisi Allah dengan insan yang lain.

  46. SALAM KASIH DAN SAYANG
    AYAHANDA RAKYAT TUN
    Izinkan,
    ….
    5.If there is to be an increase in income, it must be carefully managed so that it would result in increases of purchasing power and not just more money.
    …and it was Ayahanda Tun careful management of the economy during his era that we saw dwellers of the low cost flats owning vehicles that dwellers in other countries cud only dream of owning one.
    Drive into those areas and you will see what we meant..
    ALFATIHAH, AMIN.

  47. A’kum Tum & sekeluarga. Moga sihat dan dilindungi olehNya selalu.
    What we people experiencing right now was being deliberately planned by the elite people of a few who want to dominate and control the entire world economy system. I would rather say that we are currently living in a system of a Dajjal in every sense of the word. Better believe it!
    One may not agree, however I would suggest them to critically analyze the entire economy system, banking system, social system, etc. which only have ONE intention that is wanting us to submit ourselves (country) to them (the West) or Jews to be precise.
    Dear Tun.
    Your very statements about High Income Economy is very genuine indeed, so much so that the Jews would not like it at all and feel very uncomfortable because it is all so true to the bones. Your logics are absolutely against the very statements or guidelines mentioned in the evil book of ‘The Protocols of the Elders of Zion’ in the Jewish quest of world domination. The book stated as followed: (read point no. 7 in particular)
    PROTOCOL No. 6
    Take-Over Technique
    1. We shall soon begin to establish huge monopolies, reservoirs of colossal riches, upon which even, large fortunes of the GOYIM will depend to such an extent that they will go to the bottom together with the credit of the States on the day after the political smash …
    2. You gentlemen here present who are economists, just strike an estimate of the significance of this combination! …
    3. In every possible way we must develop the significance of our Super-Government by representing it as the Protector and Benefactor of all those who voluntarily submit to us.
    4. The aristocracy of the GOYIM as a political force, is dead – We need not take it into account; but as landed proprietors they can still be harmful to us from the fact that they are self-sufficing in the resources upon which they live. It is essential therefore for us at whatever cost to deprive them of their land. This object will be best attained by increasing the burdens upon landed property – in loading lands with debts. These measures will check land- holding and keep it in a state of humble and unconditional submission.
    5. The aristocrats of the GOYIM, being hereditarily incapable of contenting themselves with little, will rapidly burn up and fizzle out.
    WE SHALL ENSLAVE GENTILES
    6. At the same time we must intensively patronize trade and industry, but, first and foremost, speculation, the part played by which is to provide a counterpoise to industry: the absence of speculative industry will multiply capital in private hands and will serve to restore agriculture by freeing the land from indebtedness to the land banks. What we want is that industry should drain off from the land both labor and capital and by means of speculation transfer into our hands all the money of the world, and thereby throw all the GOYIM into the ranks of the proletariat. Then the GOYIM will bow down before us, if for no other reason but to get the right to exist.
    7. To complete the ruin of the industry of the GOYIM we shall bring to the assistance of speculation the luxury which we have developed among the GOYIM, that greedy demand for luxury which is swallowing up everything. WE SHALL RAISE THE RATE OF WAGES WHICH, HOWEVER, WILL NOT BRING ANY ADVANTAGE TO THE WORKERS, FOR, AT THE SAME TIME, WE SHALL PRODUCE A RISE IN PRICES OF THE FIRST NECESSARIES OF LIFE, ALLEGING THAT IT ARISES FROM THE DECLINE OF AGRICULTURE AND CATTLE-BREEDING: WE SHALL FURTHER UNDERMINE ARTFULLY AND DEEPLY SOURCES OF PRODUCTION, BY ACCUSTOMING THE WORKERS TO ANARCHY AND TO DRUNKENNESS AND SIDE BY SIDE THEREWITH TAKING ALL MEASURE TO EXTIRPATE FROM THE FACE OF THE EARTH ALL THE EDUCATED FORCES OF THE “GOYIM.”
    8. IN ORDER THAT THE TRUE MEANING OF THINGS MAY NOT STRIKE THE “GOYIM” BEFORE THE PROPER TIME WE SHALL MASK IT UNDER AN ALLEGED ARDENT DESIRE TO SERVE THE WORKING CLASSES AND THE GREAT PRINCIPLES OF POLITICAL ECONOMY ABOUT WHICH OUR ECONOMIC THEORIES ARE CARRYING ON AN ENERGETIC PROPAGANDA.
    Maybe some of us would now understand better why the world like what it is today. There is no co-incidence because it is ALL being planned. ‘They’ may be doing tons of planning but the God Almighty is the best of all the planners.
    Wassalam

  48. Yang Amat Berbahagia Tun,
    Semoga sentiasa berada dalam keadaan sihat sejahtera.
    1. Ini (penulisan Tun) adalah satu penghuraian yang baik. Setidak-tidaknya seseorang yang membacanya boleh mendapatkan gambaran tentang keadaan yang mungkin berlaku pada masa akan datang.
    2. Malaysia mensasarkan purata pendapatan per kapita sebanyak USD 17,000 pada tahun 2020.
    3. Jika diterjemahkan, setiap orang perlu mendapat RM 51,000 setahun; dengan anggapan bahawa kadar pertukaran wang ialah RM 3 kepada USD 1. Ini bermakna satu keluarga yang terdiri daripada 4 orang harus mendapat sebanyak kira-kira RM 200,000 setahun. Dalam kata lain, seseorang yang menyara keluarganya perlu membawa pulang RM 200,000 setahun untuk anak isterinya.
    4. Ada golongan yang mengatakan bahawa tidak semestinya begitu. Sudah cukup untuk seseorang membawa pulang apa yang ada; kerana pihak lain pula akan membawa pulang lebih. Jika dipuratakan pendapatan kesemuanya, pendapatan per kapita masih boleh mencapai RM 51,000 setahun. Tetapi, ini bersalahan dengan sasaran untuk mengurangkan jurang pendapatan seperti yang dinyatakan dalam Strategic Reform Initiative (SRI).
    5. Gaji pegawai kerajaan dianggarkan meningkat sebanyak lebih kurang 7% setahun. Ia menjadi lebih jika seseorang pegawai itu dinaikkan pangkat. Tetapi, struktur perjawatan kerajaan adalah berbentuk piramid. Sejumlah besar pegawai kerajaan tidak akan merasai kenaikan pangkat dalam tempoh yang agak panjang.
    6. Peraturan yang ketat tidak membolehkan pegawai-pegawai kerajaan melibatkan diri dalam perniagaan mahupun mempunyai dua pekerjaan. Oleh yang demikian, sasaran untuk membawa pulang RM 200,000 untuk keluarga sukar dicapai oleh mereka yang bekerja sebagai pegawai kerajaan.
    7. Pegawai kerajaan harus menerima hakikat bahawa di sebalik menjayakan New Economic Model (NEM), National Key Result Areas (NKRAs) dan National Key Economic Areas (NKEAs), rata-rata mereka akhirnya akan mencacatkan data statistik pendapatan negara dengan mempunyai pendapatan di bawah purata.
    8. Satu cara bagi mengelakkan situasi ini berlaku ialah dengan mengurangkan kadar pertukaran wang. Kadar pertukaran wang hendaklah disasarkan pada kira-kira RM 1.50 kepada USD 1 menjelang tahun 2020.

