Local Freakonomics

Secret Recipe

2010-01-20T03:22:00.003+08:00

I have the privilege of attending a training course on Economic Development in Singapore and today was actually the second day. I must say I’ve been enjoying it and so far have learnt a couple of ‘development tricks’.

Now, we (at least, I) often wonder how did Singapore do it? From Rags to Riches. From Zero to Hero. From Third World to First World. What are the secret recipes or the brilliance of it? Well, the answer is NOT so secret or complex at all! In fact, it’s all about simplicity.

We know for a fact that Singapore has no natural resource and uses its human resource to develop the country into what it is today. But it doesn’t mean Singaporeans are different from any other people in the world. What actually make Singaporeans appear to be superior (or cleverer or more hardworking) than Bruneians, for example, are simple basic rules that they live by.

1. Do Not Make Life Difficult: Especially for a small country where human resource is limited. We don’t have many people to handle too many regulations/jobs/complexity. Take Ease of Doing Business as an example. In Singapore, there’s only 1 form to fill and takes less than a day for a business application to be processed. Does this mean the Singapore government is not being vigilant i.e. by letting any Tom, Dick and Harry to set up whatever business he wants? Does this mean the business can be set up anywhere and anyhow it wants it to be? So how does the government ensure that any business is properly set up? The answer lies in no. 2 and no. 3.

2. Treat People as Humans with Brains: Normal human being should be able to think rationally and generally will abide by the rule. Not forgetting, almost everyone wants to do well for themselves. So a genuine businessman should follow whatever regulation there is.

3. Implementation is Key: No matter how perfect a policy is designed, without implementation, it is guaranteed to fail. So in our example of setting up a business, any businessman that does not follow the regulation, must be punished and treated according to the law. The implementation act is the perfect deterrence of any wrong-doing.

4. Think Ahead: Singapore policymakers are trained to think ahead, see the bigger picture, and to do something now in preparation for the future. This act of pro-activity as opposed to re-activity, to me, is the secret recipe to the Singapore success.

All of the above appear to have been applied to all sorts of policies including the administration such as the appointment of leaders and top management, the budget allocation and so forth and so on.

So to conclude, Singapore did not and perhaps never adopted any complex policy after all. All they did was applying the commonest sense in all of its development policy. And this continues until today. And it works.

Salaam.

Tips to a Blissful Marriage

2009-11-02T08:34:00.001+08:00

I was reading the Star this morning and there was a story (news) on how the Terengganu state government wants to ‘spice up sex life of newly-weds’. The divorce rate in that state has gone up and apparently the main contributing factors are Body Odour (I cannot imagine!), Humdrum Sex and Boring Pyjamas (including those worn-out t-shirts that we so dearly love that actually horrify our other-halves) . I don’t know what the divorce rate is in Brunei or the causes. But I think these should also be addressed in Brunei pre-marital course (kursus nikah).

So before you buy ‘Tongkat Ali’ or ‘Kacip fatimah’ these are a few ‘investment for life’ products that are vital in every marriage:
1. Deodorant and perfume;
2. Lingerie for women (I need to buy these too!); and
3. Decent pyjamas/sleepwear for men.

It was also suggested that taking a bath/shower together can also help in the S department.

Ok, Abang……!

Salaam.

The Planet in Trouble

2009-10-30T01:08:00.002+08:00

This morning I had the pleasure of attending a BEDB Forum entitled ‘The Economics of Climate Change in Southeast Asia’. I must admit, when I received the invitation I thought ‘oh dear, I will sleep..’. On the contrary, it was quite interesting and had me thinking that I should blog about this.

There was a presentation by the Asian Development bank (ADB) about how the climate has changed and caused the natural disasters. And that if the world continues its business as is, in about 50 years from now, the planet earth may no longer be a healthy planet to live in.

There was also a panel discussion on ‘Towards a Strategy on Climate Change: How Can Brunei Darussalam Contribute?’ Unfortunately, I couldn’t stay until the end of the discussion due to an office appointment. So, I didn’t actually get to hear from the experts what Brunei could and should do to help our planet which appears to be in great trouble.

Earlier on however, while listening to the remarks made by Dato T, which was as captivating as any of his previous ones, I began to list down what Brunei could do immediately without having to incur millions of dollars in cost. I would like to share this with you.

1. Public Education: Call it ‘Awareness’ or ‘Changing the Mindset’. This has to be done Pronto. This alone however will not have a big effect unless back by some policies because let’s face the fact, this does not appeal to our culture of ‘it’s –my-money-I-can-do-what-I-want-to’. So, by having some advertisement or one-off ‘awareness day’ (only) on the cost to the environment of diesel car or excessive electricity or excessive recyclable rubbish, my bet, will not change anyone’s mind let alone, centuries-old habits.

2. Policies: Now, before we talk about investing in solar power or wind power and what not, I think there are a number of policies that can actually make a difference.
First and foremost, look at the way we use the air-conditioner in the government offices! I tell you, in some departments frozen chicken can actually stay frozen for days if left in the rooms…well, ok I’m exaggerating, but some offices ARE cold. Now, can’t we have some sort of regulation to ‘cap’ the temperature? They do this in Japan, I was told.

What about the use of energy-saving light bulbs? Are these being used in all departments?
Before we ask the public to recycle, please can we practice what we preach? I do not recall ever seeing a recycling bin or box in any of the government building (at least in those I’ve been to). Well, they don’t have to be expensive or special bins, the normal ones with some pictured labels should be enough I think. I mean, if my children’s school can do it, I’m sure government departments can do it too, no?

Other ideas in my head (which may not easily implementable) include the encouragement for supermarkets to charge their plastic bags. Those plastic bags are not free in the first place. So let the consumers know how much they really cost.
Limit the number of parking spaces in government buildings, so people can be encouraged to come in twos.

And I can go on..

But the point of me writing this is that yes..we can contribute..We can start at home. (We do). You may say, ‘I alone won’t make a difference’ but if everyone contributes in his or her own little way, I’m sure it will.

Salaam.

That's Life!

2009-09-08T22:50:00.005+08:00

I know it's been a long while of me updating this blog. Sometimes I wish there are more than 24 hours in a day. I can tell you my life has never been busier..(Can I do another PhD?!). Busy at work and equally busy at home. A boss at work, an amah at home hehe. That's life!

Actually there is so much in my head that I'd love to write about. Maybe one of these days.

For now, I just want to wish all Muslim readers, Happy Fasting..let's embrace the last 10 nights of Ramadhan..and at the same time Selamat Menyambut Hari Raya..
A reminder to myself and readers, Spend wisely! Buy Needs, avoid Wants! In the words of one very distinguished religious Pehin, "Tidak Kedekut, Tidak Membazir" (Not miserly nor wasteful).

Salaam

Dewasa Bernegara Part 1

2009-04-23T20:12:00.002+08:00

I’ve been back for more than 4 months but I still cannot accept how Bruneians, especially parents, actually live. They don’t seem to value their lives and their children’s. I’m referring to the use of safety belts in the cars of course. Everyday, everywhere I see children jumping up and down in the passenger seats. What is worse, I always see parents who actually drive with a child on his/her lap. Once, I actually saw a car swerved in the middle of a road and when I looked at the driver, it was a man holding a crying BABY!

It looks like the law on child-seat and safety belts fall on deaf ears.

Some people blame it on the implementation of the regulations. They say the police are not doing anything about it so why should we. I say: when accidents happen, those policemen won’t lose their lives but you and your children will.

Some people say the child-seat is expensive. I say: more expensive than the lives of your children?

Some other people say their children refuse to sit in the child-seat and/or wear safety-belts. Since they don’t want to upset their children then let them do as they wish. I say: You don’t love your children!

I’m ashamed and saddened by the way we Bruneians see and live life. After 25 years of independence, do we deserve to be called ‘Dewasa Bernegara’ when we do not even want to be responsible for our own lives and that of our children? When we still need other people to look after our lives? When we still embrace the old-skool mentality of law-breakers as opposed to law-abiders?

Oh dear.

Salaam.

Islamic Banking in Brunei

2009-04-13T21:14:00.002+08:00

This morning on the way to our children’s school we listened to ‘Pedoman’ (Nur Islam Channel) and the topic discussed was Islamic Banking. The good Ustaz was explaining the virtue of the system and so on and so forth, which reminded me of my fourth year Islamic Economics course that I took ages ago.

Although I can’t recall 95 percent of what I had learnt during my early twenty’s, the one thing that I still remember is that the system is based on ‘profit and loss sharing’ and the prohibition of ‘riba’ (interest).

Now, a few days ago, I bought a car and took a car loan from one of Brunei’s Islamic finance institutions. I am no expert in Islamic banking so I asked the loan officer to explain to me the difference between the car loan offered by them and those offered by the conventional banks. Well, his answer was simply we’re Islamic! Well, that didn’t answer my question, I pointed out to him that the monthly payment for the loan was exactly the same as the monthly payment that I would need to pay if I were to use a conventional bank. It was only a matter of preference!

I did not want to press the poor guy partly for the fear of rejection of my loan application and partly I knew it was not his fault in the first place. I actually asked the same question to a number of that particular bank’s staff whenever I visited it and I always got the same answer. It makes me wonder whether the bank has ever given its staff a training course on Islamic banking. I feel sorry if it hasn’t and I think it should.

Anyway, somebody please explain to me how Islam are the Islamic banks in Brunei? Frankly, I don’t see the difference between them and any of the conventional banks, in terms of their operation. They may not be involved in the financing of any of the unislamic activities such as gambling, entertainment etc. but I think in terms of profit and loss sharing- which is the basis of the system, they only share the former but never the latter, which to me makes them no better than any conventional bank.

So, please prove me wrong.

Salaam.

Still Alive

2009-04-06T21:28:00.002+08:00

Finally, the broadband is now up and running. Thanks for still dropping by. Will write soon (although the choice of topic is now quite limited).

Salaam.

Thanks Malay Mail

2008-12-23T05:29:00.003+08:00

Apparently this blog has been featured in the Malay Mail: Cyberspot. Thanks!

Bruneians and their toys

2008-12-19T08:00:00.003+08:00

As I said never say never again, I cannot resist in making some comments regarding the more stringent enforcement of down-payment for car purchases. Firstly, I say it’s about time! This should have been enforced many years ago. Secondly, before many of you hurl all sorts of negative remarks toward the ministry and its directive, I urge you to think twice. Believe you me, this policy is not about making the rich gets richer or the poor gets poorer (i.e. the argument that poor-people-now-can –no-longer-afford-to-buy-cars or make it ‘expensive cars’), in fact it is the opposite.

The previous lax in the enforcement has made many Bruneians spent what they could not afford. This is what we called ‘wealth illusion’. We think we are ‘wealthier’ because we can afford to buy new and big cars, without even batting an eyelash. When in actual fact, we have actually trapped ourselves into ‘debt-slavery’. Don’t many of you feel that the more you earn, the less you actually take home? I’m not going to talk about how the US started (and now many parts of the world) its recession, but in one line, it is really due to this slavery.

Anyway, it should also bring good news to consumers. I am predicting (well hoping actually) that this policy will have an impact on the price of cars in Brunei. [To economics students, don’t read the next paragraph, think about it for a moment :)]

The policy will reduce the demand for cars. If the car-dealers are behaving ‘normally’, they will have to knock down the prices of cars (hurray for me! as we need to buy one) at the expense of their profit margin and perhaps the commission of our friendly car-salespersons. Either that or the interest rates will be knocked down.

So, there. That’s what I think and ought to happen. I’d be quite surprised if it doesn’t. I don’t think the demand will be unchanged since there are already too many cars waiting (at home) to be driven by too few people in Brunei.

Next, credit cards please!

Salaam.

DONE

2008-12-18T06:12:00.002+08:00

After having a 50-minute viva, I'm done! Yeayyy! Well I still have some corrections to do but Ya, I'm in Cloud 9..
Thank You to my darling husband and my beautiful daughters for their support and understanding in the last 4 years. Mama's coming home soon...!
Thank You to everyone who's been reading my ramblings for the past 2 years or so. Well, now that I'm about to go home and work (back to reality), there is a BIG possibility that I won't have the time to write as frequent as I want. Plus, I probably cannot write as freely as I want (in terms of topic)..so never say never, but there'll be less of me.

It really has been a pleasure...

Salaam

Melayu Mudah Lupa

2008-11-17T06:45:00.004+08:00

Our Malaysian friends held a farewell dinner for us last night. After the delicious beriyani and rendang, as usual we talked and discussed about the current issues. Last night’s discussion was interesting as it revolved around the ‘malay dilemma’ topic. At the moment, as you and I know, the racial tension in Malaysia is quite pronounced.

There were two camps last night. One opinion was that it is the malays’ right to be given the privileges given the fact that it is the malay land and therefore, the non-malays should not have any right to demand what is not rightfully theirs. And the success of the non-malays is seen as the result of some ‘conspiracy’ against the malays which include the policies that seem to be in favour of the non-malays or rather disfavour the malays.

Another opinion however believes that it is actually the malays themselves who are not utilising the privileges and opportunities that are given to them to their great advantage. The fact is ‘Melayu Mudah Lupa’ (Malay Forget Easily – the title of Mahathir’s book). We forget why we are given those privileges. Believing that they are our rights, we don’t value them anymore. As a result, we don’t work as hard as the non-malays (who have to survive) and the non-malays have emerged to be more successful, cleverer and wealthier.

And for this reason, we believe that there should exist a healthy competitive environment for the malays to prove that they are as good as or in fact better than the non-malays.

In Brunei, Alhamdulillah, we still live harmoniously together. Partly I believe is due to our small population and partly due to our ideology of ‘Melayu Islam Beraja’ (Malay, Islamic, Monarchy). As a result, the competition between the malay and the non-malay in Brunei is less severe or almost non-existent. This however does not mean that the Brunei malay is immune from the symptom of forgetfulness. In fact, we even take many things for granted. Take the ‘Ali Baba’ syndrome in the business sector for example. We want to be rich easily and quickly. Instead of genuinely running a business, we sell or rent out our permits and licenses to foreigners. As a result, the number of Brunei malays who have become true entrepreneurs that we can be proud is less than the ten fingers in our hands as compared to the number of business establishments (especially ‘kedai runcit’, barbershops and tailor shops).

Another example relates to the work attitude of the Brunei malays. The five-tea-break-a-day routine becomes the culture in the government sector. The attitude of ‘karang tah’ has lost the government millions of dollars in terms of productivity and even revenue-generation. As a result, the government sector, which is the first employment choice of any Brunei malay, is slow, inefficient and backward so much so that it can take weeks to send a letter within one tiny district, and months for the results of a few applications. (Come on! What is our population again?)

I totally concur with Dr. Mahathir who said “it is not race or ethnicity but the culture which determines the performance (of the people)”. So, to succeed we must change our culture. It is difficult, of course. To hope that we Bruneians will realize and change ourselves is probably a big wishful thinking.

Therefore, we have to create an environment that can change our perception of our rights of being Brunei malays, our perception of running a business and our perception of work – ‘work to live’ versus ‘live to work’ for our family and our country. We must look towards work as the true reward and take pride in our work, for without pride there may not be progress. This kind of environment may involve monetary reward but the reward should not outweigh the satisfaction of the achievement being made.

We have been blessed with oil and gas. We forget that this will not last forever. While the current generation probably cannot change, the next generation needs to change. We have to ensure that the next generation understands their purpose in life (which sadly is not understood by the current one). It is not an easy task but it has to be done.

Salaam.

Snail Mail

2008-11-12T17:24:00.004+08:00

Can somebody from the Postal Department explain exactly the process of receiving/sending mails/parcels in Brunei, please?

Until today I still do not understand how it can take almost 3 weeks for a letter from the UK to be delivered to someone in Brunei. This happened many times to us. For example, about 3 weeks ago, we sent a letter to Brunei. It was an important document but not too important for us to fork 45GBP to send it through DHL. So, we sent using an express UK mail service. With a given tracking code, we could track the letter through the internet. It was express alright, the letter reached Brunei in 2 days time. Unfortunately, the tracking system only applied in the UK so its whereabouts in Brunei, God knew! Thinking that it should arrive in safe hands within a few days, we were happy.

We were wrong. 2 days ago, the intended recipient asked where the letter was. We were gobsmacked! Finally, today we were told the letter has now finally arrived. It took exactly 18 days: 1 day in UK, 1 day travel, 16 days in Brunei.

Really, the term ‘snail mail’ literally applies to Brunei mail. What happened?

I don’t know about anyone else but a good, reliable postal service is crucial in providing a healthy and conducive business environment. Millions of e-bay UK sellers, for example, depend on the reliability of the UK postal service to deliver the goods in timely manner. Sending anything ‘First Class’ will usually mean next-day delivery wherever you are in the UK (the first time I experienced this, it knocked my socks off! haha). And you can claim for compensation if item is lost or damaged by the Post Office. So if the e-bay VP who is now in Brunei knows about the postal service in Brunei, I’m sure he will devote half his talk about the importance of a reliable delivery system.

Anyway, this is one service that can and should be corporatized (Read: the salary of all employees will depend on their ability to send letters/parcels quickly) so hopefully it can become efficient. I hear it’s in the pipeline. So, a big GOOD LUCK wish from me!

Salaam.

Not Likely to Change

2008-11-12T03:46:00.002+08:00

Apparently our local youths still think that it is their given birth right to work in the government sector (here for full news). Oh perhaps, their life is still full of roses that having no job is better than having a low-paying job in the private sector.

To solve this dilemma, here’s a thought. Considering the government sector is already saturated (or so as I was told) i.e. it can no longer employ the whole 6000 job-seekers (and it shouldn’t be!), there should be some mechanism in place that should stop the idea that everyone can get a government job. And at the same time, make people value their private sector job or at least stick to their private sector job until their contract ends (with good behaviour). So I say, increase the level of qualification requirement and make ‘private sector employment’ a pre-requisite to the ‘popular’ public sector job.

Now, with regard to the ‘elaun sara hidup’, I think it’s either we scrap it off OR give to ALL Bruneians, fair and square (after all everyone is doing their bits to develop the country, regardless of the sector, no?)

Salaam.

Brain Food

2008-11-09T19:54:00.003+08:00

In between shopping for a new house and packing to go home (sorting 4-year worth of stuff into ‘bin it’, ‘donate it’, ‘sell it’ and ‘bring it’ can be a pretty daunting task), I also try to catch up with my readings.

One of the books I just finished reading was ‘Predictably Irrational’ by Dan Ariely. It is insightful and entertaining (I laughed out loud reading this book, which is a rarity for an economics/business book) and that is why I’d recommend it to anyone. Written in simple english, it explains how we think we behave rationally, when in fact we are actually irrational and predictable. For example, we would be more willing to go (hunting) to different shops just to save $5 of a $15-good but would be less willing to save the same amount of money ($5) of a $500-good. So, if you have to buy 1 book this year, make IT this book. It can change how you think and hopefully can make us become 'rational' in our decision-making. It’s also good for any would-be entrepreneur and any businessperson as it contains a lot of marketing strategies.

A more serious book is ‘Rogue Economics’ by Loretta Napoleoni. This book is about the dark side of economic force. It actually makes me shiver that economics can actually cause misery to the lives of millions of people (in case you’re wondering, it is beyond ‘trade and globalisation’ stuff). Interestingly, her conclusion was that Syari’ah Economics could play a very positive role in saving the world from rogue economics.

Salaam.

Battle of the Sexes

2008-11-08T05:49:00.002+08:00

While watching President-elect Obama and his staff having a meeting in the news today, it dawned to me that out of the 20 or so people sitting around the table, there were only about 3 females. Why? Are we less productive? Less capable? Less educated than men?

In Brunei, for example, this year alone about 80 per cent of UBD graduates were females but I bet this percentage does not reflect the number of female high-ranking officers (directors and above) in the government sector or even in the private sector. OK forget Brunei, according to Fortune magazine, in 2007 women made up only 2 percent of Fortune 500 CEOs.

I found this interesting article from Slate that explains why we still live in a male-dominated world. Apparently, there are three reasons: 1) women are more risk-averse. 2) conscious discrimination still exists and 3) unconscious discrimination (despite women working harder). And according to this article, mothers earn 75 percent as much as men while childless women earn 95 percent as much as men of the same age and the same job.

Oh dear, apparently we women still can’t have it all.

Salaam.

Click here for the list of 50 Most Powerful Women in the world.

The World in History

2008-11-05T17:07:00.003+08:00

It's official. The most powerful man on earth is now Barack Obama.
This proves that nothing is impossible in this world, as long as you work (hard) for it.

Click here for his victory speech.

(Oh please God, Brunei needs someone like this to make changes!)

Salaam

TAP

2008-11-02T19:01:00.003+08:00

I was reading the news about TAP today and I couldn’t help doing a quick calculation on my own TAP. And I am worried. Because I don’t think I will have enough money to support myself, let alone to support my family, when I retire until I die.

With the current TAP contributions of 10 % (5%-employee & 5% employer), by the time I retire I will probably earn about $200K. Now, let’s say I live for another 20 years then my monthly retirement will be about $800. I have not taken factors such as inflation which will make the $800 have a lesser value, and Brunei-without-oil which will probably mean I need to spend more for my basic necessities such as medical care.

Oh dear. What should I do? Contribute more seems to be the suggestion.

But hang on, what about those who are earning less than me? What about those who have many children to support? Who, even now, are difficult to make ends meet. How can they possibly ‘voluntarily pay more’ in their contributions?

Anyway, I googled Singapore’s Central Provident Fund (click CPF for a quick summary) which is their TAP equivalence (but more superior). What I find very interesting is their principal behind their scheme:

Over the years, the success of the CPF scheme has depended on values such as self-reliance, good work ethos and family support. Besides encouraging self-reliance, the various schemes underscore the members’ responsibilities as parents, children and breadwinners. The values that the CPF both promote and rely upon include: Standing on one’s own two feet. Every CPF member is encouraged to work, even beyond his retirement age. The CPF savings will guarantee him a comfortable retirement. Even those with modest savings will have enough for basic needs. This self-reliance—funding one’s own retirement instead of relying on the future generation—is a vital element of the scheme.

I don’t know about you but the word ‘guarantee’ stands up. With their total of 30% contribution (10% employee, 20% employer) surely can make that happen. And reading further, there is a required minimum sum to be met, which at the moment is around $100K.

Now, I don’t mean to criticize and belittle anyone’s effort but we seriously need to review our TAP scheme. For a starter, I don’t see any harm in increasing the employer’s contribution. As for those who are working in SMEs, whose employers can’t make the increasing contribution, shouldn't they deserve a miniscule slice of oil income?

Salaam.

Life

2008-11-02T06:34:00.004+08:00

Life has been busy in the past one month (hence, the absence of post). First of all, I am very pleased to announce that I did it! I’ve finished and submitted my thesis in under 4 years (Alhamdulillah) and now I’m waiting for my viva. I don’t mean to brag but a few of my colleagues asked me how I managed to do it considering I also have a family to look after i.e. being a full time mom and a housewife.

Well, I must admit it was not easy and without the help from my husband, I don’t think I could manage (Thank You, Abang!). But most importantly I guess, is to keep on doing your work, every day. If you ask me, I don’t have any pattern. I would do my work anytime of the day, whenever and as long as I could (this ranged from only 15 minutes to 2 hours per day). If I had to follow a pattern, say only night time or early in the morning, I don’t think I could finish. What is also important I think is that once you start doing your work, you need to focus. When your concentration is gone, then stop doing your work or try to do something that requires very little or no thinking. There has to be some quality with the work you’re doing. There’s no point in sitting in front of a computer for 5 hours if nothing comes out of your head. You only end up bidding for handbags in ebay (which unfortunately happened to me a few times :p) and become upset when you don’t win them.

Oh and don’t forget to pray, du’a to Allah S.W.T to give you the understanding, the memory and to be always full of ideas and thoughts that can assist you in your study.

Anyhoo, I would like to say to those moms or would-be-moms out there who are now studying or who are thinking of going back to school, you can do it! Insya Allah, God will help you.

Salaam.

"Glory be to You, we have no knowledge except what you have taught us. Verily,
it is You, the All-Knower, the All-Wise" (Baqarah 2:32)

Eid Mubarak 1429/2008

2008-09-30T06:51:00.005+08:00

Eid Mubarak!

May the Blessings of Allah

Fill Your Life With Happiness

And Open All the Door of Success

Now and Always.

Selamat Hari Raya Aidil Fitri, Maaf Zahir dan Batin.

