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Sekiranya anda menyenaraikan blog ...LISTED!!! dan/atau VOICES AROUND di blog anda, tetapi blog anda tidak tersenarai di dalam "Honour List" di bawah ini, mohon tinggalkan mesej di VOICES AROUND

Terima kasih!!

Saturday, February 11, 2012

The whole idea of the NEP was to make people more competitive so that they will not need endless 'easy money' which is actually a curse.


Say a company needs RM20 million to boost its management, financial, and technological abilities. This RM20.0 million must come from revenues derived from its sales. That is how all other companies around the world will do it. Say the company makes a 20% margin of profit. So the company must make sales of RM100.0 million in order to be able to generate RM20.0 million profits which can then be used to boost its abilities. 

Now if the Government were to 'bagi saja' this RM20.0 million, then the company will not need to increase its business by RM100.0 million. Its salesmen need not work harder to make extra RM100.0 million in sales. The project managers need not learn to manage their schedules to deliver RM100.0 million worth of products according to schedule. Why? Because they get money from the Government. The curse of easy money again. Lama lama, the company will become weak and will fold.

The same thing will also happen if these companies that are to be hived off come with monopoly businesses, monopoly licenses, monopoly permits and stuff which other companies do not have. In such event they too will become noncompetitive.

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