  49. Mengamalkan dan menerapkan sikap “[b]Bersih, cekap dan amanah[/b]” kepada setiap peringkat masyarakat ialah satu-satunya penyelesaian kepada segala permasalah yang berbangkit kebelakangan ini.
    Motto tersebut jugalah yang telah memajukan Negara tak lama dahulu. Nilai-nilai tersebut juga menjadi faktor kepada tenaga kerja dari Negara ini yang dihormati dan dipandang tinggi bila bersaing diperingkat Antarabangsa.
    Tidak seperti sekarang ini, sudah tidak mempunyai jati diri yang tinggi, nilai patriotik yang hampir tidak wujud dalam diri masing-masing dan sering disekat kerana sebilangan kecil yang suka memanipulasi keuntungan sehingga ramai rakyat kita yang lain menjadi mangsa dicop sebagai tidak boleh dipercayai.
    Kerana tidak amanah, penguatkuasaan terhadap undang-undang sangatlah lemah sehingga kerosakkan sistem undang-undang dan ekonomi sukar diperbaiki dalam tempoh yang singkat.

  50. Malaysia is a middle income country clearly the future lies in investing in : education ; training ; research ; acquisition and adoption of technology ; having a market structure that supports innovation ; encourage scientific knowledge ; and have a reasonably open market structure . In all this poverty MUST be eradicated as poverty is a disease that forces the individual to expend all abilities towards acquisition of essentials and leaves nothing for higher purpose of life, The Koran forbids poverty.

  51. Assalamualaikum Tun Dr M,
    You assume that when the government intend to make Malaysia a high income country, this means people will receive high wages, salaries and profits.
    According to various investment reports and articles, we are getting less Foreign Direct Investment (FDI) as compared to our peers in ASEAN. Furthermore, our businesses in Malaysia are investing overseas. On top of that, we experiencing huge net outflow of FDI between 2008-09.
    So, by this reason alone, its telling us, that the government is contradicting itself.

  52. tun mahathir,
    as Ling LS is charged in court, you as the previous finance minister should apologize to the country for presiding and causing losses on the PKFZ scandal.
    Why you so quiet on this????
    Why you so scared to comment on this?
    You UMNO and BN are so incompetent. Scandal after scandal. What a disgrace.

  53. tengku razaleigh today ask umno to de-registered and join in a multi racial party with mca, mic and other bn components…..Does Ibrahim Ali and Tun Mahathir support this?? why not????

  54. Dear Tun,
    Please allow me to refer to comment by karma july31,2010 5.10 am.
    It is not right that you accuse Tun, his family and all BN leaders to be corrupt and that they stole billions from the rakyat. If you have any proof at all that Tun and family and all BN leaders are corrupt, you should make a police report or make a report to MACC. It is not fair just simply making a blanket sweeping accusation of anybody without any proof at all what so ever. It is hurtful and insulting if the accusation is not true, baseless, without any proof, out of malice, jealousy and with hidden agenda or being paid by the opposition.
    amin tan

  55. Dear Tun,
    While I would agree with you that merely increasing people’s pay will not necessarily lead to higher purchasing power, without an increase in productivity and a higher knowledge value in work done, one thing I find missing in the whole argument around this issue is a higher level of professionalism in one’s work, as well as a commitment to more intangible aspects in one’ s products, such as a commitment to continuous improvement the quality and reliability of one’s products.
    While there has been much talk about Malaysians moving up the value chain into higher levels of work in terms of technology, which requires higher levels of training in skills and qualification, the reality of the matter is that not every Malaysian can either afford or has the capacity to obtain a bachelors degree or higher, while achieving a high income economy will require that all Malaysians, and not a select segment, will earn higher levels of income; otherwise we will end up with a wider income gap.
    Performing one’s work with a greater level of professionalism does not entail having to have a higher qualification but proper training and awareness in the good procedures and practices in the performance of one’s work.
    As a medical professional and a former general practitioner, I’m sure you yourself would have practices and would have expected your nurses and assistants to practice, simple procedures of basic hygiene, such as washing your hand thoroughly with soap and water before and after you handle a patient.
    There are simple examples of a lack of such professionalism in Malaysian workers which I have observed.
    For example, most lamp posts along the street have a removal panel to allow for maintenance, such as the connections of the electrical wires from the TNB supply to the lamp above. Walking along the roads almost anywhere in the country, including in places such as Cyberjaya and Putrajaya; I’ve often seen this panel removed and sometimes just cast aside, leaving the wires exposed and posing a danger to the public.
    I even observed a lamp post at the intersection of Jalan Bukit Bintang and Jalan Sultan Ismail in Kuala Lumpur coming out of the lamp post. Now what bad publicity Malaysia would get if one of the tourists got electrocuted by inadvertently touching one of the wires.
    Way back in 1994, I noticed a young boy about to poke his finger onto one of these exposed wires and I yelled at him to stop.
    I suppose these panels are left open of cast aside by workers who find it too inconvenient to open and close back properly in the course of their work, so adopt an unprofessional approach by leaving them open and their superiors are not checking them. And, if there is a genuine reason in that opening and closing these panels is inconvenient and slows their work, then they should be re-designed. Perhaps, they should not need a unique key to lock or unlock but a single special tool to lock and unlock them all.
    Take a simple example of cutting with a kitchen knife, where any cook, kitchen assistant or even a housewife worth her salt would know to cut on a wooden or plastic cutting board and not straight on the cement table top, which I have seen some people do, either out of thoughtlessness or sheer laziness.
    Also take another example of bus driving. I know for a fact that in Canada, bus drivers must undergo a short course before they are allowed to drive buses for the provincial transport authority and bus drivers there are well paid, compared to those here who only need the appropriate class of driving license of that kind of heavy vehicle.
    Well, the difference can be seen, especially in the number of fatal crashes of long distance buses in Malaysia, especially during festive seasons.
    I’ve travelled in one of those luxury long distance buses and on several occasions noticed how the driver obviously exceeded the speed limit after dark, when they are less likely to be stopped by the police.
    Obviously, these bus drivers lack professionalism in that they did not have the interest of their passengers at heart and either served their own selfish of earning more money by making more trips or abided by the demands of their employers, driven by their selfish.
    I they had any professionalism in them, they would not do such things and would resist such demands by their employers. Also, in this case, they would probably be more inclined to put the safety of their passengers if they were paid more.
    Turning to the quality and reliability of products and their continuous improvement, many Malaysian manufactures tend to sacrifice quality in preference of competing on lower price and faster time to market.
    For example, many goods manufactured by Malaysian-owned companies are either obtained from other foreign manufactures and merely localised, which not only does not help develop the level of local know how but also leaves them with not much opportunity to learn how to make such products and to improve upon their quality and reliability.
    For example, the quality and variety of cars produced by Proton continues to be the subject of criticism by many Malaysians, some justified and some not. However, the very fact that Proton initially relied on technology handed down by the Japanese had resulted in an attitude of dependency on them. While chatting with a Proton engineer back in the 1990s, he told me how they waited for the Japanese to hand down their old technology, which was like little brother waiting for big brother to outgrow his clothes and hand them down to him. Now how to expect know how and innovation to arise with that kind of attitude.
    Compare that to South Korean cars, such as Hyundai which began around the time Proton did. Back in the mid-1980s, Hyundai cares were not taken very seriously and considered to be of rather low quality but today, Hyundai is a well respected brand in Malaysia, ahead of Proton but still not as well respected as Japanese brands but Hyundai will get there eventually.
    Of course, Hyundai is a large conglomerate, in which cars is just one product line, so it has lots of money to invest in research & development into product innovation and improvement, which Proton perhaps does not.
    However, my point is that if basic professional best practices and procedures are not observed, even in simple, relatively low-skilled types of work, what more in higher skilled types of work, such as computer programming.
    If one has a shoddy attitude towards even relatively low skilled tasks, one will also tend to have a shoddy attitude towards producing high-skilled, knowledge-intensive products like software, the quality of which would be shoddy as well
    So we must first start with professionalism in our execution of even the most basic tasks, if we are to become a successful high economy economy, where everyone from the most humble manual worker all the way up to PhDs involved in research will produce quality, reliable, durable and innovative products or fruits if research & development.