Terkasar Bahasa, Tersinggung Perasaan, diPohonkan Kema'afan.

Salaam.

RBA And.....

2008-09-27T00:49:00.003+08:00

...One angry employee ( BB Opinion 24 Sept 2008):

What's happening with our national carrier?

Where is our national carrier Royal Brunei Airlines heading?
A few months back, I remember they were boasting about the arrival of their new airplanes, the Boeing 777. But the new airplane is nowhere to be seen.

All that is left are the old Boeing 767s with seats, which in my opinion, is worse than a budget airline.

I do not see any major improvement as yet. First, the gone B777 deal and this year, the hope of getting merit increments and bonus for staff look bleak with nothing so far.

Unfortunately for those who resigned, the employer's TAP contribution is also affected from the employee's end of service benefits.

In its commercial side, I see failures especially in the decision-making. I have been in the sales and marketing industry and I personally think their commercial department needs a major overhaul putting those specialising in that field rather than putting a pilot or engineer instead. I guess, they just have the wrong people for the wrong critical positions.

Salaam.

Liveable City

2008-09-24T18:51:00.002+08:00

When I was reading this article, I can’t help thinking about Brunei’s Vision to be among the world’s top 10 countries in terms of GDP per capita and quality of life. So, I wonder whether Brunei (or any part of it) will one day ever make into the top 10 liveable cities in the world. According to Monocle, the ingredients to be a liveable city are:

“a mix of shops and services within walking distance, a good transport interchange within close proximity, green space as part of their residence, a good park with a body of water for a refreshing plunge nearby, independent businesses as a key feature of the community, a sense of security (police on the beat or a Japanese-style police box in their neighbourhood), excellent coffee (Melbourne's Fitzroy and St Kilda and Sydney's Potts Point frequently came up as neighbourhoods that had the ideal mix of restaurants, cafés and street life) and finally a little bit of grit and surprise.”

Judging from the latest result which saw many of the European cities topping the list, it looks like we still have a looonnnggg way to go.

Salaam.

Are We THAT Thick?

2008-09-23T01:28:00.003+08:00

After reading the Brunei Times’ piece on ‘Mobile Phones as a symbol of social standing’, the first thought that came to my mind was just how thick we Bruneians can be. In this holy month, I know I shouldn't be having any negative thought but I’m seriously frustrated! But I honestly lost my head when I read a 36-year old civil servant admitted that “his eyes are closed when he pays for a new phone”. O Dear! What is wrong with us?!

[Let me Breathe…]

I don’t know how these people can afford to constantly buy the latest phones. But I suspect credit, be it credit card or bank loan, is the main mode of payment.

Well, I came across an article in Slate that talked about the role of credits in our everyday lives. It was interesting the way it likened credit to a leverage i.e. power that allows you lift a heavy stuff. In this case, credits make everything appear so cheap. Or another way of seeing it, without credit, things look expensive.

Don’t get me wrong, I am not totally against credit cards or even personal loans. There are times, especially when we are travelling, credit cards will come in very handy. Or for when budget is tight and your freezer suddenly dies on you, then the personal loan that is being offered in the shops, can help save your life. But to use credits just to prove that you have a high salary or to have the latest mobile phone or camera that even can rival James Bond’s is beyond me! It’s even worse if you are buying a new phone at the expense of your child’s school fee.

In these last few days of Ramadhan, I can imagine the ‘eyes-turn-blind’ shopping frenzies are at their peaks in Brunei.

This can lead to a disaster, not only to the poor (or shall I call ‘thick’) person’s life but also to the health of the economy. In fact, I believe this is also another culprit that contributes to the increasing number of claims of being ‘poor’ in Brunei.

So I say, please…… whoever or whichever authority is looking into the credit policy in Brunei, to look into this seriously. It is high time we put a credit rating system in place. What I mean is that you can’t just allow any Tom, Dick and Harry that has a blue payslip enters into a credit contract without a thorough check on his financial background.

Everyday in the news, we hear about ‘credit crunch’ happening globally that has even put those giant corporations down on their knees and even collapse. It all started from careless and inappropriate lending. Anyway, it probably is still a foreign term in Brunei, so let’s keep it that way.

Selamat Menyambut Hari Raya Aidil Fitri. Spend Wisely!

Salaam.

ALMOST THERE

2008-09-14T07:24:00.000+08:00

This is just a quick post. I’ve been busy in the past weeks to finish my work. Alhamdulillah, the first draft is now ready. So I just have to wait and see what the supervisor says. If it goes well then this heavy burden (of 3 and a half years) will finally be lifted off my shoulders (I mean this literally and metaphorically!). In the mean time, Ramadhan Mubarak!

Salaam

Road to Diversification

2008-08-27T04:52:00.003+08:00

This is the kind of news that I love to read in the morning. Hopefully this too.

Salaam.

Wawasan Brunei 2035 and National Development Plan 2007-2012

2008-08-24T07:00:00.001+08:00

I have not read Wawasan Brunei 2035 (Brunei Vision 2035) nor the new National Development Plan (Rancangan Kemajuan Negara - RKN), which for some reason was not called the ninth. Hence, I cannot really make a lot of comments on the contents of these 2 national books. For everyone’s benefits, there are 3 main objectives to achieve Brunei Vision 2035 and these are:

1) Brunei to be recognized as a highly educated and skilled people;
2) To have a quality of life among 10 top nations in the world; and
3) To be among the top 10 GDP per capita income nations in the world.

I have found some interesting reads regarding Wawasan 2035 including a presentation made by Dr Richard Leete at the Brunei Forum in Singapore and an article featured in the economist.

The most interesting paper I came across however was a paper by Brunei’s National Development Party which can be found here. The 17 page paper, written in malay, highlights a few weaknesses of the new RKN and gives some proposals for improvements. Among the key points are (pardon my poor translation):

1) The new RKN lacks a comprehensive planning structure: For instance it does not show the specific sectors to be developed and their projected contribution to the economic growth. It also does not address the demand and supply aspects of economic development which will give a more realistic picture;

2) The use of GDP per-capita as the measurement of quality of life will not give a true picture. The GDP per-capita is not a measure of income equality. A greater income equality will ensure a higher quality of life. The Plan however does not address the issue of income equality;

3) The lack of detailed data to support some of the strategy such as the reduction of foreign labour dependence;

4) The lack of strategies to achieve some of the human resource development objectives;

5) The Plan does not explain the method of the calculation of the multiplier effect, which will be used as the basis of project selection.

From my point of view, those points are valid, economically sound and definitely not some mere criticism. What they have raised in that paper are very important and should be taken seriously by the relevant policy-makers in ensuring the successful implementation of the current and any future RKN.

Salaam.

Working Boss

2008-08-22T07:27:00.003+08:00

In a few months time, I’ll be going home to Brunei. Believe it or not, I am actually looking forward to resume work with the HOPE that I can make full use of what I have learnt to help the development of Brunei’s economy. But of course this excitement would probably not last for a long time (I will give myself 2 weeks!) especially if I end up not doing things that I think I should do and/or if I don’t work with the right team and/or if the work place is boring and/or if the bosses are…

I remember my conversation with a family friend many months ago. He was a head honcho of a government department in Brunei and our conversation drifted to whether or not I was looking forward to go back to work. And he asked me ‘what’ could excite me to resume work in the office. Well, my answer was ‘the bosses who are working’. (It was also interesting when he told me that as a boss he was also looking for 'working officers', who according to him were scarce).

You see, nothing motivates me more than a ‘working boss’, who unfortunately is hardly to come by in Brunei. And nothing turns me off than a boss who ‘I ask you, you ask me’, who unfortunately exists in a large number. What I mean by a ‘working boss’ is a boss or a HoD or a director who does his/her own thinking, who conveys his/her thoughts clearly to the officers, who knows what he/she wants and who shows that he/she is more capable to do virtually all tasks than any of the subordinates. Don’t get me wrong, I am not looking for a boss who knows everything but a boss that I can look up to, or in the words of our family friend, a mentor.

I am honoured that in the few years I’ve worked I had the opportunity of working with two working bosses, one of whom was the late Professor UBD’s Vice Chancellor (may Allah bless his soul). These two bosses had somehow trained me to love thinking, to believe in what I could do and to be passionate with what I do with the sole objective of developing the country. They were my mentors and I always think to myself, if one day I can be half as good as they were, I’d die a happy woman!

Anyway, I can’t say much of my future bosses as I have yet to work under their leaderships. What I can say for now is I can’t wait to see them and I look forward to our first substantive (intelligent) conversation.

Salaam.

The Curses

2008-08-14T20:51:00.004+08:00

I'd hate to think that we are cursed. Double cursed. First, there was the Curse of the Resource (in our case, oil). Now, I wonder if we also suffer from the Curse of the Third Generation as explained by Hsu Dar Ren:

"Looking around us, we can observe that many super rich families often discover that their estate cannot survive the third generation.

The first generation often starts out poor, but through sheer hard work and thriftiness and a little bit of luck become wealthy. From being wealthy, many of them then join the class of the super rich as a result of good entrepreneurial skills and judgment. Many of them, however, remain thrifty even when they become very rich.

The second generation very often grows up during the time their parents were struggling to make their fortune. They are better educated and often will be taught by their parents to "fish" intelligently. So when the family fortune passes to their hands, many of them can still maintain the business and some even expand on it. They are, of course, less thrifty than their parents, and will often marry someone from a rich family.

However, the third generation is usually born with silver spoons in their mouths. They are generally brought up in a life of luxury. They are usually not taught how to fish but are pampered with all sorts of expensive "fish" and hobbies. Many of them are sent overseas for education, but it is not uncommon to find some of them just fooling around and living an extravagant lifestyle. They are given everything and because of that, they do not really know how to cope with difficult situations and the intricacies of the business world.

Adding to that, the family wealth inevitably gets diluted among the more numerous siblings in the 2nd and 3rd generations, especially when these generations are unable to do much to expand the family businesses.

So, the wealth that was passed down just withers away. This is commonly known as the Curse of the Third Generation".

Fate, Cursed or whatever you want to call it, as a Muslim I believe:

“…Surely Allah does not change the condition of a people until they change their own condition…” (Qur’an 13:11).

Salaam.

Land Dilemma

2008-08-14T07:12:00.005+08:00

I found an interesting article by Brunei’s National Development Party on the issue of land ownership (click here) which reminds me of a discussion I had with a colleague from the Land Department.

I am no expert in the whole land issue/policy but I do not think the objective of ensuring the local ownership of land has been successfully met, in fact I think it actually has backfired. True, it is a sensitive issue. And for that precise reason, it needs a special attention. The Land Code 1909 really is too outdated, and I do think it deserves some amendments that can accommodate the needs of a new century and most of all the needs of the current economy and its future development without compromising the ‘rightful’ ownership. However for now, I reserve further comments.

Salaam.

Are We Poor OR Are We Stupid?

2008-08-01T05:52:00.002+08:00

It is sad to see and hear about the events happening in Brunei (i.e. the food clamouring and the coupon stampede) that have even result into human tragedy (courtesy to ranoadidas.com for always bringing the important news). It would be normal if it happened in a third world country, but for it to happen in Brunei, an oil-rich country, is quite extraordinary.

The question, as rightly put by Mr. Brunei Resources, is “What Happened to Bruneians?”

Now, there are 2 schools of thoughts. One says that it is simply because we are poorer and the other says we are too materialistic that we don’t even know how to differentiate between what is right and what is wrong i.e we are stupid.

Unfortunately, we can never truly find out until a proper income gap analysis is carried out. It is imperative that we know how many Bruneians are poor, how poor and why they are poor. Without such analysis, then we can never know and we will only end up having the rich blaming the poor (of being immoral and shameless) and the poor blaming the system (of unfairness).

While I do not doubt the existence of those who are genuinely poor, I also believe that the pool of poor people in Brunei is also largely made-up of those self-made poor, who are spending beyond their means. Regardless of how people become poor, we need to address poverty properly. There are 2 critical issues to tackle. One, how do we lift Bruneians off their existing poverty and two, how to keep the zero poverty (if it is ever achieved).

Now, if I were an economic advisor to Brunei, these are what I would suggest:

Get our statistics and figure right. We NEED to know our poverty statistics A.S.A.P.
If the finding (whether this is made public or otherwise) is that there are indeed a large number of poor people in Brunei, then we really need to review our economy. If people are poor because there is no job, then we need to pump-up the economy. This is THE time to make use of the oil-money.
Lifting people off poverty does not simply mean giving them money. We need to be creative in giving them the means to make money. True, this is easier said than done given the unfortunate attitude of some (most?) of Bruneians who more than many times do not see the rationale behind the self-aid help. But with proper monitoring and perhaps some taught management skill, I’m sure there will be some positive results. The key is for the relevant agency to NOT to give-up. Don’t let one bad apple ruins the whole basket.
It is time to differentiate the different types of goods available in the market. There are the luxurious and there are the normal ones. The problem in Brunei is that there are too many ‘high standard’ people who will not make do with just the normal goods and then there are also too many of us who always want to keep up with the Joneses. For many of these people, the euphoria of owning the latest mobile set or a branded watch has blinded their rational judgement and has reduced their mathematical ability to calculate their monthly balance to pre-kindy level. Therefore I believe the good old system of tax can somewhat alleviate this problem of euphoria-blindness. We need to tax (highly) the luxurious goods.
A credit monitoring system needs to be put in place. I cannot just go to any store and sign any credit agreement without a thorough check of my credit rating.
It is time to review the TAP contribution. There is a need to increase the contribution from the employees. We need to make sure Bruneians save for their own future. And of course, since Brunei coffer by now must have filled with a lot of oil money, I would also say that the government needs also to increase its contribution into TAP not only into the account of those in the public sector but also to Bruneians in the private sector. Afterall, the money is saved for the future. This contribution from the government I believe could be the key to reduce the remuneration gap between the public-private sectors. It would help increase the attractiveness of the private sector and would (hopefully) alleviate the problem of lazy Bruneians who would rather be unemployed than do manual job.
We need also to look at our system of income re-distribution. How do we re-distribute the income from the rich to the poor. While income tax may not be accepted in the near future, property tax certainly deserves some high level discussion now.
I don’t know how good our police force or those in the NCB are in combating drug wars, but I pray with all my heart for them to be really good.
Finally, I think too much subsidy make people too lazy.

Salaam.

National Development Plans: Summary1

2008-07-29T04:49:00.007+08:00

I am going to share with you the finding of a little exercise I did at the beginning of my research. After reading all of Brunei’s National Development Plans, cover to cover, I made a matrix (which I must say is not an easy exercise!) of each RKN/NDP’s objectives, strategies, finance allocations and the targeted economic projects/industries to be developed.

Today, I am going to show you the list of targeted industries/projects beginning from the third National Development Plan (as the first two mere talked about physical infrastructure). The aim of this is to sort of reflect, remind ourselves and see how far we have gone to achieve any of the targeted projects. If we have, how successful was it? If we haven’t then the question we should ask is why? (Unfortunately I do not have the data to measure the achievements).

NOTE: ALL of these can be found in the published National Development Plans!

(Apology for the untidy presentation and BEST VIEWED using FireFox!)

3rd NDP (1975-79)
1. Rice production
2. Agriculture: sweet corn, yellow beans and high protein cattle grass.
3. Livestock: meat and eggs.
4. Castor oil plant
5. Tree crops: pineapple plantations and palm oil estates
6. Fisheries: marine fish
7. Forestry: establishment of a Kraft Pulp Paper Mill and a timber complex.
8. Other mineral resources: development of gravel in Temburong, silica sand in Tutong and coastal terrace clay and ceramic clay in Jerudong.
9. Tourism: Construction of hotels.
10. Oil and gas: Ammonia and Urea plants
Agro based industry: sago processing plant

4th NDP (1980-84)
1) Rice production
2) Livestock production: goat farm, cattle breeding.
3) Uplands crop: maize, soya beans, cowpeas for animal feeds
4) Fisheries: fresh water fish
5) Forestry: timber production
6) Other minerals: Silica land in Tutong (with reserves of 20 million tons), sand mining and pottery/tile industry based on coastal terrace clay and ceramic clay
7) Agro industries: vegetable oil, castor oil, animal feed, leather works, oil-palm, fruit juice and puree factory, orchard growing for export, coconut oil extraction and fibre factory

5th NDP (1986-90)
1) Agriculture and livestock industry:
• Rice, Tropical Fruits, Vegetables, Cattle, buffalo and goat, Chicken and Eggs
2) Fisheries:
• Marine fish, Aquaculture: freshwater and brackish water, Fish meal
3) Forestry:
• Using swamp forest product for plywood, Fibre-board factory using woodchips from the sawmill factories
4) Manufacturing:
• Food processing: canning and packaging,
• Furniture
• Potteries and Tiles
• Textiles: high value added types of garments using modern and traditional technologies
• Cement factory to grind imported clinker
• Precast concrete factory
• Chemicals and dyes
• Plywood and Wood paneling
• Glass from silica sands in Tutong

5) Tertiary Industry: Banking and finance, Insurance, Maintenance services

6) Financial Centre
7) Trade Centre
8) High value-added, non-labour intensive industries
9) Bio industry

6th NDP (1991-1995)
1) Industry
• Industrial sites to be developed in 3 districts
• Identified industries are:
o Mini steel plant
o Light-weight aggregate
o Dairy milk
o Glass
o Pre-cast
2) Agriculture:
o Rice
o Hydrophonic vegetables
o Eggs and poultry
o Local fruits and production of seedlings
o Horticulture
o Buffaloes and goats

3) Forestry: Rattan plantation for furniture industry
4) Fisheries: Marine fish

7th NDP (1996-2000)
1) Oil sector:
• Plan to develop the oil and gas industry into downstream activities including:
i. Ammonia/Urea
ii. Methanol
iii. Export Oriented Refinery
iv. Other Petrochemical such as plastics and paints

2) Primary Sector:
• To produce 7% of rice requirements;
• To maintain the self-sufficiency level of egg production;
• To meet 70% of local chicken needs;
• Increase production of vegetables, plants and ornaments and livestocks;
• Aquaculture projects tp produce high values species for export

8th NDP (2001-2005)
1) Oil and gas sector:
• Oil and gas downstream activities

2) Industry
• Value-added industry such as food processing
• Export specialized services such as engineering, Islamic banking, law, economy, accounting, architecture and estate management.
• Manufacturing: Construction materials and equipment, garment and furniture.

3) Primary Sector
• Agriculture targets:
 3% of rice requirement
 To meet 94% of vegetable needs
 To meet 47% self-sufficiency in fruit production.
 Increase production of ornamentals horticulture industry.
• Livestock industry:
• Broiler industry to meet 100% self-sufficiency
• Poultry production to maintain 100% self sufficiency level.

• Fishery sector:
• Production of rostris prawn
• Production of other fish species such as mud crab, golden snapper and barramundi cod.

4) Tourism and Trade
• Develop more eco-tourism destinations.
• Promotion of cottage industry such as:
• Traditional food, Weaved cloths, Rattan furniture, Plaited products, Malay Cap, Sculptures and carving, Woodwork, Silverware, Brassware, Malay dagger, Boats
5) Banking, Finance and Insurance
• To become an international financial centre through BIFC

6) Other promoted sectors:
• ICT for k-ekonomy; Transhipment activities.

Personally, I believe there is nothing wrong for us to come up with ‘new ideas’ for new projects each year, but we need to supply our ‘ideas’ (especially the fancy ones) with some strategies and plan of execution I suppose. Otherwise, it will just be another list in the non-exhaustive yet-to-be-achieved projects.

I have done the basic dirty work of compiling this list. For anyone out there who is thinking of pursuing a Masters degree and/or a PhD, I hope this is of some use to you. (Panjang amal). This could be used as a basis of developing a research question, I think.

Salaam.

A Blessing in Disguise, right?

2008-07-27T04:52:00.002+08:00

These days almost on daily basis we read about the impending recession that will happen in the UK and the US which will affect many-many countries whose economies depend on the demands from these countries. Those, coupled with the increasing global food prices and the skyrocketing oil price, mean doom and gloom for the world economy.

Then I thought are we lucky or what? This is what I think, for some blessing-in-disguise sort of luckiness, all of the world events may probably have little effects on us. Thanks to oil, we have not been producing anything else which means we will not be affected by the fall in world demand of anything, well..except oil. As long as oil price goes up, then we haven’t got anything to complain. Our economy will continue its growth. Our inflation stays low (thanks also to oil money that have been used to subsidise our cost of living). And if there will be a recession, we will actually stand to gain. A world recession will push the prices of all goods (including food) downward. Since we import almost ALL of our needs, then we can continue not producing anything and buy from abroad, which in fact will become cheaper.

And then we all can continue growing… without development.

And of course, if only oil never runs dry.

Salaam.

Happy Birthday

2008-07-15T14:41:00.003+08:00

Happy 62nd Birthday to our beloved His Majesty Sultan Haji Hassanal Bolkiah.
Thank You very much for your kindness and generosity to us.
May you be blessed with good health for many years to come.

Life After Oil

2008-07-13T06:05:00.004+08:00

I was reading the post made by Brunei Resources on ‘Life Without Oil’. He suggested that Brunei should either decrease government spending and/or increase our tax base, which in economics term is what we call ‘contractionary fiscal policy’. This policy is usually applicable to an economy that has a budget surplus, which thanks to the soaring oil price, is actually the case for Brunei. But if you take the oil effect, Brunei’s budget will not be as handsome as it is today.

The effect of a contractionary fiscal policy will be a reduction in the aggregate demand which is not exactly the right prescription for a country that has little economic activities. Having said that however does not mean that the government should just spend all its income. It should be mindful of what it is it’s spending on. What we want is productive spending (and I agree with Mr. BR, this does not include subsidy). Spending that can stimulate the non-oil economy. And we want lots of this. Being a small economy (defined as having a small population) is not without its problem. And for that reason I personally think we need a strong government support (while it is still able) to help the economy as much as it can.

But the question of life after oil is still unanswered.

To answer this, we need Ricardian’s Theory of Comparative Advantage which says that we should produce and specialize in the production or services in which we have comparative advantage. What? You may ask. I say, look around us. We are so fortunate to have plenty of sun, land and sea, which I believe are extremely under-utilized. With a bit of hard work, I’m sure Brunei can develop its comparative advantage. If Singapore, an island that has an extremely limited natural resource can become one of the Asian’s dragons or Liechtenstein with a population of about 34,000 people and equally has a limited amount of natural resources can become one of the highly industrialising economies, then so can Brunei!

Life without oil will not be the end of the world as long as we do something about it. And we should start NOW. The current generation must help the future generation in the transition of oil to non-oil economy. Any ‘rentier’ habit has to be removed from the current system and the mindset of all Bruneians. With the right attitude, the right mind and the right policy Brunei could and should thrive. There must also be a strong will both from the government and the people and of course, some hard work too.

Salaam.

Battle of the Schools, Revisited.

2008-07-07T04:00:00.002+08:00

I received many comments for my post on schools in Brunei a few months ago. While I do not doubt that parents’ involvement in their children’s education is imperative, I still believe that schools and teachers equally play an important role. I also agree that at the end of the day, it is the children’s own efforts that determine their achievement and those who have ‘the brain’ will make it anywhere. Although I do not think this is fair.

It still appears to me that most parents (including myself) do not really have a concrete reason why we send our children to a private school than to a government school. We assume we know the reason. We assume that by paying more, our children will learn more. Often, our choice of school is influenced by words of mouth. When we see or hear children of our friends or relatives are doing well in a particular school (which is almost always a private school), we assume our children will also be doing well in the same school. Now, if this is true (i.e. a private school is better) then those children who have able parents will almost certainly get better education. What about those children whose parents cannot afford to send them to a private school?

But the question remains, do we really know that a private school is better than a government school? Does the money we spend worth the quality of teachings our children are receiving?

Generally, we do not know the real performance of a school, the performance of the students, let alone the performance of the teachers. We do not know whether school A is better than school B. I remember when my husband and I went for school-hunting a few years back. We went to a few schools and all we were given was a few forms to fill along with the fee schedules. There was no information on the performance of the school or any information why we should choose that school. In the end, I had to rely on words of mouth, which is not an informed decision.

Here in the UK for example, we have the Office for Standards in Education (OFSTED). Every school is inspected and assessed. In the comfort of my chair I get to read reports about all of the schools in the area which are published in their website. Every school that I visited also gave me a copy of this report.

