Should State Government involve in Business?

In Malaysia, we can see a lot of businesses being conducted by state government. Should there be a limit to the extent that state government should involved in? Yes, we know that the state also need money to run their administrations daily operations expenses. But, would it be wise to collect revenue generated by businesses in the state, instead of relying of its own businesses?


Well, doing businesses by state government itself can generate more revenue. This is the case only if the businesses were run successfully and making profits. Otherwise, the businesses' losses were barred by rakyat themselves.

Why we only highlight State Government?

Simply because most of the state government is making losses. In fact, only one state is making profit and still it is highly indebted. By going back to history, we know how that state wrest control of one reputable fast-food chain business, which became its cash-cow now. Then, the money from this cash-cow is spinning around within the group. Is this what we called successful?

Recently, another state government intend to open cafes, convenient shops, and even hardware. There's nothing wrong with that as long as the following criteria was fulfilled:
  1. The right person was being installed into the business

  2. Good governance was being conducted regularly and strictly

  3. Not in conflict with the current and future business owners within the same industry


All Malaysians know that, when businesses were blended with politics, anything can happen (the ugly way). Corruptions, frauds, bureaucracy, is all we already learn from the past. In business, it's very hard to sleep with competitors. To eliminate competition, can I limit the issuance of permit for certain businesses? Can I withdrew the licenses given? Can I stop renewing the licenses when due? Ordinary folks like us cannot, but state government can.




Bush visiting a hardware shops

Fair and Open market is all we want. For me, all the three criteria mentioned above are difficult to abide. If failed, votes will swing the other side. State government should facilitate, understand, and help rakyat to set up their businesses. If all businesses were conducted by governments, we are moving backward to be a communist country.

Comments

Post a Comment

Popular posts from this blog

"You Can Keep Your Existing Health Insurance"

I wondered about this statement at the time Obama made it.  Clearly, by changing all the rules of health care insurance and mandating conformity, it was unlikely that the vast majority of Americans would not find themselves forced by 'The Affordable Care Act' to have to deal with a completely different health insurance plan and completely different set of health care providers. I now understand what Obama meant.   He was speaking to his immediate family and (politician) friends.  They are exempt from the "Affordable Care Act."  Clearly what he meant to say was: "if you are exempt from Obamacare, like me and my family, you can keep your existing health insurance."  He never meant to mislead.
Read more

Why Gold and Silver? Why Online Store?

Image
Are you first time gold and silver buyers? Why don't you invest in these popular metals? If you did so, you have had a wonderful investing experience after 2008 global financial crisis. But, do you really understand these metals? Were they really precious (especially now)? Traditionally, gold and silver were one form of exchange. Because of the invention of fiat money, they were being turned into some short of "back-up" currency , in case our fiat money system go burst. It's natural when things go wrong, gold and silver tends to appreciate in value. In other words, people hold precious metals to preserve the value of their assets. 3 Reasons Why Gold and Silver... Still hot in demand , especially by emerging affluent Chinese. Traditionally, Chinese loves gold. They bought it for events such as new born baby, new year, wedding and even funeral ceremony. Strengthening USD ??? Yes. It's a correct reason also. Why? Because of news that US going to stop QE3, USD is str...
Read more

Things We Now Know

The poor are losing ground in the new Obama world.  The facts are showing up even in the halls of collectivist extremes like the New York Times.  The rich are getting richer and poor are being locked in place.  Big government is throttling the economy and the hopes and dreams of lower and middle class Americans. Today's Wall Street Journal's article by Simon Constable lays out some of the simple and obvious facts of the Obama era: "The richest 20% of households account for 38% of spending, according to government data for 2011, the latest available.  Compare that with 2003 when the top earners spent 26% of the total."  The article goes on to say..."it could get even worse."  It will. Who really benefits when the regulators strangle the banks?  Do banks really need to get much more conservative in their lending practices?  Why does the government know best?  How far can you stretch the FDIC guarantees before American banking is simply a subsid...
Read more