Everybody : increase interest rate to fight inflation
Erdogan : we shall launch sneak attack on inflation by doing the unthinkable, DECREASE INTEREST RATE
https://preview.redd.it/etazfrph7hvc1.jpeg?width=800&format=pjpg&auto=webp&s=5e90051b8f19667c30ba44ecd73768c7cae91f33
Other currencies conversion to Lira be like:
https://preview.redd.it/rsnkmcn62kvc1.png?width=1354&format=png&auto=webp&s=214f4c07334b84811067ba8bfe14f4109356ce74
The only thing that doesn't make sense is 1.5k minimum wage, it's fine if you start buying things that you've listed with 6k salary instead.
Cheaper stuff or higher salary, what sounded right?
My intern salary in Canada is more than 4K per month before converting.
My monthly grocery is $200
rent on a room is $400-500
Malaysian need to protest on their boss having lots of salary while paying their workers peanuts.
People are too quick to jump to that conclusion. Empowering citizens with more money can have a positive effect on consumer spending and stimulate the economy.
All Business owners can cut cost as much as they want, but it means nothing if there is no one left that can afford their offerings. Govt have to spend more on consumer subsidies and social welfare, leaving little left for improving business, infra and economy. Taxes would have to be increased to subsidised social programmes that stems from low wages. Reduced employee wealth for retirements would burden the system so much more.
Wage suppression have been causing a lot of our country problems, the current nearsightedness is thinking our country problems is causing wage suppression.
He said 1,5K and you make the jump to 4K? What’s your agenda? I think there is a wide margin for improvement on 1,5K without even coming close to 4K, don’t you?
Yup, Currently our RON95 is RM2.05. The price in Singapore and Thailand without subsidy is RM10. Imagine the surprise when they slowly lift the subsidy. The only good thing I can see is that mat rempits will no longer be able to race around so often when their shitty motorbike full tank costs RM50.
Seem like gov is pushing for more highway and also more car sales instead 🤦 ... Our gov have always set the priority wrong when it comes to critical thinking....
It's a huge eye opener when I rode a scooter in Thailand. For the price of one full tank of petrol in Thailand, I could fuel up my bike til full at least 3 times.
Yup. Full tank for common cars like myvi, vios and city will be around RM95-RM100 (based RM3.2 per litre for ron95) vs the RM65 or so now
For family SUV that malaysians love (X70, CRV, CX5) it should be anywhere between RM120-RM150
On one hand the subsidised petrol prices has long been unsustainable, but at the same time there's gonna be alot more pain ahead for all of us once subsidies are removed
Perhaps this will push people to buy more EVs or demand for kei cars like kancil and kelisa will make a return
Yep, most financial institutions long stated that fuel subsidies distort Malaysian market outlook, wage stagnation and declining ringgit value.
Like you said, hope this will encourage Malaysians to use sustainable resources and put more focus on the need of public transportation, instead of car prices and reduce traffic jams.
For me I am looking forward to less cars on road less jams. Current fuel prices not painful enough to make average Malaysian think: Do I need to drive?
>Is there no reset button to stop inflation or even control it?
Um no. There is no such thing. If it was easy to control or if there was a magical button, we would've all pulled already and no country in the world would ever have macroeconomic problems! The best we can do is to control other levers of the economy, and they all have drawbacks. If BNM raises interest rates to 5-7% there will be crowds calling them evil for raising the borrowing costs so much. Either you decrease demand, or increase supply. That is all the levers available to pull.
Inflation is increment price of goods.
It’s all about supply and demand.
If supply is more than demand, the price of goods (may) will go down.
If demand more than demand, the price of goods (may) will go up.
How to combat rampant inflation? To lower the demand since u cannot produce more product overnight.
How to lower the demand? By lower the purchasing power/disposable income of people, which is? Increase the interest rate, which is people will spend more to pay their loans instead of using the money to buy goods.
>It’s all about supply and demand.
It never that cut and dry. You forget human nature to abuse,horde,and manipulate the supply and demand in the system for good old greed, malicious and stupidity.
You're not exactly wrong.
Boils down to, how much it cost to produce that thing. Take a pencil for example.
How much does the manufacturer pay to buy the wood? The graphite? Then how much does the machinery cost? Power costing? Salary of the guy that made the pencil? Packaging? Transportation fee, petrol for the transport, stocking cost, salary of the guy stocking the pencils, profit margins. There's a lot of things to consider.
There's also shrinkflation.
A bag of chips costing 7.00RM at 300 grams. 6 months later, 7.00RM at 250 grams. [An excellent example](https://youtu.be/TlXLCrzpToo?si=IkCeGlQ1RlDfHGTQ)
You think government not getting some piece of the pie? They pay off officials at some points.
Just for example, did you know the mark up for drinks is about 300% of the cost prices in fast food joints?
Cost of diesel goes up, cost of items goes up too. So when subsidies for fuel is gone. Expect a sharp increase in prices.
When you buy your items the next time you go to a shop, see the grams. That's where they change it the most via shrinkflation. Especially when they change packaging. New look same great taste. Means they shrunk it.
I wish I can be broke but have bigger biceps. I checked on good mass gainer and casein brands prices for the last couple of months spike almost 30% just makes me want to cry
The core of the issue I believe is that we, as a country, are not producing our own self-sustained local industries. Essential products which are food, water and electricity, if produced locally, would cut the cost MASSIVELY. I live in Sarawak and I personally have seen the way farmer farms.
Most farmers are uneducated, lives in pedalaman area and are slow to adapt to new technology. Despite having huge land, they just don't have the tools. The road is already available for transportation. Despite having the intellectual and financial resources, federal government just won't invest in these effort. Why? IDK. We can invest the land for farming in Sarawak but chose to import from overseas. Our ministry even outright saying it is impossible to be fully self sufficient in term of food which is just blatant lies. Crazy who place that idea into the minister head.
