How to survive?

APRIL 3 ― The past two weeks were spent attending a number of forums on the state of the Malaysian economy post GE 13. How will Malaysia face an economic transition?

And there were a lot of promises. I was privy to a research report that said the following: Pakatan Rakyat has plans to stimulate local investment and domestic demand and attract foreign direct investment (FDI); create a “people’s economy” to ensure more equitable economic distribution; ensure opportunities of training and education; reversing brain-drain, and so forth.

Barisan Nasional’s Economic Transformation Programme (ETP) targets a total of RM1.4 trillion in investments between 2010- 2020, of which 92 per cent is expected to come from the private sector.

National Key Economic Areas (NKEAs) such oil and gas, palm oil, financial services, wholesale and retail, tourism, business services, electronics and electrical, communications and infrastructure, et al are designed to be economic growth drivers and to jumpstart private sector investment.

Both sides also emphasise on meritocracy.

Either way, depending on who you swing for, and what mood you’re in, it all looks good.

What I am wondering is how all of this will translate into the real economies of the country.

Two examples of the realities of working and eking out a living in Malaysia:

(a)   i. The small time SME or humble trader faces a rough time when he/she embarks on a business venture. I have heard and been told of successful franchises (in this case Bumiputera owners) who sell out to an interested buyer (and in this case, Chinese). They’ve never seen millions before and think it’s good to sell out. They do. Franchise is killed and disappears. So does the Chinaman. The poor Malay is left holding on to the few millions he has left, if he has not squandered it all.

ii. An ikan bilis seller working out of a market was eaten up by not competition, but by the solidarity of other ikan bilis sellers who were not of his race. Former seller sold superior ikan bilis, while the rest sold average anchovies.

Will entrepreneurial racism be eradicated, especially at these levels?

(b)  Will these policies also change the work culture of Corporate Malaysia where scions and connected employees are employed and well regarded, compared to more able and capable but less connected Malaysians? This is something that was brought up again and again by many professionals I have spoken to.

I have a soft spot for small businesses and I frequent a small sundry shop near where I live. The owner is the second generation of a Chinese family which runs it. I get my brooms, spices, almost everything I need to keep my life running here.

This morning, I asked her, whether such a business sustained her family. She laughed.

“Owning a shop like this, you survive-lah! You don’t lead luxury (luxurious) life!”

I asked her what she thought of the government’s initiatives such as the ETP, GTP and Pakatan’s policies.

“Such policies affect only those of a certain income bracket,” she shook her head. “Same like the housing Bumi discounts. Not all Malays are eligible for that. You have to buy a house of a certain amount, and you have to have a certain income.”

She pointed to the sugar sold in her shop. Did I know that the margins were small? If traders like her raised the price, they’d be in trouble.

“This country creates wealth only for the privileged.” She shrugged. The sundry store her family owned was all she knew, and she’d be surprised if they lasted a few more years. “The big supermarkets like Tesco are killing us. How to live?”

 ***

Reading my colleagues’ feature on the credit card crisis was not a good way to start my morning.

But this is a reality that does not just concern lower income professionals and fresh graduates. Even professionals in mid-career who are NOT spendthrift find it hard to survive. This on TWO incomes.

I have one or two friends who had cancer and insurance refused to cover them. They tanked their savings and had to max out their credit cards to pay for their medical expenses.

Because they fall under a certain income level, they can’t use facilities. Even if one does not use his credit card at all, he may have no choice but to use it during an emergency.

Our pay has not risen in years. This, despite rising costs of living and added work stress. The cost of raising a family and schooling children in government schools is very high. So we take on second jobs, supplement our incomes in various ways.

I know a couple of women who are educated and work at white collar professions, and who have taken a route many will tut-tut at: mistressing or becoming a high-class companion. Polygamy is a business transaction, and not all of these women marry men of money and power.

A friend told me this, “Janji dia bayar api, household expenses, sudah.” When you think about it, even marriage these days is a business proposal!

How to survive-lah, we ask?

Perhaps the best advice came from the sundry shop owner: You just have to make your own way.

* This is the personal opinion of the columnist