PART 2 : WHAT IS GOING ON IN THE COUNTRY NOW - PRICES COMING DOWN

Ok to continue with Part 2, business is really, really bad in Malaysia now. 
I know this first hand because our business is suffering too. 

My old school buddy (Penang Free School) just messaged me yesterday and said 'Business is damned slow. Whole world affected except maybe the US".

My other "business partner" who is an architect and contractor says not only projects are fewer but the new government is cancelling former UMNO/BN projects outright and cancelling payments for work done on old projects.  UMNO/BN projects whose progress is 20% or less are being stopped and cancelled outright.

Ok there are pluses and minuses here - dont panic folks. 
Jangan takut. Please have faith in ourselves.  

Just that the business people (like me) have to pull through. 
Its a do or die situation now for us.  I hope we can all pull through. 

Now is the time to think fast on your feet.  

Here is a video by another friend of mine Dato Ameer Ali Mydin, the Boss of Mydin Hypermart.

Please visit your nearest Mydin Hypermart and support your local businesses. 

I dont usually do product endorsements (or very rare) but I owe Dato Ameer this publicity. 

About 18 years ago when we opened our branch in Masjid India he walked into our jewellery store and introduced himself. That was the first time I had spoken to him. He offered to help promote our new store. He said if we had any coupons, pamphlets, vouchers he would gladly get his cashiers (at the supermart) to give them to his customers. I believe we gave him over 2000 coupons which he did distribute to his customers. That was a very friendly gesture from a very successful person to help us who were just getting started. 

Then last year I spent some time test marketing a new business idea - Hydrabadi "Dhum" Briyani.  It tastes excellent - even if I say so myself.  Again Dato Ameer gave me free publicity through his large Facebook network which again helped. Thank you Dato.  

So at last Mydin is having a first time ever warehouse sale.   
Well it is a reflection of the times. 
Business is slow all over the country. 

I believe there are also some other reasons business is slow. It has now been over six months since the easy money kleptocracy was thrown out. Last year's BN Budget was RM280 billion (for the year beginning January 2018). Pakatan came to power in May 2018. 

Assuming the usual 25% wastage in the Budget has been saved since May,  it means that about (say) RM40 billion "wastage" did not materialise under the new Pakatan government. That means easily RM40 billion LESS of "easy money" sloshing around in the economy, especially in the Malay economy

Plus the fact that the present government is cancelling many of the bloated BN/UMNO projects, many more billions have been saved by the government. Even lesser billions in the economy.  FOUR IPPs have been cancelled by Yeo Bee Yin and FOUR more IPPs may also be cancelled. 

And this amount of wastage was usually filtered through the BN/UMNO cronies. Well not anymore. Hence it has affected 'easy money' in the economy. This is something new in this country.

The Tan Sris and Datos are not picking up their new Alphards and Vellfires. 
There are fewer of them hanging out at the BSC.  

This is only the public sector's fiscal spending. Not the private sector. But in Malaysia the public sector does have a huge impact on the economy, especially the Malay economy.

House prices have come down. 
Land prices have come down.
I am in this business too.

Car prices are adjusting - a little slowly though.

Now Mydin Hypermart is giving good discounts.  
Other major retailers like NSK and Haneefa (also in Masjid India) are also cutting prices.  

It is turning out to be a buyers market indeed.  

This is a transition period - the businessmen will suffer because we already bought our stocks at higher prices. And people have less money to spend. Sales are down.

But the situation will sort itself out. 
Given time the 'invisible hand' will play its role. 
It always does.

The only problem is how many businesses will become casualties before the invisible hand does its job to stabilise the economy again? 

Whatever the government does, please observe two things.

1. Spend money on productive pursuits.  Replacing the broken down lifts in the PPRT flats will generate much more returns than funding a sekolah tahfiz. Maszlee will not understand this at all.

2.  More importantly NO MORE WASTAGE, NO MORE LEAKAGE, NO MORE CORRUPTION, NO MORE PADDING THE INVOICES. Just pay market prices for government projects. The 1.5 horsepower room airconditioner is about RM2000 per unit (I think).  Dont pay RM5000 or RM6000, even with a "maintenance contract". It is just wasting money.  Do not waste money. Just pay market prices.

This way the government will have more money "saved" that can be applied productively elsewhere.

If the government can do 1 and 2 above, there will be good multiplier and trickle down in the public sector and also in the Malay economy.  

And please do it fast.

READ Part 1