Hello Bank Negara Malaysia Please Cut The Opr Now

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https://www.reuters.com/markets/asia/malaysias-economy-grows-29-q2-weakest-nearly-two-years-2023-08-18

Aug 18 (Reuters) - M'sia 2nd qtr GDP growth lowest in 2 yrs2nd qtr growth 2.9%, slowest since 3rd quarter 2021 sliding exportsReuters survey forecast GDP growth 3.3% April - June exports in July slumped 13.1% from year earlierworse than 11.3% drop forecastedImports also fell more than expectedslower economic growth in second half Domestic demand struggling weak exports weak business earnings, investment, hiring, wage growthBNM said full-year GDP at lower end of 4% - 5% forecast earlier
some economists predict 4% - 5% hard to reach
economy facing downside risksGDP growth below 4% to 5%4%-5% growth forecast looks unattainableringgit worst-performing currency this yearBNM intervene to stabilise ringgit, dropped 5% against USD  
My Comments :
Folks, the economy is in serious trouble. I dont know if we can come out of this in "due time". 
All our economic problems are created by torturing the consumers, torturing the people. Torturing you and me. They have handcuffed us, they have chained us, they have broken the bones in our arms and legs just for the fun of it - to cripple the people - to see how much torture the people can endure. Just to make a few people very, very rich.. 
In a snapshot this has been how the economy has been managed. By crippling the people.

Even to "turn the economy around" they torture us some more by increasing the OPR. All the interest rates went up and the economy is now paying the price. The economy has slowed down. Hooray. Pandai sungguh otak-otak lembu yang jaga kandang. 
My family and I used to go kayaking  - both still water and white water. When you go kayaking there are two ways of turning the kayak left or right. One method is by speeding up. The other method is by slowing down.
In the Back Sweep Stroke method or gostan method (picture on the left) to turn left you paddle the kayak in reverse direction (gostan) on the left side only of the kayak. So the power stroke is on the left side only and in reverse direction (gostan). The kayak will immediately swing left. This is a quick turn. (You can also achieve this by sticking the paddle in the water on the left side and holding it there, especially in flowing rivers, where the momentum of the moving water will make the kayak pivot to the left). But the drawback of this method is that the kayak loses speed. In still water the kayak will almost come to a stop as it turns. Then you have to start paddling again to pick up speed.

 



The other method is to increase the paddling on the right side only and increase the speed on the right side of the kayak.Then the kayak will start curving to the left. You will make the left turn without losing speed. You will actually increase your speed.

This is also how they "control" the economy. By slowing things down or by speeding things up.
Increasing the OPR has slowed down the economy. Now the economy is in gostan. Increasing the OPR has increased the entire cost structure in the economy. Now we are paying for this policy decision. We all just have to suffer.
In Malaysia our situation is different. There are too many handcuffs, chains, shackles and hang ropes which seek to hang the people by the neck, hang them upside down by their ankles, hang the people by their thumbs and so many other exciting methods of torture.

Malaysia is the Nobel Prize winning country for gomen licensed monopolies which torture the consumers and bleed us dry of our money. Electricity, motor vehicles, banking, rice, meat imports, food imports, transportation, toll roads, broadcast services, telecoms, foreign labour supply, fuel supply, ports and airports and many more industries and businesses are government licensed monopolies and oligopolies.  Only the few and the very rich can get the licenses. 
So of course the Malaysian consumer pays a higher price for all these monopoly and oligopoly products and services.
Then when the prices go up they say "Woi inflation is going up lah. Lets raise the OPR.' So all the bank interest rates go up. Which tortures the people even more.

Then when the people complain they suddenly decide to help the people - by hanging us with an even shorter rope - they increase the Minimum Wages. "Dont worry, we will help you. We really care for you'.

On the surface it looks good but it increases the cost of doing business even more. The small businesses cannot survive. A restaurant I know now forces its staff to take longer breaks to reduce their overtime claims. Other businesses are firing their workers - causing unemployment to go up. So if your children cannot get jobs you can thank the Minimum Wages as well. (How many small businesses in Kapit or Jitra can pay Minimum Wages of RM1,500 a month?)

So the economic management of this country is done by slowing things down. By handcuffing the people and chaining us up. By forcing us to pay more. This will benefit the few who are rich and powerful.

They do not manage the economy by speeding things up. They do not free the market from all the hang ropes, handcuffs, chains and shackles that they have imposed. They do not want a situation where the cost of doing business will be lowered thereby making all the people wealthier (and not just a few).

Hello people please wake up.




The views expressed are those of the writer and do not necessarily reflect those of MMKtT.
By Syed Akbar Ali 

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