Now, this is what I call a transparent system that leads to an informed choice which we are sadly, lacking. Now, I don’t know the content of the Ministry of Education’s SPN21, I hope transparency is also one of the agenda. It will not only help parents make the ‘right’ decision, it will also ensure the quality of our schools, be it private or government. And most of all, it can ensure that every child receives a good quality education.

When all schools are assessed and results made public, naturally every school will want to be the best and want to improve their past performance. This will not only benefit the children and the parents but will surely benefit the entire education system. Who knows, if the government schools prove that they are better than the private schools, parents don’t even have to fork hundreds of dollars each month. And that will be sweet indeed…

Salaam.

Life-long Learning in Brunei

2008-07-03T00:25:00.002+08:00

There will be 2 exciting international conferences to be held in Brunei:

1. Brunei International Halal Market Conference on 16-17 August 2008;
2. International Conference on Economics of Higher Energy and Food Prices: Future Scenarios and Implications for Developing Economics on 7-8 January 2009.

So, do take these opportunities. Attend, learn and don't forget to ask questions :)

Salaam.

Brunei and Oil Love Affair

2008-07-02T14:32:00.003+08:00

My friend Roger Lawrey talks about Brunei's diversification.
I couldn't agree more.

Salaam.

Road to Diversification

2008-06-28T05:48:00.003+08:00

There has been another ‘exciting’ development in Brunei’s quest to diversify its economy (or I hope it is what we are doing), and that is Brunei wishes to be the ‘city in the garden’. Is this just a mere statement or is this a real project with plans and strategies already being formulated? If it is a real project, I would love to know and maybe contribute ideas but if it isn’t, then Brunei better do something about it because you can’t just announce to the world that you want to be something and not do it and expect the world to forget.

The thing about us in Brunei is that we love to make fancy headlines: ‘halal branding’, ‘heart of Borneo’, 'Kingdom of Unexpected Treasures', ‘service hub (ShuTT)’, ‘ICT park’, ‘offshore financial centre’, ‘Brunei Inc. (or something like that)’, just to name a few. Please don’t take me wrong, I’m not saying that we shouldn’t do this or we cannot dream big but I have yet to see the end products.

I think the main reason why we have not achieved anything in relation to these ‘fancy’ projects or actually ANY project is that there is a lack of detailed plan and strategies. Even if there is one, it is never shared with the public let alone debated. Even worse it is sometimes not even shared among the relevant agencies. As a result the public, including the private sector, do not understand, never mind contribute, and therefore the project is not appreciated and supported.

Take for example ‘halal branding’. Seriously, I don’t fully understand what is it that we want to do? What is our objective? Can it create massive employment? Can it increase food production? How much resources are we devoting? What is our problem? Why does it take so long? How can we help? Do we mean to say that ‘Brunei Halal’ is better that ‘Malaysia Halal’ or ‘Thailand Halal’? Because believe me, when I go to a shop abroad I only look for ‘Halal’ products. Taste and packaging play a more important role in my decision to buy a particular halal product.

I am no expert but I think it is high time that Brunei goes to the basic of development and economic diversification. Instead of devoting our energy and resources to fancy projects, wouldn’t it be better to concentrate in the actual production? I for one want to hear plans for massive agricultural production or fishery or any kind of manufacturing. It sounds boring but it is what we most need to survive. Do remember that we only have 25 years to turn our economy around. And that is not a very long time.

Salaam.

Reality Bites....in Miri

2008-06-26T04:47:00.003+08:00

Somebody sent me a link to a blog post by one of our Sarawakian friends. For the benefit of those who do not have a Multiply account, here it is:

MONEY WITH A DIMINISHING VALUE by Zaidil
There is a sudden change in atmosphere in Miri city after the fuel price hike. There are less cars on the road. The shopping centres are less crammed and worst of all... there are not that many happy faces around. From what I sensed, it is just the beginning. The experts predicted that the trend is likely to continue that way for quite some time. So what do we do?

Nothing much I am afraid. If you are an optimist, you will say - work harder so that you can earn more to compensate for the diminishing value of the currency. At the rate the price of goods is increasing you have to earn at least 2 times what you earned a month ago in order to maintain the same level of lifestyle.By the end of this year, you have to earn 4 times what you earned in April. This week Abdullah has just announced that if you work in the govt, you are allowed to do a part time business. Wonder how will that affect the already inefficent govt agencies?

On the other hand, if you are a pessimist, you will start looking for scapegoats and punchbags to put the blame on.

The situation is however not all gloom and doom. The bright side of it all is that there is a lot less road accidents ever since the price hike was annunced and people started to use the public transport more. Actually last sunday was the first time that I went to Boulevard supermarket without anyone ramming my butt with the trolley. I had the entire supermarket for myself.

Another positive development is that people started to think of growing their own vegetables and rice which I think is not a bad idea at all. Myself, I am thinking of digging the document bag to search for that land title which my grand father left more than a decade ago. With a bit of luck the cockroaches have not been so hungry to savour the land title and I might be able to harvest my own Bario rice. Oh do I have to fly to Bario to grow Bario rice!!

We should be grateful that Brunei still maintains the fuel subsidy (I don't know when will that last though, and I'm not sure whether it is the most sensible and rational policy). Nevertheless, I'm sure Brunei is also affected by the policy change in Malaysia. Perhaps this effect will probably even bigger than an effect of a reduction in Brunei's fuel subsidy.

Too bad for a country that depends on too much import.
But that's reality. And reality bites.

Salaam

Oil Price

2008-06-25T00:23:00.003+08:00

I received an email today asking my view on the current issue of the current global oil price hike and the possible 'answer' to the crisis. It has been in my head the whole day today and I'd like to share you my reply to the email. I also believe that as an oil producing country ourselves (albeit small), this issue concerns us. I would also love to hear other views.

Below is the content of the email:

Dear Freakonomist,
I'm Raiza, an ordinary person who wonders alot on what on earth is gona happen to the world when the oil price hits US$200/ barrel which in turn would give a spiralling effect to the worlds economy wreaking havoc the global financial market. Understanding that you believe there is an economic explanation to everything intrigues me and leads me to email you on the following issues. I humbly request for your opinions and explanations.

What has been bothering me lately is the fact that inflations are occuring in most countries, Brunei is of no exception. I strongly believe that one contributing factor to this is the disturbing rise in oil price.

There are several excuses to the rise in oil price:
1) The global demand for oil is rising.
2) The dollar continues to fall to record lows.
3) And, OPEC refuses to raise production levels, insisting US recession will lower.

Today's newspaper mentions despite the Jeddah Summit where policy makers gathered to have emergency energy talks and that Saudi agreed to increase production by 200,000 barrels to 9.7 million per day, the oil price continues to rise. The rise in oil price this time is blamed on possible terrorist activities in Nigeria. If this is true then yes this would choke oil supplies hence demands on oil can not be answered fully.
Unless... more explorations are done which will mean more huge investments are needed. The story on the energy crisis seems to go on and on and no apparent favorable explanation to resolve the said crisis.

My question now is what are all the possible 'solutions' that can help the world to return to its stable state in the short-term and medium-term? Going green is one but this surely will cost us time! I hope to hear from you soon.

This is my reply:

Thanks so much for reading my blog. If I know the answer to your question then, I wouldn’t be sitting here at home and writing this :).

Nevertheless, this is what I think:

1. I don’t think there is an ‘easy’ solution to the current global crisis because as you clearly point out, there are several reasons to the rise in the oil price. Addressing one or trying to do so without solving the others, does not guarantee that the issue will be resolved, as is the case to the Saudi’s agreement to increase oil production (i.e. oil price remains high).

2. The US needs to strengthen its dollars but that would mean at the expense of the US economy, which as we speak, is ailing. A stronger dollar may worsen their Balance of Payment, which would not help their economic health. But a continuous weak dollar will surely be followed by a continuous increase in the oil price.

3. And then there is a problem of increasing global demand. Now, the ‘economically’ right thing to do is for all governments in the developing countries (where oil demand is high and growing) to remove any oil subsidy. If the domestic oil prices in these countries reflect the international price, then demand for oil will surely go down. But this is (as you can imagine) not without a great cost.

4. Another factor that’s causing the increase in price, if I may add, is the work of the commodity index buyers and speculators. Now, this needs to be stopped.

Without doing all of the above then sadly, it may be true that the only solution to the energy crisis is an actual global recession.

Unputdownable

2008-06-23T05:39:00.002+08:00

A few months ago somebody left a comment in my tag box, recommending me to read ‘Confessions of an Economic Hit Man’ by John Perkins. It was an interesting read although I don’t know if I believe him. To me, the book is more about politics than economics. Nevertheless, it is a good book and thank you to whoever it was who recommended it. I'm now eyeing 'Rogue Economics' by Loretta Napoleoni (now sitting on my bedside table) which probably is similar to Perkin's but hopefully will have more economics (I was quite surprise to find this book at Borders, with that title and its woman author).

But 'Rogue Economics' needs to wait for a bit because currently I’m reading Lee Kwan Yew’s Memoir: The Singapore Story - From Third World to First. Now, this book is what I call ‘unputdownable’. It is 700 pages (I’ve finished two-third) and the second book of his 2-part memoir. I read the first book when I was pregnant with my eldest daughter and it was an OK book (too much history, and I’m no good with history). But this second book is excellent! He is one of the best writers I’ve come across. He used only simple, straight-forward English, with hardly any jargon or big words, yet his description of the numerous events were alive. I felt as I if I was in his head.

Most of all, I feel this is one of those books that policymakers (especially in Brunei) should read. The book is loaded with economic and development policies. There are many (Singapore) policies that we can relate to and perhaps can ‘try, test’ with probably some modifications based on our resources and our own national objectives.

Speaking of good writers, I also follow with interest Dr. Mahathir’s blogsite. I’ve read most of his books but I love his speeches more. He has the ability to speak and write (especially his blog posts) clearly and delivers what’s in his mind structurally.

Don’t get me wrong, besides the serious stuff, I also read fiction novels. I am a Harry Potter’s fan. Until today, I have yet to find another writer who can rival J.K. Rowling’s HP. (Any suggestion, out there?). My interests also vary. I read Dan Brown to Neil Gaiman to Jeffery Archer to Jodi Picoult to Sophie Kinsella, of course. And I am a sucker for romance too (hehe) especially historical romance. I’m now into children’s novels (that Young Bond books look interesting).

Anyway, I hope one day I will also get to write an ‘unputdownable’ book too. In the meantime, I'm going to curl up in bed and finish the Singapore Story.

Salaam.

Meritocracy

2008-06-20T06:00:00.001+08:00

I've been busy in the past few weeks finishing the final chapter of my dissertation. Alhamdulillah...it's done. But work is not over for me. I need to revise my earlier work. Time flies fast. It's almost 4 years. I can't wait to get to the end. Insya Allah, I will get to the end.

My husband has also finished his course which means it's just another step for him to become a fully qualified international architect. I'm sure he will.

Anyway, both of us believe that education is a lifetime investment (and equally, a lifetime pursuit). Admittedly, it is tough and not easy. There are also times when we question ourselves whether it's worth it. The time and the money we spent - We could have bought a BMW or a Mercedes (that's what I always said to my husband, haha). But most of all, we wonder whether or not we can use what we have learnt to contribute to the development of Brunei?

I'm sorry but Brunei has yet to prove that it's a nation of meritocracy, where people are rewarded for their contribution (regardless of the age) and not for their length of service or worse, for certain 'birthrights'. If Brunei wants to change, it needs to accept and adapt new ideas and new technologies that Bruneians have acquired abroad or even within the country. It needs to listen and encourage its people to question, to debate and to offer solutions. There should also be a two-way communication. Only then Brunei can breed intellectuals and thinkers among the entrepreneurs, the professionals and the policy-makers, who I believe will help create a much diversified Brunei, a dynamic Brunei.

Salaam

Random Post: Sami Yusuf - Munajat (Arabic)

2008-06-10T06:08:00.001+08:00

Sorry, no economics today...

This is one singer that can help soothe the trouble and sadness in my heart. The song is in arabic and the translation is below:

Alone, in the darkness of my night
In the loneliness of my path
My worries weigh me down
My sins pain me

Alone, I supplicate to You and I hope
From my sins I complain
I have no one but You
I am at Your door

CHORUS:
Ya Allah, ya Allah
So forgive a servant who intimately calls You
O Allah, O Allah
You are all hope, From You is guidance
O Allah, O Allah

O Allah give me your guidance
For I am still imprisoned
Of disobedience I am no longer capable
So illuminate my paths and forgive my sins
For I am poor and in need of You

My heart has returned to walk on the path
Full of joy and longing, flying to God
And its only hope is gaining your pleasure
On the day of meeting You
You are the Omnipotent.

www.samiyusuf.com
Salaam.

Boost Agricultural Production A.S.A.P

2008-06-05T03:08:00.005+08:00

Today Malaysia announced the increase in fuel prices, lifting their price ceiling in the move to reduce government subsidy. It is quite shocking actually. I didn’t expect the price increase would be ‘that’ much. (Note: for a very interesting thought about this by Dr Mahathir, click here).

The effect of this will not only be felt in Malaysia, but Brunei too. Malaysia is one of Brunei’s main trading partners. 20 percent of Brunei’s total import comes from Malaysia. About 40 percent of Brunei’s total food import comes from Malaysia. Malaysia is Brunei’s main source of food supply. When Malaysia’s fuel prices rise, we should expect their prices of all other goods will also go up. Naturally, we will also import their inflation. And that is bad news to our consumers.

All of the events that take place around the world including the current world’s food crisis cannot and should not be taken lightly.

Therefore, I think it is high time Brunei seriously thinks about its food production. Enough talk (actually I don’t hear any talk at all since HM’s titah during the Leg Co), act. Fast. Make it Brunei’s ‘emergency’ priority agenda. Set up an ‘agricultural’ fund if we must. At times like this, what the government should do in fact is to attract people to develop the agricultural industry. Call it a fast-track strategy or whatever. Get as many Bruneians or even non-Bruneians to produce food in our country. The government cannot afford to be choosy. Cut down those red tapes! (I tell you, somebody I know tried applying for some land to be developed 2 years ago. Until today, he has not heard from the Agriculture Department). Somebody please do something!

We shouldn’t think that all the events happening around us will pass on any time soon. It could go on and on. We really should use it as a catalyst to achieve our (long overdue) national food security objective. Increasing agricultural production should be the long-term solution for Brunei. We really cannot afford to just sit and wait and do nothing. Because whether you like it or not, for a country that has a high dependence on food import, these events affect us. High food price will increase the cost of living. Well, I guess I’ll leave you to your imagination to picture the effects of that.

Salaam.

Consumer Loyalty Switch

2008-06-01T16:22:00.006+08:00

I received the email from RBA informing that they have achieved the e-ticketing target. So, what does that mean? Would they be able to improve their performance and sales? Because I can tell you that our loyalty to our national carrier has now been transferred to another, due to their poor service and sales strategy.

It happened about 4 weeks ago. When I received the (most) distressing news (ever in my whole life) from my sister, we wanted to fly home immediately, as in the very next day. It was on Saturday afternoon. I called RBA London and was answered by a machine saying that the office was now closed. I was shouting my heart out! This was Saturday afternoon in England! For goodness sake, why the BL**DY H*LL are you closed?!! Saturday in England is like THE day for business to make a lot of money.

Then we tried the RBA website. And guess what, the earliest travel date that I could book from their website was in the next 48 hours! I was gobsmacked! How ridiculous is this? RBA website is not some travel agent’s website trying to sell other airlines’ tickets. It is selling its own tickets, isn’t it? Why isn’t the website connected to their booking system? Honestly, I nearly fainted! Furthermore, the price it quoted me to travel in 3 days time (the earliest available seats) was double the normal ticket (about GBP1200 per person, if I’m not mistaken). Now where is the economics in that? Aren’t few cheaper seats better than empty seats? Charging higher fare for the last few seats is only justifiable and economically sound if there is no other airline travels to the same destination.

So, my husband calmed me down and suggested that I tried Singapore Airlines. Lo and behold! Within 5 minutes, the website gave me all the combinations of the travel dates that I could purchase, as early as the very next morning! And the prices…oh sweetness… (Thank You ALLAH!) were about GBP700 for an adult and about GBP500 for a child RETURN tickets inclusive of tax and services.

And YES, it was the double-decker Airbus 380. “WOW…” was the word uttered by my 2 daughters when they entered the aircraft.
And... RBA has lost in sales of 4 used-to-be loyal customers.

What I like even better is the fact that the SQ offered a straight, uninterrupted journey to/from Singapore, which is fantastic especially for my children. They get to have enough sleep. They sleep, we sleep. And therefore we wake up happy. Unlike RBA. We have to make a transit in Dubai, which honestly is the MOST annoying thing to do for travellers with children, especially the journey returning to London. Just imagine parents travelling with small children, who have to be woken up from their sleep- grumpy and tired, just to get off the aircraft and make a long walk along the Dubai airport just to board the aircraft again in 15 minutes. It is ridiculous!

And after sampling A380, with its fantastic uninterrupted, perfectly working personal screen in-flight entertainment [don’t even let me start on RBA’s in-flight entertainment! Which has to constantly be reset by the air-stewardess which results in my children getting angry and I (almost always) bang my head on the screens], my husband and I have promised ourselves that WHENEVER POSSIBLE, we will not use RBA for any long distance journey again. EVEN if there is a price difference. Because some things, such as COMFORT and peace of mind, are simply priceless.

I am no expert in airlines or even travel business but I’m sure it is all about satisfying customers. Plus the airline business is also in a perfect competition market. If RBA continues its shoddy sales strategy, funny flight route combinations and poor in-flight entertainment, I’m not surprised that it will be losing more and more of its customers.

Salaam.

Sadness

2008-05-28T22:44:00.006+08:00

The past few weeks had been very difficult. It is still difficult. The pain is still raw. There were mixed emotions: shock, angry and sad. At times how I wish I could just curl-up and cry myself out or I would sleep and sleep until I wake up and find everything is just one hell of a nightmare.

There is no regret and I will never ask Allah why. I know He Knows best and the Most Merciful. It was heartbreaking to see the man who brought me into the world, lying helpless and was in most unimaginable pain. When the doctor told me his condition, I prayed so hard that if there was any good deed that I had done which had been accepted, please God exchange it with mercy to my father. Please take away the pain. Merciful Allah, I seek solace in the thought that he didn't suffer long.

My only regret is that I didn't get to give him a better life. Seeing him looking strong, healthy and always jolly made me took things for granted. Never once I thought he would leave us now. But as much as we love him, Allah loves him more.

To everyone reading this, I Thank You. It is not my intention to share this sadness in my life. I only ask you to learn from my mistake. For those of you who are still blessed with a mother and/or a father, please shower them with your love. Make them happy. Ask for their health. Help their problems. Give them presents. For there is no other person in this world that we owe more than our parents. We owe them our lives.

Salaam.

A Tribute to My Father

2008-05-23T18:35:00.003+08:00

Dear Bapa,

You Shall Be Missed and Remembered.
I wish I've Said it Before but I Love You.
Never Said It, Always Meant It.

I Promise I Will Carry Your Name and I Will Make You Proud.

'Al-Fatihah' to My Late Father who passed away peacefully on 14th May 2008 (8 JamadilAwal 1429) at the age of 63.

Public School vs. Private School

2008-05-01T08:25:00.004+08:00

One of the decisions we need to make upon returning to Brunei is choosing which school to send our children to. Like other parents, obviously we want the best for them. And this would probably mean a private school instead of a public one. But I keep asking myself how do we really define ‘the best school’? And why do we Bruneians always have the perception that a private school (in particular the primary level) is better than the public school.

Here in England both my children go to a public school. And fortunately for us (and them) the school is one of ‘the’ best schools in this part of England. Parents are willing to move in the area just so that their children can go to this school. I remember the headmaster was telling us that the number of children who were applying for the reception class (kindergarten 2) was always triple the number of available spots. That’s how good it is.

But most importantly, my children love their school. Even if they are unwell, they will want to go to their school. They’re happy, we’re happy. We are even happier when last month, during parents-teacher meeting, we were told that our children were doing extremely well in school. Our eldest daughter who is only 6 and in year 1 seems to be on advance levels in most of her subjects. And I don’t know how their system works, but my daughter proceeds with her advance learning in her class, instead of waiting for the rest of the children.

Now, somebody tell me where can I get a similar school in Brunei, without burning a big hole in our savings account? Is there a public school in Brunei as good as this? And most importantly, what makes a good school?

I don’t know about you, but I believe ‘teachers’ make a good school. For example, there are many other schools in our area where we live, with the same system, the same facilities, but my kids’ school is ranked one of the best. If all schools are the same, then the only differences between them are the teachers. So, a good school must be due to good teachers. The same must also apply in Brunei. However, I have yet to hear a good public primary school (the one that every parent wants to send their children to).

This brings me to the next question, why do we Bruneians always think that our children will do much well in a private school? The MOE’s statistics shows that 43 per cent of about 69,000 children go to private primary schools despite a higher teacher/student ratio in the private school (1 teacher to 15 students in the private schools and 1 teacher to 9 students in the public schools). [Is there statistics on the performance of public/private students in exams?]

Using the above reasoning (since almost all schools follow the same curriculum set by the MOE), then could the reason why people think the private scholls are better is because the teachers and/or the quality of teaching are better than those in the public schools (who I believe are more well paid and more qualified with schools which have better facilities)? If this is true, then I would love to know WHY then our public teachers are not doing well? If this is not true then why do public teachers and the MOE’s officers and staff (who are looking after the quality of public schools) send their own children to private schools (which just show their own lack of faith in the quality of their own teachings/system)?

Or is it because of our ‘materialistic’ mentality? Where our society sees public schools, despite better facilities and more qualified teachers, as second rated. Where parents would rather have a mountain of debt, then be seen sending their children to a public school?

All the talk about the Ministry of Education’s SPN21 is quite interesting and I hope the results will not only improve our education system in Brunei but can also help change the general perception of the public schools. Because at the moment, as much as I want to argue and convince myself that both my husband and I are the products of public schools and we turn out to be OK, I still cannot make myself send my children to a public school. Simply because I don’t have the faith :(.

Salaam.

Banks and Investment

2008-04-26T04:46:00.008+08:00

The Minister of Finance II said:

"The banking industry, in this country today, sits on over $13 billion in
public deposits, much of which invariably end up being invested offshore and
as these deposits represent a vital capital resource of the country, ideally
it should be deployed for the country's benefit"

I absolutely agree with him! And I also support his encouragement for the financial institutions to:

"...shift towards corporate lending and investment banking and wealth management
and other fee-based activities would be heeded and responded to not just in
letter but also in spirit by all financial institutions in the country."

(here for full news)

However, I cannot help feeling envious towards Malaysia which has the SME Bank or Thailand which also has its own SME Development Bank (which incidently are the subsidiaries of their respective Finance Ministries) to look (solely) after their SMEs' development needs.

Salaam.

Big Salary, Enough Salary?

2008-04-25T04:31:00.005+08:00

Today, thousands of teachers in the UK went on strike and as a result thousands of schools were closed, forcing millions of parents to look for alternative daycare for their children. Thankfully, my children's school didn't participate so school was normal for them.

Today was the teachers. Previously, the university lecturers, the postmen/women and the policemen/women also went on strike due to dispute over pay rise.

I'm thankful that no such incidence has ever happened in Brunei. I cannot imagine the reaction from our government :). But then the pay and perks in the government sector are higher compared to the private sector. Whether or not the current salary scales are appropriate (i.e. taking into account the inflation growth rates over the years) is however another question. I can see the dilemma our government would be facing if the current wage rates are found to be below the appropriate rates. If it raises the scale, it will further widen the public-private wage gap.

Don't take me wrong. I'm not asking for a pay rise. But I think it is unavoidable and equally necessary for some sort of study on the appropriateness of the current salary scale to be carried out especially in the light of poverty reduction. The results will not only be used to aid the poverty alleviation policy but will also be useful in other policies and most of all will be very, very interesting (at least to me!).

Salaam.

Rejuvenate Brunei's GLCs

2008-04-18T18:07:00.003+08:00

What interests me the most, while browsing the World Trade Policy Review of Brunei, is this bit of information:

(Per cent of GDP, unless otherwise indicated)
Saving and investment 2002 2003 2004 2005 2006
Gross national savings 47.2 48.6 51.4 59.1 62.4
Gross domestic investment 21.3 15.1 13.5 11.4 10.4
Savings-investment gap 26.0 33.6 37.9 47.8 52.1

(sorry, I'm no good in pasting the Table. For the full set click here and I refer to Table 1.2)

The saving-investment gap is huge! And the gap is because there is too much saving and too little investment (which isn’t usually the case in many countries). Now, if you’re an economics student and using Year 1 Macroeconomics, you will know that this excessive saving means there is a capital account surplus which could lead to a glut in the economy which eventually could lead to a recession.

