When the Malaysian Ringgit keeps falling to USD Dollars , it means many things:
i) our exported goods looks better. Many people outside Malaysia can afford our goods. They are cheaper in Singapore.
ii) but unfortunately, we have to pay more for the imported goods that come to our shore.
Examples : we have to pay more for medical expenses including medicine, branded medicine; pay more for consumer goods like electronic gadgets etc etc ..because we are good at buying most of the time.
iii) if we intend to send our children to United Kingdom to read their degrees, we have to pay more.
Example: 2014 tuition fee per year STERLING 20,000 per year
now 2015 tuition fee per year STERLING 30,000 per year.
How much is 1 STERLING POUND ?
last week from my son in London, it was 1 STERLING POUND was about RM5.00
now ... 1 STERLING POUND could be RM5.50
See? we are losing so much.
Why did this happen?
Malaysia depends so much on its petroleum. We produce petrol but we did not process the petrol. So we are taking in the processed petrol from somebody else. Who process it? Of course it is not the kelantanese, pahangese, .. it must be the USA and other advanced countries.
This is where the problem starts?
We may sell 1 drum of raw petroleum at RM10 to USA companies , but in return .. after the processing ..the USA sells the same drum at RM100.00/ Brilliant mathematics.
One hundred years ago, our sultan sold water to the Singapore government at 1 sen per 1000 litre .. since our water is so abundant .. we think we are gonna be rich with that contract but now
Singapore government is charging us quite high .. and after the news the ringgit is falling down , we are paying back for processed water at much more higher prices. That is pure mathematics at its best!
Looking at the above details, in short, we are 1 sen wise but RM1000 foolish.
I look forward to someone who can think a bit like Tun Mahathir .. he talks a lot but he reads a lot too and his brain is working quite well at this age talking about micro and macro economics.
Economics play a big role in our life. It explains demand and supply processes on all things under the sky.
In short, to be a P.M. one has to have a good economics background and some mathematics in his brain.
May Allah save us all from all calamities (flood in December, January plus the high and higher cost of many stuff in our houses). Soon January 2015 , our children going to the school again. many things to pay. A new academic year.