RBA And.....

...One angry employee ( BB Opinion 24 Sept 2008):

What's happening with our national carrier?

Where is our national carrier Royal Brunei Airlines heading?
A few months back, I remember they were boasting about the arrival of their new airplanes, the Boeing 777. But the new airplane is nowhere to be seen.

All that is left are the old Boeing 767s with seats, which in my opinion, is worse than a budget airline.

I do not see any major improvement as yet. First, the gone B777 deal and this year, the hope of getting merit increments and bonus for staff look bleak with nothing so far.

Unfortunately for those who resigned, the employer's TAP contribution is also affected from the employee's end of service benefits.

In its commercial side, I see failures especially in the decision-making. I have been in the sales and marketing industry and I personally think their commercial department needs a major overhaul putting those specialising in that field rather than putting a pilot or engineer instead. I guess, they just have the wrong people for the wrong critical positions.

Salaam.

Liveable City

When I was reading this article, I can’t help thinking about Brunei’s Vision to be among the world’s top 10 countries in terms of GDP per capita and quality of life. So, I wonder whether Brunei (or any part of it) will one day ever make into the top 10 liveable cities in the world. According to Monocle, the ingredients to be a liveable city are:

“a mix of shops and services within walking distance, a good transport interchange within close proximity, green space as part of their residence, a good park with a body of water for a refreshing plunge nearby, independent businesses as a key feature of the community, a sense of security (police on the beat or a Japanese-style police box in their neighbourhood), excellent coffee (Melbourne's Fitzroy and St Kilda and Sydney's Potts Point frequently came up as neighbourhoods that had the ideal mix of restaurants, cafés and street life) and finally a little bit of grit and surprise.”

Judging from the latest result which saw many of the European cities topping the list, it looks like we still have a looonnnggg way to go.

Salaam.

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.

ALMOST THERE

This is just a quick post. I’ve been busy in the past weeks to finish my work. Alhamdulillah, the first draft is now ready. So I just have to wait and see what the supervisor says. If it goes well then this heavy burden (of 3 and a half years) will finally be lifted off my shoulders (I mean this literally and metaphorically!). In the mean time, Ramadhan Mubarak!

Salaam

Road to Diversification

This is the kind of news that I love to read in the morning. Hopefully this too.

Salaam.

Wawasan Brunei 2035 and National Development Plan 2007-2012

I have not read Wawasan Brunei 2035 (Brunei Vision 2035) nor the new National Development Plan (Rancangan Kemajuan Negara - RKN), which for some reason was not called the ninth. Hence, I cannot really make a lot of comments on the contents of these 2 national books. For everyone’s benefits, there are 3 main objectives to achieve Brunei Vision 2035 and these are:

1) Brunei to be recognized as a highly educated and skilled people;
2) To have a quality of life among 10 top nations in the world; and
3) To be among the top 10 GDP per capita income nations in the world.

I have found some interesting reads regarding Wawasan 2035 including a presentation made by Dr Richard Leete at the Brunei Forum in Singapore and an article featured in the economist.

The most interesting paper I came across however was a paper by Brunei’s National Development Party which can be found here. The 17 page paper, written in malay, highlights a few weaknesses of the new RKN and gives some proposals for improvements. Among the key points are (pardon my poor translation):

1) The new RKN lacks a comprehensive planning structure: For instance it does not show the specific sectors to be developed and their projected contribution to the economic growth. It also does not address the demand and supply aspects of economic development which will give a more realistic picture;

2) The use of GDP per-capita as the measurement of quality of life will not give a true picture. The GDP per-capita is not a measure of income equality. A greater income equality will ensure a higher quality of life. The Plan however does not address the issue of income equality;

3) The lack of detailed data to support some of the strategy such as the reduction of foreign labour dependence;

4) The lack of strategies to achieve some of the human resource development objectives;

5) The Plan does not explain the method of the calculation of the multiplier effect, which will be used as the basis of project selection.

From my point of view, those points are valid, economically sound and definitely not some mere criticism. What they have raised in that paper are very important and should be taken seriously by the relevant policy-makers in ensuring the successful implementation of the current and any future RKN.

Salaam.

Working Boss

In a few months time, I’ll be going home to Brunei. Believe it or not, I am actually looking forward to resume work with the HOPE that I can make full use of what I have learnt to help the development of Brunei’s economy. But of course this excitement would probably not last for a long time (I will give myself 2 weeks!) especially if I end up not doing things that I think I should do and/or if I don’t work with the right team and/or if the work place is boring and/or if the bosses are…

I remember my conversation with a family friend many months ago. He was a head honcho of a government department in Brunei and our conversation drifted to whether or not I was looking forward to go back to work. And he asked me ‘what’ could excite me to resume work in the office. Well, my answer was ‘the bosses who are working’. (It was also interesting when he told me that as a boss he was also looking for 'working officers', who according to him were scarce).