  56. Your overall strategy is brilliant especially if there is one single dictator that can control the prices of all goods and services (including wages and salaries). Since we are living in the so called “free market” or partly “free market” economy, I see some difficulty in implementing your ideas. However..
    Businesses & Employers: Its Not Just The Government’s Responsibility
    Notwithstanding the above, I truly salute the way you think. If somehow, this strategy (we can call it code of ethics) is taught and nurtured to every employers (i.e. the ones who pay wages & salaries and at the same time determine the price for the goods or services which they provide), whether its the Government or the private sector, i believe we can all contribute to NOT increasing the rate of inflation.
    To Those In Power: Stop Taking Shortcuts!
    If everyone wants a higher cut, even a kindergarten student can predict that prices will increase! This include cuts made from bribery and corrupt practices for securing government contracts. It all starts from the top till the bottom… The people do not care about the impression that the mps’ have to make (the s class, high expenses to “belanja makan” & huge mansions) to gain popularity or support from voters. This reason just can’t justify corrupt practices. Its a total abuse of our money.
    Employees: Productivity & Quality
    The key here is increase in productivity and quality. Can you really complain if you’re wage is RM1200 when you need a whole day to type a simple two page letter???!!!?!? Employers will reward if you perform. If they don’t, then you should consider finding another employer. Thats how the market works right?
    So lets all be responsible people shall we? or can we? 🙂

  57. Tun,
    Thank you for the very clear & thorough post, concrete advice and solutions. I really enjoy reading it. The post can be a guidance to all of us, either in Government, Private Sectors or individual.
    Personally I love getting a higher income with more purchasing power and would love to see all Malaysians to enjoy the same. We all should strive to achieve this in whatever ways we can, so that we, our family and children can have a better quality of life.
    I would like to add here that income should not be limited through salaries and wages. There are abundance ways to increase our income and the only limiting factor is ourselves. I would like to share a series of videos that may help us to eliminate the limiting factors.
    Keys to Success
    All the Best.

  58. askm ayahanda,
    Ini memang betul. Saya pun terfikir sebelum nie camna nak increase income sedangkan banyak company kat Malaysia sekarang nie nak cari profit pun susah. Kalau peniaga susah nak untung camna nak naik gaji pekerja. Contoh penjual goreng pisang nak naik gaji kene naikkan harga goreng pisang sebab income dia kat situ. Mungkin ini rumusan secara simple minded orang macam saya jer. Apa yang ditulis ayahanda diatas adalah berdasarkan pandangan orang yang berpengalaman dalam memimpin negara. 🙂
    Semoga ayahanda sihat disamping keluarga tersayang dan dipanjangkan umur.

  59. Salam Tun,
    Kenapa harus kita naikkan gaji pekerja kalau kita tahu bahawa ia agak sukar untuk meningkatkan kuasa membeli rakyat Malaysia? Mengapa tidak kita mengawal perniagaan-perniagaan agar mereka menurunkan harga barang sehingga tahap yang boleh meningkatkan kuasa membeli rakyat Malaysia? Syarikat-syarikat perniagaan yang paling untung dalam apa situasi sekali pun. Yang menjadi mangsa adalah golongan miskin yang bekerja makan gaji berpendapatan sederhana dan rendah.
    Mengapa tidak kita mengawal perniagaan di dalam negara kita agar mereka menurunkan harga barang dan perkhidmatan mereka sehingga pada tahap yang boleh meningkatkan kuasa membeli rakyat Malaysia. Untuk mengelakkan mereka kerugian, syarikat2 ini boleh meningkatkan kuantiti barangan dan perkhidmatan mereka dan juga tidak hanya menumpu kepada perniagaan di dalam negara sahaja malah berusaha mencari pasaran di luar negara bagi meningkatkan keuntungan mereka.
    Sebab utama mengapa apabila gaji pekerja meningkat dan syarikat-syarikat perniagaan ini terpaksa meningkatkan harga barang dan perkhidmatan mereka adalah kerana rata-rata dari syarikat ini hanya menumpukan perniagaan mereka di dalam negara sahaja. Jikalau syarikat ini mengambil langkah mengurangkan harga barang dan perkhidmatan dan menambahkan kuantiti barangan dan perkhidmatan dan memperluaskan pasaran mereka sehingga keluar negara, maka masalah inflasi akan dapat dikurangkan. Sebab mengapa negara-negara maju rakyat mereka mempunyai kuasa membeli yang tinggi adalah kerana pemasaran perkhidmatan dan barangan mereka tidak hanya tertumpu di dalam negara mereka sahaja, tetapi barangan dan perkhidmatan yang mereka tawarkan digunakan oleh hampir serata dunia.
    Menerusi cara ini semua peringkat dalam masyarakat samada yang berniaga dan makan gaji dapat merasai nikmat kekayaan. Cuba bayangkan negara seperti di United Kingdom pada tahun 2002 semasa saya berkesempatan menetap di sana. Dengan hanya mempunyai wang 20 pound, saya mampu memenuhkan troli saya dengan barangan keperluan dapur untuk bekalan selama seminggu. Adakah kita di Malaysia dengan mempunyai wang sebanyak RM20, kita mampu berbuat demikian?
    Harus diingat juga perbandingan RM20 dengan 20 pound sterling adalah wajar. Kerana pada tahun berkenaan purata pendapatan seorang lepasan sarjana muda di UK adalah sekitar 1800 pound sebulan. Manakala pada ketika itu di Malaysia pendapatan bagi lepasan sarjana muda di Malaysia adalah sekitar RM1800.
    Wawasan 2020 hanya tinggal 10 tahun saja lagi. Untuk menjadi negara maju, taraf hidup rakyat dan kuasa membeli rakyat harus tinggi. Rakyat tidak hidup melarat dan hidup tidak diselaputi dengan hutang lantaran kekurangan kuasa membeli. Saya tertanya-tanya adakah Wawasan 2020 boleh dicapai???

  60. Dear Tun
    How about Network Marketing?Robert Kiyosaki have strongly recommended it.Donald Trump also agree.Experts have predicted that most goods n services will be moved through this channel in future.This will be the solution to your high income economy problem.
    Its assuredly the civilization of the 21st century.But most people have chosen to ignore this piece of information.But if you believe Sun Tzu Art of War-to win confidently,attack the ignored areas.If you think what I think this is our opportunity sir.
    Asia will be the 21st Century engine of growth.We are in the heart of Asia.We have all the right human materials and the cultural links with entire of Asia.No other country is more fertile for a spread of a new civilization for Asia than Malaysia.Is Network Marketing it?
    Thanks Tun.

  61. It is rather sad that the once great Dr. Mahathir displays his ignorance of actual economics and chooses to blame the victim rather than the perpetrators on the great ongoing crime. American and European workers were able to earn higher wages not because they had an a monopoly, but because they produced more.
    The cause of that goes back originally to the Renaissance where investment into both infrastructure and the population allowed them to produce a profit.
    The good doctor sort of understands when it comes to South Korea, but only partly. Korea’s growth and increase in standard of living is tied to its development of heavy industry and nuclear power.
    But Dr. Mahathir is afraid of nuclear power; he might as well be afraid of fire.

  62. Be the best we can be.
    Let,s Nature takes its cause
    Don,t have to follow others,
    Don,t work as if there is no tommorow
    Don,t be the slaves of what we call money,technology,modernaizations,time
    Human Technology does not last
    infact it is destruct mankind.
    Man used to demolished nature for modernization,
    now they are facing global warming.
    Lise short,live the fullest

  63. sir,
    To get to higher income economy without leading to inflation and loss of purchasing power, Malaysia needs to begin profiting from higher value industry. This only means in industry where the demand for such service is high worldwide. Example Robotics, Islamic Finance, IT Security are all high in demand. International Companies are willing to invest. And pay workers highly.Unfortunately, Malaysian workers today are still in the low wage low skill jobs. It will take a while for our people to be at par with knowledge of other citizens in other countries. In UK, a blue collar railway man can know how to set up his own modem and probably set up illegal internet subsription. In Malaysia, a marketing exec in IT company will not know how or what a modem is.
    Solution, training and enticing Malaysians to be in the high value industry is needed. Whatever we do.. movies and job placement must stress importance of knowledge, certificates, while incentives and funds should be directed towards achieving higher value industry. In US, it was so easy for me to get a magazine on robotics and circuitry. Magazine was so easy to understand .. even for those who has never had any knowledge on robotics. We can get the same magazine here but we wont be able to relate much since they will have events over there where we wont be able to attend. I can even easily meet up with other community within my small rural area there to learn more. Here, URTV is the magazine of the year.

