Wednesday, March 31, 2010

New Economic Model USD15,000 Enough 够吗?

Thank you for the new vision and mission for the country economic commitment towards high value income country and society thru the latest announcement of New Economic Model (NEM).

The future income from current USD7,500/RM25k to USD15,000/RM50k.

It means Malaysian income per capita will be increased by 100% in 2020 ie. 10 years from now.

It will be average 10% per year growth.

Says, if we less average yearly inflation 3%, the net growth of income will become 7%.

For a average and above employee performance appraisal, the yearly salary increment will be range from 5%-8% conservatively .

As a result, let's work out simple mathematic :

Average 10%/year NEM's KPI - Inflation 3% - Salary Increment 5% ( take the lowest)
= 2% Net Increment of Salary/Income

Err....2% growth in income per capita per year looks conservative and will not reflect High Value by the time of after 10 years.

If anyone can argue away above theory and calculation, please feel free to comment.

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