QUOTE(GangHo @ Oct 30 2011, 04:40 PM)
Dear Cherroy,
Malaysian has high saving rate. Interested in this topic, any article that I can read?
I agree generally that we shouldn't have any problem as far as white collar jobs are concerned due to our low population.
Earlier, there are concern that construction field might face problem if the blue collar foreign workers leave our country. Any view on this?
It is no secret, high saving rate is part of Asian culture.
Now with modern or newer generation, this has somehow deteoriate a lot.
You cannot escape from foreign workers.
It is naive to think that can simply kick all out the foreign workers to restore the job for local, and resulted local can get high pay.
This doesn't work.
Ask a fresh graduate earn Rm1500-2500 with a diploma/degree.
Even the construction company now willing to pay Rm3000 for the construction job,
the graduate willing to do the job?
the graduate has the ability to do the job?
the construction company dare to give the job the graduate?
No matter how, in a economy, someone always needs to do those tough and dirty job one.
With now, newer generation has become more pampered (I don't mean to generalise all, just in reality, a lot), almost impossible to tell them to do those job.
They may will to do the sales job that earn Rm1500, instead hard and dirty job that can earn RM3000.
Some even worst that I came across, choose to sit at home, because the reason "it doesn't worthwhile to do a job that pay Rm1500-1800, I better off sitting at home).
Sorry for OT too much.
Added on October 31, 2011, 12:53 amQUOTE(godutch @ Oct 30 2011, 05:54 PM)
m'sians on AVERAGE have RELATIVEly higher saving rate, but what is more relevant is ARE the so called investors (speculators in disguise) have high saving rate??? they always leverage and borrow to the max ,no ?
as far as i know, rural people generally don't borrow, they build their houses using cash on their own land. and is i am not mistaken, the savng rate includes money that we have with EPF where the large part of it can only be withdrawn after we retire
We don't know how many % of current property buyers are actually full or over-leveraged speculators.
But at least our banking giving loan time, is not as relax as subprime. This is the crucial part of preventing a big collapse of properties.
May be late few year is more relax than previous, but it is not the like subprime, can easily get a house loan if you wish to.
Even out of the speculators, some may come from rich background, which can reduce the impact of fire-sale.
Also, we have a lot of cash rich company around that I had seen they bought a lot of properties to hold, to rent/invest to generate income, instead cash money that sitting in banks that earn pathetic interest rate.
Properties bubbles and big collapse always associated too lenient practice of giving loan previously.
As you said, rural people generally don't borrow, then already a big plus, and many more blue collar people cannot borrow, as banks don't want to give them a loan, which is another plus point.
Properties price escalating in not limited to Malaysia, it is across the world (apart that suffer big bubbles prior 2008), due to cheap liquidity, and massive QE pumping, whereby too much money flowing around the globe (thanks to globalisation
), resulted commodities price stay at high elevated level, as well as nowhere to park the money, and many flow to properties sector, as properties sector is at least can hedge some inflation risk.
On top of that, speculators and flippers join in further to push up the properties price further.
Properties correction, I would say big possibility, but collapse, I don't think so or high probability.
Remember we are facing inflation problem, not deflation, which is also part of factor that supporting properties price.
This post has been edited by cherroy: Oct 31 2011, 12:53 AM 
Oct 30 2011, 05:54 PM
Quote
0.0214sec
0.94
6 queries
GZIP Disabled