Measuring the Digital Economy

2018 Article by IMF on Digital Economy and how it is connected to Gig Economy. I extracted the Annex on consumption and welfare. Just to refresh the understanding.

Annex I. Link Between Consumption and Welfare Growth

1. The level of consumption, measured by price times quantity, understates welfare because it excludes the consumer surplus. In the diagram below, the initial position of the demand curve implies a quantity consumed at price p of q0, making consumption equal to the area of rectangle c. Consumer surplus, defined as the excess of the willingness-to-pay over the amount paid, is given by the part of the area under the demand curve that is above the price line, the triangle labeled s. Welfare is measured by the area under the demand curve out to q0, c+s.

2. The growth of real consumption equals (or approximates) the welfare growth. Assume that income growth causes the demand curve to shift to the right, so that the quantity consumed becomes q1. The price is constant, so nominal consumption growth, given by (c+Δc)/c, equals real consumption growth, q1/q0. Welfare growth, given by (c+Δc+s+Δs)/(c+s), also equals real consumption growth.

3. The weights used to calculate aggregate growth of real consumption are based on prices as the measure of value. These weights allow aggregate growth to approximate the welfare growth. 

Consumption and Welfare Revisited

https://www.elibrary.imf.org/view/IMF007/25936-9781498307369/25936-9781498307369/25936-9781498307369_A001.xml?language=en&redirect=true&redirect=true#A01ref05

Gig Economy Statistics

The future for Gig economy is bright. Will update on the short Survey I did this week.  In short, the younger generation are indeed looking forward to working independently, at their own pace. Below is the link to one of the sit in Internet with statistics on Gig economy. It also includes 30 sources from other gig sites. 

Start mapping out your place in the Gig economy today. "The End of the Job and the Future of Work."

https://www.smallbizgenius.net/by-the-numbers/gig-economy-statistics/#gref

 A Friend alerted me on the Book.

Doughnut and Economics?

"Silence is the most powerful scream."

Merakyatkan Sukuk Prihatin

An article I wrote to commemorate Sukuk Prihatin. It is in Malay.

The Last Paragraph:

"Sukuk Prihatin, atau Sukuk runcit ini telah menjadi bualan rakyat Malaysia. Sekarang semua orang boleh menjadi pelabur runcit. Ia adalah langkah terbaik untuk rakyat membantu kerajaan memulihkan ekonomi negara dalam menangani penularan wabak berjangkit ini. Tetapi kita juga perlu memahami risiko dalam pelaburan. Setiap dana pelaburan hadir dengan risiko yang berbeza. Buat pilihan yang bijak. Tentukan objektif pelaburan dan tambah ilmu pengetahuan dalam penerbitan Sukuk sebagai instrumen kewangan patuh Syariah. Sumbangan rakyat dalam melanggan Sukuk runcit akan diabadikan dalam lipatan sejarah. Diharapkan Kerajaan akan terus menawarkan Sukuk runcit di masa hadapan. Sukuk Prihatin menjadi pengubah permainan (game changer) dan norma baharu pasaran modal dan kewangan Islam."

http://www.myaidconference.com/alumni-aid-menulis---umum_artikel16.html

Graphic Facilitation

The video below shows how to do simple graphics for presentation. There are 3 series altogether. It won't take long. 

Subcribe to Sukuk Prihatin

Subscribe to Sukuk Prihatin, profit rate of 2% p.a at maturity. Sukuk Prihatin is a first-of-its-kind Shariah compliant product issued by the Government of Malaysia to enable the public to participate and contribute to the rebuilding of the nation post-COVID-19.

I did my part. I have done some research on Sukuk for the past 10 years. The feeling of finally being a Sukuk subscriber is indescribable. EUPHORIC. 

Here is how you can subsribe Sukuk online via Maybank2u (You can subscribe from any Bank):

https://www.maybank2u.com.my/maybank2u/malaysia/en/business/investment/sukuk_prihatin.page?

The Deliveroo

While searching for materials on Gig workers, I come across Deliveroo. Interesting innovation. More importantly, it is the consumers changing profile that necessitates the structural changes. However, I do feel the Sales Maximizing Strategy is akin to Prophet Muhammad's business strategy. 

