Life is a matter of perspective, aint it?
How we look at things is greatly affected by a variety of influences – upbringing, environment, familiarity, motive, etc.
Similar to the half glass full vs empty theory. Things happen as it is, but it is the perspective that we use to look at it that determines what our reaction will be.
I’ll be going through 2 situations that warrant a look at different perspectives or lenses. But first…
The beginning: KOI
In 2019 (when travelling was still the norm), my friends and I were on a weekend trip up at Genting Highlands to celebrate a good buddy’s birthday.
We had good fun up there in this place called “Zouk”, which is a very nice place with soothing music that we can relax to… (Yeah, who am I kidding?)
That’s not the point of this story.
Sometime during the day, we were looking for something to either quench our thirst or fulfill our sugary needs. Someone wanted to get it from “KOI Thรฉ” – the bubble tea shop.
This was when Friend JH’s girlfriend-at-that-time (now wife) gave us all a revelation. To understand, she is a Chinese from China, so her perspective is quite Chinese-orientated.
When we were there, she exclaimed that it is not “KOI”! The shop’s name is actually…
"่ฑ" meaning beans in Chinese.
Don’t see it? Let me show you.
What is seen, cannot be unseen.
What each of us see, even when it’s blatantly in front of us, can greatly differ. Hence, it is crucial to understand different the perspectives.
It will help at:
- work (achieving win-win),
- personal growth (empathy),
- relationships (less arguments), and
- most definitely in life (holistic growth).
Now on to the meat…
Case 1: EPF Account Withdrawal
Round 1 (History)
In the first Movement Control Order (MCO), the government’s Employees Provident Fund (EPF) allowed withdrawal from Account 2 via its i-Lestari program. This happened in April, where it received an overwhelming application.
It was then learned that there were 4.1 million applications for this withdrawal. I quote this news article:
The majority of the 4.1 million applications for the i-Lestari Account 2 withdrawals from the Employees Provident Fund (EPF) are those from the B40 or bottom 40% income group.
“We are fairly worried because some of our members have already exhausted their Account 2 after two months. That’s only RM1,000 in Account 2 (RM500 per month for two months),”
The Edge (June 17, 2020)
Round 2 (Now)
Very recently, the EPF withdrawal from Account 1 became another hot topic. I first saw this in an article that mentioned the government will not allow withdrawal from Account 1.
Then, a flurry of articles appeared online either in support of the withdrawal or not – BN is for it, some said to have strict limitations, a collection of more people who are for it, Alliance of Safe Community is kinda against it, another letter on NST that is against it, etc.
For those who listened in on the Budget 2021 announcement would know that the government has decided to allow the withdrawal from EPF Account 1. This would be similar to the earlier plan which is RM500 per month for 12 months. However, this would be for those who have lost their jobs due to the pandemic.
Perspectives
First things first, we must understand how our money in EPF actually works. Important point: Guaranteed minimal dividend of 2.5%.
MyPF tracked the historical returns on EPF here, which is on average 5% – 6% per year.
The general arguments for the two camps:
- FOR: It is a trying time financially for a lot of people who has lost their jobs and the withdrawal will help. Surviving in this pandemic will be more important than retirement for now.
- AGAINST: The money kept in EPF is meant to help citizens tide through the retirement and if they do withdraw now they will face issues in the future.
BTM’s Stand
Against. Definitely against.
The loss of a job / business due to the pandemic leads to the loss of income. This is understandable. The most immediate solution is to find a replacement income to survive.
I see old uncles selling curry puffs or fruits at kopitiam or growing businesses actively hiring. There is no shortage of sources of income. The limitation is in our own minds as to what we are “willing” to do.
Next up, each of us need to understand 2 things about expenses:
- What is our needs vs wants (I’ve covered this here) ; and
- Where is our money actually going (check out the living expenses sheet here)
We have to scale our expenses based on our income. I remember when there was a salary cut during the initial MCO back in March 2020, I had to relook into my expenses and get rid of unnecessary expenses. Cut all shopping, ate out less, took away subscriptions, etc.
On top of that, didn’t we learn anything from what was reported by EPF themselves? Why would the majority withdrawals be from B40 group? Why are most of the M40 and T20 not withdrawing? Food for thought.
Here’s putting numbers to this as well:
- Someone at the age of 30 withdraws RM6,000 this year from EPF
- Assume EPF pays 5% yearly on average in dividend distribution
- This RM6,000 would have grown to RM26,000 in 30 years when this person retires at the age of 60
- But is now lost due to withdrawal… and most definitely spent
That’s RM20,000 more in retirement cash reserve when there is less job income opportunities at that age. Withdrawing it now will only delay the inevitable. At the retirement age, it would be more crucial to have the reserve cash. And EPF already mentioned before that a huge proportion of the EPF contributors won’t have enough to tide through retirement. This would only amplify the issue.
Definitely against… BUT, I’m sure there are other perspectives that warrant a “For” and may save a life / lives.
Case 2: Salary cut due to the pandemic
My Story
At the height of the first MCO, I got news from the owners that there will be a firm wide cut in salary. It will be tiered, which means that the % cut for senior management will be higher than the junior staff. The owners themselves will draw no salary!
Being a senior management, I got a relatively big cut in salary. It was temporary. Only for a few months so that the firm can tide through with sufficient cashflows.
The owners had an announcement over Zoom to the entire firm. Explaining the reason for it, tabling out the policy, and taking on any questions from the hundreds of staff in the company.
I was simply at awe at how transparent and vulnerable they were and pleaded to the staff to help the company make it through this tsunami.
Observations
Of course, that movement was met with a variety of responses and reactions.
We have a group who supported the decision and doubled down on their efforts to help the company in whatever ways possible.
There were also those who accepted it for what it is and contributed less at work as a result. The floaters.
Then we have the group who were against this. Some of them protested. Some of them resigned.
Perspectives
There are a few perspectives here.
- Business: With heavily reduced income during the lockdown, what could we do to make sure the ship do not sink? This will upset some people, but it will ensure the ship continues going and no job cuts.
- Employees who are FOR: Great effort from the company with no job cuts.
- Employees who are AGAINST: I am entitled for the effort I put in. The pay cut is not justifiable. I can find another job to pay me better.
- Outsiders who lost their jobs: Be glad it’s just a pay cut. At least you still have your job.
BTM’s Stand
If you can find a job that pays you better with good prospects, then by all means make the move. This decision is no different from moving from a job to another because of brighter prospects.
However, for this case specific, I’m FOR the pay cut to ensure
- Everyone in the company still has a job
- The company is still around once the dust settles
It is then a matter of how we can adjust accordingly to adapt to this.
What I see are some who left and just floated around being unemployed. That… I don’t know what is going on. I need some perspective.
The End: Perspectives Matter
These are only two situations out of so many where heated discussions can be had.
One of the teaching points for the book 7 Habits of Highly Effective People by Stephen Covey is –
"Seek to understand first, before making yourself understood".
We act mostly according to our emotions and not purely on rational and logic. Hence, it is very often that we will see decisions made that baffles the logical mind. Remember buying that extra bag that you don’t need? Or scolding the person who cut your lane on the road?
Life’s just a matter of perspectives, aint it?
