While I was on holiday in Langkawi a couple of months ago I got a little pissed in between munching down the turkey ham and sausages during breakfast. The notion of paying RM450++ a night for a chalet suite with breakfast at a 5 star resort in Langkawi seemed pretty reasonable. The notion that we had to pay the same amount for a small room at a business class hotel located at Queens Street in Singapore seemed outrageous nonetheless. It occurred to me that my Malaysian Ringgit’s value is slightly higher than rubbish outside of the country with the exception of supposedly poorer countries like Thailand, Indonesia and India. I’m sorry. But I have to say that Malaysia is a country that’s supposed to have much more better purchasing power than it currently has right now. And the argument that I shall put up is the nation of New Zealand.
According to the all knowing, all seeing and all intelligent wikipedia.org…..
“New Zealand has a modern, prosperous, developed economy with an estimated nominal Gross domestic product (GDP) of US$128.1 billion (2008). The country has a relatively high standard of living with an estimated GDP per capita of US$30,234 in 2008, comparable to Southern Europe, e.g. Spain US$33,385, but lower than the United States at US$46,820.[30]
New Zealand is a country heavily dependent on free trade, particularly in agricultural products. Exports account for around 24% of its output,[36] which is a relatively high figure (it is around 50% for many smaller European countries).[ii] This makes New Zealand particularly vulnerable to international commodity prices and global economic slowdowns. Its principal export industries are agriculture, horticulture, fishing and forestry. These make up about half of the country's exports.”
And now Malaysia, according to the same all knowing source that all should use:
Malaysia is a growing and relatively open economy. In 2007, the economy of Malaysia was the 29th largest economy in the world by purchasing power parity with gross domestic product for 2007 was estimated to be $357.9 billion with a growth rate of 5% to 7% since 2007[1] The Southeast Asian nation experienced an economic boom and underwent rapid development during the late 20th century. With a GDP per capita standing at US$14,400, it has, from time to time, been considered a newly industrialized country.[2][3]
Malaysia is well-endowed with natural resources in areas such as agriculture, forestry and minerals. In terms of agriculture, Malaysia is one of the top exporters of natural rubber and palm oil, which together with sawn logs and sawn timber, cocoa, pepper, pineapple and tobacco dominate the growth of the sector. Palm oil is also a major generator of foreign exchange.
Tin and petroleum are the two main mineral resources that are of major significance in the Malaysian economy. In 2004, Malaysia is ranked 24th in terms of world oil reserves and 13th for gas.
As one of three countries that control the Strait of Malacca, international trade plays a large role in its economy.[5] At one time, it was the largest producer of tin, rubber and palm oil in the world.[6] Manufacturing has a large influence in the country's economy.”
Now after reading that you can see that a nation of 4.8 million sheep farmers and a couple of billion sheep has a fantastically high standard of living compared to our country. I am still surprised that we have less purchasing power over a country with at least 5 times less citizens and only produces sheep as its main source of income. For heck’s sake, we produce cars, bikes, tv sets, watches, phones for the whole world to consume, we are also rich in palm oil, petroleum, rubber and tin which they don’t have and we have a currency value that’s lower than New Zealand? (as I write this it takes 1.83RM for NZ$1.00)
Is it because 28 million people to share a total GDP of $360 million US Dollars over 5 million people with $128 million makes the ratio in favour of New Zealand over Malaysia? Well, partly yes, but We have nearly everything to trade under the sun and they have sheep and they still make more than us?
I think the powers that be have a say in anything and everything. The people in fully developed countries are willing to ‘assist’ their counterparts by believing that it is alright to purchase lamb at a price that’ll make a New Zealander have a higher than average income but they are unwilling to pay a Malaysian, Indonesian, Indian manufacturer higher amounts of currency for items produced in these countries. It’s either that or our governments or the people in power are capitalizing on the lower wage and intends on keeping it low to their benefit and not the general public.
If the government in New Zealand can allow and afford a certain standard wage for all of its citizens, why can’t a country like ours, with more stuff to export and more products that are in demand be like New Zealand? There is something extremely wrong with this situation and there’s nothing much we in Malaysia can do about it I suppose as the people up there seem to be happy getting free food and lunches while asking their staff to work for RM500.00 per month. These are the same people who own multi million Ringgit companies that pay themselves RM50,000.00 per month but somehow believe that their staff should only deserve RM700.00 for working 8 hours in an assembly line. Of course he’d fight for low wages as he needs to keep it that way so that he can take weekly flights to London. As for the government, the situation is the same. The rich directors lobby the ministers and keep them happy. Hence the status quo. I believe it is also this mentality that the government does not allow for a strong Ringgit. Think about it, it does make sense. Then again, I always make perfect sense.
By the way, I have sat in the ugliest vehicle to be sold in the country and maybe the universe (for all time). It is the Ssangyong Stavic (Short for Star Victory or Rodius elsewhere). I hired it to take the family to the LCCT and surprisingly, it is totally refined on the inside. At 110km/h the engine, being a diesel was reasonably quiet at 2,000rpm. The ride was acceptable, somewhat like a current model Toyota Estima. The driver told me that it was also quite stable at speed and once pushed it to around 195km/h. I told the driver that the car looked like crap, he agreed and laughed when I added that luckily he’s sitting on the inside and didn’t have to look at it while driving. Sitting at the front passenger seat, the veiw is as usual MPV commanding and the materials used seem decent. Very Japanese at best. At around RM170,000.00, no individual would be turned on to buy such an ugly pig of a people carrier. Only companies that needed a diesel MPV that’s pretty easy to maintain would. That’s pretty amazing for an ugly monster. However, we all know that ugliness won't sell cars even though we'd remember and recognise it for ever. And that's why Ssangyong may not last this worldwide recession.
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