Nation is not managing its resources well ?

hi people.. i'm on sem break in case you dont know. i've been online like almost all the time.. googling and stuff lah, but blogging wasnt on my mind.. heh.. its not easy for me to recall the stuff i've gone thru, unlike those celebrity bloggers eg. kenny sia.. haha.. so i blog only when i have something in my mind..

okay, lets talk about malaysia's financial crisis okay.. although the country seems fine, but i'm sure they have 'ahem not-so ahem good ahem financial officers' running the central bank and overlooking the country's financial area... the current interest rate we enjoy when we save in the bank is only +-1%... so where the heck do we keep our money ?? (its no wonder investment scams are growing like mushrooms now)

okay, so savings interest is +-1% per annum & fixed deposit rate is 2.5% p.a at most (compared to the previous 3.7%)

economics theory ; when interest rates are low, the govt are encouraging us to do investment... so there should be plenty of funds available... but why the heck are people turning to 'ah longs aka loan sharks' if there are supposed to be lots of funds to borrow at a supposedly lower interest rate ?

whats more ? the country is taking this opportunity by offering Government Bonds (amanah Saham ; ASNB) at a slightly higher-than-normal-interest-rate to get people to start saving..

so in conclusion..
- low interest rate discourages saving ; in the contrary encourages investment
- supposed to increase money supply into the market (through commercial banks ; loans)
- but people are borrowing from loan sharks instead
- people with extra funds takes out money from bank to invest in investment scams as they offer attractive returns (eg. 5% return per annum instead of the current 2.5% pa fixed deposit)

whats the country gonna do about it ?