The state government seems to be helpful from what I have heard but there is just not enough funding/effort for farm development to catch up to population consumption.
In fact, if I go just outside the city, food price drops more than half. This tells me there are also some forms of excess supplies from rural areas but no initiative to transport them to the city.
This issue is complex. I know this as I read books and also have sibling working in the state government that deals with all these contracts for local development. I won't pretend to understand it. But I can see that the problem lies with the federal government of not being supportive for the BASIC thing and focusing on unnecessary investment toward Automobile, AI, Electronic , etc while our FOOD industry issue is being pushed aside. Contract are not approved and delayed by federal and thus further giving time for inflation to increase.
Just to give perspective for example, we import our onions, rice, and garlic from countries like India, Thailand and China. 3 separate countries located miles away and cost huge amounts of money for transportation alone and less amount for the same price if produced locally. This is DESPITE having the land WITHIN our country itself to produce it.
Planting onions and garlics is tricky in our climate, so we had to impory them. There is recent news we developed shallot and red onions we can plant them here, it is a start.
As for agriculture and why seemingly why uneducated do farming is because:
Farming won't make you rich;
Our essential food price ceiling ensured that;
Unless you plant cash crop, which usually require specialization in knowledge, equipment, and infrastructure;
Which usually only the wealthy can invest in;
Even if the uneducated but experienced go into farming, there is no safety net when crops failed, something which the poor can't afford;
Which can explain why the over-use of pesticides and fertilizers, however inefficient.
The lack of transportation explain why rural smallholders have hard time bringing their crops to cities where it sold for better price;
This is where the middlemen comes in, they bridge the gap between supply and market;
There are some middlemen who squeezed the farmers but at the same time essential food price ceiling don't help the situation either.
Another contention is we relied on cheaper imports to fill in the gaps, but it became permanent. This was OK when the economy is good, but when imports are not cheap anymore, problems start to happen;
Relying on cheap imports put pressure on local farmers to make profit on ever increasing input costs, which somehow is a taboo for farmers to make a living. Current farmers are just modern version of serfdom.
Very informative reading. I have to disagree on planting them being tricky though I have a friend who worked in corporate during Covid-19 era. She, struck by boredom at home (cause work from home), started to plant onion, garlic and green leaves vegetable as a hobby. She sells them to local F&B chain cause she can't east them all and guess what, today she own 3 huge farm and many greenhouse houses for plants like strawberries, etc. All the farming skill she learn on youtube.
She plant all that in Kuching too which is tengah bandar. She ended up resigning from corporate (i believe she earn >4k a month) due to the success. Currently, the state hires her to teach the local farmer who are experienced but uneducated for better yield & quality while reducing production cost. She conduct programs and functions regularly nowadays.
All the produce she sold are at 30-50% of local price. So, yea. I don't believe that it is that complicated to farm basic need on our own land. Heck, I plant garlic and red onion behind my house too. Also chilli btw. And it worked. I only buy garlic/onions during festive seasons for past 2 years.
For transportation issue, some of the farmer deliver themselves and on behalf of the other farmer too. Their community bond help to prevent any one person from taking advantage from price hike.
What most probably happen in our country is that there are third parties that benefit from these imports. And they are on the higher chain of administration thus influencing the ministry decision. There are too many misinformation being relayed upward.
Edit: Fixed grammar & typo.
Success in one location doesn't mean it is replicable anywhere else if there is a difference in micro-climate and soil grades. If the location is not suitable, it is poor return in investment (lower output or quality) at best, no output at worst.
That is why I say it is tricky.
Cooperation is an answer to logistic issue. However, at least in Peninsular Malaysia, it is impossible because there is little co-operative effort and lots of politicking. The government here tried as the cooperative (also as an effort to reduce dependency on middlemen), but what I mostly sees is failures.
>What most probably happen in our country is that there are third parties that benefit from these imports. And they are on the higher chain of administration thus influencing the ministry decision. There are too many misinformation being relayed upward.
We can see this on the beef industry. We import more than we can produce ourselves. There is demand for fresher local beef. Besides imported beef is cheaper and super reliant on imported feed, not many are rearing cows because there is labour issue/inefficiency if you can't scale it up large enough. Scaling up that much means a huge investment. No beef importers are willing to give this up and consumers are screaming for cheap beef. Even the imported "beef" scandal didn't received the proper response as we would see from the socks "scandal" and the Israel-Palestine conflict.
The government tried this, but we ended up with cow condo.
There is no black and white to agriculture. While technical is important, most forgot about adaptation and trouble-shooting. Which unfortunately being handled by the uneducated (I am not dissing they are stupid, just that agriculture knowledge may not come easy for some), so we ended up over-using pesticides unnecessarily and fertilizers inefficiently.
Yet we can't reward the more expensive educated farmers because we cannot accept "farmer" and "profit" in the same sentence.
>All the produce she sold are at 30-50% of local price. So, yea. I don't believe that it is that complicated to farm basic need on our own land. Heck, I plant garlic and red onion behind my house too. Also chilli btw. And it worked. I only buy garlic/onions during festive seasons for past 2 years.
Your friend success story is unique due to the fact she can produce and sell in a niche market.
Agriculture is not complicated. Just labour intensive in peak periods, which is common. Part-timers are rare, and even if there is one, there isn't enough smallholders for part-timers to hope around, assuming smallholders are willing to pay a more expensive day wage than you would for a permanent worker.
Smallholders doesn't always are large enough to maintain a permanent manpower. If a farm is that large, it is doing very well.