  64. Dear Tun,
    The current rise in living costs had already hurt most of the mid and low income earners in the country. This will be aggravated further if the government decides to increase the incomes by giving higher salaries and wages. In turn, the increase will definite escalate the price of goods much higher to cover the operating overheads of the producers. From Malaysians’ past experiences; those unscrupulous opportunists will hike their price of goods more than double or triple from the prior price tags; just because of a small increase in sugar or fuel. As a result, the price of goods will escalate at least triple from the increase of their overheads. Hence, resulting a very much lower purchasing power for Malaysians at home.
    Even if the hike of income for ordinary people were to reach to RM5000; it will not be enough if the cost of living hikes to RM5500 to RM6500 a month (perhaps even higher).
    You are definitely right; the increase of income should not begin with increase of salaries. Increase of income should result from increase of productivity. The drive should promote better marketability of Malaysian products, higher production capacity and efficiency of Malaysian producers. High volume of high quality Malaysian products at competitive pricing and good marketability into the world market should increase the Malaysian incomes.
    The answer, I believe, should be through highly educated and efficient Malaysian workers, greater automation in productivity and less foreign labourers in the production line. Hence, less overhead and greater margins will motivate greater wealth to share.
    Increasing salaries without looking at the productivity perspective will only produce bad outcome to the people and the nation.

  65. A high income economy necessitates a strong ringgit policy, the effects of which will be to mitigate price increases and increase the purchasing power of the rakyat.
    Sure, in the short term, our exporters will experience a contraction in their profit margins but nature laws dictate that they will adapt such as by being more productive or by moving up the value chain or moving into niche markets.
    For far too long, our exporters have been complacent in the global markets relying mainly on the week ringgit policy of BNM and the abundant supply of cheap foreign labour.
    Unless we get rid of this addictive drug, the likes of Vietnam will bypass us in the long term.

  66. This is the AGE OF DECEPTION. Democracy, human rights, free market, freedom of speech/expression are all deceiving. You can succeed in this age of deception if you know how to make use of all these deceptions to your advantage. If you cant make use of it to your advantage then suppress it.

  67. As usual, Ayahanda Tun,
    Copy-paste…….
    1. Saturday July 31, 2010
    Chua: Stop speculating on Ling

  68. salam buat Tun,
    betul cakap Tun, kita tidak sepatutnya mengadaptasi semua yang dilakukan oleh Barat. bukan semua yang mereka lakukan itu elok dan boleh diterima pakai. zaman dulu mungkin kita lihat teknologi mereka lebih canggih, kita di ‘brainwash’ dengan teknologi mereka yang kononnya mendahului negara lain. padahal negara matahari terbit lebih produktif dalam membangunkan teknologi yang jauh lebih canggih. pemimpin malaysia kini terlalu ketara memuji pihak barat dan mengagungkan budaya mereka. macam hilang keperibadian melayu.
    assalamualaikum wbt.

  69. The real high-income is coming from agents of K-economy which Malaysia is gaining on with good Internet and Telephony services. See how many of our own youth are so caught up on social sites and going places with it? You yourself Tun is now more effective using the web online than offline. And we have the recent example of Raja Petra getting the AG to remove a DPP just by merely putting up a blog post from London comfortably with few clicks. In short the Web is getting all powerful.
    I suggest Tun return back to government on a virtual basis. Our first virtual PM that uses entirely online facility to run the country. No wastage of time and energy to travel and meet people. No need to look young and shake hands whole day. Why not suggest this as the new way forward?
    Redhuan D. Oon
    MalaysiaMy1

  70. With all due respect Tun, I think you got it wrong at point #2.
    Prices of products does not have to rise just because of rising cost of doing business.
    Prices of products can be increased by adding value to the products.
    e.g. Proton. Same labour but better cars complete with its bells and whistles. Higher car prices.
    So you can have higher prices, higher salary but little inflationary impact.
    That’s how you achieve a high income economy.
    To state that to achieve a high income economy by just increasing salary is well – a little too simplistic and erroneous 🙂

  71. Salam,
    Gaji tinggi tapi harga barang pun tinggi,hanya akan menambahkan beban kepada rakyat. Sebaik2nya gaji tinggi, harga barang turun. Tetapi pakar Ekonomi Handalan yang sentiasa “Putih Kekal Baru”, kata harga barang akan sentiasa naik sebab cost of production(COP) sentiasa naik.Kadang2 tak naik pun kos, cuma naik selera gaji bos2 besar depa.
    Ada sikit cadangan saya yang bukanlah sukar dilaksanakan:
    1.** Penyususunan strategi operasi pengurusan/perkilangan***
    Setahu saya memang sukar nak turunkan COP tapi boleh dilaksanakan atau sekurangnya2 kenaikan kecil secara perlahan dengan penyusunan semula strategi. Ada beberapa contoh syarikat antarabangsa telah menunjukkkan kejayaan sedemikian.Inilah pentingnya ketua2 tak kira jabatan kerajaan atau swasta. Ketua2 mestilah berkebolehan. Kalau tidak jangan jadi ketua.Gaji tinggi hasil mesti tinggi. Bagilah sikit tekanan kepada ketua2 supaya depa lebih cemerlang. Cara terbaik ialah sistem naik pangkat dan turun pangkat. Orang Malaysia sentiasa fikir kalau naik pangkat akan terus naik pangkat atau sekurang2nya kekal pangkat sama. Kalau ada sistem boleh turun pangkat, tentu depa kerja baik sikit. Adakah ini zalim? Tidak,malahan lebih adil kerana beri peluang kepada orang lain yang lebih layak. Satu faktor penting untuk sistem Kenaikan pangkat dan turun pangkat hendaklah berdasarkan KPI. Kena sikit tegas!!!
    2. ****Pembaziran dan Rasuah************
    Jika tiada pembaziran dan rasuah kos pembangunan negara dapat dikurangkan dan hanya orang yang layak dan berkebolehan dinaikkan pangkat sehingga dapat meningkatkan produktiviti negara. Hasilnya dicanangkan semula kepada rakyat.
    Pemimpin2 semua jangan duk perabis duit rakyat dengan melancung ke sana sini bergembira merata2 tapi ada dikalangan rakyat masih ada yang kais pagi makan pagi kais petang makan petang. Jika ada pemimpin sebegitu sungguh hina dan perlu diberhentikan oleh rakyat pada PRU akan datang!!!! Sekali sekala tengoklah cerita2 TV berkaitan kesusahan rakyat. Ramai orang miskin.Kadang2 yang bantu depa pun sama miskin macam depa juga. Apa nak jadi dengan orang Melayu sekarang? Nikmat kesihatan , nikmat kesenangan, kita hendakah digunakan pada jalan Allah.Inilah sebahagian daripada tanda2 orang yang bersyukur. Apa tah lagi tanggungjawab kepada mereka yang “gatal” berebut2 nak jadi pemimpin tak kira bersongkok atau berketayap/serban.
    Tangkap semua peminta, penerima dan pemberi rasuah. Lagipun dapat bantu depa hidup tanpa dosa rasuah.Rasuah ada pelbagai bentuk. Bukan saja orang politik saja terlibat. SPRM kena memperluaskan lagi skop rasuah supaya negara kita bebas rasuah. Pegawai Kerajaaan atau swasta duk bodek bos2 sehingga dapat naik pangkat sepatutnya dikategorikan rasuah. Sebab apa? Naik pangkat dia dapat kenaikan gaji tahunan bukan cara betul tapi cara bodek bos.
    Seorang pelajar duk mengurat pensyarah (atau sebaliknya) dapat keputusan peperiksaan gred A boleh ditakrifkan sebagai rasuah?
    3.***Kempen beli barangan Malaysia*****
    Sekiranya rakyat beli barang2 buatan Malaysia sudah tentulah limpahan nikmatnya pulang semula kepada rakyat Malaysia. Limpahan keuntungan gula orang kaya Malaysia kekal di Malaysia atau melimpah2 keluar dibawa semut2 gergasi ke luar negara?
    **************************************************************
    Kalau saya Perdana Menteri 1Malaysia (Untuk makluman saya hanyalah pemimpin 1keluarga saja. )
    *****************************************************************
    Kerajaan pastikan polisi ada sekurang2nya misalnya 70 peratus barangan buatan Malaysia dalam semua perniagaan sekiranya ada produk tempatan. Misalnya 70 peratus kereta di jalanraya mestilah buatan Malaysia. Kereta jenama negara lain sakit hati mata memandang kerana yang tempatan banyak yang tersimpan di kilang tak bergerak2. Ada perjanjian antarabangsa tak boleh buat macam itu ke? Lebih rela negara sengket daripada malu atau bimbang ditekan peraturan antarabangsa?
    Siapa yang ada lebih dari satu kereta kat rumah, mestilah sekurang2nya ada satu kereta buatan Malaysia. Kerajaaan kempenkan supaya rakyat ada perasaan sayangkan, cintakan dan sedia berkorban untuk negara. Disamping itu semua kelab2 rekreasi seprti Kelab golf hanya menyediakan tempat letak kereta jenama Malaysia saja , supaya dapat beri promosi kereta temnpatan ada kelas.Siapa bawa kereta mewah seprti Mercedes dan BMW pi main golf, kena turunkan penumpang di pondok kawalan keselamatan lepas tu kena jalan kaki. Bagitau kat depa main golf kena banyak berjalan baru sihat. Takut nak cuba? Jangan bimbang undi depa tak banyak pun. Silap2 depa pun tak pi mengundi. Undi rakyat lain lagi penting.
    Yang menaikkan pemimpin politik kebanyakkanya ialah dari rakyat biasa. Juga yang akan menjatuhkan pemimpin politik juga ialah rakyat biasa. Jangan lupa rakyat biasa!!!!!!!!!!

