Thread by @khalidkarim

A person who only have SPM qualifications...is very2 likely to have a household income of less than RM6K.
Which places the household in the low income category.

People harps about countries struggling to escape the "middle income" trap.This is nonsense.

Focus shud instead be on the real and bigger problem of households trying to escape the " low income" trap.

No households shud be below a fixed low income threshold.

If the Gross National Income is distributed evenly~each family gets the same share...each household will all have a monthly income of RM14K per month ie we will all be rich.

That's very important to remember~if everybody gets a fair and equal share of the National Income...ALL of us wil be rich with a household income of RM14K/month.

But..the sad story is that only 50% of National Incomes goes to households.Thus,average household income is RM6.9K

Why are households getting only 50%?Who gets the other 50%?
What about in other countries~households gets how many % of National Income?

This is the sad story.The richer countries averages about 70 % of National Income going to households.But...Malaysians only gets 50% share.
Just cos of the uneven sharing of the pie,we are 40% poorer.

Whois eating our pie?

National Income is shared by three institutions ie Government,Companies and Households.
In Malaysia...households gets only 50% share~ thus 50% balance goes to Companies & Govt.
It should be 70% to households and 30% to Companies & Govt.

But we are stupid.

So...our first problem is that the companies are making too much profits and paying us (the workers) too low...thus we get very little of the National Income.
How can we make companies give workers a fairer share?
But Govt do not hv the balls...to make giant steps.

The Gamuda tunneling job is an example of Govt with no balls.

Here you hv a company tasked to keep project on budget~but allowed a huge cost overrun...yet they can enjoy a huge 40% mark-up on the Swiss Cheese tunnels.
Only 2 other bidders for the tunnel.Are they now involved?

Yet ...Govt can still work with them and give them two "direct nego projects" worth RM30B.

Very very big question marks all over this MRT2 contracts...huge.

Do you think Govt hv the balls to force higher minimum wages,impose higher corporate taxes & other taxes to dis-incentivise greedy behaviour.
The extra tax revenues can be transferred to the poor ... ie redistribution of income.

But...that's not the end of the pain.Of the National Income going to household sector...distribution is very uneven.The Top20% captures 50% of total income.

So...is it possible to get everyone out of the low income ie boost household income to be more than RM6K/month?

Guess...not possible to do within the next decade.

But we can certainly set policies to get it moving in the right direction....if we care enuff.

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