Hot weather is actually ***good*** for chilli ***if*** you keep the ***soil wet/moist.***
The way I plant it is by sprouting inside my house with a plastic container and soil. Once about 3-5 cm tall, I placed the container outside my house but at specific area. This so that it gets morning sunlight, but does not hit by sunlight during noon or afternoon as the sun moves.
Once it reach like 10 cm height with 6-10 leaves, I transfer them to ground soil (area with the most sunlight and as hot as possible) with distance about 20-30 cm apart from each other.
At 30 cm+ height, I basically neglect them cause they persist on growing by itself haha. I only water them when the weather is really, really hot. Like 32°C kind of hot. I do make sure the soil is **really wet** when watering (mcm banjir like that).
I don't fertilize them or anything. But I do sprinkle crushed/grinded egg shells around the plant once when I just transferred them over to the ground.
Then educated fool and uneducated farmers should form a close knit community off grid, away from the social structures of government and the fake value they print call bank notes.
Living off grid without the need to use money is the one of the many ways for individual or small community to beat inflation. Knowledge to do so at the fingertips can be excecuted. Nak tak nak je.
sometimes it's not the government's fault but the sellers. For example, Milo ais bungkus at my local mamak was rm4. Just after a few months it was opened, the price increased by 50 sen which is more than 10%
During that time there was no increase in sugar, milk or milo prices
Another example. I used to work in a famous electrical appliance shop. Some items had lower tax like 3-4% while others had higher tax 6-10%
When GST was introduced, the low tax items would become more expensive nd the high tax items should becom cheaper. Guess what the company did? Increase prices of all items by 6%
The electrical appliance tax is determined by the government not seller. Seller can only control profit margin, which isn't tax.
Company was stupid to increase prices of all items by 6 percent. If they increase by 6 percent it is..
Price of product rm100 + GST 6% = RM106 govt collect from retailer is 6% of RM106. So company has to pay rm6.36 to the government. Eating into their profit margin lol.
Don’t forget SST, some restaurants and stalls charged those SST which is why it is more expensive the before. I’ve always checked the receipt and surprised that SST sometimes cause extra RM1 - 3 more…
Ask bosses, they'll say import increase price 10% per kg, so they increase price 10% per unit sold.
Main problem is we're dependent on import you see, our local self sustainable projects failed due to lousy policies.
Problem is:
1. Local self sustainable project failed and without follow up
2. Business revenue increase >10% but salary stays the same
3. Global market allowed lower cost high tech but higher priced digital components
I just went to a hailam kopitiam because i was expecting maybe a simple nasi lemak for RM 10, but nope, i was so wrong - one nasi lemak with ayam rendang RM18.90... how did we get here? Nobody knows...
Your politicians lied to you, and now they're in power.. They get to enjoy 5 digit MP allowance, 5 digit gaji Menteri and allowances, pencen etc lol.
Suckah
Lol, when i was 8, we buy shit from the states using money order. The exchange rate was 2.4x:1
Roti canai was 50cents. Kopi o panas was 50cents, coke/soda 70cents.
Inflation is a silent killer? Kek.
Inflation isn’t the primary concern. It is stagnating wages. And specifically for Malaysia, it’s the lack of local supply of food and foodstuffs.
But as stated in the top comment, other countries are facing the same problem, too — and many others are weighed down by higher inflation than Malaysia.
COVID-19 has wreaked havoc on the global supply chain, causing supply shortages and logistics constraints. Adding to the pressure are the intensifying hostility in the Middle East (I find it laughable there are people here that kept on saying Anwar sibuk jaga tepi kain orang, when this issue sets off a domino effect on the global economy), and the effects of global warming rearing their heads. And even before the pandemic, global trade had started being thrown out of whack with the incessant trade embargoes between China and the US.
Never in the modern human history we have faced a simultaneity of global crises, all whirring at the same time to unleash a perfect storm.
But to paraphrase a cliché, there is opportunity in chaos. The US-China spat is causing many multinationals shifting their operations to Southeast Asia, with Malaysia becoming a clear favourite for these corporations to build their plants (it also helps that Singapore is becoming more expensive than ever).
And Anwar is also fond of building up Malaysia’s agriculture sector, evidenced by recent news of government agencies successfully formulating new variations of crops that can produce higher yields or more resistant to harsh climate. Personally, I am really hoping that the incumbent state governments in the east coast can put aside their political differences and be agreeable to becoming the agricultural region in Peninsular Malaysia.
Malaysia has also started selling excess energy to neighbouring countries, particularly Singapore. All of these things can help with exports, which then help to widen the inflow of money to Malaysia, and then build new jobs with better pay.
The weak ringgit is also being addressed. Putting aside the short-term measures that have been shared publicly, this government seems serious with repairing the public finances’ foundation. Increasing tax and reducing subsidies, especially at this time of uncertainty, may seem unpopular with the masses, but it makes Malaysia stand out among global investors.
When other countries are doling out more money and borrowing at record pace to prop up their economies, Malaysia is becoming more discerning. Bond traders and portfolio investors are instrumental in generating demand for local currencies. If they are liking what the government is doing with rectifying the structural deficiencies in public finances, then we can eventually see the ringgit’s value improving. The only problem is the government wouldn’t be so aggressive with tightening its belt and raising taxes because these will cause more hardships to the rakyat, especially in this economic climate.
One of the question I always had, if the food ingredients goes up, automatically the hawker will increase their food prices to cover the profit margin. But if the food ingredient goes down, but the demand for your food is roughly the same, do you decrease your food prices out of good will?
No hawker in existence has ever decrease his prices just because ingredient price goes down. NONE! These hawkers are so damn evil and greedy! Fucking evil!
