An outsider's view

Yesterday I had a long chat with a friend whom I hold in very high regards. He is the man who gave me my first responsible job and guided me patiently, acting not only as a friend but as a mentor as well. He is not born and bred in Malaysia, but is a Singaporean. However being in Malaysia for the past 5 years has given him a good understanding of how Malaysia works internally and he is able to compare and contrast the government we have, and the government he is used to having back in Singapore.

He raised a few crucial points which perhaps we have always known and felt all the while, but it is interesting to see how our country is perceived by an objective bystander looking in. The first question I raised was, how do the Singaporeans or foreigners view Malaysia's current political situation? The answer was; "it is the laughingstock of the international arena".

The second question I raised was, how does the situation in Malaysia affect its neighbouring countries like Singapore? He said; "probably not much except in terms of foreign investors when they are looking where to put their money. Of course with Malaysia in a limbo, investors would rather turn to Singapore which is perceived as a more stable environment".

Then without further questioning, he raises his views on why we are in the situation we are today. In short, he says it is sad to see a nation which is full of natural oil resources, palm oil, rubber, rice and our own agriculture be poorer than a nation which is smaller than the size of Johor Bahru, has no resources whatsoever and relies on the exports of other countries. In fact, he believes we could close our doors to the outside world and be self-sustaining, that is how rich our nation is.

He talks about Terengganu, who should be one of the richest states due to their oil reserves. The royalties alone for the past four years could have been enough to build schools, roads, better housing facilities and what-not. However, go to the state of Terengganu and you will see one of the poorest states in Malaysia, with the citizens surviving on selling "ikan masin" and "keropok lekor" at the side of the road to make a living. The sad thing is, oil reserves run out, and Terengganu is estimated to only have four years of reserves left.

Then he makes a comparison to Singapore's government; the complaint that some people have is that Singapore's ministers are one of the highest paid in the world. They rake in about $1 million per annum. However here's a good point he makes; would you rather pay 1 million a year to a government official when you know where the country's resources are going, or would you rather have ministers who siphons off 1.2 Billion a year of the country's resources to offshore foreign accounts?

Most people, in fact everyone will admit we have a corrupt government. Nobody will believe our government is clean. However the problem lies in the fact that we have accepted this as a way of life. And we have accepted that there is nothing we can do about it. This acceptance has caused us to give up our ideals of a transparent and fair, corruption free government.

This is why people say that there is nothing we can do to change anything. Even putting a new government in place will not eradicate this 'way of life' that we are so used to. But the truth is; it is because we accept it to be the way of life that it will never change.

Just like if we were born into poverty or slavery, and we accept it to be our fate and that things will never change, then it will never ever change. The mindset we have is so important in guiding us to where we want to be in life, so really the decision lies in our hands...are you willing to accept the condition we are in now? Because I know I'm not.

The stagnation of a nation.

Ever felt like life seems to be stagnant? Perhaps on the wider scale, our country's social, economical and political development seems to be stagnant. We hauled the opposition in for a big victory, hoping for change, hoping for a better life for the children of this country, but yet nothing has seemed to change?

Patience is a virtue, but why do i feel like I'm running out of patience? I know, the change is for a better, no matter what people say, but yet I wish things would move on. A song seems to come to my mind, and every time i hear it, the lyrics somehow seem to describe my life currently and also the situation around me. Don't mistake me for a teenage pop fan, but somehow these lyrics seem to strike the very core of how I feel at the moment;

One Republic
Stop and Stare


Stop and stare
I think I'm moving but I go nowhere
Yeah I know that everyone gets scared
But I've become what I can't be, oh
Stop and stare
You start to wonder why you're here not there
And you'd give anything to get what's fair
But fair ain't what you really need
Oh, can you see what I see

They're tryin' to come back, all my senses push
Untie the weight bags, I never thought I could...
Steady feet, don't fail me now
Gonna run till you can't walk
But something pulls my focus out
And I'm standing down...

