MALAYSIAN BUDGET 2017 : A COGNITIVE REFRAMING?

1. The month of September has become synonymous with the month of ghost or some people quote it as the most hectic month for preparing the budgets for 2017. Everyone is talking about huge companies that need assistance (or in dire need of being helped rather) to be a going concern with basic principles of accounting concepts to match with the dividend policies for the shareholders. Nonetheless, the very nature of the business now has become so chaotic due to political battles, industrial espionage and of course, the pressure from the middle class citizens (including those who claimed to be residents, notwithstanding). 
2. It must be noted that an asset (fixed or current) - such as motor vehicle, building, computer, laptop, smartphone - can be classified as a source of fund and can be used to generate profits (cash and non-cash and its equivalent). If you are struggling to search for uninterrupted source of cash, regard must be had as to the level of income in cash term so as not to mess it up with non-cash income (i.e. debt or promises to pay you cash).
3. Then, calculate how much is needed as cash in hand so as to prevent deficiency at any point of time. It is better to have excess in cash and access to the cash itself shall not deter you from gaining any other income and thus steady level of savings can be observed. Uninterrupted flow of income (cash) is achievable should you get to know how to maintain the flows nicely and try not to risk that flow to non-cash, non-income and non-returning cash flow items. This buffer is always not cared for or provided for by many big corporations and even SMEs and thus chaos always sets in when the accessibility to cash is not foreseen immediately; worse still, if it is not sufficient at all.
4. Greater details in how to formulate the best level of liquidity are not to be mentioned here since different persons / companies will have different sets of balance sheets / statements of affairs facing them. Basic genuine key equation is to never spend more than what you earn (sales, proceeds, income generating revenue assets, capital gains, sale of shares - must be transparent and at arm's length transaction and must include off balance sheet event items including investments by related parties). 
5. The exact phrase to denote the above is never to indulge in indebtedness (when your money is in your bank) in order to become debt free and cash rich corporations. So far Malaysia does not have a complete blueprint agenda to establish cash rich corporations as far as her Vision 2020 is concerned. This would be a  major factor for your bankers to suffer sleepless nights and some of them would become instant insurance agents if the the companies do not need more financing or loans. As a result, some bank managers are still under appraisal pressure (in the Key Result Areas drafting)  to formulate the best ways to approach these companies/ persons by saying that cash rich companies are not healthy and obese. It is a very challenging job for the financial controllers indeed. 
6. As financial controllers (in Malaysia the Finance Minister - so many people wish to hold this very position today), try to save as much as possible and spend as much as needed bearing in mind the buffer and deficiency risk-aversion techniques. Even when debtors are promising to pay the companies/ persons, the latter will always seen as beggars asking here and there, the very cash which is extremely needed for companies/ persons. It is easy if we are not indebted to purchase our personal or business assets in order to avoid any encrumbrances against our assets and current / future income. 
7. Companies and individuals must be matured in their spending and cashflows. Inflow of cash and profits (not cash) must be observed with care and prudent spending is a must. The companies and the financial controllers must be humble and should never show their assets / money / wealth to the mass since many parties are not meant to be associated with them. 
8. If you are a Finance Minister, how much salary in real cash term you need (I am not talking about banking inclusion here due to data privacy reason) if you are given the chance to ask for it?