An old friend told me that the coffee he is drinking together with me has GST. He said poor people will find it very hard to cope. Actually I have explained before but I think I will just let him be my good old friend instead of trying to debate. I will write instead. Actually, until today, GST is never the main issue. Even if the current government changed in Election 2013, GST would still happen. The question is only when is the best time. The best time is when the whole nation is full of people who would welcome GST because everyone would have enough to spend on things they want, enough to buy anything they desire and enough money to pay GST. True? If true, it meant GST will be implemented in the year 3030.
Yesterday morning, I went out for breakfast at a food court in Ipoh. The cup of kopi susu costs RM2. My mother’s plate of Wan Tan Mee was RM4.80 Today, we went out for breakfast and we tried a new place. It was packed and when my kopi susu arrived, it was RM1.70 My mother still ordered Wan Tan Mee and today it was only RM3.70 Portion was the same and the vegetable was even more today. Tell me why should I go back to the place with RM2 kopi susu? Is this also due to GST? It has nothing to do with GST. It’s only everything about greed for higher profitability. Oh yeah, fyi, these two places are only 800 metres away from one another. Both usually packed with people.
Let’s use actual number instead. I would like to exaggerate the ability of a typical Malaysian here in Malaysia. Assuming everyone is rich enough to spend RM2,000 per month on groceries and food and every single cent from this RM2,000 was spent on items with GST. Thus, RM2,000 x 6% GST = RM120 x 12 months = RM1,440 per year. Still remember what’s the price of petrol then versus now? Yes, the savings would be more than enough to cover this. For those who have decided to buy Samsung 6 or iPhone 6, you have no right to question GST because there are cheaper and better alternatives. To those who just happened to buy a new car, most of the brands, you would notice the savings from the car price would have covered this RM1,440. To those who bought a property, do you know that because of GST, the sentiment becomes even more negative and developers are much more willing to sell cheaper? Just look at all the announcements from all the top developers who say they are developing affordable properties. Did you ever see them saying that in 2012? Again, RM1,440 is easily covered. When you shop, take a look at the house brands versus your usual brand and you would notice at least a 20 percent difference most of the time. Taking back the same example above, well, 6% GST vs 20% savings if you could just change brand. Assuming you change just HALF the brands?
Understand what is GST. Then, read more and understand more about financial planning and investment. Savings is a great virtue to have and is a must for a good foundation. However, investment is the ONLY way moving forward because savings may not save us from inflation and the irony is, inflation is normally higher during years when economy is doing better and it is lower during years when economy is worse. If we can, do not aim at breakeven with inflation. Aim at exceeding effects of inflation through investing. If however what you are ‘investing’ is something you do not understand, then that’s ‘gambling’. For that, I wish you all the very best.
Last but not least, support whoever you want but never be blind, deaf and dumb. Yes, I hate MANY things and PEOPLE and I would like to improve many things today in Malaysia. The reason why I hate both sides is because both sides have all these blind, deaf and dumb supporters. Always support based on issue, not based on the logo. Then only would Malaysia have better quality politicians and not those currently who are party first and Malaysia second. Yes, I support GST for Malaysia even if the implementation could have been improved tremendously. Still think GST will ‘kill’ you? I think your new iPhone or your new Samsung phone should have ‘killed’ you first based on the same argument of having to spend more these days. Yes, my one Starbucks per week remain and I have no choice but to pay GST for it. Will try to earn a bit more I guess since I do not qualify for BR1M.
written on 1 April 2015
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