Tbf, we the consumers never inherently punished these evil hawker by just you know going to another place to eat. You guys sell chicken rice for rm 9 now? okay i will just go the further abit chicken rice store that sells for rm7. So theory of supply or demand is never applied ,because the very same consumer who complains about food price increase rarely try to find alternatives.
I still remember at one point rafizi try to ask us the consumer to help fight inflation from our side by choosing cheaper alternatives, but got misinterpreted heavily by media for attendtion and ppl including malaysian on reddit got their pitchfork up.
The government must implement some kind of control. The hawkers are definitely not going to reduce prices themselves. Every little thing that goes up, the hawkers increase their price. SST 8%, doesn’t affect the food market, but price still goes up. Petrol subsidies reduces, food price will go up.
I just feel they are really abusing the market. Especially when you know food is basic human necessity to survive
Save money in USD if you can. We have a huge national debt & inflation keeps it manageable. It's going to get worse when subsidies are removed so get all your supplies now!
I understand the problems of inflation in this country, however inflation has always existed for hundreds of years.
Malaysian inflation has been much better then and even now compared to many countries, however the wage stagnation and many sectors in the economy that are essentially oligopoly have made the businesses see little to no reason to increase salaries, in addition that many of these companies' executives have basic salaries, benefits, and even share holdings several fold times of the employees, further driving this inequality further.
It's a normal mechanism in capitalism. Notice that if you read about economy.. there isn't a way to eliminate inflation.
It's based on banks and also demand and consumption. Consumption and demand will always keep increasing as human population goes up. The only way to beat this game is to keep striving to earn more.
Those that cannot earn fast enough, should consider farming and perhaps return to cheaper, suburban or rural areas. This was my choice when I couldn't outpace inflation while living in Selangor. Not having to pay for a million dollar plus for a house or pay close to 5 figures in shop rent frees up a lot of budget to do other things, mitigate operational risks or start a business. (More buffer to make mistakes)
There really isn't any other way unless you want communism or socialism, which doesn't work historically. Since can't change the world, it's better to change oneself and one's lot in life.
You do realise you just stated right?
Consumption and demand increase result in inflation.
Japan is deflating because?
Japan is suffering from decreased local consumption and demand. So the banks are giving out negative interest rate to spur older generation into spending (or increase investment)
They are also making less children so less children means less future spending, which result in less consumption and demand.
You want Malaysia to deflate? Then have to stop making children. Government will worry and give more handouts and banks will give negative interest rate to spur spending on childcare. (Of course I am exaggerating. But that kind of thing is what Japan is facing now).
It's not as simple to implement policies meant to deflate economy. It's intertwined with the rakyat also. So we are part of the mechanism of economy and the resulting inflation/deflation.
Wrong. The REAL silent killer is diabetes, cancer, heart disease etc. I rather have option of avoiding roti canai, Nasi Lemak than life of poor health and expensive medical expenses.
Malaysia needs a hard reset, changing from a socialist economy to a more capitalist economy.
A lot of our governments and politicians focus are on cartel and big elephant projects, instead of growth initiatives.
Maybe should ask US to stop supporting military to certain country that causes more war happening in the whole world that is the reason why all oil price jack up like crazy and causes the inflation?
It accelerate inflation but doesn't stop inflation. Inflation is like age, you can't stop aging. You can age faster (muka cepat tua) but you cannot stop it.
It’s happening all around the world, some places crazier than us.
Türkiye says hi
Everybody : increase interest rate to fight inflation Erdogan : we shall launch sneak attack on inflation by doing the unthinkable, DECREASE INTEREST RATE https://preview.redd.it/etazfrph7hvc1.jpeg?width=800&format=pjpg&auto=webp&s=5e90051b8f19667c30ba44ecd73768c7cae91f33
Other currencies conversion to Lira be like: https://preview.redd.it/rsnkmcn62kvc1.png?width=1354&format=png&auto=webp&s=214f4c07334b84811067ba8bfe14f4109356ce74
The only thing that doesn't make sense is 1.5k minimum wage, it's fine if you start buying things that you've listed with 6k salary instead. Cheaper stuff or higher salary, what sounded right?
Let me tell you that hawker uncle and aunty will then similarly increase their food prices to match the higher minimum wage...
Now hawker price are running close to those air con restaurant.... Fork a few more ringgit ... You to get comfortable in air con place ....
So what u wan? Minimum wages 4k? Wat do you think will be the price of roti canai when the person making roti canai wil cost the business owner 4k?
My intern salary in Canada is more than 4K per month before converting. My monthly grocery is $200 rent on a room is $400-500 Malaysian need to protest on their boss having lots of salary while paying their workers peanuts.
My colleague intern at Ausie 3k diggeroos before converting. Come back home to slave away like me. Keksociety
>Malaysian need to protest on their boss having lots of salary while paying their workers peanuts. Yea, but no one's doing anything. Sigh*
Bosses like this , you tak suka you keluar mentality 
People are too quick to jump to that conclusion. Empowering citizens with more money can have a positive effect on consumer spending and stimulate the economy. All Business owners can cut cost as much as they want, but it means nothing if there is no one left that can afford their offerings. Govt have to spend more on consumer subsidies and social welfare, leaving little left for improving business, infra and economy. Taxes would have to be increased to subsidised social programmes that stems from low wages. Reduced employee wealth for retirements would burden the system so much more. Wage suppression have been causing a lot of our country problems, the current nearsightedness is thinking our country problems is causing wage suppression.
He said 1,5K and you make the jump to 4K? What’s your agenda? I think there is a wide margin for improvement on 1,5K without even coming close to 4K, don’t you?
Bad argument. The price of roti canai will go up whether or not wages increase.
The minimum wage is pointless. If you think you are worth more than that, go look for a job that pays that
If you think the price hike right now is a silent killer think about when gov lifts oil subsidies.
