Financial Literacy, Enlightenment and Wisdom

1.      I hope fans of my writing should notice by now that though I read a lot, any genre that catch my eyes and heart, finance is always the top of the list. How a person who has been groomed to be an engineer since the secondary school could change 180 degree to finance?

2.      It is all started in my great years as student leader in UNITEN. I was given the responsibility to steer Persatuan Pembimbing Rakan Sebaya (PRS) UNITEN for a year by the members. At that time, I was shocked and surprised by the election result. Then, I happened to know that my friends from the previous year administration really lobby for me for the top seat.

3.      Well, the journey started. However, I started to have different opinion on how the society should operate. At that time, I realized I have to become better and knowledgeable. I started to read a lot, seek counsel from professional and UNITEN’s management lecturers on how I can improve the operational aspect of PRS UNITEN.

4.      Slowly I instilled Corporate Governance element in the society. I admit, it was not an easy task. Getting the buy-in from my senior management team and also the former leadership of the organization. They had some reservation and concerns that this modernization might change the society into different entity entirely.

5.      Alhamdulillah, although some of my senior management team opposed the idea, but the ordinary members received it very well and they liked it. Using their power as members, they managed to persuade those who oppose the plan and slowly I have to persuade them to buy-in to the concept.

6.      That year, I found out that, the strongest argument one can made to support his idea or opinion is numbers i.e money, projection, cost, revenue and so on. The buy-in process was a success because we started to use these numbers as basis for our programs and demands to the Management of UNITEN. Therefore, I concluded at that time, these financial number/metrics really powerful. It will help somehow, leaders to be focused and being objective

7.      Another reason my re-direction is I don’t like myself to be not knowing on something. When I read newspapers, magazine related to leadership, business and even the public sector, these financial metrics and numbers keep popping up. Look at the back of business section of any newspaper, tables and numbers of closing share prices for investor’s references. I felt uneasy and unrest. I don’t like myself in the state of ignorance. I know these number are important. Therefore I must do something.

8.      So, I enrolled into MBA program after I spent a year and half as Officer in Arkib Negara Malaysia. I decided to do it part-time, whereby I attend evening classes after working hours for 20 months. I love everything about UNIRAZAK and MBA, particularly Corporate Finance. Finally, I found my niche, my talent, my passion and my forte. I know this course will bring me to greatness, In Shaa Allah.

9.      Now, I have my sight for Public Finance. I believe Public Finance knowledge is essential for all Malaysian, especially the Youth. Alhamdulillah, my professor and my mentor at Treasury always provide me with notes, advices and support for me to be a Public Finance literate. Terms like GDP, National Debt, Sovereign Ratings, Revenue, Expenditure (Operational & Development) Budget, Budget Process, Tax (Direct & Indirect), Fiscal Policy, Fiscal Consolidation and so on are currently on the top of my reading lists.

10.   I wish, I could be a better citizen and share my opinions and knowledge for the betterment of Malaysian, especially the Youth. I would like to advocate more Youth to become financial literate, so that they will in a better position to manage their financial and subsequently they will help, indirectly to make our Nation better. I hope I can help them in understanding all this financial stuffs so that they can achieve ENLIGHTENMENT and WISER in their decision making, including to vote who is going to become the Government in the next general election.

The Debt We Took and for Them to Settle.

1. I had a chat with my brother last weekend during our family luncheon. He pointed up the fact that we are currently jeopardizing our posterity’s sustainability to live, in the name of development, economic improvement and quality of life.

2. We have to admit the fact that we, the Malaysian is currently borrowing lots of money for our nation’s sake. The culture of taking debt for our current consumption is a norm and applied by the lowest income to our leaders, the people who run the country. I am not talking about bonds, sukuks or any commercial notes issued by the Government to fund the nation’s budget, but also how we use the debt at our nucleus level of family, such as credit cards, housing loans, personal loans and so on

3. Nevertheless, some of our generation defended the notion that, such debt need to me made for our economy to grow, improve the quality of life and subsequently prepare for our posterity in terms of assets and financial capacity for them to benefit later.

4. Based on the latest economic metrics, our nation’s debt is still below the ceiling point of 55% of GDP. But not many know that the figures just involve direct debts and not include the contingent liability, government guaranteed loans & bonds and future commitment from various concessionaires through Private Financing Initiatives (PFI)

5. I personally agree with the PFI’s concept. I had an experience working as PFI Consultant before, though it is short, but I learned quite a good deal of it. It is one of the way our Government to save lots of money and the savings could be used for other means such as Education, Healthcare and Security. For example, the PFI project for infrastructure, we have to acknowledge that the Government is not in a business of building, constructing infrastructure per se, it is better the Government to hand it over to experts in construction industry to do it and the Government pay them in staggered basis over the next 20-30 years. Again, I reiterated, it is a good mechanism, it will lower high CAPEX cost and put the Government in a better position to manage their cash.

6. However, in our country, despite talking about the commitment for our children’s children, we are busy criticizing on the select few who benefited from the PFI contracts. We are busy fighting, shouting, demonstrating on how this “politically-related” group reap millions or billions on Ringgit Malaysia. We are busy proving the lack of transparency and accountability in the due process for the PFI contracts.

7. I am not saying it is NOT IMPORTANT. I do believe in high accountability and stringent process for any Government’s procurements and contracts. Such tragedy will distort the market and made the wealthy richer and richer.

8. I am in this post, feel it is better we put our thoughts on the responsibility of as a parent. I urge we as parent, a caretaker of current government, a generation that run the nation, put the RESPONSIBILTY issue back at the main debate table.

9. ARE WE A RESPONSIBLE PARENTS? ARE WE HAPPY TO PASS DOWN THE DEBT THAT WE CREATED TO OUR CHILDREN’S CHILDEN? ARE WE SATISFIED WHEN WE WATCH OUR POSTERITY TO BEAR THE BURDEN THAT WE TOOK SO WE CAN LIVE BETTER AND THEY WILL PAY FOR IT?

10. Friends, family and learned Malaysian citizens. I just want to highlight the fundamental responsibility or Amanah, given by God to us, that is we must take care our children and give them better than we have.

11. I am a avid observer of US and UK politics. There, regardless whether you are Republicans or Democrat, Labor or Conservative, Socialist or Liberal, any candidates for any offices, be it the President, Senator or the Congressman, they will speak about the Posterity’s Financial Dilemma. Watch any stomp speeches, debates, they will said that they and the party will not made the children’s children bear all the burden.

12. I hope, in this coming Budget 2015, the Government will put serious efforts in their Fiscal Consolidation exercise. I hope the Government will put their utmost attention in reducing the federal deficit and work diligently with Bank Negara Malaysia and industry to trim down both National Debt and Household Debt. I believe in our PTD’s in Ministry of Finance to come out with great plans and I pray our politician regardless parties will put their differences aside and start act together and become a responsible guardian and caretaker of this great nation.

13. Please, just put the issue of being a responsible parent back in the national debate agenda. I don’t want to be called a ruthless and irresponsible parents, surely I don’t want to see my children’s children suffer a financial difficulty and by God not, the financial calamity in the future.

Regards

Azwan O