Now, my question is why oh why are we acting as if we do not have enough capital to move the economy? To be specific, we are acting as if we’re having a gap that is caused by too little saving and therefore needs an external financing i.e. the FDI. And I have the impression that we seem to be helpless without the FDI. Now, I’m not saying that FDI is not important and I’m sure I don’t have to enumerate the reasons why we need an FDI. What I’m trying to say is that, given the availability of excessive domestic capital, it is high time that Brunei should also place the importance of the domestic investment in the effort to diversify the economy.

Despite the excessive capital however, the private sector in Brunei is weak, both in terms of resources and expertise, to undertake any major domestic investment. Therefore it is imperative (and equally inevitable) for the government sector to assist the private sector development, in particular, to do the investing.

To tell you the truth, at the beginning I wanted to propose the establishments of government-linked companies (GLCs) the likes of Singapore, but then I remembered, we DO have GLCs! Unfortunately for some reasons our GLCs are very quiet (if not, I wouldn’t have forgotten hehe) and do not appear to be spearheading the investment efforts.

I’m sure by now, many of you will be saying that Brunei’s GLCs won’t work because their managers and Board of Directors are civil servants who lack business acumen, risk-averse, slow in decision-making and their investments mainly political as opposed to commercially motivated. TRUE! And for this precise reason, I believe we need to rejuvenate our GLCs by removing (or perhaps reducing) the number of civil servants in the companies. Let’s put true entrepreneurs and real managers. If we can’t find locals then for the love of Brunei, hire (the best money can buy) foreign experts! Because the lack of competent local human resource to drive the economy is our main problem in the first place (which is nothing to be ashamed of, given our small population and the current nature of our economy, however this does not mean that Brunei’s HR should forever be at the current state) and I don't see anything wrong in hiring foreign talents. Nevertheless, we should be using Singapore as an example. Singapore’s phenomenal economic growth is, after all, the result of its strategy of ‘state capitalism’.

Let’s face the fact, we are not exactly a foreign investment magnet and on its own, our private sector is too weak and too small to drive the economy. At the same time, our oil is depleting. Therefore, I believe the inevitable solution is for the government, through its GLCs, to assume a proactive role both in the entrepreneurial development and the economic diversification effort. For the GLCs to assume this role efficiently, they need to have adequate resources and most importantly become proper business entities which mean risk-taking and being competitive. It is time for the government to let go its domineering role in the GLCs’s decision-makings and to also take the risk. Because if it doesn’t, then the only alternative for Brunei is for us to pray (very hard) for oil to never runs dry.

Salaam.

Moral Hazard

2008-04-13T07:31:00.006+08:00

I'm quite pleased that someone brought the issue of moral hazard in my last post. Because to me it is precisely the reason why currently there is a debt of $15 million.

For those of you who do not know what moral hazard is, it is a 'behaviour' that occurs when someone KNOWS that he will not bear the full consequences of his action. (Notice my emphasis on 'knows'). So in the case of the housing debt we talked about in the last post, people are not paying simply because they know that there is nothing the government will do.

And this is also precisely the reason why we should have different sets of policies for different sets of people (and probably different sets of houses). At the moment, everybody (the poor, the rich and those in between) is paying the same amount of money with the same set of terms and conditions, which to me simply is not fair. And I also believe that this is the reason why any kind of enforcement is difficult because by 'punishing' one debtor entails the 'punishment' of ALL debtors, regardless of the economic status of the debtor. So, while sending a summon or court order or even confiscating the house of those debtors who are actually able to pay can be accepted as a just and a proper action, it is however morally unacceptable to do the same thing to those who are genuinely unable to pay.

Therefore I believe that my suggestion to write off the debts of those who are genuinely unable to pay i.e the poor and ONLY the poor, will not lead to moral hazard. The effectiveness however lies in the efficiency of the relevant agency to detect who is genuinely unable to pay and who is not and to be ready with the 'punishment' to those who are attempting deception.

Anyway, while the objective of providing a roof or a land for every Brunei household perhaps sounds simple, it does not necessarily mean that the policy needs also be simple (i.e. one policy, applies to all) which has proven that it is NOT simple at all. I believe nothing wrong with some creativity in policy-making as long as the objective is met.

There is a need for us to be clear with our national objectives; and every policy or every department or even every ministry must cater to each and every objective. From my humble observation presently this is not the case. Everyone seems to be trying to be a champion and meet its own objectives which most often do not tally with the national objectives. Oh well, what do I know? I'm just a student with loads of 'idealistic but not necessarily realistic' theories, ya?

Salaam.

Housing Debt

2008-04-09T17:25:00.004+08:00

According to the Dep Perm Sec of the Ministry of Development, there is a $15 million outstanding loans for the National Housing Scheme and Skim Tanah Kurnia Rakyat Jati, and this if repaid can help build an additional 100 houses of class E plus infrastructure (see here). In other countries, housing loan arrears can result in homelessness (i.e you'll be kicked out of the house!) but NOT in Brunei.

*Tsk*tsk* Shame on You! Ungrateful Bruneians..!

But then I said to myself, $15 million? Only?! The last I checked, Brunei’s GDP was $15.9 billion in 2005. If you think about it, that’s only about 0.09 per cent! As much as I want to condemn this act or irresponsibility, I am sure there are many cases of genuine inability to pay. In the spirit of eradicating poverty in Brunei, what is the possibility of writing-off some of those debts? Especially to the poor, actually ONLY to the poor.

At this stage, I’m sure some of you would say “NO Can Do!” because that’s what my husband just said : ). I do, of course share his fear that the moment you give something ‘free to the poor’ then everyone will claim that he/she is poor. But then I said, I can also claim I am the Queen of Sheba and I am sure no one would believe me unless I can produce some evidence. So, for a person to claim he/she is poor, he/she needs to produce the evidence including declaring his/her lack of wealth and property.

Now, you ask, what about those who have children who can bail out their parents? You see, I think we assume too much. I ask, what makes we think that the children are willing and able to do just that? And for this reason, I believe we must have a system that ensures that the payment of the house is the sole responsibility of the buyer (i.e. NOT his children Nor his guarantors).

OK, what I’m trying to say is that Brunei needs to review its housing schemes. I think we simply cannot have a “one shoe, fits all” policy. Clearly, those who are unfortunate and less-able should have a different set of terms and conditions and prices. On the other hand, we need to tighten the conditions to those who are able, ensuring that they WILL pay (including a mandatory insurance that covers death).

Nevertheless, at the end of the day I cannot help but think that it is actually up to the individual to uphold his/her responsibility. At this stage however, I am really sorry that Brunei is unfortunate to have many irresponsible, dishonest and selfish people.

Salaam.

Tourism oh tourism

2008-04-05T02:01:00.011+08:00

This morning my husband and I were discussing about the place for our annual family vacation. Considering this year will be my last year in the UK, we thought of several places. Given our limited budget (otherwise we would love to travel to ALL places), we need to find a place which would give us the most value to the (limited available) money we spend, where the children and us can equally have a blast. In the end however, we settled for Disneyland Paris even though we went there 2 years ago.

For those of you who have been to Disneyland Paris, I'm sure you will agree that the place is super-fantastic and it has the X-factor (ie. the ability to make you feel, no matter how old you are, that you are in a fantabulous land and you wish you can stay there forever, well at least until your money runs out hehe). For those of you who haven't, then I can assure you IT IS :). And then there is Paris...the city of love *sigh*.

Now, if you apply the same rule to Brunei as a tourist destination, my question is what is our X-factor? What can we offer to a person who is spending his/her limited budget visiting our country? Or if I were the potential tourist, I ask WHY should I spend my hard-earned 700pounds (or any other amount for that matter) to come to Brunei?

Our quest to become one of THE tourist destinations in the South East Asia, in my opinion, is no easy feat. After all, look at our competitions in the region. However, I also think it is NOT impossible. Our main challenge is not that we don't have the factors that can make us THE tourist destination; rather it is the lack of will, determination and co-ordination among the relevant government departments.

Every time people bring up the issue of tourism, the first thing people talk about is that Brunei is a 'dry' country. The impression I get is that people seem to think that no alcohol= no tourists. What a lame excuse, really. It makes me wonder, do people really travel to consume alcohol (which they can find back home)? Now, before anyone argues FOR the changing of alcohol policy (I'm actually indifferent if the policy is reviewed), let us first look at what we can change without compromising our Islamic faith.

First, let's look at the beaches we have. We have beautiful beaches. Sadly however, the last time I visited them, they were dirty and not to mention the unspeakable state of the public washrooms. And for most of the time, nothing much was happening! Now, my questions are: 1) how expensive can it be to provide the service of beautifying our beaches? For goodness sake, you could even count the number of rubbish bins provided in each beach. For a rich country, I tell you, we are quite stingy! And 2) How difficult can it be to plan 12 types of happening activities for the 12 months of the year?

Next, we have our beloved old Kampong Ayer (Water Village) which is...simply old and dirty. I'm sorry I cannot help but 'smile' every time people mention Brunei being the 'Venice of the East'...Yes... that was aeons ago. Now, I'm not saying that we should just bulldoze Kampong Ayer. In fact, I am FOR preserving it. The challenge now is how to preserve it, beautify it and make it one of Brunei's X Factors. To me, this can only be done if ALL relevant authorities can put their heads together. This - the restoration of Kampong Ayer to its former glory, I believe, is the one project that actually deserves a foreign consultant. There are MANY issues to look into, among others are the sewerage system, an effective rubbish disposal, safety issues such as the fire-breaker system and the electrical system and last but not least, is the ways and means to make it into a desirable habitat of the 21st century!

And then, how about making Brunei into being THE family vacation destination? We used to have Jerudong Park. I tell you, it was the BEST! (At least in this region). Now, it has become a ghost park, which if the stories I heard were true, it really is a GHOST park (hehe). I wrote about JP some time ago (here) and my view still stands. Why aren’t we doing anything about it? Why are we wasting it? There is nothing you can do to UNDO the park so why don’t we make very good use of it? Honestly, I don’t understand. Really, if JP is restored, I think the tourism department won’t even have to spend another cent promoting Brunei.

Oh, and a PROPER Brunei Zoo, please! It is educational, fun and makes a natural (local and foreign) tourist destination.

Anyway, we have to accept the fact that Brunei can never be made into a 'wet and wild party' destination. But it doesn’t mean that Brunei can never be made into one of THE tourist destinations in the region. By declaring VISIT BRUNEI YEAR alone, doesn’t mean Brunei has become that destination. It needs combined efforts, strong will and obviously some spending. Otherwise, Brunei will forever be receiving this, this and this kinds of foreign tourists’ reviews.

Salaam.

Poverty, again.

2008-03-30T02:31:00.006+08:00

While reading an article in the BT on poverty in Brunei, I was thinking, how sad the reality is. It is almost unbelievable that there is extreme poverty in a country so rich (the lives of those in the article are examples of extreme or absolute poverty, and if it is indeed true that there are families earning only about $12 per day, gosh! that's defined as $1/day poverty! ). It is true that Brunei's GDP per capita has doubled within a decade but that unfortunately does not mean the income is more equally distributed.

So, how bad is the poverty in Brunei? Another article (click here), can give the picture. I cringed when I found out that there are 16,186 poor people = 3,747 families! Based on that statistic (the number of zakat recipients), about 4.3 % of Brunei's population therefore falls under the poverty line. And if my calculation is correct, each person is receiving $46 per month from the zakat fund. So a family of 8 (such as Hj Dullah in Kg. Tamoi) will receive $368 a month.

An easy and straight-forward solution to help Hj Dullah would be to give him a boat so he can operate his own water taxi. However, a few years ago, somebody mentioned that this type of aid (i.e. giving boats to Kampong Ayer's poor) actually backfired. The recipients who were supposed to earn a living with the boats, ended up selling the boats for an easy lump-sum money. I must admit, this puts a pressure on policy-makers. To give or not to give? How can we prevent such incidence from happening again? But I also believe, we can't simply just NOT give based on bad past experience.

Nevertheless I find this really is a challenge. While there are many ways to reduce poverty, I however cannot think of any policy measure that can solve the human attitude problem: the ungratefulness and the lack of responsibility that seem to exist rampantly in Brunei.
I often ask, what did we do wrong? But remember this:

“…Surely Allah does not change the condition of a people until they change their own condition…” (Qur’an 13:11).

Salaam.

SME news

2008-03-28T04:39:00.003+08:00

I guess I'm not alone in my view:

"Brunei Darussalam needs to provide special funding to create an
environment where technology-based business ideas can flourish.
Technopreneurs said that it is difficult for them to expand as fast as they
wanted to due to lack of funding. They added that in Brunei if one does not have
the money to do it, then there is little chance of succeeding.
In the words of Tengku Farith Rithauddeen, the Group CEO and Co-Founder
of SKALI, "There should not be any fear of failing if we want to create
innovative products or services."

For the full news, click here. Meanwhile,

"Dato Paduka Timothy Ong also quoted His Royal Highness as saying in the same
interview that diversifying the economy is a lot more than making
announcements". (Click here)

And for the above reason, I pray with all my heart that THIS is not another announcement.

Salaam.

Money Can't Buy Me...Food

2008-03-26T05:42:00.003+08:00

A few months ago I wrote a short post on the increasing world’s food price (see here). In the past few days however, a few readers have emailed and left comments in my tag-board, asking for my view.

Since I am not currently in Brunei, I really don’t know the extent to which the global food inflation is affecting Brunei. But I’m sure, like everywhere else in the world, Brunei consumers must have also feeling the heat. For the benefit of all (in case someone is not sure why food prices have gone up), there are a few contributing factors:

1. The increase in the world demand for food: Giant countries such as China and India, whose economies have grown tremendously now have put pressure on the world’s food demand. As a result of a higher standard of living (due to the increase in income), the people in these countries now can afford to buy a larger variety of food resulting in increasing prices of wheat, rice, milk etc.

2. Rising input price: The main problem is the oil price. The soaring oil price is affecting the food price mainly in 2 ways. One, it increases the cost of transportation (land and/or sea). Two, it increases the price of fertilizers. When oil price increases, gas price also increases. Gas is needed to produce food fertilizer. Hence, fertilizer’s price goes up, so does the food price.

3. Climate Change: Flood and draught in many parts of the world are affecting the supply of food. When the food supply cannot meet the increasing food demand, then of course prices of food will go up.

4. Other market distortion: If you have never heard of biofuel, then by now, you should. And apparently it is also causing the food price hike. Wheat and corn for example, are now being used to produce biofuel. As a result, their prices have gone up and thus affecting the prices of other food. This problem is further aggravated by the trade policy of the developed producing countries who refuse to allow free trade for these commodities.

So anyone reading this should now understand why suddenly they find food prices have gone up (and it is not solely because the retailers have gone super-greedy, although some may have taken an advantage). I would actually expect for the effect to be stronger in Brunei since Brunei highly depends on imported food and we don’t have any (many) local substitutes. It is worrying really, just a few weeks ago, the Philippines for instance failed to buy enough rice for its inventories as a result of sales restrictions of rice in Vietnam, India and Egypt. Indonesia, on the other hand, warns of an impending unrest due to the rise in the prices of meat and tofu. (A Soft WARNING of rice shortage in South East Asia has been issued! And there is also a danger of a shortage of powdered milk! SO Please BE WARNED).

What can the government do? I DO hope the relevant authorities in Brunei will not just sit and watch and see how it goes. Other government around the world have taken actions. UAE recently has announced its intention to build a six-month staple food reserves, subsidising food and price freeze. Russia and China, have also issued food price freeze.

A list of staple food in Brunei should, by now be constructed. While I don’t expect the government to subsidise ALL food but I do expect some food price subsidies/food security packages are being planned for Brunei’s staple food (in addition to rice and sugar) such as cooking oil, flour, milk, eggs, chicken(?) and other food (Anonymousfoe: I hardly think mayonnaise should be included hehe). And this would be THE time to impose some price ceilings. Otherwise, we may be in a BIG, BIG trouble.

My advise to anyone reading this (as my previous post) is DO NOT WASTE FOOD! And however small your backyard garden is, try to plant some vegetables. You just never know…

Anyway, the Financial Times is an excellent place to get further information and latest news on the soaring food price (click here).

Salaam.

Getting Organised

2008-03-24T05:44:00.003+08:00

I am not an organised person. I tend to misplace A LOT of stuff especially journal papers, printed out articles and other (1001) knick-knacks. And whenever I have some free time and a clear head (which comes probably only once in six months), I would try to sort the paper mountain on my desk into files.

Anyway, I thought I'd do some organising to this blog as well, as I realise that I've been linking papers and websites in my posts, which I believe one day would be useful to me and to anyone who remembered reading it (but too lazy as I am to browse the past posts). So, I've added 2 sections: 'Reading List' which gives the link to all papers, reports and articles I refer to in my posts, and 'Websites' which gives the link to all websites that I refer to and any others which I think would be useful for Brunei. To make (my) life easier, I've put the dates of my blog posts that refer to each paper or website.

I am also recommending a few bed-time readings which are interesting and worth buying (and NOT too expensive). First, it's Krugman's earlier book The Accidental Theorist which is a collection of short articles he had written in various magazines. It is highly informative and entertaining with his witty style of writing and 'easy' english. I feel this is one of those books that can be read by anyone.

For a more thought-provoking book, which I am currently reading, I'd recommend The Black Swan by Nassim Nicholas Taleb. This book is about uncertainties and random events that underlie our lives.

Finally, Slate has also recommended Predictably Irrational : The Hidden Forces That Shape Our Decision by Dan Ariely who "has done a huge amount of firsthand research on decision-making, and he demonstrates that emotions, expectations, contexts, and social norms all play a huge role."

All of the above books are in my MUST READ Recommended Books.

Salaam

The Dilemma of SME Part 2

2008-03-23T03:03:00.006+08:00

Other issues faced by the SMEs in Brunei are the small market size and the lack of production incentives. With our population of about 380,000 really does not make Brunei an attractive place for any production or businesses. The small market size is further aggravated by cheap competition from import and high local cost.

Of course, somebody would reply that Brunei's SMEs should not limit themselves to the domestic demand and therefore should explore the regional and even the world market. True. But in truth that is easier said than done. Heeks (1998) in his paper (click here) pointed a number of related problems. First, he pointed that Brunei is an island of wealth in the sea of local poverty, at least in Borneo island itself. But it is also true in the context of ASEAN. Brunei is the second wealthiest country after Singapore (measured by the GDP per capita) which is followed by Malaysia and then Thailand. The remaining ASEAN countries are all earning less than US$1000 per capita – they hardly can become our potential markets! Second, where regional markets exist, someone has got there first, producing high quality products at low cost, thus presenting entry barriers to new-comers especially, one that lacks competitiveness.

Now, I’m not trying to be negative but sometimes we have to be realistic. I believe, in order for our local (and weak) SMEs to take their chance in the regional market, let alone the global market, they need assistance. For example, they need to know just what types of products to produce (for e.g. products that have high import growth rates in the global market) given their capabilities. And then of course they will also need (continuous) help in the area of capacity building to increase the products’ competitiveness especially in terms of the quality. Now, my question is, have we got these in place?

OK before we go further into the discussion of providing supports for export-production, let’s first look at the supports for local production. What incentives are we giving to the local producers? You would probably be thinking of the recently reduced corporate tax. Is that enough? The corporate tax, first of all, is not payable by sole proprietorships, which makes up a large chunk of our private sector. And then there is the ‘pioneer status’ scheme, but then again does it apply to a large number of our local SMEs? Correct me if I’m wrong but I think both the corporate tax and the pioneer status scheme are more directed towards the attraction of foreign investors (which I am in support of!). Now, my question again, what then are the incentives we are giving to the local small and medium enterprises? Our SMEs don’t even have complete access to crucial information such as market demand, input costs, availability of sources of production so on and so forth! And so how do we expect our local SMEs to go abroad and compete when they are not even developed domestically.

Now, back to the issue of the small domestic market. How do we then overcome this problem? At the top of my head, we can do this in 2 ways. One, through the natural population increase, which would take AGES! And two, through migration. OK, maybe in our case, not migration per se but we need to find ways to attract foreigners to come and spend in the country. How? One, we need to increase the number of tourists coming to Brunei. The tourism department, from the looks of it, is putting a lot of effort into this. [It’s ashamed really, that the apparent lack of policy co-ordination among other departments somehow weakens the effort (perhaps another post on this one)]. Two, we can attract foreigners who have high purchasing power to come and stay in Brunei. Brunei, being a tax haven has already 'the' appealing factor for anyone to come and live in the country :). However, there is a larger policy implication which is related to another policy taboo – land and property foreign ownership. Now, I’m no expert on this but personally I don’t really see the harm in allowing foreigners, who can make ‘economic contributions’ to purchase properties for the sole purpose of occupation (see for example how Singapore is doing it). Just imagine the spin-off effects of this policy! We can expect a boom in the housing sector and the construction industry, and then of course, the increase in the demand for ALL goods and services which will have the desired direct effect on our local SMEs. Oh I can picture a shift in the aggregate demand for Brunei! (And only then we can seriously talk about providing world-class services be it in education, health etc..)

Oh dear, there’s so much to think of! I do hope I am NOT the only one thinking about this. And while thinking is good, but please for the love of Brunei, DO something about it. I will probably write more on this topic.

Salaam.

New SME Financing

2008-03-19T06:27:00.004+08:00

When I read today's news (see here and here) I thought, oohh that was fast! (i.e. the response to my previous post) haha.

It was indeed a welcoming development made by the Standard Chartered Bank to offer a collateral-free Business Installment Loan. I don't know what the interest rate is, but I suspect it would probably be as high as the risk involved. SCB is, after all a commercial bank. The detail of the financing scheme can be found here.

However, the scheme is not for start-ups. It is meant for businesses which have been up and running for at least 3 years. Therefore, I hope our local businesses will only participate when it is absolutely necessary.

The issue of start-up financing, thus still remains.

Salaam.

The Dilemma of SME Part 1

2008-03-16T02:29:00.005+08:00

I’ve wanted to write something about SMEs in Brunei because this is another topic which I feel has not been properly addressed and where (again) policies and solutions offered are not coordinated.

I agree that the government has been very supportive in the development of SMEs but I am not convinced with the effectiveness of the given supports. Let’s go back to 30 years ago when Brunei started a SME Loan scheme for Malay citizens in the mid 1970s, known as the EDB scheme which unfortunately did not result in many success stories.

The failure of the EDB scheme to create many SMEs is mainly because it wasn’t participated by the intended recipients. (More than 65% of the loan went to non-entrepreneurs for buildings of houses which were mainly for rentals – not exactly the type of business we are looking for). Why? This is mainly because the EDB required collateral which could not be provided by any would-be genuine entrepreneur who didn’t have the means to do so. And as a result the only group that was able to apply for the loan was mostly those in the government sector, who were NOT trained to be risk-takers and to become genuine entrepreneurs.

Fast forward to today. The EDB scheme is now being replaced by a few financing schemes offered by the Ministry of Industry and Primary Resources through the Brunei Islamic Bank. While the new schemes may no longer be utilized to build rental houses, yet they pose the same constraint (or perhaps even more strict) to Brunei start-ups – the need to provide some forms of collateral in order to participate in the schemes. Well, of course I don’t expect for the money to be distributed freely to anyone who claims to be an entrepreneur but I am also positive that there are Bruneians out there who really have some viable business ideas but do not have the means to meet the banks’ strict loan scrutiny. So, where can they go for help?

This issue of the lack of availability of credits to genuine entrepreneurs and/or if you think in the reverse order, the availability of credits to non-genuine entrepreneurs to me is very much related to the issue of the wide-emerging of ‘Ali-Baba’ businesses. It works in 2 ways. On the one hand, those who are able to obtain the loans, who are mostly government servants, create businesses under the names of their wives/husbands/children while the business itself is run by some foreigners. On the other hand, those who are not able to obtain any loan seek some foreign external investors, and this coupled with the lack of proper business direction and experience, eventually results in the formation of ‘Ali Baba’ firms. This partly explains why despite the growing number of SMEs over the years, the number of success stories is paltry.

