In debt? Try Najibnomics – Terence Tang - The Malaysian Insider

Most of us regular Malaysians have faced financial challenges at some point in our lives. Some maxed out their credit cards (one swipe of the Visa and that iPhone is yours); others had business ventures where profits avoided their year-end revenue reports like how gastronomically unadventurous Westerners react to durian.

Or it could be the increasing cost of living (no pay rise to combat inflation). The list of reasons goes on and on.

But have you ever had to settle a RM42-billion debt?

Prime Minister Datuk Seri Najib Razak, who also holds the Finance Ministry portfolio and chairs the government-owned company’s board of advisers, has pledged to solve its problems before the end of 2015.

Based on the positive cash flow recorded in the past five months, "Najibnomics" may just about salvage 1MDB as well as Najib’s political standing. For Malaysians forget easily, and history is about to repeat itself.

Despite the outcry by opposition politicians and certain news portals, the 1MDB issue is expected to fade away from public memory, similar to the outcomes of the nation’s past financial scandals (such as the RM15.5 billion loss during the 1980s international foreign exchange speculation and annual bailouts of Malaysia Airlines).

Malaysian courts have never prosecuted the individuals responsible for these misconducts.

So, we could actually learn several lessons from how 1MDB is settling its woes.

The prime minister’s methods could just as successfully be applied to solving the common man’s debts.

1. Implement your own GST (goods and services tax)

Charge your friends and family for every favour. Used to picking up your neighbours’ children after school for a minimal fee? Well, force them to pay more for the petrol usage and car maintenance costs. Also, make your 14-year-old son attain a part-time after-school job if he wants the new tablet that badly.

A 6% hike in payment ala Najib’s GST may seem insignificant, but take heed of the proverb “Sedikit-sedikit lama-lama menjadi bukit”,  which translates into “Even pennies when constantly accumulated over time will become a fortune”.

Over two months since the GST implementation on 1 April 2015, the Customs Department has already collected more than RM6 billion. They expect to collect a total of RM23.7 billion by year-end.

2. Liquidate your assets, get the most bang for your buck

Sell the family home, second car and jewellery to obliging, more affluent friends. If your friend owes you a favour, it’s time to call it in. 1MDB received RM255 million from Affin Bank for the sale of 1.79% of the land it owns in the Tun Razak Exchange (TRX). That is equivalent to 1.25 acres.

Affin Bank purchased 1.79% of the land 1MDB owns in the Tun Razak Exchange (TRX) for RM255 million. That is equivalent to 1.25 acres. Imagine the amount 1MDB will recoup once they sell off the rest of their 70 acres.

3. Own a business? Bring in new investors

Promise them handsome returns once your ailing business makes a profit. According to 1MDB’s president and group executive director Arul Kanda Kandasamy, he expects the company’s deal with Abu Dhabi’s International Petroleum Investment Company (IPIC) to raise RM16 billion.

The Malaysian economy has seen better days, but the next time you start to worry over your debts or other financial obstacles, here’s a way to cheer yourself up: view the latest YouTube video or photo of our prime ,inister.

Look closely and you'd notice the tiniest of twinkles in his eye. He knows there's a light at the end of his RM42 billion debt-laden tunnel, that this too shall come to pass.

So why shouldn’t we emulate him? Stay positive and practise "Najibnomics". – November 18, 2015.

* Terence Tang reads The Malaysian Insider.

* This is the personal opinion of the writer or publication and does not necessarily represent the views of The Malaysian Insider.

Link to source: http://www.themalaysianinsider.com/sideviews/article/in-debt-try-najibnomics-terence-tang