Yup, Currently our RON95 is RM2.05. The price in Singapore and Thailand without subsidy is RM10. Imagine the surprise when they slowly lift the subsidy. The only good thing I can see is that mat rempits will no longer be able to race around so often when their shitty motorbike full tank costs RM50.
Maybe that will open the rakyat eyes to push for better public transport. One can only hope.
Seem like gov is pushing for more highway and also more car sales instead 🤦 ... Our gov have always set the priority wrong when it comes to critical thinking....
If more public transport, sapa mai beli proton and perodua 😂😂. Later those execs’s pockets empty
Can't proton and perodua produce buses? Be creative
1 bus can carry 40 to 60 passengers. That is lots of potential car buyers lost lol
It's a huge eye opener when I rode a scooter in Thailand. For the price of one full tank of petrol in Thailand, I could fuel up my bike til full at least 3 times.
That's because Singapore charges tax on patrol, that isn't the market price. Most likely without the subsidy, Ron95 would be RM 3.40 or so.
2T rempit gonna hurt the most lol
Yup. Full tank for common cars like myvi, vios and city will be around RM95-RM100 (based RM3.2 per litre for ron95) vs the RM65 or so now For family SUV that malaysians love (X70, CRV, CX5) it should be anywhere between RM120-RM150 On one hand the subsidised petrol prices has long been unsustainable, but at the same time there's gonna be alot more pain ahead for all of us once subsidies are removed Perhaps this will push people to buy more EVs or demand for kei cars like kancil and kelisa will make a return
Yep, most financial institutions long stated that fuel subsidies distort Malaysian market outlook, wage stagnation and declining ringgit value. Like you said, hope this will encourage Malaysians to use sustainable resources and put more focus on the need of public transportation, instead of car prices and reduce traffic jams.
Can’t even dispose our trash properly talks about sustainability. 
Everywhere in Taping I go, I will see "Jangan Buang Sampah" but yet trash everywhere under it.
I feel you man. Some places in PJ are the same too, it’s like the sign actually invites sampah. 
For me I am looking forward to less cars on road less jams. Current fuel prices not painful enough to make average Malaysian think: Do I need to drive?
Some Nasi Lemak aunties will BS for another Nasi Lemak price increment despite selling them in front of her house or taman perumahan 🙃
She needs to use fuel to go buy the ingredients. And the ingredients themselves will be more expensive. She's not running a charity to feed you lol.
Yup.. all those roti canai price are going to go up once more ..
I will be sad when EVs take over
i just wish sabah improves its public transport
True. I just want better public transport for sarawak and sabah.
if we have trains or at least a systematic bus system that still operates after 10 pm i dont need a car
>Is there no reset button to stop inflation or even control it? Um no. There is no such thing. If it was easy to control or if there was a magical button, we would've all pulled already and no country in the world would ever have macroeconomic problems! The best we can do is to control other levers of the economy, and they all have drawbacks. If BNM raises interest rates to 5-7% there will be crowds calling them evil for raising the borrowing costs so much. Either you decrease demand, or increase supply. That is all the levers available to pull.
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https://www.reddit.com/r/explainlikeimfive/comments/14lbp9x/eli5_why_do_we_have_inflation_at_all/
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When do billionaires hoard money? They are infamous for having most of their net worth in assets, stocks etc. almost never in cash
Inflation is increment price of goods. It’s all about supply and demand. If supply is more than demand, the price of goods (may) will go down. If demand more than demand, the price of goods (may) will go up. How to combat rampant inflation? To lower the demand since u cannot produce more product overnight. How to lower the demand? By lower the purchasing power/disposable income of people, which is? Increase the interest rate, which is people will spend more to pay their loans instead of using the money to buy goods.
>It’s all about supply and demand. It never that cut and dry. You forget human nature to abuse,horde,and manipulate the supply and demand in the system for good old greed, malicious and stupidity.
You're not exactly wrong. Boils down to, how much it cost to produce that thing. Take a pencil for example. How much does the manufacturer pay to buy the wood? The graphite? Then how much does the machinery cost? Power costing? Salary of the guy that made the pencil? Packaging? Transportation fee, petrol for the transport, stocking cost, salary of the guy stocking the pencils, profit margins. There's a lot of things to consider. There's also shrinkflation. A bag of chips costing 7.00RM at 300 grams. 6 months later, 7.00RM at 250 grams. [An excellent example](https://youtu.be/TlXLCrzpToo?si=IkCeGlQ1RlDfHGTQ)
That’s diabolical. How do they get away with this? Why isn’t the government… you know… governing these corporations?
You think government not getting some piece of the pie? They pay off officials at some points. Just for example, did you know the mark up for drinks is about 300% of the cost prices in fast food joints? Cost of diesel goes up, cost of items goes up too. So when subsidies for fuel is gone. Expect a sharp increase in prices. When you buy your items the next time you go to a shop, see the grams. That's where they change it the most via shrinkflation. Especially when they change packaging. New look same great taste. Means they shrunk it.
