Buying more with less
1Malaysia Student Discount Card will do more than aid bookworms
DISCOUNT cards can be especially useful when one is subject to living on a tight budget and it is no secret that for most students making ends meet takes ingenuity. A failure to sustain himself frugally can be detrimental to the student's academic performance. Success, on the other hand, can lead to a lifetime of careful spending and financial security. For those living solely on government grants, bursaries, scholarships and loans, the need for relief from the daily juggling of limited funds can be acute. It would not be surprising, therefore, if the 1Malaysia Student Discount Card (KDS1M), a government effort to assist students further, is warmly welcomed. Covering every essential of a student's life from books to travel and food to lodging, discounts ranging from 5 to 60 per cent must surely happily stretch every ringgit in his shallow pockets.
To date 51 companies have signed up as participants and these discount cards will be distributed free to all the 1.5 million registered university students. There is also the possibility that it might be expanded to include foreigners studying in the country. Consequently, the outcome for the participating companies is a sizeable near-captive market, lucrative even when taking into account the discounts offered. It could also breed brand loyalties going beyond student days. In short, even while easing the economic constraints and limitations imposed by insufficient funds on poorer students, the KDS1M has the immense potential of expanding the economic pie. What is noteworthy here is that, unlike credit expansion, discount cards will not carry with it the negative outcome of bad debts. Instead, because it is based on prudent spending driven by discounted prices, the 1.5 million cards pouring into the market will increase consumption with much less attendant risk.
Some may think it an election gimmick, but in the West, student discounts are a norm, popular and depended upon to improve students' standard of living. Indeed, discounts either in the form of stamps and coupons are already very popular with the average consumer because it helps fill the shopping cart without busting the bank. So popular is this marketing tool, major supermarket and departmental store chains distribute discount information for free to households at least on a monthly basis and often delivered to the doorstep of every home. Obviously then, discounted prices in whatever form are proven to be an effective means to help reduce expenditure burdens on essential items and the not-so-essential. It must, too, help move products faster. The KDS1M will fit into this win-win pattern to improve and sustain the economy domestically.
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