tag:blogger.com,1999:blog-6297413898275266606.post3657996663868244994..comments2024-03-27T18:15:59.096+08:00Comments on Economics Malaysia: Budget 2013: Some Thoughtshishamhhttp://www.blogger.com/profile/06265308095732759923noreply@blogger.comBlogger17125tag:blogger.com,1999:blog-6297413898275266606.post-4183938219067895282012-10-12T11:06:59.026+08:002012-10-12T11:06:59.026+08:00@anon,
Welfare assistance doesn't actually ad...@anon,<br /><br />Welfare assistance doesn't actually address food inflation, since it neither helps on the demand side or the supply side. All it does is supplement incomes so that people can get despite the price increases.<br /><br />Do the handouts help? To my mind, without a doubt.<br /><br />The problem is whether the price increases are permanent or transitory, as food prices are hishamhhttps://www.blogger.com/profile/06265308095732759923noreply@blogger.comtag:blogger.com,1999:blog-6297413898275266606.post-54556935172605876332012-10-11T23:06:58.720+08:002012-10-11T23:06:58.720+08:00Hi I am currently doing my research on the effecti...Hi I am currently doing my research on the effectiveness of social welfare assistance in addressing the food price inflation (case of malaysia)... Your blog seems to be helpful for my research. Pls give me ur opinion relating my topic to the recent budget.... Thanks in advance Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6297413898275266606.post-49873700343061994782012-10-07T23:44:45.777+08:002012-10-07T23:44:45.777+08:00Asri,
Sorry for the late reply - weekends I'm...Asri,<br /><br />Sorry for the late reply - weekends I'm usually offline spending time with the family.<br /><br />With respect to your question, there's a number of ways to explain this phenomenon.<br /><br />First and foremost is that the CPI is based on the "average" Malaysian household. If the basket of goods that people buy differs substantially from the "average"hishamhhttps://www.blogger.com/profile/06265308095732759923noreply@blogger.comtag:blogger.com,1999:blog-6297413898275266606.post-37507709010480428262012-10-05T09:52:13.071+08:002012-10-05T09:52:13.071+08:00I got a general question which may / may not relat...I got a general question which may / may not related to your posting but I'm not sure where else I could ask this. <br /><br />I hear a lot 'grumbling' about the high rate of inflation and ever increasing cost of living.<br /><br />I may read this incorrectly (I never studied economics) but never saw the CPI figures that relates closely with what people are telling me.<br /><br />SomeAsrinoreply@blogger.comtag:blogger.com,1999:blog-6297413898275266606.post-61670186246236976602012-10-04T14:31:55.750+08:002012-10-04T14:31:55.750+08:00HuaYong,
A one to one comparison is hard to do be...HuaYong,<br /><br />A one to one comparison is hard to do because the country price levels are so different. There's also cultural factors at play as well, which makes cost-of-living comparisons difficult (e.g. the larger family support system most Asians have).hishamhhttps://www.blogger.com/profile/06265308095732759923noreply@blogger.comtag:blogger.com,1999:blog-6297413898275266606.post-14431225099677810882012-10-04T14:29:59.151+08:002012-10-04T14:29:59.151+08:00Mellissa, that one's a pure election giveaway ...Mellissa, that one's a pure election giveaway in my view. On the other hand, I don't think it will be all that effective or amount to very much.<br /><br />The hardware cost of a smartphone doesn't amount to as much as the cost of data plans that go with it. Telcos are already substantially subsidising the hardware anyway.<br /><br />I think as far as subsidising training or skill hishamhhttps://www.blogger.com/profile/06265308095732759923noreply@blogger.comtag:blogger.com,1999:blog-6297413898275266606.post-38711961959139128482012-10-04T14:02:40.724+08:002012-10-04T14:02:40.724+08:00Thanks Hisham, perhaps you are right though i am n...Thanks Hisham, perhaps you are right though i am not sure which is a more reasonable definition if take into account living standard, i just can't imagine a person with an annual income of MYR36k that converetd to USD12k per annum could qualified as middle class. HuaYongnoreply@blogger.comtag:blogger.com,1999:blog-6297413898275266606.post-64811371298943817932012-10-04T11:52:50.281+08:002012-10-04T11:52:50.281+08:00Agreed on a lot of the points, but I have to say t...Agreed on a lot of the points, but I have to say the main thing that irks me about the budget is the smartphone allowance. I still don't understand why we need it considering mobile phone penetration is at 129% and to be frank, not owning a smartphone is not the end of the world. <br /><br />I would've preferred if the handout was given in form of a subsidy for professional courses, nightAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-6297413898275266606.post-19921524628951920922012-10-04T08:43:12.301+08:002012-10-04T08:43:12.301+08:00HuaYong,