Stop and stare
I think I'm moving but I go nowhere
Yeah I know that everyone gets scared
But I've become what I can't be, oh
Stop and stare
You start to wonder why you're here not there
And you'd give anything to get what's fair
But fair ain't what you really need
Oh, can you see what I see

What you need, what you need...

Stop and stare
I think I'm moving but I go nowhere
And I know that everyone gets scared
But I've become what I can't be
Oh, do you see what I see...

Yes, we know we're moving forward, but yet it feels like we've never moved at all. Even in personal life, you know you're going somewhere, and you think you've made the right moves to reach that destination...but somehow it feels that everything comes so slowly, that no matter how hard we work or how much effort we put in, we're constantly in the same place, doing the same things and we feel that somehow we are insignificant, and nothing we do will change anything.

10 years ago, and today, the same allegations are thrown against Anwar, the same reasons for the allegations are there. The country faces the same problems 10 years ago and now, politically, economically and socially. Again, the racial card is used, talks between UMNO and PAS just like they did close to 40 years ago.

It seems that history does repeat itself, and as Hegel observes "We learn from history that we never learn anything from history". This seems to ring true in the history of this nation.

Burgernomics: The Big Mac Index

Ever heard of burgernomics? It is a compilation of the price of Big Macs in all countries around the world (except India), first published not-so-seriously by The Economist in 1986. It is intended to show the purchasing power of the average person in each of these countries using the purchasing power parity 1 (PPP) theory. Why the Big Mac? Because it is perceived to be a standardized food product through out the world in terms of quality and taste, hence the price of the Big Mac tells a lot about its unit cost and the ability of each average person is willing to pay for it in any given country (except India- there are no Big Macs in India, only Maharaja Macs because cows are sacred there; chicken and lamb is used as beef substitute). The Economist magazine also produces other indexes such as Starbucks's Tall Latte index, and the Coke index.
Left: The Chicken Maharaja Mac 








The left shows the Big Mac Index of a few of my favorite countries. Let's take a look at Malaysia and USA; what this index tells us about the Ringgit.


Formula for the Big Mac Index

= (PPP- forex rate)/forex rate   



=[(5.5/3.57)-3.2591]/3.2591     
=-52.75%                               









Above: The Big Mac Index of a few countries


The negative 52.75% tells us that the Ringgit for a Big Mac is 52.75% undervalued compared to the USD. 
Of course there are critisms against the Big Mac Index:
  • the Big Mac is expensive in countries other than the USA and this may not give a true indication of the PPP ie it is not a mainstream cheap meal in India as compared to USA.

  • different levels of competition in different countries, different tax structure and culture acceptance will affect the pricing of the Big Mac. 
Despite the criticisms, the Big Mac Index still tells us a lot of a particular economic conditions! 


1 Purchasing Power Parity- created by Gustav Cassel 1920. A product assuming that it is available throughout the world should only have one price. But because of the imperfect world, different economic conditions in each country influence each of their foreign exchange rate resulting in that particular product being priced differently. The PPP compares the price of the same basket of goods in different countries. The argument is that the price for the same basket of goods should be the same in any given country but otherwise priced, because of the differences in inflation and cost of living in the different countries. The full 2008 Big Mac Index is as below:







What instant noodles tells us about the economy

A quick visit to Carrefour Express Wangsa Metroview last Wednesday showed that Maggi Mee perisa ayam (chicken flavor) had risen to RM4.50 for a 5-pack. I could not miss it because the huge Maggi mee display was right at the entrance of the store. Ironically the sign said 'special promotion'. The price was like RM3.15 per 5-pack right? Did you ever noticed how the price of the 5-pack reflects the price of a bowl of a mee in Malaysia. For example a bowl of mee in SSL Noodle Shop Wangsa Maju costs about the same without the extra add-ins. No rocket science there, but the price of the 5-pack Maggi mee is really close to the hawker's bowl of mee. At RM4.50 for 5, instant noodles are no longer poor man's food, but one single pack is still about 20% of the price of a bowl of noodles.

Lights out, but business as usual

The main fuse of Wee Choo Keong's office blew last Wednesday night and operations shifted from the office to the coffee shop downstairs. Business continued past 12 am thereon.