Of course the issue of ‘Ali Baba’ businesses is, to a large extent, attributable to the attitude (laziness) and the mentality of our own people (easy money). I personally feel the government’s effort in developing ‘local rakyat melayu Brunei’ to be the champions in the business sector has backfired. Despite all local privileges and the policy of local contents in almost all government projects, the locals still have not changed their position. It makes me wonder whether the very reason Brunei locals have not developed in the business sector compared to non-locals, is due to the over-protectiveness of our policies (all sorts of policies! e.g. land policy, local content, public sector jobs etc.) towards the Brunei locals. How? Those who are excluded from such ‘privilege’ policies have to work for their survivals. To most of them, forming a business IS an economic necessity. This however is not the case for the local Brunei, who have always been pampered and secured with high-paying jobs. And at the same time, those non-locals who see some business opportunities but are not in the position of setting up their own proper businesses seek the locals who are more than willing to lend their names in exchange for some business equity.

This is the real dilemma and poses a challenge to policy formulation. On the one hand, we want to help the locals. On the other hand, how can we ensure that the locals will not abuse any new given support? Nevertheless, Brunei can no longer wait and see and hope for the best. Brunei is not as it was 30 years ago. Brunei NEEDS to diversify its economy and strengthen its private sector. And the private sector needs help.

Anyway, going back to the issue of obtaining start-up credits, I personally think that Brunei should explore the idea of ‘angel investors’ or the provision of ‘seed money’ to new entrepreneurs who have no means to adhere to the collateral requirements of the existing financing schemes. Of course the risk is high but as the saying goes, No Pain No Gain! And if the government is not ready to take the risk, then how can we expect the people to take similar risk?

And at the same time, the issue of ‘Ali Baba’ businesses need to be tacked ASAP. It is simply an economic disease that needs a remedy. I must admit, it is not an easy task as it involves the changing of attitude and mindset and also requires a strong coordination from different government departments. However, as long as the mentality of ‘easy money’ exists among the locals, no matter how sophisticated the supports to local SMEs are, Brunei’s hope to create local businesses may just remain a non-achievable long-term economic goal.

I will write more on SME-related issues. In the meantime, I welcome views from everyone.

Salaam.

Leg Co: ..On POVERTY

2008-03-13T06:11:00.009+08:00

I'm surprised, well actually not surprised that the issue of poverty was not heavily debated, despite HM's titah on the vision of zero poverty. Honestly, I feel really sad to hear that this issue will be tackled by yet ANOTHER poverty research. I mean, seriously... how much research do we need to prove that there ARE poor people in this rich country! And what is wrong with the research made by the UBD? Do we need to waste 3, 4, 5 more years and spend millions just to prove that there is no poverty in Brunei? I've heard about this poverty research like almost 10 years ago (if I remember, it was the year I started my first job) and until today I have not seen any national poverty-related policies besides the MUIB's zakat payment. And if there are recipients of Zakat, then surely there must be poverty..what more proof do we need?

People talk about absolute poverty vs relative poverty. For those who are not familiar with those terms, 'absolute poverty' is basically the number of people or households who cannot afford certain basic goods and services, while 'relative poverty' refers to the number of households (or families if you like) whose income falls below the national average income. So, a family of 6, earning only about $1200 a month definitely falls under the category of 'relative poverty'. They may probably able to buy the basic necessities with that income but that income surely must be below our median income.

If you ask me, I don't know what our median income is, but I suspect for a rich country like us, it should be quite high. So, my question is do we really need another research just to determine our median income? Or should we put our heads together to combat poverty NOW before it gets worse. I feel what Brunei needs actually is to form a serious national committee to address this issue.

Anyway, I don't know about you, but to me poverty issue shouldn't be under the jurisdiction of the Ministry of Culture Youth and Sports alone or poverty is not all about giving welfare benefits. It needs to be addressed in a holistic manner. The fundamental issue is the gap between the rich and the poor. An increasing relative poverty means that there is an unequal distribution of income i.e. there is a large gap between the rich and the poor. Therefore our main challenge is to reduce this gap, because to me income equality = zero poverty.

This should be debated. The ways and means to reduce the gap. It is not about getting salary increments (because to me that in itself will actually result in a higher gap. Why? Because not all of the poors are employed in the government sector) it is more about formulating policies that specifically deal with the poors. For example, the national housing scheme. There should be a separate policy or separate queue (if you are trying to picture it in your head) for those who fall under the category of 'relative poverty' with its own separate terms and conditions, and prices (or no price at all!)

What about subsidies and taxes? These have been the traditional means of income redistribution. Surely, it is high time Brunei reviews its subsidies. Should those who are earning above the median income level pay the same subsidised price of rice as those earning below the median income? Now, there seems to be a serious talk about the irresponsibility of our people (who presumably think that electricity and water are their God's given rights and think that electricity probably comes from air) in paying the utility bills which is costly to the government (see here). If our people continue to be thick-headed and the government decides to reduce the various utility subsidies, then what about the poors? Now, taxes....well this is THE number one taboo in Brunei. But let's start with some form of property taxes. Number 1: tax on rental properties (to help finance the national housing scheme for the poors).

And then there is the related issue of unemployment. I wrote about this in the last post. I don't know how to further express myself but this issue NEEDS to be addressed properly. If the government can no longer afford to provide full employments in the public sector, then whether we like it or not, the government needs to do something about the wage gap because unemployment can cause poverty.

What about education? Yes, we do have the 12 year education policy, but my question is does this cover EVERYone? I'm thinking about those teenagers who got pregnant/married before they finish their 12 year education. How can we help them? How do we expect them to provide for their children if they don't have enough education. Won't it contribute to the poverty spiral?

There are more to think of! Such as how do we help the poors get out of their poverty condition? You know more in the lines of Give-a-man-a-fish-and-you-feed-him-for-a-day, Teach-a-man-to-fish-you-feed-him-a-lifetime.

Oh dear, it's almost midnight. I was supposed to have a break from 'thinking' today after submitting a chapter to my supervisor :) Anyway, the whole point of this post is to actually implore the relevant government agencies to STOP wasting time and resources 'wondering' whether or not we have poverty. Whatever poverty we have now, I think should still be manageable. So please don't wait until it gets too late.

Salaam.

Leg Co: ..On Unemployment

2008-03-07T02:57:00.009+08:00

I don't know whether to laugh or to cry when I read the reports (in the newspapers here and here and here) of the Leg Co Session today. It was quite disappointing really because there was nothing new. One minister asked the private sector to hire the locals, while the other asked the locals to work in the private sector. I have no problem with both suggestions. But I fail to understand why no minister was addressing the root of the problem, which to me is the remuneration gap in the public and the private sector.

The gap is huge! To know someone in the public sector, who has the same exact qualification with the same skill, is paid triple the amount one is getting in a private sector is really demotivating to anyone. I don't know about you but seriously somebody has to address this issue. As I said in my previous post it is not enough (and equally unfair) to ask the private sector raising their pay rate to the locals due to several reasons. First, our private sector consists largely of SMEs. Second, our SMEs are weak as highlighted by the Minister of the MIPR. And third, the productivity and the commitment of our locals are not exactly commendable.

Now, in my humble opinion it is inevitable and imperative for the government to intervene. Either reduce the remuneration scale in the public sector and/or prop up the remuneration in the private sector. My preference goes to the latter as I believe it would have a larger multiplier effect to the economy. Perhaps take this idea as some sort of 'employment' benefit as opposed to the 'unemployment' benefit. If you are thinking, more government spending and where can we get the fund to do this? Now, I think there is even a stronger need for the government to review the subsidy (especially the fuel subsidy :) Plus, I also think that the government would actually save by spending only some fraction supporting locals who work in the private sector as opposed to employing these locals in the public sector. And of course the direct effect it has on the private sector itself (as compared to the reduction of the corporate tax! No, I'm not going to make any comment on this one) It's a Win, Win situation, No?

With regards to the mind-set problem and the attitude of our local workers, I think the issue is not exclusive to the private sector. I'm sorry..but look at out public sector's employees! I honestly wonder how can you expect the locals to be in their best behaviour in the private sector which pays considerably less when those in the public sector are having the time of their lives and being paid more. And that is why I also think it is equally imperative for the public sector to practice a more realistic productivity-linked wage system.

Oh Well, I'm just in my own world and who am I to say. I don't even know why I'm racking my brain for this.

Salaam

Wish List

2008-03-05T19:00:00.007+08:00

In light of the current Leg Co Session, below are my 'wish list' of topics that I hope the distinguished Yang Berhormats are debating:

1. Unemployment: This has been a main issue since 10 years ago which I feel has not been properly addressed with only some 'piecemeal' solutions thrown from different departments without any coordination. The demand as well as the supply sides of the issue have to be debated. The issues involving the unemployment include:
i)The conflict between local vs. foreign workers: which to a certain extent related to the attitude of local workers.
ii)The remuneration gap: And NO I don't want to hear the same proposal where the employer (the private sector) is asked to give higher wages. That, to me is NOT a solution. What can the government DO to reduce this gap?
iii)The attitude of local workers: A serious lack of commitment.
iv) The welfare and rights of workers: What more can I say?
v) The rights of employers: While employees can lodge their complaints to the Labour Department, where can employers go?
vi) The availability of jobs. Can the private sector provides 'enough' jobs?
vii) Working age: The merits/demerits of extending the pension age.
viii) Job trainings/ skills etc.

2. Social illnesses: Drugs, school-dropouts, teenage pregnancy etc. These are just at the top of my head.

3. Poverty: I cannot stress any further. His Majesty's vision of 0% poverty needs to be addressed properly. The issues related to poverty include:
i) Establishing a national poverty line - in order to measure the gap between the rich and the poor and just HOW poor are we?
ii)To go beyond the solution of providing just 'monetary assistance'.
iii) To combat social illnesses which are very much related with poverty.
iv) To review some fiscal measures i.e. tax and subsidy as the traditional means of redistributing income.

4. Last but certainly NOT the least, BRUNEI's Future:
i) After Oil....What?
ii) Oil Fund to provide for the future. If BIA is doing this, where DO we stand at the moment? How secure is our future? How long can the fund sustain Brunei in the event oil runs dry (This can happen, No?)
iii) Pension schemes: Is TAP enough? How can we eradicate poverty if there is not enough money to provide for the daily expenses, once out of work. What is the merit/demerit of re-introducing a (NOT SO LAVISH) pension scheme. What is the possibility for the 'employer' to increase its contribution. BUT bearing in mind the capability of the current 'weak' private sector. How can the government assist the local workers in the private sector in the provision of a secure future.
iv) What about some form of a National Insurance for every working Bruneian? What happens if accidents occur, death etc?

Oh the list goes on!
But then these are just a mommy's wish..and we'll see how the session goes.

Salaam.

Our Story

2008-02-29T18:13:00.006+08:00

My mother passed away when I was 16. I was lost but I grew up then and there. I have 2 younger sisters, at that time they were 14 and 10. I didn't know what I should do. While my friends my age were playing beauty and experiencing teenagehood, I experienced life. We were never spolit. After my mother passed away, my father was the sole bread-winner. We made do with what we had but never asked for more. And that has always been my principle in life.I never regret any of those things. Infact, I'm thankful because it taught me one great thing in life. To be Independent.

People said I was lucky because I had 'the brain'. I always came top in my class, from my kindergarten year until I graduated. Was it luck? No, it was hard work. When my mother passed away, I studied extra hard. I promised myself, one day I would provide my children what my parents could not provide us. That was my motivation.

I met my husband in the UK. He's not from a wealthy family. When we graduated in 1998, Brunei economy was badly hit by the Amedeo collapse. Employment was scarce. Again people said I was lucky because I found a job even before I graduated. I don't think it was luck. I worked for it. Having a First Class Honours certainly had the advantage. Offer of jobs came knocking on my door. To this day, I'm thankful.

But my husband, along with a thousand other graduates, were stuck. There was no employment. My huband managed to find employment in one of a private firm. But after a few months, the firm went down and had to cut its cost. One of the redundants was my husband. He waited for new jobs openings. An offer for a teacher's post in one of a government institution came. But he turned it down. Not because he was choosy. But because he was not trained to be a teacher and he said he did not deserve it.

Then one day, he said God gave me a well-functioned brain and 2 arms. Why should I wait for a job, when I CAN do a job. He decided he wanted to do a free-lance service. At that time, no body supported him. People thought it a better idea for him to just wait for a job. So, he asked for my help. I lent him some money to buy a computer and a printer.

Alhamdulillah, a family of a family heard he was doing some free lance work for a small fee. He asked my husband to give him some proposals for a house project. He loved it and my husband got his first client. Others heard. And a few came knocking on my husband's door.

After about a year in my new job, I was asked to further my study. We wanted to get married but we didn't have the finance. My husband obviously could not take up any personal loan. I went to do my Masters, my husband's business took off. After 3 months leaving Brunei, my husband called me and told me the good news. He made a tidy sum of money for us to get married when I finished my study. We got engaged while I was in the UK (i.e. I was not present when his family came). I worked hard on my Masters. First, I wanted to finish as early as I could and at the same time I was also preparing for my wedding. I had no one to depend on to. My sisters were still young and I didn't want to burden my father. So, in between studies, I planned my wedding.

I came back, earlier then the date my course actually end. We got married 4 weeks later. A year and a half later, we had our first girl. It was joy! When she was four months old, I was promoted. Luck? No. I worked hard in what I did. While many of my colleagues turned down some of the 'difficult' assignments, I came forward. I never see it that way though, I always say it was 'rezki Allah Taala'. A gift to my baby.

A year and a half later, our second girl arrived. Another gift from God. When she was 6 months old, I was offered to further my study. I wanted to turn down. I didn't want it. I wanted to spend time with my babies. But it also made me realized that probably 'the further study' actually came along with the promotion that I received so early in life. So, that became my responsibility.

I couldn't afford to bring my family along. My husband tried to get a scholarship to further his study. But NO. He was too old for it. I went mad thinking of leaving my 2babies. But my husband was my strength. He was very supportive. Never once he said No or asked me to think about it. He told me Fi Sabilillah. God has given me 'the brain' it would be selfish of me not to make use of it and in time will help to develop the country. Don't worry about OUR children, he will take care of them. And this is why I declare him the MOST UNDERSTANDING HUSBAND in the whole wide world :)

I came to England. Alone. It was crazy. A young mother being apart from 2 young adorable babies. The guilt I felt consumed me. I couldn't work properly. I broke down several times. I broke down in front of my supervisor when he said 'family is the most important thing in life' and asked me to be stong. I was thankful for his kind understanding. He didn't pressure me during my first year and helped me in whatever he could.

But life was shit for me. I asked one of my bosses as to the consequences of me quitting my study. He told me it would give a bad impression on me and on the department. To console myself, I prayed for God's strength. I prayed for His help. And thought if God brings you to it, surely God brings you through it.

My prayer was answered. My husband's business took off really well. He expanded. And managed to save quite a sum of money. The intention was for him to come to the UK and further his qualification. At the same time, there was an opportunity to buy a piece of land. Again the dilemma. In the end, we bought the land from the saving and there was some left for his study. However, it was not enough to finance a 2 year course in the UK. I came back and went to the bank. I took up a loan to partly finance my husband's study. We agreed that the loan was for a 'life investment'.

Then God even answered my prayer, the Government reviewed the terms for the In Service Traning Scheme. It was such relief! I thank whoever it was doing the review. With the extra money, I could provide a nice home for my children and could even futher helped my husband. (I thank the government for providing me and indirectly, my husband to further our education - the new scheme really managed to kill 2 birds with 1 stone). Had I known the scheme would be reviewed, I wouldn't take the loan. But we didn't have the time to retun the money back. It has now become our 'emergency fund'.

We sold our cars. We sold some of our furniture (we didn't have many anyway, our landlord was SUPERB). We returned the amah. I talked about this in my previous post. Our decision not to bring an amah. Well, because we couldn't afford it. Bringing 1 would mean we would need an extra room. The rent here in the UK is crazy. Besides, the house here is not that big. It's manageable. And the children go to school and are only home in the evenings. I can cook (edible lah hehe) and my husband and I share the housework.

Before coming to England, financially we're OK. Besides the loan I took for the financing, we are debt-free. Not even a credit card loan. We have a few credit cards which we used solely for travelling. We ALWAYS pay what we owe once we're back (And to this day, I don't understand why my bank raises my limit every year! I hardly use it hehe). My husband's companies are also DEBT-FREE. A good Chinese friend told him 'If You Can, Avoid Hutang. Never Hutang'. In fact, MANY companies and individuals owe my husband.

I save 30% (besides TAP) of my salary for the rainy days, for the children's education and for our retirements. I still think it is not enough. I hyperventillate thinking about our future. We share our daily expenses; the bills, the grocery etc. We always live within our means. That's our principle. At times, of course we wanted to treat ourselves. But only if we have the extra money. If not, it's not the end of the world. We don't have a Mercedes or a BMW not even a Tag Heuer let alone a Rolex. Our priority in our shared life has always been the children's education. We know for the fact that we cannot depend on anyone but ourselves to provide good education. We never know what the future will bring us. If our children are bleesed with intelligence and good brains, Insya allah maybe some financial help would come. But until then we will never know and have to prepare ourselves.

Our next priority is to build a house. I know we will need some financial help on this one. But my husband says, "If We can, we don't have to". Insya Allah, I believe him. Niat, Usaha and Tawakkal. But even if we have to, we know our limit.

The reason I'm writing this and telling you our boring life story is because I want to share our principles in life. NEVER live beyond your means. NEVER depend on Others. And there is NO such thing as LUCK. A little help along the way are God's blessings but NEVER Expect More.

I don't mean to say that these principles are the best and for you to follow. I don't even think we are a very good example. I would LOVE to hear more advise on how to have a better life and a secure a better future.

Salaam.

ASEANPreneurs Youth Leaders Exchange

2008-02-29T07:28:00.004+08:00

I thought I'd post this now. Got an email from the University of Singapore this morning asking to help publicise their event which is opened to ALL University Undergrads of ASEAN Nationality.

So dear UBDians/ITBians, this is a very good opportunity for you to show the world what we are made of ! :) and of course for you to network, to make new friends etc.
I used to participate in events like this when I was at UBD (that was AGES ago! when I spent about 2 months living and studying at the NUS, participating in a student exchange programme) and yes, I made many friends, learnt new things, exchanged a lot of ideas and enjoyed every minute of it!
So, now is your turn...Enjoy!
The deadline is actually on 2nd March 2008 but applications can still be accepted until 28th March. Good Luck!

(To Janaki, thanks for visiting my blogsite and many thanks for the invite! But I don't think I'm qualified hehe :) All the best and good luck!)

Anyway, here's some info:

We're from National University of Singapore and would like to call for applications for the inaugural ASEANpreneurs Youth Leaders Exchange 2008. This will be held in Singapore from 15-20 May 2008.

The National University of Singapore (NUS) Entrepreneurship Society (NES) has founded an online student network called ASEANpreneurs to promote entrepreneurship in the ASEAN region. Below is a synopsis of who they are and the flagship programme that they will be organizing, the ASEANpreneurs Youth Leaders Exchange 2008.

ASEANpreneurs Youth Leaders NetworkThe ASEANpreneurs Youth Leaders Network (AYLN) is a student organization dedicated to promoting entrepreneurship in the ASEAN region. It serves as a platform for budding student entrepreneurs from ASEAN countries to network, share ideas and knowledge, and to collaborate and learn from each other. Some of the network's activities include organizing the flagship Leaders Exchange and the upcoming Conference, dissemination of entrepreneurship information, news and initiatives in the form of quarterly newsletters. Membership is open to university undergrads of ASEAN nationality.

ASEANpreneurs Youth Leaders Exchange 2008The ASEANpreneurs Youth Leaders Exchange (AYLE) is a week-long exchange programme organized by ASEANpreneurs, bringing together student leaders and entrepreneurs from all ASEAN countries. Hosted in each country on a rotating basis, this event provides an opportunity for delegates to visit ASEAN countries to learn about their economic development and localized entrepreneurial culture. Some of the programme components include student paper presentations, panel discussions with prominent regional entrepreneurs, workshops, visits to successful local startups and dialogue with distinguished local leaders. Application is open to university undergrads of ASEAN nationality.To apply for this programme, please visit www.aseanpreneurs.org

So yea, hope you can do a blog post on this and encourage many Bruneians to apply and participate in the Exchange. Of course, you're invited to do so as well =)

Thank you!

Regards,
Janaki
PR Director
ASEANpreneurs

Spoilt and Shameless

2008-02-28T05:53:00.003+08:00

My blood boils when I read Mr BR's post on What Would Superman Do?. Not because I am angry at him but because I deeply share his sentiment. I still cannot fathom why our people can be so irresponsible, shameless and so selfish. It makes me so sad to think that after 24 years of independence, we are still unable to stand on our own 2 feet and still need the government to do basically everything for us! I call it the Third World Mentality. You know why? In the developed countries, people are so independent. Their self dignity and pride are strong. They don't ask for help easily because they take pride in what they do. Often you see people in wheel-chairs and people who are pysically less fortunate are doing what normal people do and as efficient. We have a lady - an undergraduate students' secretary- in our department who has lost 1 leg. One day, I was looking for a printer cartridge and it was in the last drawer of a file cabinet. Instead of telling me where it was, she went to the cabinet, with her crutches, and bended down to get the cartridge. I was surprise! I quickly went to her and obviously offered my help and you know what she said with her smiling face, "It's OK...Thank you...". Gosh!

Now, look at our people! God has given each one of us a brain, 2 arms and 2 legs, and WHY oh WHY are we acting like some helpless creatures in this world? Where is our self dignity ? Before I read Mr BR's post (I suggest you read it too!) I was discussing with my husband regarding the irresponsibility of our people. Someone we know who has been fortunate enough to get one of the houses in the Rimba Housing, apparently has not been paying the government. Both husband and wife are working with only 1 child to support. Furthermore, they have a rental house somewhere in Brunei which is being rented. I mean WHAT are they thinking?! What is worse, because of their irresponsibility and their selfish act (please see my previous post on this), the person who acts as their guarantor is now being burdened. The last we heard, the poor guarantor had received a few warning letters. AND these sad (good-for-nothing) couple just duh! I believe this is NOT an isolated case because a couple of years back, during a dinner at the Istana, I was fortunate or rather unfortunate to hear the gruesome tales of our people not paying their debt, have mountains of debt and on and on from officers from various government departments.

And we are not only talking about housing payments (which is a major issue) but also on things as mundane as paying the rent for wedding clothes (baju pengantin). Just a few days ago, my sister who is about to have her baby shower (Mandi Berlawat) told me that she was shocked that her i.c was being asked by the shop from which she is renting her baju. Simply because the shop assistant told her that there have been MANY cases where people just don't bother to pay and obviously never return the attires. GOD!

What is WRONG with us, people? I am really-really sad. For a Muslim and a wealthy country and not to mention a caring government, what MORE do we want? Honestly, I have a headache thinking about this..and I think I better stop here before I develop a migraine.

Mr BR was nice (presumably subtle) to title his post as 'What Would Superman Do' because I don't think we need a superman, as it will make matters even worse, what we need and deserve is for someone to give us a hard KICK in the b*tt.

Salaam.

So You Think You Can be like Dubai?

2008-02-22T08:38:00.004+08:00

"My Grandfather rode a camel, my father rode a camel, I drive a Mercedes, my son drives a Land Rover, his son will drive a Land Rover, but his son will ride a camel"

Sheikh Rashid, the previous ruler of Dubai.

Well, a couple of years back (actually for all I know, we still think we can be like Dubai) there were talks about following Dubai's model to development. Nothing wrong with that - as long as we talk, the talk and walk, the walk. Anyway, I found this interesting Harvard paper 'Dubai Strategy: Past, Present and Future' which to me gives a good crash course on Dubai's development. Have a read, it's only about 9 pages long (minus the graphs) but really it tells the goods and the bads, which can be very interesting lessons.

Salaam.

P.S. Thank you all for your comments/views on my previous posts. I will get back to them once I've handed my chapter to my supervisor.

Which Bank? - Reply to Anonymous

2008-02-17T18:54:00.008+08:00

I received this comment/question in my previous post. At first I just wanted to reply in the comment box but as I was typing, my reply got longer haha! So, I've decided to put this as today's post. The person has also gathered some information about banks in Brunei which I feel could be useful to those who are in the same situation as hers/his.