  72. Look at Singapore, which has gone the path of “high wage economy”, paying it’s senior minister the highest wages in the world for prophesies which do not come true. How robust is the Singapore economy? A generation or two behind us now? Do we want to go back or forward? Mr Najib has the wrong model, as long as he thinks our senior statesman who has no pretensions to ministry, prophesy or wages is “old baggage” that he can do without.

  73. Dear Tun,
    Congratulations for another excellent and solid posting. You have sound thinking and economic knowledge. Prime Minister Dato’ Seri Najib, his entire cabinet, economic students and teachers, businessmen and all Malaysians are recommended to read this posting at least twice and try to fully understand it. I salute you, Tun Dr Mahathir. You should still be our finance minister, if not the PM himself or at least the current Economic Advisor of the government. If only I have the power to appoint you!!!
    amin tan

  74. Salam Tun M,
    You are right. What is the point of high income when there is less purchasing power? I would prefer ideally a high standard of leaving and low cost of living. This will encourage more Malaysian to invest with their extra cash.

  75. Salam Tun M,
    You are right. What is the point of high income when there is less purchasing power? I would prefer ideally a high standard of leaving and low cost of living. This will encourage more Malaysian to invest with their extra cash.

  76. Bismillahirahmannirahim.
    Assalamualaikumwarahmatulahiwabarakatu.
    The issue here is regarding the goverment intention on making Malaysia a high income country. And you point out that the goverment should not focus on creating a higher income, but creating higher purchasing power. and I agree with this.
    You also voice out some of the ways that you think can help in achiving the objective. In order for this to happen, we must think on how to cut the total production cost so that inflation would not happen in such a boost.
    There are a lot of things that I need to learn, but still I do have some RANDOM opinion on the issue raised. Sorry if I’m not sticking to the topic
    first issue
    Using machinery to cut cost, would result in cuts of employment because human power will be replaced. I think, Malaysians dont want this to happen and uproar will occur when it is hard to get jobs. Generate more income for the country is not enough, generating income for the citizens of the country is what matters. For example, in US, 1 percent of their people are holding almost 15 percents of the country economy. We dont want this to happen to our country.
    Although using machinery will result in higher production, but handmade things are more valued. For example, if we are talking about automobiles such as cars and motocycles, our youngsters are crazy about them. This was proven because we have a surplus of ” Mat Rempit”. It shows that they have the interest about automobiles and it would be nice if goverment can guide them.
    Creating our own handmade automobiles would be awesome, and hopefully we can sell them to the world. Our problem will become our upperhand.
    I think, our education system of being too written exam oriented what holding them back from moving forward.
    Second issue
    The West have an upperhand based on history. Back at the old days, they forced others to work for them. They forced the Chinese to build their railroad, they came to our country and took away our natural resources, they used Easterners with their very best. They gained something out of it. Good for them. Now I think its our turn to use it as our advantage.
    You repeatedly said that, ” Melayu mudah lupa”. Its a part of human nature. We forget, we dont want to remember something that is unpleasent. How about if goverment help Malaysians by keep reminding us (maybe through frightening comercials) that we’ve been through hell once. Just to get Malaysians out from their comfort zone. Hopefully this will help to improve our work ethics.
    The Israelians they dont forget how they were tortured according to history. Not having their own country keeps them remember and make them out from their comfort zone. And they progress themselves.
    Third Issue.
    I’m not very familiar with the laws and I dont know how to implement my next idea. But, I think, for the foreign company that come to our country and pay low wages, it would be nice if we can send most of our fresh graduates to their company. It would be fine for the fresh graduates if they get low wages, because they will getting low wages anyway. But by making our fresh graduates to work for foreign company, we can educate our fresh graduates with the foreign technology. And if the foreign company continue to pay low wages to our graduates, hopefully our national company can counter offer because they have knowledge and experience by then. If the foreign company dont want to lose them, increase their wages, more than our national company willing to pay.
    Fourth Issue.
    We need to find a way on how to make the world need us. If not the whole world, maybe part of the world. I was refering to China, maybe the next most powerfull country in the world. By having just a good realtionship is not enough,we must make them need us. According to history, thats how Melaka became untouchable within our region. But according to history, during that time, China need us because we are the centre between East and West. I dont know wheter it is still relevan or not.
    If we can penetrate their market,and become their best buddy as close as a family members,with a billion of population of their’s, I think it is a good news for us.
    Last.
    I’m sure the issue is more complex, and we need to detail study should be made, but I’m just an ordinary citizen which only know about the surface, and my opinion and ideas are based on the surface of what I understand
    Thank you. 🙂

  77. Good motning Ayahnada Tun,
    //22. We must not follow the route taken by the developed countries of the West to achieve high income. In the days when technology was exclusive to the European countries and North America increases in wages were largely due to the demands of the workers. To cover the increased cost of production prices were raised quite indiscriminately. This was sustainable when the Europeans were the only producer of manufactured goods.//
    But, our blogger sdr Ir. Syahrizan got so excited, tip2 hoorayed as the USA grandchildren (eg:- eggs), and carried away when the US’s General Motor and Ford have no choice but to re-investing and re-setting up their grand papas (eg: mother chickens) labor intensive technologies in alien lands eg:- Thailand, Vietnam and Indonesia, to take advantages on the low-skilled and huge population which the current generation of the USA have forgotten what their grandpapas adviced them what to do for them in the name of freedom and protection, watch Iron Man 1 & 2, you will know.
    However in Japan, the Japs are facing shrinking and aging population in the mother land due to globalization and democracy, they are now increasing 200% investment in GDP

