LIVING OFF
THE FAST TRACK
"Just don't expect too many cakes,"
a friend jokingly says after inviting me over for Chinese New Year, "you know-lah,
everything is too expensive now." Amid the ribbing and the laughter, the pain
of Malaysia's current economic crisis is biting deep. Six month ago, economic
crises were things that happened to other countries, not Malaysia, the new Tiger
on the first track to industrialisation. Six months ago, who heard of the
economic crisis? Now "So, how much is the ringgit againts the US dollar?" is as
much a topic of conversation opener as the last football scores.
Invisible global market forces hit
us where it hurts the most. RM200 just doesn't buy the same amount of groceries
as it used to. Eating out costs more. Those with children studying overseas
see the money spiralling away.
What can we do to help stave off
the effects of the economics turmoil? Plenty, say our leaders. From planting
our own vegetables to buying Malaysian, there are many ways in which we can
help Malaysia recuperate. Asean countries, hit by the crisis have embarked on
a nationwide austerity programme. Individuals and corporations alike have banded
together to try and increase the amount of savings in their national budget.
The austerity awarness ranges from increasing value-added tax to 10% to people
marching in the streets to convert their foreign currency to Thai baht. Indonesia
too is coming up with high-vasibility scheme to highlight the need for austerity.
For those who live within their means,
cutting back really will not be much of a problem. Those, however, who have
got used to Malaysia's booming economy will find the higher prices a shock.
Remember the old folks scrimping and saving away? Now would be a good time to
review those lessons and put them into practice.
1. SELF-SUFFIENCY
There have been repeated calls to start becoming more self-reliant. This includes
things like growing our own vegetables. Early this year, the Agriculture Department
provided seeds of six types of popular vegetables and 5-kg fertiliser pack (hopefully
organic) to encourage people to grow vegetables in the back yard.
What does planting vegetables in the backyard to? The government hopes that
such a practise will reduce the import bills of the state, thus reducing spending
in dollars.
2. TRIMMING THE FAT
Austerity means we should only buy things which are essential. This strains
the natural generosity of the Malaysian, especially during holiday season, but
instead of spending, saving is the priority. Food, clothing, and certainly recreation
are all essential but even in these areas, we sometimes tend to excess.
3. BUYING LOCAL - BUCKING THE NAME BRANDS
Do we really need stars on our cars and checks on our shoes? The Mercedes Benz
and the Nike shoe are penultimate symbols of foreign goods that encroach on
our local markets. A huge amount of money gets poured into advertising and publicity,
which increases awareness of the product. Does it necessarily mean that it is
any better in quality to a little-known brand? Not at all.
Are these symbols of wealth and prestige really necessary if all that attracts
us to them is their instant recognizability? At the best, we are being brand-conscious,
at worse, we are pandering to the colonial mentality that the Mat Sallehs must
be better then Salleh Ahmads.
4. VACATIONING
AT HOME
Leave for overseas vacations will no longer be approved and in any case, high
exchange rates make it practically impossible for anyone to enjoy a family vacation
overseas. For those who have yet to become acquainted with the rest of Sarawak,
this is a perfect time to do so. There are numerous national parks and town
to be explored.
5. A LOCAL EDUCATION
Before, the only way to give your
children a tertiary education was to send them overseas. Now, there is UNIMAS,
Sarawak's own university. There are also numerous private colleges that offer
twinning programmes.
6. PAY
OFF YOUR DEBTS
As much as you can, reduce your debt burden, especially on your credit cards.
The interest rates probably will be quite high for some time to come.
7. INVESTING
"I'm now an investor!" exclaimed an acquaintance, confiding that he had never
tried putting money in the stock market but the bargain prices were too good
to resist. With the markets seemingly so volatile, is this a good time to invest?
Certainly, if you have money to spare. "There a lot of companies that are being
rapidly valued down to their true worth but there are also those that are being
undervalued, " says a local investor. Caution and long-term are the key words
here. Returns may not come in for the next three to four years.
8. SAVE, SAVE, SAVE!
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