Which bank do you feel offers the best service here in Brunei? I just
started working and have been using the bank (TAIB) that my parents have
allocated - which is basically the normal you get the card - passbook, withdraw
your money but non-interest being accredited if I'm not mistaken.I realised, the
non-abundance of ATM machines available for TAIB which annoyed me to some extent especially when the nearest TAIB ATM machine has been out of cash. So I started to think about the competition, and did some research of my own by getting the tariff of charges, services offered through each banks' website. I found out that HSBC and Baiduri Bank have the most ATM machines here in Brunei. But then again when I check the tariffs/service charges for HSBC, it is shockingly steep!
Just having an ATM card is BND 20 per year, and if your balance falls below the
minimum thats another charge. Standard Chartered offers considerably less, with
BND 12 per year for the ATM card. Baiduri Bank however did not disclose their
tariffs/service charges - sometimes it makes me wonder if that is why they have
been cited as the "Bank of the Year" by the Banker's magazine. "Bank of the
Year" in this context is which Bank gets the most profits in the country -
typically from ATM charges, services charges and foreign exchanges transactions
- possibly from Investments, I'm not quite sure. Should I just stick to TAIB
Bank, no-frills account with the free ATM card, no penalties whatsoever for
having only the minimum balance? I would be happy to know your views - it could be insightful to read.

Hello Anonymous,
Thanks for regularly visiting this blog.With regard to your banking question, Gosh I don't know what to say really. I'm no expert to say one bank is better than the other (unless they pay me to hahaha) because each bank has its own services, charges etc.

Anyway, I think you have done your homework (i.e. comparing bank charges etc) and now what you need to think about is what services of a bank that you are looking for. Is it just for an everyday banking (where you can deposit/withdraw money at any time of the day) or is it for a long-term saving (such as time or fixed deposit)as dif banks have dif products.

Personally, I put my money in a few banks in Brunei. NOT because I'm rich (hehehe who knows one day?) but because of the different services. For instance, my gaji and my everyday banking is in 1 local bank (which has many ATM machines located in convenient places). For my regular saving I use another local bank which offers a better return than the first bank and also gives me freedom to withdraw the money whenever I want (unlike some local banks which require you to write a letter etc). For our time/fixed deposit we (my husband and I) use another bank which obviously offers the most competitive rate and islamic. And lastly, because I travel a few times in a year, it gives me a peace of mind to have a bank that I can access to wherever in the world. So I use 1 international bank which gives me this service (of course with a cost/fee). So, there you go!. 4 banks in all and I'm not even remotely close to being a millionaire hehehe.

With regard to my opinion of the banking service in Brunei, well I've had my shares of good/bad experiences and let's say generally I concur with the general opinion that banks= money leechers HAHAHA. But I tell you, with wit and proper research, you can beat these banks at their own game! The Rule of the Thumb however is to try NOT to borrow money from them. Or even if you have to (eg. credit card) you MUST always pay what you owe ON TIME.

I must say you all are very lucky that you don't get to be tangled up in a big-bad borrowing situation. Thanks to the government's directive on personal loan capping introduced a few years back. I tell you, it WAS madness! People were borrowing beyond their means the moment they were employed (in the government sector of course). And those borrowed money were spent mostly on some unnecessary items such as big, expensive cars and large and lavish weddings. (If there are people out there who borrowed for some worthy cause, then I respect.) They were even some idiots (sorry but I HAVE to use that word) who borrowed at 9% interest rate and put those money back in the bank in a form of fixed deposit which only had about 3-5% return. I mean HOW did these people think, is still beyond my comprehension!

Anyway, good luck with your new job and finding a good bank. And thanks again for reading this blog. My hope is that something good would come out of it. I never intend to belittle anyone. I just hope we Bruneians get to think before we do something that sometimes can be life-altering. Haha look I've become emotional!

Salaam.

P.S Anyone working in the banks are WELCOMED to sell their services *wink*

What Others Think of Us

2008-02-15T06:34:00.004+08:00

I found this article from the Wall Street Journal dated some time in 2005 (click HERE). Honestly, I have a lump in my throat reading it but I guess it's reality and reality often bites. It may not be entirely true but to me it just shows how others think of us *sigh*.

So, WHAT shall we do to prove them wrong?

Salaam.

The End of Cheap Driving

2008-02-13T08:53:00.000+08:00

When I read today’s Brunei Times, 2 things came to my mind. One, suddenly Bruneians are creative in their policy-makings and two, could this be the end of cheap car driving in Brunei?

First, it was the reduction in the fuel subsidy and now it’s the (possible) introduction of some sort of congestion charge. Although the 2 policies will affect the usage of cars, the way I see it however, they are not related to one another (which again show the lack of coordination among ministries). The objective of the first is more or less to reduce government expenditure while the second is simply to reduce congestion. While I agree with the former policy, I am quite unsure about the latter.

Well, firstly I think the timing is not quite right. I wouldn’t be surprised if people in Brunei would react negatively if the 2 policies were to be implemented at the same time. Secondly, I question whether congestion fee really is the most effective way to alleviate the congestion problem. Why? Well for one thing the traffic is only worse at certain time of the day, which is when schools end. So, why not introduce an effective school transportation? A subsidised privatised service if you will. It will not only help reduce congestion during the peak hours but also help increase employment and will surely push up the transportation industry.

By levying some congestion fee, to me does more harm than good. First, the fee doesn’t care who you are and what you do in the area. This may have negative effects not only on the business activities in the area, the local environment but also on the income distributional factor (i.e. whether you are rich or poor, you will be charged equally!). Secondly, I think the implementation and the enforcement of the system will be quite costly and complex and that leads to the question, is it worth it to devote our limited resources into checking cars which do not pay the congestion fee just because the drivers (parents) are collecting the children from school?

Now, because Brunei is quite unique (read ‘rich’) where the ratio of car to people is 2:1 then why not simply introduce some sort of progressive tax. For example, you tax each additional car a person buys (the first car would be tax free of course). This I believe, would also have a distributional effect. Richer people (who buy lots of cars) will be taxed more. The revenue can then be used to improve the roads and the road system.

Oh well, I don’t know. What I can say for now is that I am not keen with the proposed congestion charge. I personally think, it is not the right time. I also implore, please… let there be some sort of coordination among the ministries and departments. Get the same objectives with more synchronised policies.

Salaam.

How Poor is Poor?

2008-02-11T05:53:00.002+08:00

A few weeks ago, my officemate and I had an interesting conversation. He comes from Guyana, a country in South America. We were discussing about our economies. And he asked me whether Brunei has any economic problems. Well of course I told him that we have had the problem of trying to diversify our economy and being a 'richly' oil-dependent country we also have our own unique set of problems which include unemployment and to a certain extent, poverty.

So he asked me how is 'poverty' in Brunei? Poverty in Guyana according to him means you are so poor that you probably can't even buy the basic food for the day. And about 40% of the population is poor.

Well to tell you the truth it is quite a difficult question to answer. Firstly, we don't have or rather we don't publish (if there is one, that is!) our poverty line. Poverty line is the minimum level of income that is required in order to achieve an adequate standard of living. Of course, different countries have different levels of poverty line. Richer countries would have higher rates. So I guess, if Brunei were to have its poverty line, ours would be higher than the Guyana's. It would also be VERY interesting to know what percentage of people falls below the poverty line (perhaps a post on this topic soon, ya?) Anyway, I told him, I have not yet seen or heard of extreme poverty in Brunei probably because we are quite blessed with a caring and a giving society. The moment we hear someone is in need, we quickly rush to give some help.

Anyway, our conversation continued. Guyana, being a poor agricultural country, imposes about 30% income tax and on top of that about 20% value added tax (i.e. tax on goods and services). I then asked him whether he was thinking of migrating to the US or even the UK. And interestingly he told me NO. Despite the fact that the economy and the politics are in sh*tty conditions, he said he would still want to go back and DO something for the country. He said, people accept their lives. High taxes and so on. As long as they are happy, then they are not complaining. They are grateful with what they have and with their beautiful country.

At that time I was thinking to myself, there we were debating whether or not Brunei should stop giving the fuel subsidy, when these people from poor countries are so content with their lives! How pathetic can we be? Who are poorer? They may be poor in monetary terms but their spirits and strengths are definitely richer than us. In that sense also, we are poorer in terms of our inability to become less dependent from the help of the government. I actually wonder how many people or graduates have actually thought that they want to work for the government to help build the nation rather than thinking of getting all those perks?

What I'm trying to say is that we should be grateful with what Allah s.w.t has blessed us with and to a large extent, our caring government. We have no political havoc to deal with and apart from the road tax, we have never had to pay any other taxes. Perhaps, for a great many of us, don't even know what 'tax' is?

Anyway, in light of our coming 24th National Day, let us all together be strong in spirit and strength, independent in minds and together help build our nation.

Salaam.

A Pleasant Surprise

2008-02-05T04:07:00.000+08:00

I've been busy the past week that I didn't even get to visit my own blog until this evening when my good childhood friend emailed me asking whether the 'rogue economist' was me. Well, thanks N for visiting! Would love to hear your comments.

Anyhoo, I was quite surprised to see the number of visitors had dramatically risen. When I checked the stats, most of them came from Brunei's own Mr Brunei Resources! Thanks Mr. BR for recommending this blog to your readers :)

However, at the moment I'm quite tight with lots of ENDLESS stuff to do. Besides trying to ensure my children read their books, becoming their referee (to their constant bickering), cooking and doing the laundry (credit to the hubby who is doing the house cleaning), I am also trying to finish my PhD thesis (which is actually still FAR from the finishing stage!) and in the past week I've also been involved in a project here in England. Hehehe how I wish there were 30 hours instead of 24 each day...

Anyway, to all new visitors, welcome to my blog. Please feel free to read all of the posts and make comments on any one of them. I'd love to hear your views. To my existing readers, thanks for your continuous interest. I will try to post something new by the end of the week.

Salaam

The Dilemma of Teenage Pregnancies

2008-01-29T01:27:00.000+08:00

I was reading an article in Slate regarding the declining rate of abortion in the US. There were a number of factors involved of course, including voluntary prevention through birth control schemes nevertheless, the debate continues (on legalising abortion). Interestingly however, it was reported that more and more Americans are now campaigning not against abortion, but against 'teen sex'.

Now, for a Muslim country, therein lies the dilemma. Sex education, to give or not to give? By giving sex education at schools, we're seen as conforming to the act (of pre-marital sex) which is forbidden in Islam. By not giving it, we are faced with social illnesses: abortion, sexual transmited diseases, (unwed) teenage pregnancies and worse of all, abandoning or killing innocent babies.

Whether we like it or not, we can't just turn blind eyes to the increasing trend of 'teen sex' in Brunei. No data, however is available to support this but from my conversations with a couple of doctors in Brunei confirms that the trend is worsening. I once asked one of my doctor friends, why is there no collaboration between the Health Ministry and the Ministry of the Religious Affairs (MRA). At that time, I thought by informing the MRA, at least the problems associated with 'single (teenage) parents' could be prevented and let the teens be responsible with their acts. And she replied that if they were to inform the MRA everytime an unwedded teen got pregnant or delivered a baby, then the worst might happened. How so? The pregnant teens (who were already scared) now would not have any place to go. What is feared that more and more illegal abortion would take place which would be harmful to the pregnant teens and worse, more and more innocent babies would be left abandoned. Even as it is, according to her, these pregnant girls only went to seek medical help at a later stage of their pregnancies which were often not without complications.

Even if the teens seek an early help, it may also not help solve the problems. Once they are found pregnant, obviously the morally right thing to do is to marry them off. But their future could also end there. They have to quit school. Without proper education and qualification, how do we expect them to lead a high quality life? How do we even expect them to provide for their children?

Now, back to sex education. I guess, to preach through the morals of religion alone is no longer sufficient. What is needed I think is a good and open communication between the teenagers and the educator (including you and me). The more these young people have their questions answered regarding contraception, relationships, sexual health and the responsibility of being a parent, I think will help them to make the decision in delaying any sexual relationship and hopefully to get to do the right thing of 'sex after marriage'.

No matter how and what approach we want to use, please let there be one. Pregnancies among the teens not only affect their lives but also affect the nation as a whole, especially for a country where human resource is valuable. If you read my previous post, unwanted teenage pregnancies could lead to a vicious circle which could lead to poverty and thus affecting the healthy development of the nation. It is a tough challenge of course, but somebody HAS to do it.

Salaam.

Ain't No My Business!

2008-01-20T03:09:00.000+08:00

I must admit I was quite disheartened by comments made by some people who spoke to me and emailed me regarding my view on the fuel subsidy as well as my view on Bruneians’ lavish lifestyles. I however cannot help think how hypocrite these people are. Before this, they all wanted change. Brunei should do this, this, this and that. When the time to change is finally there, then they thought otherwise. So, tell me, what do YOU want? How do you expect the economy to change? By fate? When oil runs dry? Since there are so many of you who are clever enough to change the economy, then why aren’t we changing? Why is the GDP structure still the same since aeons?

Some said, so what if people drive big cars and buy expensive goods. Why should they think of tomorrow when they can enjoy today? And most of all it is none of MY bloody business to tell off people what and how to spend their income!

AND these are my answers to you:

Firstly, YES it is none of my concern what you people do with your money. It is YOUR life. BUT please stop complaining. You are the very people who keep on moaning that life is unfair. You are the first people who would object to real changes. If you think your future and that of your children’s are in good hands, then why should it bother you that the fuel subsidy will be lifted, or even if one day income tax will be imposed?

Secondly, it is clear you are missing my point. Nobody says that Bruneians should live shabbily or eat ‘nasi dengan kicap’. By all means, for those who think they can afford luxurious livestyles, then who’s stopping? If you must know, it is also equally harmful to the economy if nobody is spending (like what happened to Japan). My message is meant specifically to those who cannot afford such a lifestyle. Ukur baju di badan sendiri as the saying goes. Not everyone has a 4-digit monthly income, you know! And I have also seen many of those who are earning decent monthly incomes, who work as senior officers in government departments, cannot even pay their children’s school fees! WHY? Simply because they value their NOWS.

My aunt, who is a headmistress in one of a well known private primary school, told me that they were having a dilemma. She told me that there were HUNDREDS of parents who could not pay the school fees. She said she would understand if they worked in the private sector but these parents were government officers! I asked her what about the government’s education subsidy i.e. the monthly payment of what $120 per child (please correct me if I’m wrong)? Where did the money go? She said probably to ‘the car’, because apparently some parents bought new cars a few weeks before the fee was due. She said it was heart-breaking to make the decision of expelling children from school, just because their parents think cars are more important in their life. As much as the school wants to help the children, at the end of the day my aunt says, “it is not a charity”.

But, think of the consequences. It is not only the child who will be affected by such selfish act. The whole nation will do too! Now, I’m not going to put forward the argument that if you think you can’t afford to pay the private school’s fee, then the children should be sent to the government schools (while education is still free!), because as a parent myself, I know that I want the BEST for my children. But, please I implore, PAY their fees! And I'm also NOT patronising the quality of the government's schools. I am, after all, a product of one. (Hmm.. perhaps another blog entry for this topic).

Now, again back to the fuel subsidy. I ask myself, is it really fair for the government to reduce the subsidy now? When prices of goods are on the rise? When everyone is feeling the heat? When, even the global economy looks gloomy?

Well, my answer is still YES. My views still stand. I still think it is still a waste for the government to spend more and more to subsidise the prices of car fuel. As the oil price goes up, the amount of subsidy will also go up. I strongly agree with the comment made by 55 in my last post. If and when the subsidy (of any kind) is reduced, then some sort of concession system must be set up to help those who truly deserve the subsidy. Subsidy in economics is after all, an instrument to distribute income equally. It is NOT meant for everyone. Those who are earning above a certain level (usually above the minimum) let alone those who have hefty incomes, do not deserve to receive such subsidy especially when no income tax is imposed.

Finally, my profession is related with policy-making. So, I believe all of the problems associated with the economy, WILL be my concern.

Anyway, I think I understand that the resistance to the policy change is not caused simply by people not wanting to change (right?). I guess, the problem is related with what economists say as 'asymmetric information'. The public do not know what to expect. Are there any supporting policies to help remedy the situation which is expected to have negative effects? And which government agencies will be responsible in providing the supporting policies? How big is this subsidy reduction? And so on. I myself, am anxious to find the answers. I think it would be ridiculous if no one is doing anything to help mitigate the effects.

I guess that's all I will say for now. In any case, this blog is meant for those who are interested in economics and its workings without the boring mathematical equations. As I said in my first post, my views may be right, but most often they will probably be wrong.

Salaam.

Fuel Subsidy, Again.

2008-01-16T04:45:00.000+08:00

I'm quite disappointed with the comments made by the acting Chairman of BEDB. As an economist and an entrepreneur, it is actually the least I expected from him. A few days ago he did mention that Brunei should stand up and face the economic challenges and be prepared to changes and be more adaptable to changes. Well, this is a challenge! If Bruneians can face this challenge, then let's bring the others...

First of all, he didn't seem to acknowledge that car fuel, at times when global prices are rising, is not a necessity. True, people's lives will be affected as the cost of driving a car will go up due to a reduction in subsidy and it will also affect the prices of goods. But I believe people will react by economising not only the use of their cars but also their day to day purchases down to the level of necessity. It would certainly be a different matter, if the government were to reduce the level of subsidy on electricity (but again Bruneians DO NOT economise their electricity usage).

Now, if the government were to decide to go ahead with the slashing of the fuel subsidy, the relavant government agencies should come forward to alleviate the effects on the lives of Bruneians. Firstly, this is when Price Control should be THE active policy in regulating the prices of necessities. Price ceilings of goods which are deemed staple MUST be worked out NOW so that sellers do not take advantage of the increasing fuel price.

Secondly, the Ministry of Education and/or the Ministry of Communication for instance, should come forward in helping parents transporting their children to school. School buses have to be provided and preferably privatised. This will not only directly help the people but also can help boost the transportation industry.

According to the Minister of Energy, about B$500 million was spent on the fuel subsidy in 2005. Again, that's A LOT! The money could be spent on other productive activities including in providing the resources for the above-mentioned activities. But the one use that can directly help the weak private sector and perhaps nurture new entrepreneurial ideas is to use it as SEED MONEY. Instead of spending millions making Bruneians lazy, why not use a fraction of the money making lots of Brunei entrepreneurs. Now BEDB could play a big role here as the agency responsible in giving seed money to the potential entrepreneurs.

Anyway, what I'm trying to say is that in 'every challenge there lies an opportunity' as there must always be 'a blessing in disguise'. This should be the slogan to any good entrepreneur. And I also wonder why should Bruneians be insulated from the effects of the global forces as I think it is unhealthy to the development of a resilient economy and a nation as a whole. It is high time, Bruneians learn to think rationally and start prioritising their lives. Not only that, I also think that a shock is probably what this sleepy country needs to revitalise its weak economy.

Salaam.

"The basic difference between an ordinary man and a warrior is that a warrior takes everything as a challenge while an ordinary man takes everything either as a blessing or a curse." (Carlos Casteneda)

P.S. If you read the news, the US economy is heading more and more towards a recession. A gloomy sign to the global economy. Now, that's a BIG challenge!

YES To Realistic Fuel Prices

2008-01-13T19:21:00.000+08:00

Many people may disagree with me, but I think after so many years, finally someone is thinking with a right mind!

If you read my previous post on car fuel, you would know that the prices of car fuel in Brunei are perhaps the cheapest in the world. It is not without its cost. And the cost is obviously borned by the government in terms of subsidy (for 1 litre of diesel, the government is paying about 80cents and 60cents for a litre of Premium 97). That is A LOT!

Many of you would, by now are probably thinking, 'So What? Oil Price is soaring high now, surely the government's coffer is filling and why not share with the people?' . Well, first of all, oil and fuel are 2 different things. The car fuel's prices depends on the oil prices. When oil price goes up, the fuel price also goes up or the cost of producing fuel goes up. The price that we pay however is way below the cost of production. That means the government has to spend more on subsidy to ensure the fuel prices we pay in Brunei stay the same.

Secondly, yes it is true that the increase in oil price would definitely increase the government's revenue, but the money could be spent on other productive things which would have positive economic long-term impact on the country. Life is, after all, not all about cars! And, I believe it is also the time that the government increases its saving (and investment) for Brunei's future generation. in order to maintain our standard of living.

Thirdly, I honestly think that it is high time that the Bruneians live in a real world. By having realistic fuel prices will definitely awaken many people. The last previous posts, I wrote about 'rentier mentality'. As a result, many Bruneians take things for granted. Ever since Brunei started to export oil, Brunei has become a 'welfare state' up to the point that the people do not seem even know how to stand on their own feet! The government becomes the soul provider and this causes Brunei economy to stand still. Worse, people endlessly complain that the government is not doing enough. People want MORE, but never GIVE back!

Look at Norway, the third largest oil producer in the world. Do you know how much their fuel costs? The last I check, it was about US$7 per gallon. With the current US rate, that's about B$2.40 per litre! The government imposes higher tax, at times when oil price goes up, to reduce consumption. And their population of about 4.5 million use cheap hydro energy power! Well, where they have 'hydro power', I think Brunei should seriously be looking at solar energy as an alternative. And, now is a GOOD time for Brunei to seriously invest in some solar power.

OK. If you are still not convinced that a reduction in fuel subsidy (an increase in the fuel price) will do Brunei a greater good, I also believe that other positive impacts will also result.

First, I think the transportation industry may stand a good chance to benefit from such policy. People may start using buses and taxis. If you are still asking whether or not Bruneians are ready to take such dramatic actions (dramatic only in Brunei as it is perfectly normal for people to use public transportation abroad) well of course the answer would be NO. No one is ready to change their comfortable lifestyle. But an improved transportation industry will create more employments, improve services and most of all, can help reduce pollution.

Second, the price of cars will go down. The rule of demand and supply will apply. As demand for cars go down, price will follow.

Third, people will (hopefully) think twice of buying luxurious cars for the sake of showing-off and instead will spend the money on other important matters in life :)

Finally, I also think that it will help foster a stronger family relationship and communication. People, especially family will economise the use of cars. Gone will be foreign drivers. Parents will collect their own children. Husbands and wives will probably share the same car. As a result, communication improves and LOVE grows.....hehehe.

Anyway, these all are just my thoughts. I will probably change my mind when I'm back in Brunei haha. But I still strongly feel that more positive effects will come out of a policy change in the fuel subsidy. Proper research on the impacts obviously are called for. I do however hope it WILL be implemented.

Salaam.

P.S I am still sure that many of you are saying that 'Other prices have gone up too!'. Well, I say 'Welcome to the Real World.....'.

Aren't We a Flashing Nation?

2008-01-06T18:55:00.000+08:00

It was quite amusing to find the news in Brudirect today. The first main news was about the raid in the hotel, the second was about religious school adopting a system of something, the third was about another irresponsible Bruneian and look! the fourth main news was the announcement of the open tender for 2-digit license plate..Wow! LOL

This, to me just shows how 'flashing' the Bruneians are. The shorter and the smaller your car plate numbers, the more 'VIP' you are. So, people (hoping to be VIPs) are willing to pay loads just to get their so called 'favourite or lucky' numbers. Baah!

I'm actually quite sad that this is the lifestyle adopted by a great number of Bruneians. Big (and expensive) flashy cars. The latest mobile phones. The last time they played golf (which would always be the last weekend). The biggest flat screen tvs. The most beads (manik) on the baju kurung (haha). And the list goes on. It is like people seem to think that they are judged by what they use or wear. (Maybe some people do actually judge by those criteria. What a pity!).

To tell you the truth, it is really quite uncomfortable to be around these types of people (who are almost everywhere in Brunei). Especially if your mobile phone is about 2 years old, you wear just a baju kurung, your car is just another Toyota and you don't play golf!. At the same time however it is also very irritating when all they talk about are the latest mobile phones or their handicap (what?! handicap?! are they 'special' or something?) or the latest car they just bought. Wow! The world must be perfect for these people despite the fact that their latest credit card bills would probably be almost reaching the limit, the headmasters of their children's schools are scratching their heads waiting for the school fee payments (which I can tell you LOADS!) and their disposable income is probably less than 30% of their gross income. Worse, there is no saving for their children's future!

And sadly, it is not only me who is pitying our fellow Bruneians, the foreigners too. When we went back to Brunei sometime last year, we (my hubby and I) decided that it was time to replace our ageing mobile phones (the girl gave me a sly smile when I asked if I could use 3G with that phone. Haha THAT old!). So while the Filipino lady was preparing our phones I asked her how many people buy phones each day. And she said 'quite many'. And I asked her, 'paid by cash or using one of those installments offered by the banks i.e. hutang lah?'. And she gave me this smile (that translates 'are you kidding? cash?). And I asked how many? She said 'quite many'. Then she said she didn't understand why people wanted to put themselves into debt just for a mobile phone. I said, don't let your boss hear you saying that..hahaha.