An Excerpt:

"Virtual restaurants will help Deliveroo to achieve 4 radical goals:

Hyper-personalized food—produced by Deliveroo
Lower price of food (by 50%)
Create a daily use case for consumers
Greater margin due to supply chain savings and automation"

https://www.forbes.com/sites/douglasbell/2019/08/26/deliveroos-virtual-restaurant-model-will-eat-the-food-service-industry-as-amazon-piles-in-to-fund-us-expansion/#1c74b13c5e89

On Sukuk Prihatin

Here are a few short articles on Sukuk Prihatin - in Malay Language. I think Sukuk Prihatin (Sukuk Runcit) will be the Game Changer for the public to become retail investors. This is one small step in educating the public in Sukuk instrument. The minimum subscription is RM500. Let us be a part of History in battling COVID-19. 

https://www.bharian.com.my/kolumnis/2020/06/701153/sukuk-prihatin-peluang-kongsi-modal-stabilkan-ekonomi

https://www.majalahlabur.com/pelaburan/apa-itu-sukuk-dan-apakah-persamaan-dan-perbezaan-di-antara-sukuk-dan-bon-konvensional/

https://www.majalahlabur.com/pelaburan/lakukan-9-perkara-ini-sebelum-nak-beli-bon-atau-sukuk/

Sukuk Prihatin Knowledge Pack - CIMB

Here is a 16-page version of Sukuk Prihatin from CIMB. Jom subscribe the Retail Sukuk. This is a very good move by the governent to educate the public on Sukuk/Bond as a monetary/fiscal instrument in battling COVID-19 crisis.

https://www.cimbclicks.com.my/pdf/sukuk-prihatin-knowledge-pack.pdf

Below is the Excerpt taken from the Knowledge Pack - "Statement of Purpose"

"Dear Investors, 

The Government of Malaysia (“GoM”) is pleased to share that Malaysia is issuing an innovative first-of-its-kind Sukuk Prihatin that is open to retail and corporate investors. This sukuk is initiated in response to the public’s request to participate and contribute to the rebuilding of the nation post-COVID-19. 

This sukuk, with a minimum subscription/application amount of just RM500, offers a profit rate of 2.0% per annum, payable quarterly, over a two-year term. It is also the very first sukuk that can be subscribed via JomPAY or DuitNow on all distribution banks’ digital (internet/ mobile) banking. 

Sukuk Prihatin is part of the National Economic Recovery Plan (“PENJANA”) which was launched on 5 June 2020 with three main objectives: to empower the rakyat, propel businesses and strengthen the economy. 

The proceeds from this Sukuk will be channelled to the Kumpulan Wang COVID-19 to finance measures announced in the economic stimulus packages and recovery plan to address the COVID-19 crisis. Examples of the initiatives/programmes as announced in the economic stimulus packages and recovery post Covid-19 includes but not limited to the following:- 

1) medical expenditure related to COVID-19 disease;

2) for financing/grants for micro enterprises; and

3) to enhance connectivity to rural schools, which will also act as hubs to connect nearby villages. 

This Sukuk Prihatin Knowledge Pack (“Knowledge Pack”) provides all investment details of this instrument, including the objectives, key features and benefits, step-by-step guide on the application and investment process as well as other relevant information. 

It is our sincere hope that this Knowledge Pack will facilitate a more informed decision-making process on the part of investors. 

The Government of Malaysia"

Rumi's Quotes

Malaysia and COVID-19 Timeline

I am currently researching the impact of COVID-19 in Malaysia. Good to keep record of the timeline here, Inforgraphics collected from various sources in the Internet. Would help other fellow researchers in the future. Soon the Case Study I wrote would be published as a Chapter in Book. I will post the Case here. There are a few other posts earlier that will provide a good background information. 

The Beginning.

More Details.

A Piece of History. 

Digital Sukuk PRIHATIN is Here

The first ever Digital Sukuk can be subscribed from 18 August until September 17, 2020. Below is the excerpt from The Edge Malaysia:

"The sukuk, which is based on the principle of Tawarruq via the Commodity Murabahah arrangement, has a total target issuance of RM500 million with a maturity period of two years, said the Ministry of Finance (MoF) in a statement today.

It offers a profit rate of 2% per annum, which will be paid on a quarterly basis and will be exempted from tax."