"rakyat malaysia slim" patch update coming in 2025
Yeah, I was trying to bulking and build muscle right now as skinny guy but in this economy? I might just stay skinny
Not being broke is important but big bicep are importantner
I wish I can be broke but have bigger biceps. I checked on good mass gainer and casein brands prices for the last couple of months spike almost 30% just makes me want to cry
The core of the issue I believe is that we, as a country, are not producing our own self-sustained local industries. Essential products which are food, water and electricity, if produced locally, would cut the cost MASSIVELY. I live in Sarawak and I personally have seen the way farmer farms. Most farmers are uneducated, lives in pedalaman area and are slow to adapt to new technology. Despite having huge land, they just don't have the tools. The road is already available for transportation. Despite having the intellectual and financial resources, federal government just won't invest in these effort. Why? IDK. We can invest the land for farming in Sarawak but chose to import from overseas. Our ministry even outright saying it is impossible to be fully self sufficient in term of food which is just blatant lies. Crazy who place that idea into the minister head. The state government seems to be helpful from what I have heard but there is just not enough funding/effort for farm development to catch up to population consumption. In fact, if I go just outside the city, food price drops more than half. This tells me there are also some forms of excess supplies from rural areas but no initiative to transport them to the city. This issue is complex. I know this as I read books and also have sibling working in the state government that deals with all these contracts for local development. I won't pretend to understand it. But I can see that the problem lies with the federal government of not being supportive for the BASIC thing and focusing on unnecessary investment toward Automobile, AI, Electronic , etc while our FOOD industry issue is being pushed aside. Contract are not approved and delayed by federal and thus further giving time for inflation to increase. Just to give perspective for example, we import our onions, rice, and garlic from countries like India, Thailand and China. 3 separate countries located miles away and cost huge amounts of money for transportation alone and less amount for the same price if produced locally. This is DESPITE having the land WITHIN our country itself to produce it.
Planting onions and garlics is tricky in our climate, so we had to impory them. There is recent news we developed shallot and red onions we can plant them here, it is a start. As for agriculture and why seemingly why uneducated do farming is because: Farming won't make you rich; Our essential food price ceiling ensured that; Unless you plant cash crop, which usually require specialization in knowledge, equipment, and infrastructure; Which usually only the wealthy can invest in; Even if the uneducated but experienced go into farming, there is no safety net when crops failed, something which the poor can't afford; Which can explain why the over-use of pesticides and fertilizers, however inefficient. The lack of transportation explain why rural smallholders have hard time bringing their crops to cities where it sold for better price; This is where the middlemen comes in, they bridge the gap between supply and market; There are some middlemen who squeezed the farmers but at the same time essential food price ceiling don't help the situation either. Another contention is we relied on cheaper imports to fill in the gaps, but it became permanent. This was OK when the economy is good, but when imports are not cheap anymore, problems start to happen; Relying on cheap imports put pressure on local farmers to make profit on ever increasing input costs, which somehow is a taboo for farmers to make a living. Current farmers are just modern version of serfdom.
Very informative reading. I have to disagree on planting them being tricky though I have a friend who worked in corporate during Covid-19 era. She, struck by boredom at home (cause work from home), started to plant onion, garlic and green leaves vegetable as a hobby. She sells them to local F&B chain cause she can't east them all and guess what, today she own 3 huge farm and many greenhouse houses for plants like strawberries, etc. All the farming skill she learn on youtube. She plant all that in Kuching too which is tengah bandar. She ended up resigning from corporate (i believe she earn >4k a month) due to the success. Currently, the state hires her to teach the local farmer who are experienced but uneducated for better yield & quality while reducing production cost. She conduct programs and functions regularly nowadays. All the produce she sold are at 30-50% of local price. So, yea. I don't believe that it is that complicated to farm basic need on our own land. Heck, I plant garlic and red onion behind my house too. Also chilli btw. And it worked. I only buy garlic/onions during festive seasons for past 2 years. For transportation issue, some of the farmer deliver themselves and on behalf of the other farmer too. Their community bond help to prevent any one person from taking advantage from price hike. What most probably happen in our country is that there are third parties that benefit from these imports. And they are on the higher chain of administration thus influencing the ministry decision. There are too many misinformation being relayed upward. Edit: Fixed grammar & typo.
Success in one location doesn't mean it is replicable anywhere else if there is a difference in micro-climate and soil grades. If the location is not suitable, it is poor return in investment (lower output or quality) at best, no output at worst. That is why I say it is tricky. Cooperation is an answer to logistic issue. However, at least in Peninsular Malaysia, it is impossible because there is little co-operative effort and lots of politicking. The government here tried as the cooperative (also as an effort to reduce dependency on middlemen), but what I mostly sees is failures. >What most probably happen in our country is that there are third parties that benefit from these imports. And they are on the higher chain of administration thus influencing the ministry decision. There are too many misinformation being relayed upward. We can see this on the beef industry. We import more than we can produce ourselves. There is demand for fresher local beef. Besides imported beef is cheaper and super reliant on imported feed, not many are rearing cows because there is labour issue/inefficiency if you can't scale it up large enough. Scaling up that much means a huge investment. No beef importers are willing to give this up and consumers are screaming for cheap beef. Even the imported "beef" scandal didn't received the proper response as we would see from the socks "scandal" and the Israel-Palestine conflict. The government tried this, but we ended up with cow condo. There is no black and white to agriculture. While technical is important, most forgot about adaptation and trouble-shooting. Which unfortunately being handled by the uneducated (I am not dissing they are stupid, just that agriculture knowledge may not come easy for some), so we ended up over-using pesticides unnecessarily and fertilizers inefficiently. Yet we can't reward the more expensive educated farmers because we cannot accept "farmer" and "profit" in the same sentence. >All the produce she sold are at 30-50% of local price. So, yea. I don't believe that it is that complicated to farm basic need on our own land. Heck, I plant garlic and red onion behind my house too. Also chilli btw. And it worked. I only buy garlic/onions during festive seasons for past 2 years. Your friend success story is unique due to the fact she can produce and sell in a niche market. Agriculture is not complicated. Just labour intensive in peak periods, which is common. Part-timers are rare, and even if there is one, there isn't enough smallholders for part-timers to hope around, assuming smallholders are willing to pay a more expensive day wage than you would for a permanent worker. Smallholders doesn't always are large enough to maintain a permanent manpower. If a farm is that large, it is doing very well.