The ADB defines middle class as anybody ...HuaYong,<br /><br />The ADB defines middle class as anybody above the poverty line. I'm not going to go that far. One possibility (which is the one I prefer) is just looking at the income quintles - middle income would be the 40% of the income distribution below the top 20% (about RM2000-RM5500 per household in 2009). Another would be looking at the distribution of income centred around the hishamhhttps://www.blogger.com/profile/06265308095732759923noreply@blogger.comtag:blogger.com,1999:blog-6297413898275266606.post-33172528950732680632012-10-03T20:26:42.230+08:002012-10-03T20:26:42.230+08:00"I’m sorry – if you’re one of the unlucky few..."I’m sorry – if you’re one of the unlucky few who have to actually pay income tax, you’re NOT middle-class."<br /><br />I don't agree unless our understanding of middle class is vast difference. Can you elaborate more? ThanksHuaYongnoreply@blogger.comtag:blogger.com,1999:blog-6297413898275266606.post-82042966815877587862012-10-03T12:05:53.007+08:002012-10-03T12:05:53.007+08:00hyelbaine,
I was actually very careful to avoid t...hyelbaine,<br /><br />I was actually very careful to avoid the word "rich". Collectively, my wife and I do in fact earn more than five-figures a month, but we don't feel "rich" either. But rich-middle-poor is a very different thing from the high-middle-low income distinctions.<br /><br />The fact remains that if you're paying tax, your gross income level is better thanhishamhhttps://www.blogger.com/profile/06265308095732759923noreply@blogger.comtag:blogger.com,1999:blog-6297413898275266606.post-55379012157123655082012-10-03T11:17:54.160+08:002012-10-03T11:17:54.160+08:00I have no qualms on this posting except for your f...I have no qualms on this posting except for your fourth annoyance. I'd have to disagree that if you're paying taxes than you're rich.<br /><br />That's very simplistic of you when in the same post you complained about people being simplistic, missing the forest for the trees.<br /><br />I'm not earning 5 figures a month and yet a big chunk of my salary is being deducted by PCBhyelbainehttps://www.blogger.com/profile/17715260157108296605noreply@blogger.comtag:blogger.com,1999:blog-6297413898275266606.post-57803640162463225802012-10-02T10:21:07.014+08:002012-10-02T10:21:07.014+08:00@mantra,
Some of the clues are there if you care ...@mantra,<br /><br />Some of the clues are there if you care to look. Rather ironically, in the case of BR1M the budget allocation priorities <i>actually</i> do fit into a long term strategic imperative. In this case, its partly about a shift from general subsidies to targeted subsidies, which are more efficient - this was actually mentioned in the budget speech.<br /><br />BR1M also helps to hishamhhttps://www.blogger.com/profile/06265308095732759923noreply@blogger.comtag:blogger.com,1999:blog-6297413898275266606.post-67822042317325402452012-10-02T09:48:55.564+08:002012-10-02T09:48:55.564+08:00People should differentiate between budget and pol...People should differentiate between budget and policy. ETP is an example. It is a long term policy/plan/program to further imporve the economy, to increase GNI, to increase per capita income, to increase job opportunities etc...<br /><br />Budget is a proposal detailing how the money is going to be spent for the next fiscal year.CheWalhttps://www.blogger.com/profile/16258246250577636947noreply@blogger.comtag:blogger.com,1999:blog-6297413898275266606.post-44623316416882594782012-10-02T08:00:05.956+08:002012-10-02T08:00:05.956+08:00BR1M was billed as an assistance in response to ec...BR1M was billed as an assistance in response to economic slowdown in 2012-2013. From the start, it is a short term initiative. ppl expecting it to fulfill some long term strategy will be rightfully dissapointed.<br /><br />Personally i believe having extra RM500 helps. It can covers room rental for 7 months for 21 yo above or cover cooking ingredients for a family for 5 months. Helpful but not mdabelnoreply@blogger.comtag:blogger.com,1999:blog-6297413898275266606.post-82308868775071302372012-10-02T00:19:21.469+08:002012-10-02T00:19:21.469+08:00Generally, the budget is one of the tactical tool ...Generally, the budget is one of the tactical tool for an overall stragegic plan. Thus, people will look critically from this angle. So for e.g. what is the point of that BRIM? It is short-term C which multiplier effect is very small. So, basically, we can and criticise from angles of CIGXM ... and conclude whether the government has any long-term strategic plan or not ....mantranoreply@blogger.comtag:blogger.com,1999:blog-6297413898275266606.post-76965925705802509652012-10-01T19:30:11.881+08:002012-10-01T19:30:11.881+08:00Very nice pieces. Waiting for your analysis.Very nice pieces. Waiting for your analysis.CheWalhttps://www.blogger.com/profile/16258246250577636947noreply@blogger.com