  78. Asm Tun,
    Di Malaysia terdapat kerjaya sebagai Commercial Diver terutama di dalam industri oil and gas..apa yang berlaku sekarang ialah para penyelam professional tempatan telah di anak tirikan…syarikat-syarikat lebih mengutamakan pekerja asing dari Australia, Singapore dan negara-negara lain dari anak tempatan…saya akui bayaran yang diterima sebagai penyelam lumayan…mereka memberi alasan penyelam local tiada pengalaman sedangkan mereka mengambil pekerja asing yang masih tiada pengalaman. Ramai penyelam tempatan sekarang tiada pekerjaan.
    Mereka masuk menggunakan jawatann sebagai subsea engineer, deck officer dan sebagainya tetapi bekerja sebagaia commercial diver, cv anak tempatan digunakan utk mendapatkan kontrak, setelah mendapat kontrak…pekerja asing dipanggil bejerja….mohon bantuan Tun…..

  79. Yes Tun, you are right. Over the years we gather alot of moss, richer returns, smarter youth, but do no forget, they rather bring their riches and brains elsewhere. The culture of corruptive cronyism as you so often pointed out in your blog is happening at an alarming scale even in IPTAs and any govt department you can think of.
    Our own wealth of resources are making it bigger elsewhere. Heard of Tan Sri Samsudin in South Africa? Jimmy Choo in UK? Michele Yeoh in Hollywood? That Paris Hilton latest customer that, that.. apa nama.. young fat Chinese Malaysian Dato? Same thing happening with rakyat of Brunei. Many bruneians live it up elsewhere but not in their own state.
    Why? Reason very simple. Here, the authorities look down on their own kind but their close relatives and buddies. Any tender exercise rules you put out also they can collude. Even DPP can bonk the key witness. Even Transport Minister can bluff your Cabinet. Cmon… the Malaysia you have built is already very smart you know. So smart that they sometimes feel insulted to even try to even say the word, ‘think’.
    Redhuan D. Oon
    PendAtang Dengan Izin

  80. Assalamualaikum WBT,
    semoga Tun berdua didalam rahmat dan berkat allah sentiasa.
    Setuju dengan Tun, malah semasa diwar-warkan lagi, logik akal terus menerus menyoal apa signifikannya untuk menjadi sebuah negara berpendapatan tinggi apabila dengan kenaikan gaji itu sendiri akan mengundang kenaikan harga barang dan perkhidmatan secara rasionalnya.
    Tiada siapa yang mampu menaikkan gaji pekerja tanpa menaikkan harga sesebuah produk mahupun perkhidmatan.
    Rasional dan logiknya tidak ada sesiapa yang mampu menyerap lebihan kos ini.
    Dengan sistem pemantauan yang sangatlah lemah dan terbukti tidak berkesan apatah lagi attitude kerajaan yang tidak peka dengan tanggungan dan kesusahan rakyat… pada pendapat saya yang kurang akal ini… matlamat kerajaan itu hanya akan membelit leher rakyat apatah lagi rakyat yang tidak berkemampuan seperti saya.
    RM 100 sekarang hanya mampu bertahan sehari untuk kami sekeluarga… terasa sangat duit sekarang tidak ada nilainya… apatah lagi bila dah jadi negara berpendapatan tinggi… entah macammanalah pulak tingginya nanti ….. yang pasti darah kami mesti naik lebih tinggi… maunya tidak tension tiap-tiap hari.
    Kadar jenayah pun akan naik lagi tinggi pasal nak survive dalam dunia yang sumernya nak tinggi…. kes bunuh pun banyaklah agaknya pasal dah kurang pertimbangan yang tinggi akibat tension tiap hari…
    susahlah tun macam nie……

  81. Dear Tun,
    High income only for BN leaders and your family thru robbing billions of dollars from the rakyat. We have some much natural resources but thru your systematic corrupt leadership all the BN leaders have reached “high income status”. Look at Singapore who has almost nothing…
    We can have reasonable income with low inflation if country is properly managed by CLEAN leaders. Look at Taib Mahmud billion dollar empire in US, UK and Canada including your sons and other monsters you created. Are you willing to testify in court on Ling leong “monster” sick?
    How you feel living in luxury home that you don’t deserve since you gain wealth thru back door.
    So Tun, please dont talk about high income, just return the billions then your Karma will improve. ALLAH will pardon you.
    Do FEAR GOD. Life is short
    Wassalam

  82. Salam Tun,
    What difference would it make to you or your family anyway. You’ve all got tons of money that would last many lifetimes. Unfortunately, we only live once and money is not everything.

  83. Rubish and totally immaterial from my personal view!!!
    Doesn’t mean that if MALAYSIAN earning high income from PRIVATE SECTOR”the cost of doing business need to increase as well”as u hav adviced.
    Lets compare APPLE N APPLE
    SINGAPOREAN are still earning S$900.00 as their minimun basic salary and their cost of living such as: Coke canned $1.00, Fried Rice $3.00, Petrol $1.92 per litre,Mitsubishi Lancer EX 1.5 Sports (A) $83,988 & the most they pay for their public transport is $1.80 the MAX with 50km they travel does not include cab.Only by MRT and the cost even less if use buses.
    MALAYSIAN are still earning RM500-700 per month. And i no need to tell u how much we bare for above things. And how much is the minimum that we pay for bus fare here.

  84. Yes, high cost economy is the way to go as a mean to improve the life of our people. However, the prescribed manner by Tun is too autocratic for my liking i.e. the government will decide and control what is the appropriate level of prices etc. This appear to be more socialist method of managing economy.
    If the leader of the country is wise and strong – yes it may work well. But – the danger is if the country leadership somehow fell to a less capable person – then all sort of problem can arise – corruption, unwise decision making etc. (Wait… didn’t we have that recently and what sort of trouble we’re cleaning up now). If it fell to evil irresponsible person? Simpang malaikat 44
    High cost economy should come with greater power and responsibility passed down to common people. Not centralised to a single authority body.

  85. Motto baru… kami tuntut keadilan, tapi kami utamakan kebenaran!!! apa macam? orait?

  86. YABhg. Tun yang dikasihi,
    1. If the policy of the present premier Najib wanted to elevate the income of Malaysian, say 20% higher, but if we are not satisfied with what we have, we are not going anywhere actually.
    2. It’s like “pepatah melayu, periuk besar kerak pun besar”. So, we have never solved our problem.
    3. However, we have to work hard anyway. There’s no choice, if we want to success.
    4. Working hard is inline with Islam teaching.
    5. If you worked hard, no matter whether you are employer or employee, for me it’s considered “ibadah”. “Ibadah” doesn’t mean when you are only on “sajadah” or in the mosque. “Ibadah” is depend on your “nawaitu”. You are performing “ibadah” 24 hours a day, if you follow the methodology that was teached by the Prophet (not by someone who claimed he is “ulamak” like nik aziz).
    6. If you give your children too much pleasure, one day you would damaged them actually. If you love your children, you have to teach them how to success.
    7. The same thing applies between the government and the Malaysian peoples.
    8. If the Malaysian leaders wanted to see all Malaysian live in prosporous, whether we like it or not, we have to eliminate the corruption practice entirely.

  87. Tun,
    How can Malaysia become a high income country as long as all BN/UMNO members keep stealing money from the country. Corruption still at the unacceptable level at Malaysia. It’s like nobody busineess for BN/UMNO members steal money from this country. You should know better than that. There is no way Malaysia will become a high income country if we don’t stop the corruption practices. Forget about the inflation as corruption will kill this country. For example, Sime Darby, Proton, PKFZ, MAS…etc. Almost 99.9% of GLC go down to the drain. If all these companies don’t know how to make money then how can we can become a well development country by 2020. Forget about about strategy, just focus on how to reduce corruption in BN/UMNO then this country will become a well “high income” economy. Forget about free market1, free market2, Tony Blair, internet censor, Hate U.S…shits….just fix this country.