A couple of times, I must admit my husband and I were thinking of buying one of those luxurious cars. Why not? We can afford it, can't we?

Well..after 1 night sleep we scratched off that thought. Why? First, a car is NOT an asset, it is a LIABILITY..the first 2 years of driving..wow..fantastic...but then...after that...I'm sure many of you would love to share the cost of maintaining such cars. Second, we haven't got a house of our own. Until we do..then we say FORGET it!. Finally, there's our children's education funds. If our children are brilliant then, perhaps some scholarships would be granted. But you never know what will happen in the future.

I'm actually quite worried that this kind of 'rich and flashy' lifestyle is adopted not only by the middle-income earners but also the lower-income earners. The desire to have luxurious items is probably the main culprit why many Bruneians have become 'poor'. If you were to measure the level of poverty based on the disposable income, I am sure it will be staggering. How to amend this? A simple answer from an economist would probably through the good old tax. But I'm sure nobody wants that (and I am also risking my neck suggesting it hahaha!). But I think some kind of awareness campaign against debt should be introduced where the message has to be strong and the campaign done rigorously.

Oh well..it's a beautiful Sunday morning here in England and we need to do some grocery shopping. My only hope (more of a wishful thinking) is that Bruneians will change. I'd honestly hate to come back to the same 'flashy' nation.

Salaam.

Bye 2007..Hello 2008

2007-12-31T23:51:00.000+08:00

Wishing You All a Happy New Year!

Thank you for reading and visiting this blogsite.

Here are some pics from our recent NY trip which was FANTASTIC!

Salaam.

Should the Government Pay People to Lose Weight?

2007-12-22T06:49:00.000+08:00

Interesting question ya? I’m sure many of you would say ‘No Way! Why should the government spend money to get people to slim down. Well, I ask ‘Why shouldn’t we?’

First of all, we economists believe in incentives. Many studies find that financial incentives, when they are directly linked to the achievement of goals, can be remarkably effective in getting people to change their behaviour. Now, consider these (scary) facts and figures from the Health Minister:

- 1 in 3 of our youth is overweight;
- Twelve per cent of the population in Brunei suffer from diabetes equivalent to 45,000;
- Nearly 50 per cent of patients who undergo dialysis are diabetics;
- The cost of haemodialysis per patient per year is around B$20,000;
- The cost of peritoneal dialysis per patient per year is around B$37,000;
- Forty-four limb amputations performed from Nov 2006 to Oct 2007.

All of the above are costs to the government. Not only do they burn a big hole in the government’s coffer, a nation with an obese population is not exactly the right ingredient to a healthy and productive country.

Now, the incentives must be designed cost-effectively i.e. you only pay people when they reach their target weight. The pay doesn’t even have to be massive. The way I see it, the government spend a little in order to save a lot (in the long run). Of course many will criticize that once the money runs out (or once people reach their target) then they may relapse. Yes, maybe for some people. But I am also sure that for some other, they would definitely want to maintain their slim figure. It’s a simple win-win situation.

Anyway, I’m off to the City that Never Sleeps tomorrow for our annual family vacation (Can’t Wait. Am Soooooo Excited). I guess I will see you when I return :)

NEW YORK CITY, Here We Come……………..!

Salaam.

How Safe Are the Toys?

2007-12-19T05:39:00.000+08:00

Last night, my husband and I were watching a documentary from Channel 4 (UK) about the safety of our toys. It really opened our eyes and as a mom to 2 children, I would also like to caution all parents.

From Channel 4's investigation, it was revealed that about 50% of the available toys were (still are) not safe which could cause choking, strangulation and poisoning. Among the worst toys are those containing magnets. Apparently, there have been hundreds of cases all over the world where small children have swallowed magnets. If a child swallows two or more magnets and that they are in different parts of the gut, they will attract each other through the gut wall, pinning different areas of intestine to each other, and rupturing the bowel. One British surgeon says that injuries are similar to: 'gunshot wounds.' One child in the US actually died of this.

And then there are dodgy and counterfeit toys from China which have never been tested. Not only they may contain various types of dangerous chemicals which are harmful to children (e.g. high content of lead), their physical parts may also pose different kinds of threats (e.g. falling parts, sharp hidden edges etc.).

Now, I know many parents wouldn't want to spend a fortune buying toys and sometimes opt to buy those cheap and dodgy toys (especially those from the $1 shop) , well after watching that documentary, my advise is that if we can't afford buying good toys then don't buy any.

But then, it's not only those dodgy toys which are harmful. It was also revealed that many top-selling toys were also as dangerous. The magnetic toys for example were from Mattel (Barbie toys, Polly Pockets etc.) and from the brand Magnetic. Many famous boys' toys for example also contain a lot of hidden sharp edges (sorry I don't know what brand :). Some science toys like expandable dinosours are also harmful.

Anyway, my thoughts are that if England and the US, whose trading and safety standards are among the highest in the world, are not able to remove these toys from the shelves, then what about us in Brunei? I think the only way to avoid any serious injuries to our children is through knowledgable parents. And that's why I feel the need to write this post today.

Selamat Hari Raya Aidil Adha.

Salaam.

Ps. Buy Books instead of Toys!

Paradox of Plenty: Are We Cursed?

2007-12-18T06:22:00.000+08:00

A few days ago BB reported the findings of the Asian Development Bank's International Comparison Study (click here for the ADB report) and that Brunei was the richest in the region with a GDP Per Capita income of about US$34,600.

Translation: It is the amount that every person who lives in Brunei (those who make up the population) would receive yearly from the income generated through productive activities. Well, now you know what it means, please don't go march to the Ministry of Finance and demand that money! In reality, as we all know some earn more and some earn less. And of course, if the government were to spend all the money on its people then what future would lie for us? Basically Per Capita income is used as a measure of wealth i.e. the higher, the wealthier.

Now, back to the ADB's report. Should we celebrate being the richest?

Look around us, we have unemployment, people rely on government employment, the private sector is weak and the economy is far from being diversified. These, ladies and gentlemen, are the traits of a country 'cursed' with natural resources. The economic term for it is the resource curse thesis (Richard Auty, 1993) which describes how a country cannot use its wealth to boost its economy. What happens is that because the income from oil and gas (the natural resources) is so high, the economy revolves around it. The government who is the recepient of the oil income, for example, pays higher salaries then other (private) industries. As a result, everyone wants to work with the government. Another example is tax. Because Brunei is so rich, the government doesn't want/need to burden its people and as a result we may be deprived of more efficient public services.

Another negative effect of having an abundant natural resource, particularly the richly oil, is rentierism. A rentier state is a country which derives a large portion of its national revenue from a natural resource. The characteristics of a rentier state which are not favourable to the economic development, among others are limited linkages between the oil sector and the rest of economy, high dependence on import of goods, lack of economic diversification, a large import of foreign labours manning basic services and many others (which are quite sensitive but very interesting!).

Perhaps, the most negative effect of being a rentier state is the creation of a 'rentier mentality' in which rewards of income or wealth do not come from work, but come as a result of chance (Beblawi, 1990).

Anyway, to me these are all very interesting. I sincerely hope that somebody would do some research on how badly 'cursed' are we? Or should we really blame the natural resources? And what should we do to right the wrongs? And many other questions.

Oh, well it's almost midnight and my back hurts. Till then.

Salaam.

Hands Up If You Love Reading Books!

2007-12-11T08:07:00.001+08:00

I love books. And I love to read them. My love affair with books started the moment I learnt how to read. I guess, I was 6 or 7 (I know! In those days we only started going to school at the age of 6! Darjah 0 hehe) and I used to ask my dad to send me to the library in Bandar. While other kids went to the library to play, I went there to read. I would borrow some of the kids’ library cards, so that I could borrow lots of books. Sometimes I would take home about 8 books at one time.

Now, I still love reading. I could go mental if I don’t read anything in one day. I have to read before I go to sleep. I read almost anything. I’m also grateful that my 2 girls also love books. My eldest, who is 5, now can read and she loves it. Everytime we bring our kids to the town centre, they would always insist to go to the library or a bookshop. We're also lucky that here in the UK, books are cheap especially if you buy online. Children books are cheap too. Plus there are heaps of charity shops which sell second-hand books. My favourites are the Oxfam bookshop and the Children Society. I can get ‘almost new’ books at only about a quid each ($3). So if you ask me, I’m in heaven!

Unfortunately, reading is not loved by all. And especially in Brunei, reading is still far from being a culture. Unlike in UK, Japan or Singapore, you see people read everywhere. In the bus, in the tube, in the train, in the cafes, old and young. It is a culture. These are all developed countries. There may not be a correlation or causality between the two but I can’t help but wonder. It is possible that a developed country makes reading its culture. Or it could also be that ‘reading’ makes a country to be developed. It makes sense to me. With books, comes knowledge. With knowledge, comes power. Today a reader, tomorrow a leader.

I remember when I was back in Brunei a few years ago. I was about to enter a bookshop. Then came this lady with her little boy. The boy asked her mom to go to the bookshop. He said he wanted to buy a book. And you know what the mom said? Nothing interesting in there! We’d just be wasting our time! At that moment, I felt so sad. I actually wanted to approach them and offered to buy the boy a book.

Anyway, you can’t force people to change their habits. Moreover, books are also expensive in Brunei. Books are wrapped in plastics. The bookshops sometimes put off even people like me. But then again, who would want to invest in an expensive bookstore (or an international book franchise) if the people don’t read? The bookshops are after all ‘shops’ and selling books are businesses to make profit.

Nevertheless, I strongly think reading should be encouraged especially to our children. I don’t have to list down the benefits. I even think that it is not over-rated if 'forming a reading culture' to be made as one of the national development objectives (or perhaps the national objective is to build a knowledgeable nation, and 'reading as a culture' becomes one of the main strategies). It could well be one of the remedies to the aggravating social illnesses.

However, if Brunei wants to make reading as a culture, serious steps have to be taken. Having a book fair once a year is NOT enough. Even in the UK, they have a literacy campaign. There is a ‘one book one child’ scheme or something. A few months ago, my children were sent a free story book each. They do this once a year. The local council on the other hand promotes the local libraries. They send leaflets with information about libraries. They even conduct sessions for adults who are not confident or do not know how to read to children. Now, this is what I call serious.

Now, what about our national library? It's been ages I haven't been there. Needless to say, the library doesn't look inviting. Seriously, I think we should have a bigger, fantastic looking national library. A library, is afterall the soul of a country.

Anyway, enough of my rambling today. In case you haven’t notice I’ve put up a couple of Amazon banners in this blog site. Well, the purpose is not to gain any extra income but to encourage you people to read. You can find lots of bargain especially from the Amazon US. Now that the US dollar is down, I think it’s worth buying some.

Oh well, probably I would open my own bookshop one day.

Salaam.

A Home Without Books is a Body Without Soul

The Road to 'DR'hood

2007-12-11T08:02:00.000+08:00

AAAaaaaaaaarrrrrggggggghhhhhhhh!

WHY oh WHY DID I DO THIS?

Nevertheless, it has been an enriching experience.

5 DOWN, 2 TO GO! Yeay!

Doing Business in Brunei 2008

2007-12-06T00:56:00.000+08:00

I actually shouldn't be posting anything until next week (as a chapter is due on Wednesday, the latest) but while browsing the internet I stumbled on the World Bank Group Doing Business Project's report on Doing Business in Brunei 2008 (Pdf file). In case I forget, I think I better post it now.

I read about this in the BB a few months ago and actually wanted to blog about it but well...other important things came up.. perhaps another time.

I haven't been able to digest what's in the report but I can see some interesting findings. My only comment for now is that Brunei is a small developing country. It is not quite fair to compare ourselves with the likes of developed countries. But it should also cannot be the reason why we shouldn't change, afterall those developed countries were not developed by chance. They also started from a humble beginning.

Enjoy reading! I'm sure it will be useful to researchers, policy-makers, students and all Bruneians in general (unless of course you don't care hehe). Oh, don't forget to save it in case it's removed.

Salaam.

Consumer Power

2007-12-01T05:35:00.000+08:00

In my previous post, I wrote about how prices are affected by forces which are beyond our control i.e. globalization, world demand and supply etc.

Well actually, I believe that consumer power should also play an important role.

I’ve often been asked (actually my husband always nags me with this question) as to why the prices of goods in Brunei are expensive as compared to Malaysia and Singapore, when we don’t have taxes and hardly any import duty. Well, the lazy answer to this question is simply that the cost of transportation is high. But if we think carefully, I have a strong believe that the consumer power in Brunei is not high enough to force the prices down.

I remember a few years ago, my husband and I wanted to buy a fridge/freezer. So, out we went surveying shops in various places in Brunei to find the cheapest price of the model that we wanted. In one of the shops, we met a relative. When we told him that we were looking for the cheapest fridge, he replied that we were wasting our time and fuel. The amount we spent on fuel would probably be the same with the amount that we saved of buying the cheaper fridge. So, why bother looking for a cheaper one?

Well, partly I agree with him as he is of course, being rational. BUT, by doing what we did, I believe we were doing a greater good. Why? You see, just imagine if everyone was doing what we were doing i.e. buy the cheapest, and the sellers knew that everyone would only buy the most competitive price. The effect would be that all sellers will eventually have to reduce their prices or become more competitive with each other (maybe by offering extra services etc). Now, that is consumer power.

It is also however unfortunate that the consumers in Brunei have no formal institution that looks after the consumers’ rights. I don’t know if anyone knows what exactly our rights are as consumers. Let’s say if you buy something from a shop, and the good is faulty, is it our right to return it? Usually, it is up to the grace of the shop-keepers to exchange it or refund your money. Either that or you fight your way out (haha). Now, what if you just change your mind? You haven’t used it, it’s still wrapped and when you go back home, you think you just don’t need it. How? Has anyone actually tried returning a good just because a change of mind? What about dishonest sellers? Who do we complain to? As a result, the sellers have all the power to put whatever price that could give them the maximum profit possible.

In fact, I remember reading a local blog which gave the evidence that the recent Brunei Grand Sales (BGS) had defeated its purpose. Many sellers were duping the customers. The prices were never reduced. This blogger showed the price of the item he bought was exactly the same before and after the so called BGS. What the seller did was raising the original price during the event so that at the end of the day, buyer would still pay the same price despite the ‘discount’ given. I guess the blogger (as a consumer) knew that he didn’t have the kind of power that could change anything or perhaps he didn't even know where to go to lodge his complain, just left it as it was.

In other countries, well in UK for example, there are a number of agencies who look after the consumers’ rights. One of the biggest agencies is the Trading Standard Institute. I’m not sure but I think it’s a government run body. It is like a one-stop centre for customer protection in the UK. In it, you find all kinds of information, ranging from the listing of related laws to the listing of product recalls. As a result, all sellers compete healthily and all consumers are treated as kings.

Yes, one might argue that we do have a number of laws that protect the customers such as the Sales of Good Act and the Contract Act. My questions are does everyone know that they exist and what about the contents? Do they protect the consumers or the sellers? In the event that I think I’m being cheated, can I simply go to the court of justice and demand my right?

Well, enough thought for today. Anyway, I would like to say that despite the lack of content and proper research, I applaud what the RTB was doing with their weekly consumer slot (do they still air it?). I’m just sad that the agency which I thought should be responsible is not doing anything about it.

Salaam

Why Globalisation Isn't ALL Good After All.

2007-11-26T20:08:00.000+08:00

I was reading the BB article on the rising food prices. First of all, it’s not only in Brunei (so please don’t blame the government). It’s a global effect. Everyone is feeling the heat especially those in poor developing countries. So we all in Brunei should be grateful.

Why the increase in prices? My answer is that it is very much related to the effect of globalization. Because of globalization, a number of giant economies emerge, in particular, China and India. Their economies grow, and so do their standards of living. As a result world demand for oil, gold and food soar. Any O level economics student would know that an increase in demand will surely lead to an increase in price. Besides the increase in global demand, there are also other factors that lead to the increase in the world’s food price such as floods and draughts (caused by the dramatic climate change) which reduce the world’s food supply.

What should we do? Well, if we can, we should increase food production. Seriously people, put some EXTRA effort in our agriculture production. Anything can happen in the future. There is (sometimes) an extent to what money can buy (from abroad). I believe, at the end of the day any country’s first priority would be the survival of its own people.

On the other hand, in the event that the hike in prices affects our local consumers and producers (which eventually will be inevitable) and as I think, as we speak, some have actually felt the effects (forgive me as I am not in Brunei, I don’t know whether food prices there have actually gone up), then there are 3 things the government can do (in our case 2 things actually):

1. This is when price control sets in. The government would typically set a price ceiling. This is already happening in Russia and Argentina.
2. Eliminate any import tariff on those products. I don’t think this applies to Brunei as I believe the food tariff is already at 0%.
3. Increase or introduce food subsidy, where the government would typically pays for the excess price. This is happening in Egypt as we speak.

Anyway, as I said we all should be grateful. The government has ensured that enough staple food supply is available. For how long, that I don’t know. My only advise for now is DON’T WASTE FOOD!

Salaam.

Ghost town

2007-11-24T07:27:00.000+08:00

Reading today's BB headline, reminds me of a blog page by a foreign blogger I read a few years ago. It said Bandar Seri Begawan was a ghost town. Nothing exciting to see. It looked like a 70s town. And the author couldn't believe that it was the city of one of the richest countries in the world. Of course when I read it, I was quite p***-off. How dare he!

But it is true. Nobody goes there anymore. There's nothing to see. Yayasan is no longer exciting. The last time we were there, half of the lights weren't even on. The place looked gloomy. There was no life, boring. Worse, had to pay for car-parking (a big NO to Bruneians!).

So HOW?

I really think the Bandar needs a new breath of life. First, the rentals have to go down. And somebody has to lead the way. I don't know what's the rental in Yayasan, but IT has to be the leader. If the rent in the yayasan building goes down, others will follow suit as competition or price war will set in. Second, the authority has to enforce the law (the piawaian PBD12 Min of Development, or whatever the name is). Owners MUST upkeep their building and properties. Any 'eyesore' has to be punished in a form of monetary fine. Third, make the Bandar HIP and HAPPENING. Make use of what we have! Everytime my husband and I go to the Yayasan building, we cannot help but discuss the potential of the building and its location. For instance, why keep the central open plaza void? You know, the space in between the 2 buildings. My husband keeps on saying it's a WASTED space. Sayang! Come on, get example from Singapore's Bugis junction. Get some traditional performances every week or every night even. Imagine, gulingtangan performances at night. With the view of the mosque. Fantastic! Get some small moving vendors to sell unique stuff and make it a rule that no two vendors can sell the same products.

I remember there was a talk about developing a 'water front'. What happened? Don't tell me the thingy that they built at the old custom was IT! Goodness! Please get private architects to design (with due respect, PLEASE!!! NOT the government architects!). Better still, set up a design competition among the local architect firms. Get the public to vote. No direct cash price, but the winning design will be used and the architect will be appointed (based on a government set-up fee). That way, the government would save some money and less headache.

I am sure there are ways to revive the Bandar. Don't let the development of other areas to be the reason why the Bandar is falling apart. We need to think outside the box. Be more creative. Don't be too conventional. I'm ON if anyone needs some ideas - will put my bestest thinking hat hehe.

Anyway, if there is a will there must be a way. But of course, you also have to put the money where the mouth is.

Salaam.

Life in the UK Part 1

2007-11-16T19:54:00.000+08:00

Living in the UK, has taught me 1 great thing in life. And that is NOT to be dependent on an amah.

I often said to my husband, I admire the British mommies (well at least those moms who send their children to the same school as our children's). They would drive to the school (for some - they even walk), sending and picking up their children, often with another (and sometimes 2!) small baby in arms. Every morning and afternoon, they would park their car, get a baby trolley out of the car, get a baby out of the car, and walk into the school to get their children. And each of their children that goes to school, has a packed lunch.I mean, that is what I call 'bekarih!'. I tell you, it is not easy!

In Brunei, the thought of not having an amah is almost 'unthinkable'. The parents seem to avoid the 'stressfulness' of being parents. Nobody wants to hear their children crying, wailing, arguing. When a child cries, give to 'bibi'. When a child wants something, get from 'bibi'. When a child does something wrong, blame 'bibi'!

I remember when we first told our friends and families, our decision not to bring an amah. Everyone was giving us the 'look'. You know the look that says 'Are you sure? Can you cope? Hooowww??'. Even today, everyone we met in Brunei was asking how we could have survived, studying and raising 2 kids, without the help of an amah.I must say, at the beginning I was quite worried myself. I wasn't so sure how I could cope, being a full time mommy and at the same time doing my research, which demands a lot of time and effort.

Well the secret is job-sharing, or the economics term for it is 'division of labour'. We share, my husband and I, the house work; I cook and do laundry, while the hubby does the dish-washing and vacuuming. We take turn doing our kids' homework and reading them to sleep. As a result we get to spend a lot of time with each other. We both know what our children 'likes' and 'dislikes'. We get to watch what they eat, play, programmes they watch on tv etc. And as for the children, they get to become more independent. For example, my 4-year old makes up her own bed every morning (and really neat! you wouldn't expect it's the doing of a 4-year old!), my 5-year old helps her sister wear her clothes, teaches her to read; and both of them take their plates and cups to the kitchen (which made everyone in Brunei cried in delight when they saw what they did hehe). As for our relationship (the hubby and I), we get to communicate better. We solve any problem together and we respect each other even more.

Sadly, I think this doesn't happen to many families (that I know of) in Brunei. In the morning, mom and dad go to work. Often separately. A driver will send the children to (and from) school. Mum and dad don't go back home for lunch (they also lunch separately). Mum and dad come back home in the evening, exhausted. Children go to tuition schools. Children come home, exhausted. Children sleep. Mom and dad sleep. I have seen parents who only want to spend time with their children after their children are fed, bathed and happy. I have also seen parents who think that the main role of parenting is spoiling their children with money and toys. And worse, I also see parents who spend 10% or maybe even less, of their waking hours with their children.

For most parents in Brunei, their amahs know better about their children then they do. And as a result the parents-children relation become distant. Often, when something is wrong, parents would blame their amahs, expecting them to do a fantastic job of two parents with a mere salary of $250 a month. On the other hand, the high dependence on amah, has made many employers turn blind eyes to their amah's wrong-doings. The thought of their 'beloved' amah who runs the whole family, going home, is crazy. Somehow, people can't or don't want to function normally without an amah. Amah going for their contract leave IS a big deal for many people. It disrupts life and can also affect the running of an entire work organisation, where people take 'emergency' leaves.

I don't know about you but this type of 'chronic' dependence on an amah, to me, not only can it affect the economy but it can also lead to social problem. Family value is lost, communication breaks down and people become lazy (just look at our youths!).

Surely there must be something that the government can do to remedy the situation. Maybe flexibility in terms of working hours can be introduced. Day-care centres perhaps can be provided in work-places. If other countries can run smoothly without their people needing and depending of an amah, WHY CAN't we? Now, I'm not suggesting that we should ban amah (that would certainly have a catastrophic effect on the lives of Brunei people and could also have a political effect as well!), but some measures should be introduced.

Well, maybe I'm being too paranoid. Maybe I'm too wrapped-up in my own world that I don't think normally, the way Bruneians think. But I would love to hire day cleaners to clean my house and babysitters to look after my children when I go out. Hey, we could create jobs!

Anyway, the point is I don't think I need a stranger to live 24/7 in my house. This is MY family. And what can be more important than one's own family?

Salaam.

Addendum 20 Nov 07:

To be fair, I am not against people having amahs and neither do I think all amahs are bad. There were many times how I wished I had one, to help me around especially during hectic times. But please don't be TOO dependent on one. A line should be drawn between someone who is helping with the house-chores (them) and someone who is running the family (you, mom and dad). Salaam..

Brunei human resource

2007-11-12T18:20:00.000+08:00

I welcome HM's titah on the re-evaluation of the public sector's staff. It is high time that a PROPER human resource auditing is made on each department. I must say it is not easy and it needs expertise. From my too little experience, a long time ago I was involved in the development of a long-term planning of an institution. One of the exercises was to make a long-term projection of the number of staff needed in each department. So out we went asking each department to give us the details of their staff projection. And you just couldn't believe the ridiculous numbers some departments put on their projection! For example, the ratio of clerks to an officer was like 2:1 or sometimes 3:1!