Here is how you can subsribe Sukuk online via Maybank2u:

https://www.maybank2u.com.my/maybank2u/malaysia/en/business/investment/sukuk_prihatin.page?

Article from The Edge:

https://www.theedgemarkets.com/article/twoyear-rm500m-prihatin-sukuk-launched-2-annual-profit-rate

FAQs from Hong Leong Bank:

https://www.hlb.com.my/content/dam/hlb/my/docs/pdf/Promotions/Personal/2020/sukuk-prihatin/hlb-sukuk-prihatin-faq-en.pdf

COVID-19: No End in Sight

 https://cartoonmovement.com/cartoon/no-end-sight

Timeline of COVID-19: The Beginning

Just come across the timeline of the crisis. Good for those who are writing an Introduction to a Book on COVID-19. From an economic perspective, maybe you can look at the Game Theory and Fiscal Cliff aspects.

The Beginning.

Game Theory

Fiscal Cliff

A Short Video from Harvard Business Review.

Financial Responses to COVID-19

Here is a Report by Deloitte on how Malaysian Financial Institutions should respond to the crisis. A summary below, quoted from the Report:

• Adjust the parameters to incorporate and consider the short term economic outlook.
• Optimise the RWA and provision calculation process to be more effective.
• Respond to customers earlier by leveraging on early warning signals.
• Prepare a more robust business continuity plan with more recovery options, if similar crises were to occur in the future.

https://www2.deloitte.com/my/en/pages/risk/articles/covid-19-impact-my-financial-institutions.html

The Impending Risks

SWOT

Monetary and Fiscal and Policy Mix in Malaysia

The road forward could be bumpy because of COVID-19 crisis. However, this article was written in Feb. 2020.

https://www.salaamgateway.com/story/malaysia-economy-a-monetary-fiscal-policy-mix-likely-in-2020-marc

Fiscal Space

At the trying time of COVID-19, economic preparedness in important. 

"Having fiscal space is like having money in the Bank." You can read the article below. 

https://blogs.imf.org/2018/06/27/economic-preparedness-the-need-for-fiscal-space

Understanding Fiscal Space

 Curves With Linear Truths

On Sukuk

 Weak Secondary Market for Sukuk? Below is the Abstract  on an article published in 2018. 

https://dergipark.org.tr/en/download/article-file/588498

ABSTRACT

Sukuk market has been growing very fast in recent years. However, because of the sukuk market problems, the potential of the market has not been realized yet. One of these problems is the inactive, weak and sluggish secondary market of sukuk. Because of the weak secondary market, investors and issuers of sukuk cannot benefit from the advantages of sukuk completely. In order to benefit from sukuk, sukuk secondary market problems must be overcome and the secondary market of sukuk must be active. In this regard, we researched the reasons of weak sukuk secondary market by using a descriptive method in this paper. We proposed some solutions to resolve the problem. If the solution proposals can be put into practice, we think that sukuk secondary and primary market will develop and parties of sukuk can take advantages of sukuk more significantly. 

Keywords: Sukuk Market Challenges, Secondary Market, Sukuk. 

JEL Classification Codes: G15, G23, F34.

Source: Baton Global.

Raya, The New Disney Movie & Adele Lim

Adele Lim is a Malaysian-born American screenwriter. She is known for her "Crazy Rich Asian" movie script.  Considered as the Game-Changer' for the aspiring Malaysian, she added a little touch of Malaysia in the character called "Raya." The movie was scheduled to be aired this year, but due to COVID-19, the release is postponed to 2021. Can't wait to see the movie and the review. Hopefully, 'Raya' will be remembered and loved as much as other characters. Hope one day Adele Lim will deliver inspiring talk to graduates. 

Raya.

Kudos to Adele Lim.

COVID-19 Pandemic Still Unfolding

Recent article from the IMF Blog. As usual, short yet illustrative. Study the charts below for a quick assessment.

https://blogs.imf.org/2020/08/06/covid-19-response-in-emerging-market-economies-conventional-policies-and-beyond/

 Exchange rates and Reserves.

 Fiscal Space.

