[HN] The Malaysian Economy

Day 1,185, 13:49 • Published in Malaysia USA • by Sir Hypnotoad

As you can see here, some Malaysian businessmen and politicians (or a mixture of both) have decided to try to regulate not only the price of Q1 food and grain, but salaries as well.

They suggest 1.2 MYR for Q1 food, and 0.13 MYR for grain.


I'm getting more use out of this picture than I thought I would

To put it bluntly, this is a waste of time and effort. But before we get into why that is, let's look at what's been going on, and why this is even thought necessary by some in the community.


Last month, under Fruitcommando's Regime, Malaysia invaded Singapore. This created a demand for food. The battles that were fought (on both sides) were fought for survival. The demand that this created was immense, and industry in Malaysia rose to meet the challenge. So...the war comes to a bumpy end. what happened next?

We now find ourselves in a situation where production is far exceeding demand, since the survival of Malaysia is no longer under immediate threat; this has caused a dramatic fall in prices.

Usually, this would be no big deal. However, the problem was compounded upon, mostly by the Admins. In the middle of this, they changed the price of companies from 40 Gold to 10 Gold. This caused a flood of companies, which only made matters worse (in addition to them screwing with everyone's national currency)

tl;dr:
*We invaded Singapore-->demand and production rose.
*We stopped major battles-->demand plummeted, but production continued to climb
*Soaring production-->prices fall in an attempt to compete

So, why is this attempt to control the economy ultimately a waste of time?

1)Well, already the suggested price for Q1 food has been undercut severely:



Granted, not every food company owner has necessarily heard the news yet, but it's still a bad sign.

2)The system is fragile. One determined company could ruin the entire market, if all company owners stick to the suggested rates.

3)This system doesn't get rid of the real problem, over-production, it just attempts to keep the bloated food production where it is.

So, how can we fix this? My prescription is:

Let the market sort itself out. As competition increases, companies will fail-they have to if we are to get anywhere. Eventually, there will be smaller production, putting everything back into harmony. This is a market self-correction, let's let it self correct

Super tl;dr: Let the market fix itself