I honestly believe that the work force in the public sector is unbalanced. Take my current workplace for example (the situation is improving I must say), I can put the human resources into 3 categories with the relevant percentage:
1. Admin staff including clerks- 50%
2. Officers with their own specific portfolio (but who end up doing admin stuff either voluntarily or involuntarily)- 40%
3. Thinkers or policy-makers- 10% or less!

And you would have thought that by having a 90% admin, anything admin would run out smoothly..He** NO! And you would also have thought that since there are so many clerical staff, all the nitty-gritty of work such as photo-copying, faxing, data-inputting etc will be done quickly... haha DREAM ON!. I personally blame the HODs. Sometimes you have to be cruel to be kind. Forget 'jaga hati'. How many times have u seen the staff in the government departments having leisure - reading the magazine, chatting, eating and drinking in groups? 90% of the time in my case. And yet you can almost hear the same lament of each HOD, "we don't have enough staff".

Often, it actually makes me wonder, do we need MORE staff? I do however think that we need more THINKERS, policy-makers, researchers who are expert and/or at least have relevant qualifications to do their work. Enough admin. And enough job-qualification mis-match! After 10 years you only end-up of having dead wood who constantly think that 'life is not fair'.

I would be very interested to know the outcome of the reports. I would like to see that the numbers of policy-makers in each department go up. And at the same time, find a mechanism to ensure that the current staff is optimally utilized.

But then who am I to say? I'm just a mom and still at school..hehe

Salaam.

13 Ways to Earn Extra Money

2007-10-28T19:45:00.000+08:00

Has anyone in Brunei tried any of these-and succeed? Would love to hear some success stories. Anyway, many of them are pretty do-able..for example no. 4..I would love to get people come in on a regular basis to clean my house (rather than having full-time amahs- who, in our experience, have caused a lot of headaches and heartaches to some) and what about no. 13, I am sure that the hostels at the UBD and/or ITB are not enough to accomodate students who need places to live. And no. 8? Why should it be an Indian to cut-off the grass? Are the Brunei boys too weak to hold and operate the grass-cutters?
If you know any local who is offering services such as house-cleaning, grass-cutting, babysitting, please let me know...I would definitely be engaging them and will put good word of mouth to other friends and families (provided the services are satisfactory!)...Anyway, enjoy the article..you never know, you are on your way to become a self-made towkeh...

By Jennifer Howze
Everybody needs a quick infusion of cash from time to time. These ideas bring in money fast, and many can also be done at flexible times, so it's easier to arrange child care with a friend or family member for free.
1. Have a garage sale. By using a few easy tricks, like posting fliers at grocery stores and Laundromats, making signs that can be seen from nearby busy streets and displaying your items in a department-store style, you can increase the amount your sale brings in.
2. Sell on eBay. Books, CDs, unused sports or exercise equipment, clothing, novelty items -- people buy all kinds of things. Even if you're selling several small items, the money can add up. Just make sure the buyer, not you, pays the cost of shipping.
3. Put clothes on consignment. This is an especially good way to get rid of clothing like fancy dresses (think old prom gowns and cocktail dresses you'll never wear again), but anything in good condition can be put on consignment. You share the money from the sale with the consignment shop, but it's an easy way to squeeze some money out of clothes that would otherwise just take up closet space.
4. Perform household services. You can earn some money informally by letting friends, family, and others in your community know that you're available to clean their houses or apartments, or to take in ironing. If you find you have a knack and stamina for cleaning quickly and thoroughly, you can turn this into a regular, reliable way to earn extra money every month.
5. Have a bake sale. Do you make a killer chocolate chip cookies? Are yummy breakfast burritos your specialty? If so, why not bring in your items once a week to your job and sell them to coworkers and other businesspeople in the vicinity? If you don't have a job, what about a friend's workplace, a community center or a nursing home? Put the word out beforehand and gauge the response as you go, so you don't end up with a lot of leftover food. By talking up your home-baked goodies and arriving at the same time every day or every week, you may find that people start to anticipate your arrival. You can start a cottage industry along the lines of Mary's Monday Cookie Break when you come around to hawk your wares.
6. Sell homegrown fruits and vegetables. You don't have to have a farm to produce delicious, delicious, organic produce. By presenting your goods in an appealing way (save the plastic or cardboard produce containers from the grocery store and tie them with a distinctive ribbon or desktop-printed label), you give them niche appeal, and you can sell them much the same way as baked items, listed above.

7. Have a family car wash. Enlist your spouse, your kids and their friends on a Saturday to hold a car wash. Talk to local merchants who have parking lots and ask them to donate the space, or set up an assembly line on your street. By naming the event ("The Annual Jones Family Car Wash") and highlighting an upbeat family goal ("We use this car wash to pay for the kids' extracurricular school activities"), you give people a reason to join your cause.
8. Do gardening services. Mowing lawns is a perennial summer job for kids. If you have a mower, encourage your children to launch a business -- or do it yourself. In addition, you can also weed or haul gardening rubbish to the dump (often garbage services won't remove it).
9. Provide man-with-van services. Or, in this case, woman with van (or truck). This service is great for people who need to move a single piece of furniture or for young people who don't have a lot of stuff. If you're able to do moves on your own or with a helper like a friend or spouse, you can position yourself as a mother's helper (a woman living alone might feel more comfortable having another woman moving something into or out of her home). If you don't have a lot of physical strength, your husband and a cousin, uncle or son can do the heavy lifting and you can take care of scheduling and follow-up. A small classified ad in the local paper is an economical way to advertise.
10. Get a paper route. While we often think of paper delivery as a job for a boy on a bike, all kinds of people pick up extra cash this way. Because papers are delivered in the morning, it's possible to complete a route before the regular workday starts, or before your kids are up. (Just make sure you catch up on your sleep by going to bed early at night!)

11. Pet sit. Owners are always looking for reliable pet-care services. Plus, if you stay home with your kids during the day, a regular dog-walking gig is a great way to get everyone out of the house for some fresh air and earn extra money. Put the word out at pounds, the ASPCA, the local veterinarian's and dog runs. Be prepared to provide references from anyone you've ever sat for before. Learn how you can also turn pet sitting into a home business.
12. Babysit. To provide regular child care in your home, you'll often need to be accredited and registered with the state. But occasional babysitting in your home or someone else's is more straightforward. You might already babysit for friends for free, but by reaching out in your community you can find parents whom you would feel comfortable charging a reasonable fee. Depending on your schedule, you can position yourself as a last-minute resource, a Saturday sitter while Mom does errands, a date-night sitter and so on.
13. Rent out a room. This option might take longer than some of the others listed here, but it can provide steady income for a set period of time, or even indefinitely. It might require that your kids share a bedroom or that you give up a family room in the house, so everyone in the family should be prepared for the changes. And of course care should be taken to pick carefully to ensure you get a trustworthy boarder. This is an especially good option if you live near a university or technical college. Eighteen- to 22-year-olds will more likely be fine renting a room with kitchen privileges than older people, and you'll be able to rent on a semester basis.

How did I get to love Economics?

2007-10-25T02:04:00.000+08:00

It was many years ago.... Well, when I was young I used to live abroad and when I came back I went straight to the secondary school, to be precise, I was put in Form 5. You see, while abroad I went to some international schools which did not have the same system that we had in Brunei. As a result the subjects I took were like American History, Drama, French etc. And when I came back, I had to choose subjects which I had zero idea of. These included Economics, Principle of Accounting, Malay and History. It was in May when I resumed my education in Brunei and the 'O' level exams were in November. So imagine how panic I was!*

Anyway, my economics teacher at that time, who was local, I presumed had faith in me (my POA teacher on the other didn't..I remember she told me that I wouldn't get through with just a few months to learn things which were supposed to be learnt in 2 years..Well, Miss..I've proven you wrong!!). Back to this economics teacher (God bless him, Allah Taala saja membalasnya) he was the kind of teacher who was dedicated. Of many teachers, he was the only one who made the effort to give extra classes to his students, free of charge, to prepare for the upcoming O levels. And the way he taught us, his patience in explaining the theory of demand and supply, elasticities etc etc..was superb. And I guess because he was such a likable and friendly teacher, well we could approach him anytime we wanted, he made economics the most understandable subject I've ever learnt (to me that is). And I said to myself, this is it..for better or for worse, economics would become a part of my life..either teaching it or using it or anything to do with it.

I don't know if we still have the kind of teachers like my economics teacher. Even during the time when being a teacher was a profession that someone would chose at her/his own free will, only a few were available. What about now, I wonder, when teaching has become the profession of 'the last resort'? When becoming a teacher is probably no longer the favourite ambition of our children. Will we be able to produce dedicated teachers? Teachers who live to teach, not teach to live.

For those of you who are teachers or who are becoming one, please take pride in what you do. Being a teacher is one of the noblest job. Either directly or indirectly you get to shape-up people's lives and/or help people to determine which path they want to take in life. It is a big responsibility. So if you think teaching is not for you, then don't do it for the sake of just having a job. You might be depriving those who genuinely want to teach hence depriving students from having dedicated and good teachers.

I was extremely lucky to have met my teacher. I'm forever indebted to him. Thank you, Sir!

Salaam.

* I managed to get 7 credits out of 8 subjects. And the 1 I didn't was History (bless the teacher, he was nice too! I could never - and still can't - remember the years and the names or which year goes with what hahaha)

Top 10 Economics Blog

2007-10-18T18:34:00.000+08:00

Top 10 Economics Blogs according to Technorati

1. Freakonomics
2. Marginal Revolution
3. Greg Mankiw's Blog
4. The Big Picture
5. Economist's View
6. The Becker-Posner Blog
7. Brad DeLong
8. EconLog
9. Dani Rodrik
10. The Conscience of a Liberal (Paul Krugman)
Source: www.26econ.com

Get Rich Young

2007-10-18T17:54:00.001+08:00

I found this article in MSN money which is very interesting...The moral of the article is to get your attitude right, believe in yourself and hey! No Pain No Gain...and let's banish the Brunei-mentality of get-rich-quick-and-businessman-equals-a-Mercedez Benz.

Tips to get rich young
By Emma-Lou Montgomery
October 12 2007
You almost never get rich working for someone else, and to give you a helping hand in starting your own business and making it successful here are five tips from people who made it big before they were 30.
An increasing number of young people are defying the traditional view that you need to spend years learning the ropes before starting your own business. Not only that, but they're also proving themselves to be inspirational entrepreneurs in the process.

"Owning your own business is no longer the preserve of older employees with decades of work experience," pointed out Chris Humphries, director general of City & Guilds.

Young people who have already made their mark are providing the biggest inspiration for the next generation. Nearly half of the young wannabe entrepreneurs said they know someone under the age of 30 who has already gone it alone.
Whether you already have a role model or not, here are some valuable tips and insights about starting up in business from five young, and highly successful, entrepreneurs.

1. Know your target audience

When Richard Reed, co-founder of smoothie and fruit drinks company Innocent, started out he took his former boss' advice to heart and made certain he knew his target audience.
"The only target audience we absolutely knew was our friends and family," Richard said.
"And what we identified was a need for something healthy that we and our friends and family could consume despite the long hours we worked and relatively unhealthy lifestyles we had as a result."
To fill this gap in the market he, along with Adam Balon and Jon Wright, bought £500 worth of fruit and turned it into smoothies. They sold them from a stall at a music festival in London in the summer of 1998 and this was the start of a business which now has a £10 million annual turnover.
But before leaping in, they made sure they were making the right move.
"We put up a big sign saying 'Do you think we should give up our jobs to make these smoothies?'. And put out a bin saying 'YES' and a bin saying 'NO'. We asked people to put the empty bottle in the right bin. At the end of the weekend the 'YES' bin was full so we went in the next day and resigned," Richard said.

2. Remember there's no such thing as failure

As a schoolboy, Peter Jones dreamed of running a multi-million pound company. Today he is one of the stars of the TV series Dragons Den and in charge of a £200 million empire as owner, chairman and chief executive of various businesses ranging from telecoms and leisure to publishing and media.
He's had plenty of ups and downs on his way to the top, but Peter says the key to success is to refuse to acknowledge the existence of the word "failure".
"I believe that there are no failures in this world - only events that give you feedback," Peter said.
And his long line of achievements, starting when he set up a tennis academy at a local club aged just 16, are testimony to that.
By the age of 28, as the youngest-ever head of PC business at computer firm Siemens Nixdorf, he was off again. This time with Phones International Group, his telecoms business that now counts every leading brand in the mobile industry among its business partners, whether as a supplier, customer or collaborator.
You could say he wouldn't know the meaning of the word failure, having been recognised as the 13th fastest growing business within the Sunday Times/Virgin Atlantic UK Fast Track League Table. Peter was named as Emerging Entrepreneur of The Year by The Times/Ernst & Young and came 14th in the Daily Telegraph's young entrepreneurs list in 2005.

3. Have a 'can-do' attitude

When Michelle Mone was just 10 years old, she was already thinking big. Having decided she wanted to become an entrepreneur, she recruited 12 friends and started a company delivering hot rolls with peoples' morning newspaper. The woman who left school at 15 with no qualifications has since been named not only "Businesswoman of the Year", but also "World Young Business Achiever", following the phenomenal worldwide success of her company Ultimo Bras.
Michelle said: "The most important thing, in my opinion, is that can-do attitude. The can-do attitude and have-a-go mentality I believe is what breeds success."

4. You can reinvent the wheel

Fraser Doherty was 14 when he started making jam and selling it locally. Now he runs Doherty's Preserves, a luxury jam company that sells its produce all over the world. He's proof that sometimes the best business ideas are simply improving what we've got.
"I started mine in an afternoon with a dozen oranges and a bag of sugar," he said.
"Since I was about eight I had lots of little projects on the go, trying different ways of making pocket money. The catalyst came when my gran taught me her top secret jam recipe and I had something of a 'eureka' moment. I realised I could make jam myself and sell it door to door in the local area."

5. Give it a go

Simon Woodroffe, founder of conveyor-belt sushi bar Yo Sushi, says the key to success is just to do it.
He said: "Ban your brain from thinking about whether the idea will work and whether you should do it. Most budding entrepreneurs stall at the starting line, thinking 'Shall I? Shan't I?'
"Instead, put in the work of developing and researching the project, knowing that you will not make the decision to proceed until you have more information and awareness."
With those tips for success up your sleeve, the desire and ambition to succeed, and the dedication and drive to meet your goals, there should be no stopping you. Whatever you want to be. Whatever you want to do. Just do it.

Salaam.

The Economics Behind the Fuel Limit

2007-10-09T17:03:00.000+08:00

At first I thought I wouldn't write anything until after Raya. However, I'm quite surprised by the bold measure taken by the government regarding the limit to the amount of fuel a foreigner can buy (see Brudirect).

Basically the government is giving a ration to foreigners. The effect of a ration is equivalent to the effect of reducing the price, however with the objective of restricting demand. So, for those of you who are familiar with the Demand and Supply curves, when the price is set below the equilibrium price, there will be an excess demand i.e. the quantity demanded will be greater than the quantity supplied.

The reason why the government is doing this is simply because the government has incurred (I presume) a large amount of losses. In case, many of you do not know, the fuel prices in Brunei are probably among the cheapest in the world. Also, year in year out, the prices you pay stay the same. (For example, here in the UK, the fuel prices are about 95pence p/litre for petrol and 97 pence p/litre for diesel, that's like $3.00 per litre! and the prices we pay vary each day). Why? Well, it is not because we are producing oil (those are crude oil and they aren't the fuel!), it's mainly because the government has subsidized the prices we pay. How much? I don't know, but I believe it's LOTS. Even if the amount of the subsidy is not much (highly unlikely), the government has also made losses in terms of the potential income it can get from selling the fuel, through the various taxes it can impose. (About 70% of the fuel price we pay in the UK are taxes).

Therefore, it is not really fair for the Brunei government to also subsidize the foreigners, many of whom unfortunately have abused our kind system (For e.g. having hidden tanks in their cars for the sole purpose of re-selling the fuel back in their home countries at higher prices - I think the fuel price in Malaysia is fixed at about RM1.90 per litre s so any price below this would be good enough). I don't also buy their excuse that the limited fuel is not enough for them to travel back and forth. Hey! Don't they have have fuel stations across the borders?

The downside of this policy however (as is always the case when there is excess demand) is the emerging of a black market. This time, I'm afraid it will be our own Bruneians who will be abusing the system, taking the advantage of selling fuel at higher price to foreigners. I hope, there is a readily preventive policy and its implementation for such occurrence. If however that happens, I will be more ashamed to call them our Bruneians.

Once again, we all should be grateful with what our government has provided us. Don't abuse this generosity. It may not last forever.

Salaam.

PS. We might also see a reduction in the number of 'tourists' coming to Brunei. This perhaps will give the true number of genuine tourists. And I would also love to hear other views especially those against this policy.

Are We A Responsible Nation?

2007-10-08T18:24:00.000+08:00

It saddens me to think that we Bruneians are NOT the most responsible and (probably trustworthy) people in the world. Why do I think that? Well, in Brudirect recently (am not sure if it’s also featured in the RTB news) there was a story regarding a lady who badly needed a house but couldn’t afford to build one and all the while did not have any electricity. However, due to the generousity of an unnamed donor, Insya Allah, the lady would eventually be celebrating her Raya in a proper house.

First of all, I am quite shocked that there are people who actually do not have any access to electricity, in such a rich nation and in this 21st century! Apparently, according to my husband, who has done a lot of remote places visitings, this is not an isolated case. Well, his explanation was that because the houses are not properly built (without the authority approvals), their applications to get electricity are turned down. However, I said the only way for these people to get approvals for their houses, would be through architects, which would be costly. And since they are poor, how on earth would they get the additional money to pay for such service? (something to ponder about).

Then our discussion (during sahur) moves towards the now-discontinued Perumahan Rakyat Jati Scheme (not sure if that’s the real scheme name), you know those wooden brown houses which were given (FOC) to those of low income earners. Why was it discontinued? Well, I believe it’s all related to the selfishness of those who are given houses in the Perumahan Scheme. I remember, I once spoke to an officer from the Housing Department, who told me the dilemma they were facing regarding the Perumahan Scheme. The percentage of people who were paying was very low (and I think still is!) So, this could be the main reason why the former scheme is discontinued.

Well, in case you don’t understand how the two are related, you see, I believe the payment received from the Perumahan scheme, partly will be used to finance the PRJ scheme. If there’s no payment, then there wouldn’t be any money to build the latter. I maybe wrong, but if this is true, then sadly, because of the selfishness and irresponsibility of those in the Perumahan Scheme, people who are in real need (and genuinely cannot afford) of a proper roof, suffer.

I don’t know about you, but we should be grateful with all the facilities the government has provided us. But unfortunately for some people, it is never enough. I’m ashamed with the attitudes of many of us towards work, towards the community and sometimes towards each other; which I sum up as plain irresponsible and selfish. Often you hear people complain about everything! The salary is not enough (despite the recent salary increase and the fact that they are fortunate enough to have a secured job!); it is unfair to stop people from having tea-breaks (reason being some government departments have no canteens! And they probably would die of hunger despite their current physical and health states, which are often obese and diabetic); there is no job (although there are thousands of foreign workers doing hundreds of jobs which could also be done by Bruneians); and etc etc.

These are all examples of irresponsible people. Why the salary is never enough? Because they have just bought bigger cars or buy top-of the range furniture with the ‘Buy now Pay later’ scheme, and as a result they can’t even provide the basic necessities for their family and children. Why is there no job? Well it is the ‘government’ job that is not available and for some reason many Bruneians (and sadly the younger ones) seem to think that it is their God-given right to a government job! As a result, they are putting financial pressure to their families (especially their parents) or even worse, these unemployeds couldn’t even bothered to take the responsibility of having protected sex, which results in many out-of-wed babies, which in the end burden other members of their families (often parents/grandparents). And don't let me even start with those who just love to spend most of their time eating and drinking while at work!

As human beings, we all have responsibilities. And it is through our actions that our responsibilities are carried out. Often we don’t see how our actions will affect others. Unfortunately, many times they do. And that is precisely why we should think twice before we do anything.

Selamat Hari Raya.

Salaam.

Sincere Apology

2007-09-10T18:47:00.000+08:00

Dear all

Thanks for still visiting this blogsite. I haven't been able to post new thoughts at the moment as there are too much things to do, and so little time (hence the economics concept of 'scarcity' applies here!). Among others, I have to start writing a new chapter for my research, we have to house-pack (we have to move as our landlord is selling the house!), my second daughter is starting her school (loads to prepare: clothes, food, millions of forms to sign and of course constantly praying that she will be fine!) and on top of that I have LOADS of journals to read (I tell you, I wish reading a journal will give you the same pleasure as reading that Shopaholics novel, hehe).

A note to any mommy who is intending to study: DO IT AT YOUR OWN RISK. You really need to have a juggling skill and also means less time to do any eyebrow-plucking (you should see the state of mine!hahaha) and will do lots of hair-pulling (your own, that is). BUT I extremely LOVE it!

OK, enough for today. Will try to squeeze some time later, hopefully writing some comprehensible economics stuff related to Brunei. Till then.

Salaam.

The light at the end of....

2007-07-11T21:46:00.000+08:00

Can't help but laugh looking at this phd comic. Exactly what I feel at the moment.

(From phdcomics.com)

10 Reasons to Study Economics

2007-07-11T21:31:00.000+08:00

1. Economists are armed and dangerous: "Watch out for our invisible hands."
2. Economists can supply it on demand.
3. You can talk about money without ever having to make any.
4. You get to say "trickle down" with a straight face.
5. Mick Jagger and Arnold Schwarzenegger both studied economics and look how they turned out.
6. When you are in the unemployment line, at least you will know why you are there.
7. If you rearrange the letters in "ECONOMICS", you get "COMIC NOSE".
8. Although ethics teaches that virtue is its own reward, in economics we get taught that reward is its own virtue.
9. When you get drunk, you can tell everyone that you are just researching the law of diminishing marginal utility.
10. When you call 1-900-LUV-ECON and get Kandi Keynes, you will have something to talk about.

(Source: JokEc)

How to reduce crime Part 2.

2007-07-06T05:09:00.000+08:00

It is quite disheartening to read today's news in the Brudirect regarding students' involvement in criminal activities. I believe it is not the job of the police alone to reduce and prevent such activities happening (which are alarmingly increasing). And I also do not agree that we should totally rely on the parents of these teenage delinquencies to perform the 'correct' parenting roles as according to the police supt.:
"The majority of cases that involve students are from broken homes and those who are gullible and easily influenced by friends."

My interpretation of 'broken home' here is a family who do not live in an environment where children can grow up healthily (mentally and physically). You see, the most important years of a human's life are the first three. During these years, skills such as communication, empathy, compromise and recognising good and bad are developed, which will help the children to make good (and bad) decisions later in their lives. Children who come from 'broken families' are hardly exposed to such skills. Worse, if any of their parents or family-members are involved in criminal activities, then the likelihood for these children to be involved in the same activities are high.

For this reason, I believe it is now time for Brunei to think outside the box and adopt a more holistic approach involving not only the police, but also education, health and social care. Early years initiatives perhaps can be offered to help support the PARENTS who have criminal records, who are unemployed and teenage parents (which I blogged a few days ago) who I believe have greater risks of not performing the 'correct' parenting roles. Supports such as regular social-care visits, counselling and/or financially should be looked into. I also think that it is imperative for the relevant government agencies (not only the police) to play an ACTIVE role in identifying the 'high risk' parents and their children and to give the proper supports in order to prevent future criminal conducts (made by those children).

Echoing what I said in my previous blog about teenage parents, I believe the first measure to future crime prevention is to provide education to these young parents so that they and their children can have better future. And again please.....do it immediately.

Salaam.

The employer speaks at last!

2007-07-04T00:10:00.000+08:00

I am very pleased with the new JPA memo regarding external tea break during office hours. It is about time (and long overdue) that such activity be banned. I guess you don't need to be an economist to understand the benefit it will bring to the public sector. (Well, ironically it may hurt the private sector for a little while i.e. the restaurants being deprived of patrons). Perhaps we may see office food delivery service on the rise.

Another office rule that I believe should be implemented is to to limit the number of hours an office meeting should last. An officer may not be away from his/her office but is still impossible to find as he/she is ALWAYS in a meeting.

Salaam.