CMH's Ang Pow Revenue

Question: Discuss the trend of CMH's angpow revenue for the past 10 years. [5 Marks]

Answer:

- General trend = annual ang pow revenue shows an overall falling trend over the period between 1998 to 2008 [1]

- Refinement = Slight increase in angpow revenue b/w 1998 and 1999 as well as b/w 2001 and 2002. Rate of fall steady over the period b/w 2002 to 2008. [0.5]

- Possible Supporting Reason 1 = Inflation without pay rise between the period of 2002 to 2008 causes people to spend more on daily consumption hence lesser savings hence lesser tendency to "wrap bigger angpow". (Quote inflation rate increase) [1]

- Possible Supporting Reason 2 = Recession period b/w 2000 and 2003 caused by series of events such as 911 and SARS outbreak causes people to have lower value asserts on hands hence lesser tendency to spend more on angpow. [1]

- Counter Reason = Reason 2 is ontry true b/w 2000 to 2003 - does not support continual falling trend from 2003 to 2008. Country experiencing growth between 2005 to 2008 hence people better off hence by right, should "wrap bigger angpow". (Quote growth rate increase) [1]

- Conclusion + Analysis = Though macroeconomic factors affect general trend of angpow revenue, internal factors also affect so. These include people's attitude towards "wrapping big angpow" and "relative visiting rate" also contributes to the overall falling trend. [0.5]