Exports Are Good, Give A Lot Of Income – But Does It Really Help The Rakyat?

Malaysia’s exports for November 2016 registered a growth of 7.8 pct or RM72.8 billion compared to RM67.5 billion in the same month in 2015. Obviously, this would mean better income for companies and the rakyat right? Now that the ringgit is weak, higher exports mean companies earn even more ringgit. Well that maybe so, but Malaysia however also imports a lot. In the same period, Malaysia imported RM63.8 billion worth of goods.

So does high exports make any difference to the rakyat? This is because Malaysia still imports a lot and they are expensive and this will add to the already high cost of living and thus burden the rakyat. So what can the rakyat do during these difficult times? How can they overcome this?

THE RAKYAT MUST FIND OTHER SOURCES OF INCOME

Sunway University Business School Professor of Economics Dr Yeah Kim Leng said admittedly it is a challenging time and the rakyat must do all they can to find other sources of income. He said although exports is high, imports are also high thus leading to high inflation.But the rakyat has a choice to make things better – find other sources of income.

Admittedly, it is easier said than done, but the rakyat must find a way to make extra money.
If possible, the rakyat which is already working must find a part time job or do part time
business. An office worker during the day, can become a part time taxi driver or a burger seller at night. For the housewife, maybe she can find part time income by becoming a babysitter or sell cakes online. Yes, it is true that import costs are getting higher and the cost of living is getting more expensive, but the rakyat can overcome this by finding a part time job.

THE PRIME MINISTER ALSO WANTS THE RAKYAT TO FIND WAYS TO INCREASE INCOME

Prime Minister Datuk Seri Najib Razak said Malaysians must find ways to increase their income instead of fully depending on the government’s intervention. “This would be in line with Malaysia’s development towards becoming a developed nation,” Najib said on his blog.

He said the government will continue to assist the people in various ways but at the same time the rakyat must also work hard to increase income and sharpen their skills. He said although the government has provided subsidies and implemented price reduction of basic needs, it was important for the rakyat to find ways on how to increase their income to ensure better living standards for the long term Najib said the government has provided facilities to improve business knowledge and provided business funds such as Tekun, Mara, Bumiputera, start up entrepreneur schemes, the Malaysian Hawkers Programme, Tabung Ekonomi Belia and others.

The government has also helped the rakyat to find jobs such as establishing the skim Latihan 1Malaysia, Yayasan Peneraju Pendidikan Bumiputera and 1Azam. “If you want someting you must work hard for its as economic sustenance does not come easy,” said Najib.

COMPANIES CAN HELP

Dr Yeah said companies who are doing well could help the rakyat by increasing salaries or rewarding staff. This is because not all companies are affected by the global economic slowdown and they are in a better position to pay bonus to staff, not retrench workers and offer better benefits. It is true that it is hard to increase wages when the economy is challenging but in reality Malaysian companies can do it as they have cash reserves.
Even a five percent increase in salary can go a long way for the rakyat to have a better standard of living. As an example, if a fresh graduate earns RM3,000 a month, a five percent increase will raise his salary to a total of RM3,150 which can help the rakyat buy extra food.

During these weak economic conditions, not all companies are suffering. Some companies such as semiconductor firms and electrical and electronic firms are doing well because they export almost all their products. Plantation companies too are doing okay as the palm oil is exported to sustainable buyers such as India and China and this translates into a steady income. Maybe plantation companies can help stimulate the economy by giving higher bonuses to smallholders. Smallholders can then help support the economy by spending inside the country such as going on holidays with their families or go shopping.

THINGS WILL GET BETTER WHEN THE RINGGIT STABILISE BY THE FIRST HALF OF 2017.

The ringgit is expected to stabilise to comfortable levels within the first half of 2017 said Bank Negara Governor Datuk Seri Muhammad Ibrahim. Speaking to the press at the Karnival Keawangan 2017, Muhammad said that the measures implemented on December 5th, 2016 resulted in the ringgit stabilising. This is a sign that the economy is getting better and will lead to cheaper imports as our money is getting stronger.

With a stronger ringgit, economic sentiment will be better and investors will return to invest their money and provide a good economic situation for the rakyat.

GOVERNMENT IS HELPING BY GIVING OUT BR1M

The government realise that the economic conditions are tough and that is why it is giving Bantuan Rakyat 1Malaysia or BR1M. It realises that alhough exports are good, imports are also high. Thus there is a need for the government to give out BR1M to help ease the rakyat’s financial burden. So don’t be too quick to accuse BR1M as a form of corruption because in reality, it is one of the government’s many ways to help the rakyat.

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