  88. Dearest YAB & di Kasihi Tun,
    I hope DS Najib and his cabinet members read this article. They can learn a lot from Tun.
    Tun is giving them FREE LESSONS.
    Thanks Tun.
    ** May Allah SWT bless Tun & family **

  89. Very well written. I study the things you describe in classes! Considering the fact that you have a degree in medicine, it is amazing how much you know about engineering management and the manufacturing sector in general. I like to know how important books are to you and how much do you rely on them to gain wisdom. Write about it and I’m sure many Malaysians will benefit!
    Much Respect from Down Under,
    Jared Wong

  90. if the government spending can be controlled, perhaps the government servants’ salaries also can be increased! But Pemandu just took an short-cut way by removing the subsidies…easy as selling MAS’s properties in overseas to gain short term profit. Now the long-run operational cost for MAS increased! Well done transformer!

  91. Item 20.
    The workers are majority foreign, the Banglas and Indons are very happy as Tun Mahathir has gave them jobs in this country, and huge profits to the bosses.
    Not forgetting, Tun Mahathir and Najib are strong supporters of vice aka gambling 4D and Sports betting headed by good friend, Vincent Tan.
    After 3 decades since 1981, Tun Mahathir still clueless on how to increase wages. He dont even know what to write to give idea to government to help increase wages.

  92. Assalam alaikum
    YABhg Tun. & all chedet’s fellow
    Of course I dream of high income especially before Malaysia reach year 2020. We have about 9 years from now. Could Malaysia being high income country likes the Scandanavian countries?
    Currently 80% of Malaysian workforce are SPM grades. While the remaining of 20% goes to those possessed high than SPM. This is slightly maddening to industries if they need to pay high salary to 80% of Malaysian workforce who under SPM grade. As I experienced, salary is based on educational grade and achievement. Then follow by skills and experience.
    I worked with SONY for seven months through outsourcing contract. I postponed doing practical in BBA. Relatively the salary paid about RM40 to RM60 per day. Every month only gain about RM900++. While my counterparts from other countries (Myanmar, Nepal, Bangladesh, Indonesia, Sri Lanka)also got the same. How can MNC’s with high volume profit pay wages like this? In SONY SOEM Bangi, 70% of its workers are foreign workers. Remaining 30% are Malaysians.
    What I learned from MNC’s like SONY, they tend to pay workforce low. Unless the workforce work under highprofile job (such as Engineer or something that sort). But many of high skill and educated workforced comes from the MNC’s motherland. Malaysian is less than.
    In simpel conclusion, Malaysia should have its INC. Not only hope from the FDI of world giant MNC’s. Only through this way Malaysian can get better income or in other words high salary.
    Malaysia need wake up early before year 2020. Streamline management and strategy of how to achieve target of high income country. The guru’s of doing that not the West or the European countries. But our owned. In anyway Malaysia should take lesson from them.
    Education, Research & development need to be enhanced. Government must provide enough funds to makesure Malaysia keep running on the competition field. With education, and R&D, Malaysia can produce better output. That is workforce and industires of our owned. Not the foreign one.
    Also, if high income follow by the increase of living cost and consumer product price, it means nothing. High income just merely name only.
    High Income produce job motivation and satisfaction to Malaysia workforce. Also contribute to the gaining of government tax. With high tax, government can use it to focus to the enhancement of education and R&D where at the same time produce high educated and high skilled workforce.
    Wassalam

  93. Che’Det
    1. Seorang kawan saya berkata, kalau kita hendak berniaga kita perlu jalankannya sendiri.
    2. Untuk menjalankan perniagaan sendiri kita mestilah berkemampuan daripada segi ilmu,kewangan,mempunyai tenaga kerja yang mahir dan akhir sekali bersemangat gigih dan tidak mengenal erti putus asa.
    3. Apabila perniagaan sudah maju dan membawa keuntungan maka tuan punya perniagaan itu semestinya mempunyai wang simpanan.Bila ada wang simpanan yang berlebih, maka tuan punya perniagaan mampu untuk beli apa saja yang disukainya dan harga tidak menjadi halangan.
    4.Oleh itu saya amat setuju dengan pendapat Che’Det bahawa walau apa pun teknologi yang kita hendak bawa masuk ke Malaysia,biarlah diterajui oleh orang kita sendiri.
    5. Sekarang ini PM kata 60% tenaga kerja kita adalah lulusan SPM sahaja.Bagi ekonomi yang menjana pendapatan tinggi negara perlu pekerja mahir dan kepakaran dalam sesuatu bidang tersebut.
    6.Jalan pintas untuk mengadakan tenaga kerja yang mahir adalah dengan menjalani latihan intensif di tempat kerja.
    7.Jika Malaysia mempunyai syarikat tempatan yang berkeupayaan,katakanlah untuk membuat helikopter,maka sewajarnya lah kerajaan membantu.
    8.Sekiranya dulu Proton tidak menjual MV Augusta,maka Malaysia sekarang sudah boleh menerajui teknologi pemotoran Italy yang canggih. Ini adalah satu aset bagi Malaysia yang telah lepas pergi semata-mata kerana tamak(greedy).
    9.Oleh itu untuk menjadi sebuah negara berpendapatan tinggi pemimpin dan rakyat perlu ada wawasan,ilmu dan jangan sekali-kali bersikap tamak.

  94. SALAM BUAT TUN BERDUA MOGA DIRAHMATI ALLAH S.W.T.
    1) TUN MEMBENTANGKAN SATU FAKTA TEORI BAHAWA KENAIKAN GAJI AKAN MENYEBABKAN HARGA BARANG MENINGKAT. BUKAN BARU MALAH PADA ERA PEMERINTAHAN TUN DULU PUN TUN SELALU MENGINGATKAN INI BILA BERLAKU PERMINTAAN KENAIKAN GAJI OLEH SWASTA ATAU KERAJAAN.
    2) FORMULA INI NAMPAK BERJAYA TERUTAMA BAGI PENGUSAHA. FORMULA INILAH YANG MENGHADIRKAN GOLONGAN KORPORAT YANG KAYA RAYA. APAKAN TIDAK DENGAN GAJI YANG TIDAK BERGERAK SETIAP TAHUN KEUNTUNGAN MENUKAR CORAK PENGUSAHA (DAPAT DILIHAT PERUBAHAN HIDUP AKAN HARTA YANG DIMILIKI).
    3) PEKERJA HANYA DISERONOKKAN DENGAN BONUS SEKALI PADA HUJUNG TAHUN.
    ITU PUN PERLU MELALUI PENILAIAN TINGKAT KERJAYA DAN JUMLAH GAJI BERPANDUKAN KELULUSAN YANG DIMILIKI.
    4) SEBAB FORMULA INI JUGA PENGUSAHA TIDAK KEBERATAN MEMBAYAR CUKAI YANG DIKENAKAN KERAJAAN.
    5) BAGAIMANA PUN RAKYAT RASA SANGSI DENGAN KAEDAH YANG DI AMBIL INI.
    6) ANTARANYA HARGA MINYAK YANG NAIK (ALASAN HARGA MINYAK DUNIA MENINGKAT) TIDAK DITURUNKAN KEMBALI SEPERTIMANA PENURUNAN HARGA MINYAK DUNIA.
    6) TIDAK MENGIKUT APA YANG TERTULIS DALAM AL-QURAN SEPERTI CUKUP HAUL.CONTOHNYA 1 TAHUN 25 RINGGIT TELAH DILANGGARI MALAH DINAIKKAN HARGA TAHUN DEMI TAHUN DAN TIDAK PERNAH KEMBALI KEPADA HARGA ASAL.
    7) KAEDAH-KAEDAH INI ATAU FORMULA-FORMULA INI TIDAK MENYELURUH HANYA BERKESAN UNTUK GOLONGAN TERTENTU SAHAJA.
    8) CONTOHNYA RIMBA EMAS YANG MEMERLUKAN PEKERJAAN TETAP DAN RAKYAT YANG LAIN YANG TERTINGGAL MEMERLUKAN TEORI YANG RINGKAS DENGAN JUMLAH PENDAPATAN YANG DITERIMA SEKARANG.
    9) KALAU BERGAJI RM 1200 DARI DULU HINGGA SEKARANG TENTU TERBEBAN KALAU BERLAKU KENAIKAN HARGA BARANG.
    10) RAKYAT MEMERLUKAN PEMERINTAH YANG PATUH SEPERTI MAMATUHI KADAR YANG DITETAPKAN OLEH ALLAH S.W.T DAN TIDAK MENGADA-GADAKAN BERBAGAI CUKAI KEPADA PENGUSAHA ATAU SEBARANG KENAIKAN YANG BOLEH MEMPENGARUHI HARGA BARANG-BARANG.
    11) BAYANG APA AKAN JADI KALAU HARGA SENTIASA NAIK TIAP TAHUN DAN DITAMBAH PENAMBAHAN PENDUDUK-PENDUDUK SERTA KEKURANGAN HASIL GALIAN KURNIAN ALLAH S.W.T ?
    WALLAHU’ALAM

