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
Showing posts with label consumer. Show all posts
Showing posts with label consumer. Show all posts
Tuesday, 8 September 2009
Friday, 19 December 2008
Bruneians and their toys
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.
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.
Wednesday, 12 November 2008
Snail Mail
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.
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.
Tuesday, 23 September 2008
Are We THAT Thick?
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.
[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.
Friday, 1 August 2008
Are We Poor OR Are We Stupid?
It is sad to see and hear about the events happening in
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
Now, if I were an economic advisor to
- 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
- 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
- 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.
Thursday, 5 June 2008
Boost Agricultural Production A.S.A.P
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.
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.
Sunday, 1 June 2008
Consumer Loyalty Switch
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.
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.
Sunday, 23 March 2008
The Dilemma of SME Part 2
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.
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.
Sunday, 17 February 2008
Which Bank? - Reply to Anonymous
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.
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*
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*
Sunday, 13 January 2008
YES To Realistic Fuel Prices
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.....'.
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.....'.
Wednesday, 19 December 2007
How Safe Are the Toys?
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.
Ps. Buy Books instead of Toys!
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!
Saturday, 1 December 2007
Consumer Power
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
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
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