most probably package deal... to throw into its REITS... may not have much to read into.

haha. you obviously do not understand how most humans behave/think.
Employees will still complain and be unhappy about lack of increment, while employers will be cursing gov for causing this unhappiness with additional cost to their bottom line.

This suggestion to increase employers contribution is really silly.... the B40 will still be unhappy and demanding gov allow 10K withdrawal from their EPF again every year.

This post has been edited by Wedchar2912: May 2 2023, 12:09 AM

that is why the old phrase "fake news" became so popular...

It is kinda funny to think that the majority of those that this "20% EPF by employers" will help, actually will be happy with this initiative.
If the employers can and/or willing to give extra 7%, they would have already done so and would have given it in terms of salary. Then these B40 and M40 people will be much happier. They already kept on making noise about wanting to withdraw from EPF. Can see cannot touch also no point lar.

BTW: 4K salary per month is clearly inside the M40 domain.

agree... these kind of intervention by gov distorts proper price discovery.

if can, I would gladly have told my employer to put everything in, including allowances, as my salary and let me decide what I want to do with my salary. (then again, EPF portion do have some tax benefit to employees while none at all to employers)

agree with you... local employers are damn cheapsake... hence why the suggestion won't work. These buggers will think all sorts of way to game the system and what ended up is a proposal that didn't help anyone.

the B40s and M40s currently are having headache trying to have a decent, dignified wages to live as of current juncture. They definitely prioritize the NOW vs the LATER. retirement is a problem too far away and who knows what will happen in Malaysia by then. Maybe UBI will appear? (yeah, me and my UBI agenda. haha)

haha... are you one of those in corporate world that like to create headaches and mess just to enjoy how the mess resolves itself? lol...

jk...

BNM only raised the rates back to pre-covid level... while big chunk of the world are already more than half way in tightening regime.

If we really think about it, Malaysia economy is in deep trouble. should have taken the bitter pill and hike rates all the way to 8% and clear the deck of zombie firms and workers.
But we are focused on changing gov, early withdrawals from Epf, borrow against EPF, which day can get public holidays, raising retirement age...

ops... really? i thought we were there already... damn... need RM to reach 5 before BNM panics then.

ah, but imagine the kind of returns or passive income some of us can get when rate is back to 8%. inflation will be under control also when no one can afford to spend.

yeah, I want to enjoy that once in my lifetime... was too young back in 1990s to have any money at all.... would be nice to be holding a few FDs or MGS worth a few million ringgit giving 10%++ rate...

there could be a chance this round (but damn small a chance) as USD is losing its fav status and capital suddenly is not free to be printed.

The thing is these countries got into economic crisis first, and the rate hike was done to starve off capital flight.

I rather our BNM is competent enough to cut off the tumors, dead meat and dead skins before they fester into full blown infection... ie rate hike first to purge the inefficiencies and dead weight out first.

sure or not 3.5% is very high?

then how come almost, if not everyone, complain like mad when FD rate is at 3.5% only?
we cannot have it both ways...

I don't understand your emphasis on the distinction.

All rates are related to each other: ie a big factor influencing FD rate is the OPR rate.

hence if one thinks OPR rate of 3.5% is too high, then the same person should also think FD rate of 3.5% is too high.

That is not true actually. It is just that almost everyone younger than 50 years old been experiencing low rates for way too long... all thanks to the great almighty Greenspan.

It used to be standard text book to state that 7% is normal. (hence why back prior to 2000, many articles love to state that one can expect 10% safe long term returns on investment).

from my own recollection, back in 1990s, savings account in finance firms here was giving like 4 to 5% interest rate, while FD rates of 8% and above are quite easy to come by. This was prior to AFC.
During AFC, 13 to 17% FD rate was even possible...
(please forgive me if my memory is not 100% accurate as I was just a kid back then, but the rates are ballpark accurate)

yeap, agree with you.

hence why I mentioned we cannot have it both ways.... the "we" I meant rational participants in the financial market.

In all honesty, home loans is still very very cheap. Being charged like 4 to 6% is super cheap, and this behavior is quite a recent one since 1990s. That's why home prices shoot up so much.

The transition back to a world of scarce capital will be painful. FED may not be able to print unlimited amount of money this cycle.

This post has been edited by Wedchar2912: May 4 2023, 06:33 PM

repos (the one where central bank pumps money into the system) is a form of printing of money. that was what quantitative and qualitative easing been for.

You can check back what happened since 1990s after Greenspan became the chairperson. He was the "god" who coined the phrase "irrational exuberance".... back then, he was treated as a deity and he was frequently mentioned as the most powerful man on earth, not the US president.

I don't deny that tech, globalization, outsourcing and demograhic changes can be deflationary, but that is only if you limit the scope to country macro level/local economic activities.

Globalization was frequently quoted as a way USA outsourced inflation....
US also imported many young human resources into America, while ageing population technically causes inflation.
Tech is a bit harder to see imo... just look at California... a bit nuts their local inflation since late 90s.

This post has been edited by Wedchar2912: May 4 2023, 08:32 PM

ah ok... my bad.

the total money supply M2 went from 15 trillion (2020) to like 21 trillion, so the reverse repo hardly did anything.
the banks just don't know what to do with the printed money?

no lar... its nothing.... it is just the expected yearly div from EPF....

I hope it is not some ploy to get EPF to remit money back to pay for 2023 dividend because all local allocation been used up to prop whatever they prop.

6.8
cos 5.8 is bad in cantonese.

lol

I believe what the ignored list does is: you will not be able to see what they post.
But they can see whatever you write.


I just term it the ostrich mode.