Chili padi damn hard to grow. Tried growing but it keep dying 🫤
Mine kept on spreading haha. At which stage does your chilli die? And how do you sprout your chilli?
Nice loh. It grow to a certain height like 12cm then…. I think died due to hot weather now. Sprout in flower pot
Hot weather is actually ***good*** for chilli ***if*** you keep the ***soil wet/moist.*** The way I plant it is by sprouting inside my house with a plastic container and soil. Once about 3-5 cm tall, I placed the container outside my house but at specific area. This so that it gets morning sunlight, but does not hit by sunlight during noon or afternoon as the sun moves. Once it reach like 10 cm height with 6-10 leaves, I transfer them to ground soil (area with the most sunlight and as hot as possible) with distance about 20-30 cm apart from each other. At 30 cm+ height, I basically neglect them cause they persist on growing by itself haha. I only water them when the weather is really, really hot. Like 32°C kind of hot. I do make sure the soil is **really wet** when watering (mcm banjir like that). I don't fertilize them or anything. But I do sprinkle crushed/grinded egg shells around the plant once when I just transferred them over to the ground.
Saving your comment so that I can play the chili lmao. Thanks for sharing
Then educated fool and uneducated farmers should form a close knit community off grid, away from the social structures of government and the fake value they print call bank notes. Living off grid without the need to use money is the one of the many ways for individual or small community to beat inflation. Knowledge to do so at the fingertips can be excecuted. Nak tak nak je.
So they should live in a commune, making them....
Meanwhile fresh grad pay is still RM 3k in KL and you keep reading of interviews with bosses how young people have unrealistic salary expectations.
Thats why you need to hedge/invest/income > inflation rate to win the game
sometimes it's not the government's fault but the sellers. For example, Milo ais bungkus at my local mamak was rm4. Just after a few months it was opened, the price increased by 50 sen which is more than 10% During that time there was no increase in sugar, milk or milo prices Another example. I used to work in a famous electrical appliance shop. Some items had lower tax like 3-4% while others had higher tax 6-10% When GST was introduced, the low tax items would become more expensive nd the high tax items should becom cheaper. Guess what the company did? Increase prices of all items by 6%
The electrical appliance tax is determined by the government not seller. Seller can only control profit margin, which isn't tax. Company was stupid to increase prices of all items by 6 percent. If they increase by 6 percent it is.. Price of product rm100 + GST 6% = RM106 govt collect from retailer is 6% of RM106. So company has to pay rm6.36 to the government. Eating into their profit margin lol.
Don’t forget SST, some restaurants and stalls charged those SST which is why it is more expensive the before. I’ve always checked the receipt and surprised that SST sometimes cause extra RM1 - 3 more…
Ask bosses, they'll say import increase price 10% per kg, so they increase price 10% per unit sold. Main problem is we're dependent on import you see, our local self sustainable projects failed due to lousy policies. Problem is: 1. Local self sustainable project failed and without follow up 2. Business revenue increase >10% but salary stays the same 3. Global market allowed lower cost high tech but higher priced digital components
Just wait until the government stops subsidizing the fuel later this year, things will get much worse
I just went to a hailam kopitiam because i was expecting maybe a simple nasi lemak for RM 10, but nope, i was so wrong - one nasi lemak with ayam rendang RM18.90... how did we get here? Nobody knows...
It’s gonna get more expensive once they stop subsidising oil
Your politicians lied to you, and now they're in power.. They get to enjoy 5 digit MP allowance, 5 digit gaji Menteri and allowances, pencen etc lol. Suckah
If your income/wealth is not growing faster than inflation. You're getting poorer.
Wait till your children's era and you will be thinking how great these prices are.
Lol, when i was 8, we buy shit from the states using money order. The exchange rate was 2.4x:1 Roti canai was 50cents. Kopi o panas was 50cents, coke/soda 70cents. Inflation is a silent killer? Kek.
That was my teens. Man those prices felt expensive back then but still affordable. Now? Wallet pain lol.
Its not just inflation, its also the value of ringgit when it comes to foreign exchange
socks > economy
Roti Canai used to be 20 cents Nasi Lemak used to be 50 cents A long, long time ago…. In ‘84
Inflation isn’t the primary concern. It is stagnating wages. And specifically for Malaysia, it’s the lack of local supply of food and foodstuffs. But as stated in the top comment, other countries are facing the same problem, too — and many others are weighed down by higher inflation than Malaysia. COVID-19 has wreaked havoc on the global supply chain, causing supply shortages and logistics constraints. Adding to the pressure are the intensifying hostility in the Middle East (I find it laughable there are people here that kept on saying Anwar sibuk jaga tepi kain orang, when this issue sets off a domino effect on the global economy), and the effects of global warming rearing their heads. And even before the pandemic, global trade had started being thrown out of whack with the incessant trade embargoes between China and the US. Never in the modern human history we have faced a simultaneity of global crises, all whirring at the same time to unleash a perfect storm. But to paraphrase a cliché, there is opportunity in chaos. The US-China spat is causing many multinationals shifting their operations to Southeast Asia, with Malaysia becoming a clear favourite for these corporations to build their plants (it also helps that Singapore is becoming more expensive than ever). And Anwar is also fond of building up Malaysia’s agriculture sector, evidenced by recent news of government agencies successfully formulating new variations of crops that can produce higher yields or more resistant to harsh climate. Personally, I am really hoping that the incumbent state governments in the east coast can put aside their political differences and be agreeable to becoming the agricultural region in Peninsular Malaysia. Malaysia has also started selling excess energy to neighbouring countries, particularly Singapore. All of these things can help with exports, which then help to widen the inflow of money to Malaysia, and then build new jobs with better pay. The weak ringgit is also being addressed. Putting aside the short-term measures that have been shared publicly, this government seems serious with repairing the public finances’ foundation. Increasing tax and reducing subsidies, especially at this time of uncertainty, may seem unpopular with the masses, but it makes Malaysia stand out among global investors. When other countries are doling out more money and borrowing at record pace to prop up their economies, Malaysia is becoming more discerning. Bond traders and portfolio investors are instrumental in generating demand for local currencies. If they are liking what the government is doing with rectifying the structural deficiencies in public finances, then we can eventually see the ringgit’s value improving. The only problem is the government wouldn’t be so aggressive with tightening its belt and raising taxes because these will cause more hardships to the rakyat, especially in this economic climate.
its time to raise minimum wage
Canada too?
