Putradinar | Malaysia

Nowadays, Malaysian is more likely to get involve in bank loan which considered as a necessity for them to have it. They tend to acquire a study loan and after they’ve graduated, entered themselves in a career world, they will definitely get a car loan,
personal loan for marriage purposes and also housing loan. From many views of Malaysian citizen, loans are mending to ease individual financial deficit. However, unfortunately, during the last quarter of Malaysian unpayable debts shows that Malaysian is having more debt than it suppose to be. The trend illustrate that, they are more willing to borrow money from banks rather than saving from their monthly income so that they can maximize their needs which means their necessities and even to obtain luxuries goods. If this trend continuously carried to the next generation of Malaysian, we might experience a country that 50% of the citizen will be blacklisted from the bank and also trying hard to pay their debt for all their life.

Furthermore, we can also take a look at the United States subprime mortgage crisis which create a major impact on their people where they are unable to pay their monthly installment and even accompanied with the prices of real estate that remain constant which cause their citizen to face a huge credit crisis and self force to live on the street at their own land. Moreover, Malaysian need to take into consideration on other alternative of saving instead of continue to borrow in order to survive where they can shift their saving strategies to precious metal in Malaysian as many banks have already long started to help Malaysian realize that they can save their money in other ways instead of depending on bank loans in order for them to maximize their needs and wants. Further more, our government should invest more on precious metal industries starting with mining, refinery and even minting as the price of precious metal such as gold are keep bullish in the international market since money is no longer back by gold in 1971. So if we want to achieve the status of high income and develop country before 2020 we should follow China that advising their people to save in gold as the metal is hedge against inflation and hedge against failing currencies. If we can advise people here to start save in gold from now, we can lead Malaysian stop keep on making credit and generate the GDP from public spending and saving or from premium earn from investing in gold.

The issues that we can point out are that, try to spend based on what you earn or save and stop depending on loans because at some point people will face difficulty to paying their installment and trap in " The Web of Debt ".

Objective:

The objective of this research is to show the disadvantage of bank loans in the long run that people always tend to miss out which starts from studies loan, personal loan, car loan and housing loan. Apart from the negative side of bank loan, it also explains and examines the effectiveness of saving in gold to maximize ones wealth rather than believe by obtaining bank loan will ease ones personal deficit and by showing people that buying necessities and luxuries using monthly saving has less risk compared to signing for loans.

Adam Sharif