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Even when all is rosy, a well-thought plan can always falter

Radio-frequency identification (RFID) solution specialist SMTrack Berhad was a quiet ACE Market counter (in the technology sector) until mid-December 2021.

From 8.5 sen on 15 December 2021, the counter commenced its slow ascension thereafter with tycoon Tan Sri Lee Kim Yew emerging as a substantial shareholder on 29 December following his acquisition of 28.5 million shares or a 5.05% stake from the open market.

The presence of the Country Heights Holdings Bhd executive chairman had boosted the share price of SMTrack to end the year 2021 at 19 sen, representing a 123% gain in the span of a fortnight.

Improved job numbers but downside risks remain

In his magnum opus, The Wealth of Nations published in 1776, the Father of Economics Adam Smith argued that the enlargement of production rather than the trade sector would create greater wealth for the country. 

As it is, the four factors of production namely labour, land, capital and entrepreneurship are the essential inputs which allow the production of goods and services. These factors are considered the building blocks of an economy, intricately interwoven to keep the wheels of the economy spinning. 

The importance of labour in an economy could not be stressed enough. Economists believe that a quality workforce will drive economic growth by way of higher productivity and innovation. Workers in turn enjoy better living standards by way of higher wages. The higher wages would in turn boost consumer spending and create demand for goods and services provided by firms.