Enough with the ‘Ah Beng’ economics, Mr Prime Minister
Setting up more 1Malaysia shops and eateries is just plain silly as it suggests the government is pumping in more money now into subsidies once again.
TK Chua, Free Malaysia Today
Dear Prime Minister, I think I am getting tired of commenting on your economic policies, including the latest measures to reduce the cost of living. However for the sake of the rakyat, I am appealing to you to reconsider what you have just announced.
These measures are just plain silly and devoid of any logic. How we end up doing the same thing over and over again and expecting different results is simply beyond comprehension.
What do 1Malaysia People’s Shops, 1Malaysia Textile Shops, 1Malaysia Book Shops and eateries offering 1Malaysia Menu have in common? Are they operated by more efficient businessmen? Can they source their merchandise from wholesalers and suppliers at lower costs? Are they more altruistic by being more willing to make lower margins and lesser profits? Are they able to pay lower rentals or lower wages to their workers? If they are not, just how can they sell their merchandise at lower prices to help rein in the escalating cost of living?
Unless all 1Malaysia shops/eateries are subsidised, I don’t see how they are able to compete more effectively than other business outlets already in existence. If government sponsorship and subsidises are involved, then it is back to square one – we are effectively committing more government finances and introducing more distortions into our economy.
With all due respect, I do not think this is the way to run a market economy the basic elements of which are competition and allowing market forces of demand and supply to work.
Instead of introducing more “state sponsored” businesses and committing more subsidies, the government should actually do the opposite i.e. dismantle distortions and monopolies, reduce state sponsored enterprises and make business environments more competitive. Allowing enterprises to enter and exit the market with ease would assist “water finding its own level”. Too many restrictions, monopolies, licensing and controls only help “privileged” businessmen exploit consumers by reaping abnormal profits.
To me, setting up more 1Malaysia People’s Shops, 1Malaysia Textile Shops, 1Malaysia Book Shops and offering 1Malaysia Menus to manage the cost of living, are “Ah Beng” economics devoid of substance and economic rationality.
