The Misconception of Debt in Malay Political Mindset

Debt, in the Malay political mindset, is often viewed as something inherently negative. This perspective is rooted in the rural Malay experience, where debt is associated with poverty a necessary evil for covering living expenses and sustaining basic needs. However, this view overlooks the true nature of debt and credit as tools for economic growth and business expansion.

Debt, or credit, when used effectively, is not a sign of poverty but a powerful lever for growth. It serves as an instrument for business, investment, and wealth creation. The same applies to foreign investment, where the investor plants capital, reaps the benefits, and repatriates the profits. In contrast, when we borrow, we repay the debt with interest, but the profits we generate from that investment often far exceed the cost of borrowing.

The Misunderstanding of Borrowing

Another common misconception is that borrowers are inherently poor. In reality, those who take on significant debt are often wealthy individuals, large corporations, and rich nations. Could we progress without borrowing? Yes, but we would lag behind, perhaps by 20 years. Similarly, could we reject foreign investment? Yes, but our development might regress by 30 years.

Debt, therefore, comes in two forms:

• Bad debt: Borrowed money spent on consumption, which does not generate returns.
• Good debt: Borrowed money invested in business or assets, yielding a greater return.

The critical issue is the level of risk associated with debt and the amount one is willing to take on. For individuals, it’s safe to limit debt repayments to 30% of monthly income, though some take on risks exceeding 50% or even 100%. Personally, I believe that debt is a driver of economic growth, having taken on debt exceeding 100% of my income at times. However, this requires skillful cash flow management.

For government and national security, it is prudent to cap debt repayment at 15% of GDP annually, with a maximum of 5% GDP for foreign debt to ensure safety.

The Key to Progress: Knowledge and Experience

The significant progress of countries like China compared to the Malays can be attributed to their willingness to maximize borrowing. While we might be on bicycles, they are riding motorcycles. Speaking without knowledge and experience is ignorance, leading to a mindset inclined towards destruction. This is the challenge in the Malay political mindset if it continues to focus on negativity, regression, and destruction, it will hinder progress. What we need is a positive attitude and a forward-looking mindset.

Just as a person who has never been ill does not know how to care for their body, a person without religion does not know how to care for their soul. Without religion, one does not know how to maintain their relationship with the Creator or with other human beings. Without action, knowledge is useless. Knowledge and action without sincerity have no value in the hereafter.

The Essence of Sincerity

True sincerity is found in thinking, doing righteous deeds, and working without expecting personal gain. This is why I prefer to engage in thoughtful work that benefits others rather than performing acts of worship solely for personal gain, which do not reflect on others.

Reading the Quran, performing many voluntary prayers all of these should be directed towards benefiting others. This is the essence of neighborliness, speaking with wisdom, and viewing others with a sense of humanity.

The Impermanence of Love

Doing something solely out of love will not last. Love, like a seed, needs to germinate into a tree that can stand on its own roots and become independent. All forms of love towards children, spouses, grandparents, neighbors, friends will gradually fade over time, and will perish with death, especially in relationships like those with grandchildren. It must be replaced with deep-rooted faith (Iman).

Love for God, though God does not need it, translates into love for the benefit of mankind, driven by sincerity, with no personal interest. This is why, with deep Iman, we pray for our families, parents, and grandparents who have passed away, even for ancestors and others we have never met or loved in our lives. Iman makes us feel a sense of humanity towards them, prompting us to pray for their well-being in the hereafter, InshaAllah.