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 highest pay of job in malaysia, doctor/pharmacist/nurse/accountant or..?

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ThanatosSwiftfire
post Oct 26 2008, 07:59 PM

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I think your question needs to consider statistical distribution of pay for that industry, thus in order to answer your question, you should first set a threshold of say, RM10k/month, and see which career has higher statistical probability of reaching that threshold.

Otherwise, the present question fails to answer any part on the likelihood (probability) of achieving the prior mentioned top of the salary curve. Which, for normal, average citizens such as ourselves, we are most unlikely to be at the top of the game. Thus, on this assumption, the more relevant question is, which career or job will result in the highest likelihood of achieving a target pay.

Perhaps, say, 5% of accountants make more than RM10k, but 15% of doctors make more than RM10k, so by the same argument, you should be a doctor. (only an example, please substitute real life figures into the above arguments)

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Subsequently, you should also consider the cost of investment to incoming cashflow on such career choices.

e.g.

A medical degree will cost RM100k per year for the first 5 years, whereas an accountancy degree will cost RM10k per year for the first 3 years. Assuming an inflation rate of 5% and you can finance both projects, but the both projects are mutually exclusive.

A medical degree, a doctor has a yearly cash inflow, (Net of tax) of RM100k, on an increasing by 5% (real rate of increase, aka net of inflation) every year. So using the annuity formula, assuming you will retire at 55, and you being your work career at 25, you expect to have positive cashflow for 30 years.

On the other hand, an accountant will have a yearly cash inflow of 40k, increasing 10% a year, and you will start work at 22, giving you a useful life of 33 years.

You can input both these 'projects' into an excel spreadsheet, discounting their future cashflows by inflation. Whichever project that results in the highest net present value should be your choice of studies.
ThanatosSwiftfire
post Oct 26 2008, 08:25 PM

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QUOTE(piumiu @ Oct 26 2008, 08:03 PM)
That shows that IT engineers are not a good choice.  cry.gif
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In order to consider how worth a career choice is, in order the derive an expected cashflow on that career, we must first predict the supply-demand curve for that career throughout a person's working life. On the assumption that if everyone suddenly chooses to do something other than IT engineering, it will leave a niche to exploit, resulting in a temporary monopoly or a very tight supply, resulting in quickly escalating salary for a short period of time (similar to fluctuations in oil prices as a result of very minor supply differences). Under such circumstances, the NPV of IT engineers are in fact very much higher.

QUOTE(Tsukasa @ Oct 26 2008, 08:05 PM)
But I think to become what in your life is up to you to decide and dont other decide for you or you will regret it.

Highest pay job I think in Malaysia is our PM. lolx. No matter what you do.. you can't reach him. Hehe
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In order to evaluate the PM position, it is apparent that this is a high risk project. So, our ordinary method of discounting and applicable interest rates are invalid.

To adequately 'value' PM as a project, we operate on Rm = Rf + B*Rp, where Rf is the risk-free rate, Rp = return paid by the market for such similar risks, and B = the beta on such a project, aka the variability of the cashflows for the said industry. Given the risk, an adequate beta would be 25 times the market, as the expected product lifecycle of this project is inherently unstable and tied to the political mood of the nation.

Thus, if the market pays 3% for every B, we are looking at a discounting rate of 78%, which is reasonable, because any income derived from PM as a project is likely to be 'taxed' by wedding invitations, crony-feeding, open houses and so on. (so assume the 78% as the interest cost charged on the outflow required to be PM, as the position requires the financial backing of various entities)

However, given how limited the cashflows of the PM project is in the present political climate, I would conclude that the PM project is not worthwhile because it's unlikely to recover the cost of getting the project going, and the long 'development' period attached with it.
ThanatosSwiftfire
post Oct 26 2008, 10:28 PM

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Tax free too!

 

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