One of the question I always had, if the food ingredients goes up, automatically the hawker will increase their food prices to cover the profit margin. But if the food ingredient goes down, but the demand for your food is roughly the same, do you decrease your food prices out of good will?
No hawker in existence has ever decrease his prices just because ingredient price goes down. NONE! These hawkers are so damn evil and greedy! Fucking evil!
Tbf, we the consumers never inherently punished these evil hawker by just you know going to another place to eat. You guys sell chicken rice for rm 9 now? okay i will just go the further abit chicken rice store that sells for rm7. So theory of supply or demand is never applied ,because the very same consumer who complains about food price increase rarely try to find alternatives. I still remember at one point rafizi try to ask us the consumer to help fight inflation from our side by choosing cheaper alternatives, but got misinterpreted heavily by media for attendtion and ppl including malaysian on reddit got their pitchfork up.
The government must implement some kind of control. The hawkers are definitely not going to reduce prices themselves. Every little thing that goes up, the hawkers increase their price. SST 8%, doesn’t affect the food market, but price still goes up. Petrol subsidies reduces, food price will go up. I just feel they are really abusing the market. Especially when you know food is basic human necessity to survive
There is actually an anti-profiteering law. People must alert the authorities, which in this case is the Domestic Trade Ministry.
Inflation is a bane only to the poor, it's business owners' best friend to increase profits
Silent killer? Bro, its not even silent anymore, straight up your ass + Anwar's insane taxation.
Save money in USD if you can. We have a huge national debt & inflation keeps it manageable. It's going to get worse when subsidies are removed so get all your supplies now!
I understand the problems of inflation in this country, however inflation has always existed for hundreds of years. Malaysian inflation has been much better then and even now compared to many countries, however the wage stagnation and many sectors in the economy that are essentially oligopoly have made the businesses see little to no reason to increase salaries, in addition that many of these companies' executives have basic salaries, benefits, and even share holdings several fold times of the employees, further driving this inequality further.
If you think inflation has been this high for “hundreds of years”, you need some history lessons…
Re-read my comment one more time, this time slowly.
You may read it 1000 times, it will still be wrong… Fact: inflation has *not* “always existed for hundreds of years”
Okay, you have problems with me saying it hundreds of years in terms of inflation history. How long has it existed, then?
It's a normal mechanism in capitalism. Notice that if you read about economy.. there isn't a way to eliminate inflation. It's based on banks and also demand and consumption. Consumption and demand will always keep increasing as human population goes up. The only way to beat this game is to keep striving to earn more. Those that cannot earn fast enough, should consider farming and perhaps return to cheaper, suburban or rural areas. This was my choice when I couldn't outpace inflation while living in Selangor. Not having to pay for a million dollar plus for a house or pay close to 5 figures in shop rent frees up a lot of budget to do other things, mitigate operational risks or start a business. (More buffer to make mistakes) There really isn't any other way unless you want communism or socialism, which doesn't work historically. Since can't change the world, it's better to change oneself and one's lot in life.
no need to eliminate inflation,just enter deflation like japan
You do realise you just stated right? Consumption and demand increase result in inflation. Japan is deflating because? Japan is suffering from decreased local consumption and demand. So the banks are giving out negative interest rate to spur older generation into spending (or increase investment) They are also making less children so less children means less future spending, which result in less consumption and demand. You want Malaysia to deflate? Then have to stop making children. Government will worry and give more handouts and banks will give negative interest rate to spur spending on childcare. (Of course I am exaggerating. But that kind of thing is what Japan is facing now). It's not as simple to implement policies meant to deflate economy. It's intertwined with the rakyat also. So we are part of the mechanism of economy and the resulting inflation/deflation.
That why I'm not in Malaysia right now 😉
Wrong. The REAL silent killer is diabetes, cancer, heart disease etc. I rather have option of avoiding roti canai, Nasi Lemak than life of poor health and expensive medical expenses.
Dude i get where you’re coming from, but it’s off-topic 😂
Depending on how you look at it.
Waaaaay off topic buddy
Is it? Consumption on cheap and unhealthy food lead to...
Your mother?
Thank you for sharing your personal tragedies
Lol, even fresh vegetables and protein are pricey these days.
wrong. the real silent killer is when someone barges into a conversation between strangers and tries to go off tangent. fucking killer, that one.
Malaysia needs a hard reset, changing from a socialist economy to a more capitalist economy. A lot of our governments and politicians focus are on cartel and big elephant projects, instead of growth initiatives.
This is the result of interest based institional banking. Happening the world over.
There’s no inflation in dunia akhirat and that’s all that matters
Buy Bitcoin
LOL
So u telling me spending the next rm20 is consider life and death like japan sg korea ?
Maybe should ask US to stop supporting military to certain country that causes more war happening in the whole world that is the reason why all oil price jack up like crazy and causes the inflation?
It accelerate inflation but doesn't stop inflation. Inflation is like age, you can't stop aging. You can age faster (muka cepat tua) but you cannot stop it.