Apr 1 2012, 07:46 PM
QUOTE(e36.hartge @ Apr 1 2012, 02:04 PM)
Btw I don't agree on always compare "inflation" with singapore wan,why?
Let take example of 1 basic food
Example an egg distributor selling to retail shop in malaysia at RM3.50per pack(10 omega eggs),then retail shop sell to end-consumer here also in malaysia at RM4.50
So should the same egg distributior export the same egg pack to retailers at Singapore at SGD3.50(RM9.25)??? and singapore retailers should sell it to singapore consumer at at SGD4.50(RM11.25)????
Or is it standard practice to sell the 10-egg pack at perhaps SGD2.50(RM6.25) or even SGD2(RM5),right?
Can see the figure?its seems cheap by SGD value but it already give more profits to the malaysian egg distributor
Many people are getting the illusion of singapore's "low inflation" eventhough its not,since cannot compare RM and SGD wan,due to many of their food necessities also imported from Malaysia,and many of food price follows the malaysia"s production-costs,not singapore production-cost
Try to challenge the singaporean to produce their own omega eggs and see how much it costs
If you are looking at the perspective of an exporter (originating from Malaysia) to say a country like Singapore (or any country that has a stronger country), yes they will be able to make better profits when they export even though those goods when subsequently resold can be cheaper at their respective market, but isn't this due to a strong currency which is determined in the open market. Bear in mind that back in the old days, Malaysia and Singapore's currency is about the same but it has appreciated tremendously against us. It surely must be something that other countries want from Singapore that they are willing to pay more of their own currency for SGD. So say if there is a egg distributor in Singapore, all of his cost will be in SGD and if he was to export his products to Malaysia, we have to pay like double the price, don't you think their strong currency will hurt their export instead? So, they will probably not be able to export eggs if their cost structure is too high so they wouldn't. Instead, they will have to focus on industries that people are generally willing to pay even though it's for a high price. Or they will have to improve their productivity to a level that they are able to justify for their high prices.Let take example of 1 basic food
Example an egg distributor selling to retail shop in malaysia at RM3.50per pack(10 omega eggs),then retail shop sell to end-consumer here also in malaysia at RM4.50
So should the same egg distributior export the same egg pack to retailers at Singapore at SGD3.50(RM9.25)??? and singapore retailers should sell it to singapore consumer at at SGD4.50(RM11.25)????
Or is it standard practice to sell the 10-egg pack at perhaps SGD2.50(RM6.25) or even SGD2(RM5),right?
Can see the figure?its seems cheap by SGD value but it already give more profits to the malaysian egg distributor
Many people are getting the illusion of singapore's "low inflation" eventhough its not,since cannot compare RM and SGD wan,due to many of their food necessities also imported from Malaysia,and many of food price follows the malaysia"s production-costs,not singapore production-cost
Try to challenge the singaporean to produce their own omega eggs and see how much it costs
And in any case, on your question on inflation. Although you may argue that if you were to convert the price of goods from Singapore back to Malaysia, it is more expensive than Malaysia and hence Sg has a higher inflation than Malaysia (prices more expensive) according to your logic but that is untrue. Because if you were to convert what a typical person working in Singapore earns back to Malaysia, they amount that they earn will be able to buy more relative to what a typical Malaysian earn. The best way to see who is in a better position is by looking at their purchasing power. No point if you were to earn a salary of say RM3k but a TV cost you RM2k wherelse in Sg, you earn SGD3k but a tv only cost you SGD1.5k. So, if you work in Malaysia will only be able to buy 1.5 times TV with your salary wherelse if you work in Sg, you will be able to afford 2 TV. Although the TV in Singapore after converting back to Malaysia is more expensive, you will be able to afford more TV's if you work in Singapore rather than in Malaysia.
QUOTE(northface @ Apr 1 2012, 04:20 PM)
First of all, you need to look at debt in the context of foreign & local debt. Singapore is very special in a sense that most of its government debt are owned by CPF, which is EPF in Singapore terms, they have virtually ZERO foreign debt. Using these debt, Singapore government companies like Temasek and GIC have for years generated outstanding returns on their debt. And that money will flow back to their retirees, benefiting their people.
And don't kid yourself Singapore's sovereign debt rating is AAA, the government has not sold bonds on an international market to raise funds since 20+ years ago. To argue that Malaysia's debt standing is actually better that Singapore just shows how myopic you are, really.
Do you even know what you are talking about? Your example is poor at best, but I roughly get your idea.
Most of Malaysia's debt are also funded locally too, so shouldn't we also deserve the AAA rating too and going by your logic? And don't kid yourself Singapore's sovereign debt rating is AAA, the government has not sold bonds on an international market to raise funds since 20+ years ago. To argue that Malaysia's debt standing is actually better that Singapore just shows how myopic you are, really.
Do you even know what you are talking about? Your example is poor at best, but I roughly get your idea.
And, it has an even lower debt in comparison in to Singapore, so shouldn't we be better than them? 
This post has been edited by legiwei: Apr 1 2012, 08:00 PM
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