100 storey tower and it's economic magic

1. Multiplier effect is when the value of money is multiplied in terms of usage. A single RM1 note can be valued at RM10 when 10 different transaction is made. Under this circumstance, the multiplier effect is at 10.

2. Government spending means more liquidity in the Malaysian economy. The current case would be that of the 100 storey tower. More liquidity means more money in one's pocket and hence, more spending. More spending means higher multiplier effect because more transaction is being made. The economy will grow with this mega project.

3. However, the magic in this mega project can only be utilized if and only if corruption within those involved in the project is curbed. If the money channeled to the project is then channeled back to individual pockets, chances are that these money will not be invested locally but will be sent to foreign countries as investment or safe keeping. If this happen, Malaysia will be low in liquidity and the central bank will have no choice but to print more Ringgit to meet LOCAL demand. Printing more Ringgit means higher Ringgit supply internationally and locally which ultimately leads to a deflation in the currency (think of the simple supply demand model to understand this).

4. We also know that Najib is a stubborn person who will act according to what he feel (or for those Najib supporters, think) is right. Being the most powerful person in the country, there is no stopping on his decision regardless on how ridiculous or fantastic it may be until the next general election when he is finally brought down to his knees. The government is there to fulfil the needs of the people and not the need of one individual. If he cannot fulfil the needs of the people (which is a no to the 100 storey tower), then what is the use of having a government?

5. Until the next general election when we Malaysians unite to bring down the rule of UMNO and BN, I suggest for now that we not demand the rejection of the project for it will ultimately be a waste of time and effort, but we demand that the budget be transparent and that corruption is taken care of. We should just make the best out of the worse possible situation and hopefully the future Malaysians will not find it too hard to undo the mistake of UMNO.