  95. Dear Tun,
    The main thrust to achieve higher income is through higher quality education which is marketable. Increase in salary and wages do not necessarily causing inflation, if the productivity of the workers increase more than the rise in salary and wages.
    To achieve this objective the govt. and the people must be more creative and innovative in doing their work by finding ways to reduce wastage and be more efficient.

  96. Asalamualaikum…
    saya rasa was2 dgn pendapatan tinggi yg sedang di war2kan oleh pm ni….setiap kali dgr mesti saya rasa tak senang hati…
    anehnya masa pm ke4 dulu saya akan merasa teruja utk melihat/merasai hasilnya….alangkah bijaknya kalo najib membaca artikel bapak ni…..tapi kalo najib kata” dah gaji tinggi sara hidup kena tinggi gak lah nasib lah tu….”

  97. Dear Tun,
    Very well put. I dont think the Prime Minister understands this concept.
    I fear that increased selling prices for goods (inflation) are not driven by cost increases alone. When everyone has 10% more disposable income (from a 10% automatic increase in wages) there will be a 10% higher demand for goods and services.
    Assuming the higher wages of 10% is not accompanied by an increased productivity or increased output (of at least 10% also), it means that while the quantity of goods and services in the economy remains the same, the number of Ringgits chasing the same quantity of goods has increased by 10%. This will immediately cause a price inflation of 10% – even before the producers and shopkeepers factor the highr wage costs in the economy.
    You may have to add this 10% price rise to the 5%-6% price increase caused by the factors which you have inputted, resulting in a price inflation of 15% – 16%. If this happens, it will be back to square one. Everyone earns a higher 10% of income but the prices of all goods and servics would have also increased by 15% – 16%.
    Legislating or decreeing higher wages is very detrimental. Wage increases must be preceded by higher productivity.
    Worse than this is the minimum wages argument. That will create chaos in the country. The proposed minimum wage of RM1200 will kill many small and medium industries as well as most of the plantations.
    In small towns and smaller cities (Kuala Kangsar, Bandar Muadzam, Pedu) the small business owners themselves hardly make RM2000 – RM3000 a month. I am referring to the small shops, the barbers, the vendors, the carpenter, kedai runcit operator and so on. They may employ a few workers each at salaries of RM350 – RM500 per month.
    If suddenly the legislation says minimum wages shall be RM1,200 these people would have to shut down their businesses and become unemployed.
    They may lose their homes, their pasar malam vans and lorries. Maybe they will end up sleeping in the streets or become robbers. Maybe they may revolt against the Government.
    Dear Tun, since you left, thinking has also left.

  98. Dear Tun,
    Great article, this is what I meant when I comment on the Free Market article.

  99. Salam Tun,
    Just a few words on this subject matter…
    2. “1Malaysia” and “High Income Economy” were catch phrases created to elevate ignorance in Malaysians who have lost hope, totally; (read: UMNO) just like how certain fast food chain marketed ‘Value Meals!’, value for the Advertiser, and just another bad meals for the Consumer albeit nothing of value added except for more monies you have to pay to purchase it! — big words, little meanings! Perhaps, certain individuals think they are ‘Moses’ who could just use his walking stick to create a path in the Red Sea… I agree with you totally on your opinion, as obviously, the person responsible for ‘marketing these catch phrases’ failed to realize ‘the real big picture!’ Sad, really.
    3. Economies of scale? In a Malaysian government servant context, it would only means ‘Economies of Waste!’ — recently, I went to a government agency to collate some info for my research paper, I GOT NOTHING, AS IT WAS USUALLY THE CASE! Beside being sent from one table to the other, finally, I was requested to see the Senior GM; the biggest joke, when requested to make the appointment, I was told, “he is very busy, going outstation the whole of next week, and when he comes back to the office, he has to attend to various meetings, internally and externally. Call back again then!” Apparently, he is very busy because HE IS THE ONLY SERVANT WHO IS WORKING FOR THE GOVERNMENT!
    Terima kasih, Tun. Seandainya kita tidak ketemu lagi sehingga di kemudian hari, “Selamat Menyambut Ramadhan dan Selamat Hari Raya Aidilfitri. Maaf zahir & batin” untuk Tun dan Tun Dr Siti Hasmah sekeluarga.
    P.s. My mother who leave in the kampung with my father recently told me, “now with RM600.00 per month I could harly pay Pak Mail for my monthly groceries needs! I always reminisce on how when you were all small, with just your father’s meagre salary of RM300.00 per month we could live very comfortably and happily. Now…”

  100. Dear Tun,
    I think you know very well these business people are not going to increase their prices according to whatever formula presented. It just does not work like that. Sometimes i wonder why you even bother to explain to them the details of proportionate prices increase as they never really want to do that. It is too much work.
    The reality is this.
    let’s start from (1)
    1. The Government has announced the intention to make Malaysia a high income country. I assume this means people will receive high wages, salaries and profits.
    then …
    2. a meeting is called ( by all companies ).
    3. the marketing manager will be asked by how much the price can be increased before people stop buying.
    4. a figure is derived, just a little lower than the threshold.
    5. the company announces “we are targetting larger profits this year”. or perhaps in a more polite way ” we are looking for ways to increase the dividents of our shareholders”
    6. the price increase is announced
    7. sales drop a little bit, but offset by the price increase because it was built into the “formula”.
    8. the marketing manager gets fired. ( due to the sales drop ). a new marketing manager ( fresh graduate, happy to obey, happy to tell the folks back home he landed a job with a big company ). this new manager is cheaper to employ, and is wow, so enthusiatic about his new job, like we all are on our first job.
    9. as prices had been increased, the workers pressure for an increase in pay.
    10. everyones pay is increased 10%, to cater for the increase in
    prices for all general consumer items ( which of course is actually an average of 40% across the board ).
    Then life goes on an people wonder why prices keep increasing but everyone accepts it as a “fact” of life.
    now, how about it if we concentrate of lowering prices instead ( with the same income ) ? i know business people will be very angry, but workers and consumers are even angrier.
    i would be most happy if my one ringgit can buy me a whole meal, instead of several ikin bilis ( with head still attached as bonus ) at the rate we are going.

  101. Dear Tun
    I believe you should also add corruption to this as this also contribute to inflation.
    Thanks.
    Harimau 1900.

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