Membaca di Awal Usia

Rencana di Tinta Minda. Iqra'.

https://www.bernama.com/bm/tintaminda/news.php?id=1858122

Novel by Tere Liye

Tere Liye (Untuk Mu) is the OST for the film Veer Zaara. I am not going to talk about the film, but the novelist Tere Liye from Sumatra, Indonesia. Check out his novel. According to information in the Internet, he is an Accountant.  He wrote a number of Novels in English as well. I like one of the title of his novel:

"Daun Yang Jatuh Tak Pernah Membenci Angin."

Inspired by the quote from Sayyidina Ali, perhaps?

Google Econometrics

You can browse Google Econometrics. Up-to-date and daily data. Below one article on Google Econometrics and Unemployment Forecasting.

http://ftp.iza.org/dp4201.pdf

Covid-19 Mitigation Sukuk

 Here is an article on Sukuk and Covid-19 written on June 26, 2020 by Mushtak Parker. 

https://www.bernama.com/en/thoughts/news.php?id=1854830

Good and Services Inflation in Malaysia

 Latest article I wrote on Good and Services Inflation in Malaysia.

http://www.myaidconference.com/ijcomah-vol-1-issue-1-june-2020.html

The Bridge

 A friend forwarded this story. I thought it is refreshing to take a look at what nature taught us.

 The Bridge.

The Lesson.

Volatility Jump

The topic on volatility is always interesting to me. Here is one article talking about volatility jumps. Good to include this in the research. You can also watch MIT OpenCourseWare on the topic of volatility. 

http://public.econ.duke.edu/~get/wpapers/bg.pdf

Jump-Diffusion Model

IIFM Sukuk Report 2020

Each year, IIFM will published Sukuk Report. The July 2020, 9th Edition Report has 190 pages. Happy Reading. Last year we have Formosa Sukuk in Taiwan. Formosa means 'Beautiful Island'  which refers to Taiwan. I have yet to finish all the 190 pages. Will update soon on the latest trend.

https://www.iifm.net/wp-content/uploads/2020/07/IIFM-Sukuk-Report-9th-Edition.pdf

Sukuk Issuance by Currency of Choice. My Fav. Topic.

Gig Workers Market Structure

Inforgraphics on Gig Workers in Malaysia. I come across a few interesting readings, which I will post soon. The article describes the weak structural system of gig workers as compared to more institutionalised traditional jobs. Gig Economy aka 'platform economy aka informal economy aka apps economy' gains more support in the emerging and developing economies since the policy makers see its potential as a new engine of growth. The more advanced economy, on the other hand, are more concerned on the well-being of the workers. Statistics show that gig workers are more prevalent in the developing countries, while the employers, with established platforms, are the advanced economies. The same article highlights that skills and established platforms are the two important features in Gig economy. 

Another catching-up to do for the have nots. Got any ideas on how to reverse the situation so that the established platforms are of Asia's origin?

Statistics on Gig Workers in Malaysia: 
https://www.dosm.gov.my/v1/uploads/files/6_Newsletter/Newsletter%202020/DOSM_MBLS_1-2020_Series-8.pdf

Inforgraphics from Brant: 

http://www.hrdfconference.com.my/wp-content/uploads/2019/11/3.MUNIRAH-LOOI_HRDFConference2019-1.pdf

Dana Gas Kerfuffle

Just learn what the word 'Kerfuffle' means - "a commotion or fuss, especially one caused by conflicting views." Somehow I miss the Story of Dana Gas. I plan to write a Case Study on this issue. The title is, of 

course, "Dana Gas Kerfuffle." 

You can read the story here.

https://www.nst.com.my/opinion/columnists/2017/06/250653/lessons-dana-gas-sukuk-debacle

The Timeline here.

https://www.islamicfinancenews.com/the-dana-gas-case-timeline

The Debacle. From 2008 to 2018.

Sukuk Industry in Malaysia

I wrote a Chapter in book on Sukuk, published this year. There are many other great articles as well. Hope you learn something new on Sukuk and Islamic Finance. I did, in the past few days. The more I read, the more I found out the intricacies of Sukuk. The empirical work on the impact of Sukuk on the economy is indeed few. 

https://books.google.com.my/books/about/Islamic_Finance_as_a_Complex_System.html?id=Bc3xDwAAQBAJ&printsec=frontcover&source=kp_read_button&redir_esc=y#v=onepage&q&f=false