You see, nothing motivates me more than a ‘working boss’, who unfortunately is hardly to come by in Brunei. And nothing turns me off than a boss who ‘I ask you, you ask me’, who unfortunately exists in a large number. What I mean by a ‘working boss’ is a boss or a HoD or a director who does his/her own thinking, who conveys his/her thoughts clearly to the officers, who knows what he/she wants and who shows that he/she is more capable to do virtually all tasks than any of the subordinates. Don’t get me wrong, I am not looking for a boss who knows everything but a boss that I can look up to, or in the words of our family friend, a mentor.

I am honoured that in the few years I’ve worked I had the opportunity of working with two working bosses, one of whom was the late Professor UBD’s Vice Chancellor (may Allah bless his soul). These two bosses had somehow trained me to love thinking, to believe in what I could do and to be passionate with what I do with the sole objective of developing the country. They were my mentors and I always think to myself, if one day I can be half as good as they were, I’d die a happy woman!

Anyway, I can’t say much of my future bosses as I have yet to work under their leaderships. What I can say for now is I can’t wait to see them and I look forward to our first substantive (intelligent) conversation.

Salaam.

The Curses

I'd hate to think that we are cursed. Double cursed. First, there was the Curse of the Resource (in our case, oil). Now, I wonder if we also suffer from the Curse of the Third Generation as explained by Hsu Dar Ren:

"Looking around us, we can observe that many super rich families often discover that their estate cannot survive the third generation.

The first generation often starts out poor, but through sheer hard work and thriftiness and a little bit of luck become wealthy. From being wealthy, many of them then join the class of the super rich as a result of good entrepreneurial skills and judgment. Many of them, however, remain thrifty even when they become very rich.

The second generation very often grows up during the time their parents were struggling to make their fortune. They are better educated and often will be taught by their parents to "fish" intelligently. So when the family fortune passes to their hands, many of them can still maintain the business and some even expand on it. They are, of course, less thrifty than their parents, and will often marry someone from a rich family.

However, the third generation is usually born with silver spoons in their mouths. They are generally brought up in a life of luxury. They are usually not taught how to fish but are pampered with all sorts of expensive "fish" and hobbies. Many of them are sent overseas for education, but it is not uncommon to find some of them just fooling around and living an extravagant lifestyle. They are given everything and because of that, they do not really know how to cope with difficult situations and the intricacies of the business world.

Adding to that, the family wealth inevitably gets diluted among the more numerous siblings in the 2nd and 3rd generations, especially when these generations are unable to do much to expand the family businesses.

So, the wealth that was passed down just withers away. This is commonly known as the Curse of the Third Generation".

Fate, Cursed or whatever you want to call it, as a Muslim I believe:

“…Surely Allah does not change the condition of a people until they change their own condition…” (Qur’an 13:11).

Salaam.

Land Dilemma

I found an interesting article by Brunei’s National Development Party on the issue of land ownership (click here) which reminds me of a discussion I had with a colleague from the Land Department.

I am no expert in the whole land issue/policy but I do not think the objective of ensuring the local ownership of land has been successfully met, in fact I think it actually has backfired. True, it is a sensitive issue. And for that precise reason, it needs a special attention. The Land Code 1909 really is too outdated, and I do think it deserves some amendments that can accommodate the needs of a new century and most of all the needs of the current economy and its future development without compromising the ‘rightful’ ownership. However for now, I reserve further comments.

Salaam.

Are We Poor OR Are We Stupid?

It is sad to see and hear about the events happening in Brunei (i.e. the food clamouring and the coupon stampede) that have even result into human tragedy (courtesy to ranoadidas.com for always bringing the important news). It would be normal if it happened in a third world country, but for it to happen in Brunei, an oil-rich country, is quite extraordinary.

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 Brunei is also largely made-up of those self-made poor, who are spending beyond their means. Regardless of how people become poor, we need to address poverty properly. There are 2 critical issues to tackle. One, how do we lift Bruneians off their existing poverty and two, how to keep the zero poverty (if it is ever achieved).

Now, if I were an economic advisor to Brunei, these are what I would suggest:

1. Get our statistics and figure right. We NEED to know our poverty statistics A.S.A.P.
2. If the finding (whether this is made public or otherwise) is that there are indeed a large number of poor people in Brunei, then we really need to review our economy. If people are poor because there is no job, then we need to pump-up the economy. This is THE time to make use of the oil-money.
3. 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.
4. 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 Brunei is that there are too many ‘high standard’ people who will not make do with just the normal goods and then there are also too many of us who always want to keep up with the Joneses. For many of these people, the euphoria of owning the latest mobile set or a branded watch has blinded their rational judgement and has reduced their mathematical ability to calculate their monthly balance to pre-kindy level. Therefore I believe the good old system of tax can somewhat alleviate this problem of euphoria-blindness. We need to tax (highly) the luxurious goods.
5. 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.
6. 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.
7. 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.
8. 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.
9. Finally, I think too much subsidy make people too lazy.

Salaam.