29-06-2025
Measuring nation's wealth
Published on: Sunday, June 29, 2025
Published on: Sun, Jun 29, 2025 Text Size: THE wealth of a country is derived from its natural resources such as land, minerals and raw materials, while its economy is driven by production, trade and economic activities. However, a nations wealth does not necessarily translate into a strong economy. This transformation depends largely on governance, leadership and policy decisions. Russia, the world's largest country by land area, possess vast natural resources, including oil, gas and minerals, which could theoretically sustain long-term prosperity. Similarly, some countries are considered homogeneous – meaning they can sustain themselves with minimal reliance on imports or exports. These include the United States of America, Russia, China, India, Australia, Japan and several African nations. Yet despite their wealth, economic success is not guaranteed without effective management. In contrast, Malaysia's wealth is more limited. Its known natural resources include tin, oil and some mining activities. Plantation sectors (oil palm and rubber) contribute about 30% of cash flow, while the rest is affected by foreign worker remittances and export dependencies. A significant portion of Malaysia's domestic cash flow comes from government salaries and contracts, while other sectors face increasing competition from manufacturing giants like China and India. Malaysia has a population of over 35 million, with over 50% living in rural areas. The civil service is reportedly one of the largest in Asia, with monthly salary expenditures exceed RM10 billion - representing a key component of the nation's cash flow. However, a concerning percentage of civil servants are burdened with debt which can foster corruption. One study found that 10-13% of new bankruptcy cases in Malaysia involved civil servants, whilst another indicate that 50% of the bankruptcies were due to personal loans. Meanwhile, rural populations contribute minimally to the formal economy due to limited opportunities. Many countries including Malaysia, implement policies that inadvertently hinder the economic progress of rural and lower income groups. These measures often act as temporary appeasement, akin to giving candy to children to keep them quiet, rather then sustainable solutions. Additionally, developed nations exploit developing countries by purchasing agricultural and manufactured products at suppressed prices. This was highlighted by CNN's anchor and correspondent, Richard Quest, when he exposed that African cocoa farmers received only 12% of the final product's value, with cocoa beans selling at $1,500/ton compared to processed products fetching $25,000/ton Harris Mohd Salleh The views expressed here are the views of the writer and do not necessarily reflect those of the Daily Express. If you have something to share, write to us at: [email protected]
