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Posted: 01 Oct 2012 06:06 PM PDT

Regardless of whether it is the BN or the Pakatan Rakyat, there is a surge in the Operating Expenditure. However, no one tells the people how to improve productivity and open up new revenue resources to offset the increased expenditures.

Lim Sue Goan, Sin Chew Daily

The Budget has been pan-politicised and the confronting coalitions are busy in wars of words, blurring the vision of the country's economic future.

The last 14 paragraphs of Prime Minister cum Finance Minister Datuk Seri Najib Razak's Budget speech had dignified the BN and belittled the Pakatan Rakyat. Members of the confronting coalitions picked up their respective Budget and booed at each other after Najib finished his speech. Najib has continued to attack the alternative coalition over the past two days and said, "You do Bersih 2.0, we do BR1M 2.0. You storm the barricades, overturn police cars, we help the rakyat." He also said that the Buku Jingga is not worth the paper it is written on.

Pakatan Rakyat leader Datuk Seri Anwar Ibrahim fought back and teased the BN when debating on the Budget in the Dewan Rakyat on October 1, while DAP Parliamentary Leader Lim Kit Siang challenged Najib to debate with Anwar.

When politicians think only about politics, they will no longer pay attention to more important issues.

At this very moment, Terengganu Sultan Mizan Zainal Abidin urged the people to drop their subsidy mentality to form a hard working and competitive society, instead of just expecting for assistance.

Indeed, both the BN's Budget and the Pakatan Rakyat's alternative budget have failed to get rid of subsidies. And they are actually the pot calling the kettle black. They ridicule each other as being populist but have failed to realise that they are actually making the same mistake.

Take the BN's Budget as an example, the Operating Expenditure has increased to RM201.9 billion, accounting for 80% of the total expenditure, and among them, 20.8% is allocated for subsidies.

The government's subsidies have amounted to RM42 billion this year, exceeding the estimated amount by 27%, or RM9 billion. The total subsidy in 2007 was only RM10 billion, which means that political confrontation has increased subsidies by four times.

Subsidies could anesthetise the people's nerves and when subsidies are forced to be terminated, the people might not be able to stand stably.

In addition, the emoluments for civil servants have also been increased from RM52 billion in 2012 to RM58.6 billion next year, accounting for 29% of the total Operating Expenditure. Since the government has shelved the Exit Policy to deal with problematic, indisciplined and underperforming civil servants, the number of civil servants has kept increasing, so does the emolument expenditure.

The Pakatan Rakyat's alternative budget also advocates pay rise for civil servants, such as increasing the salaries of police officers by 15%, providing a special allowance of RM500 for teachers and increasing the salaries of civil servants. The additional emolument expenditure is RM4.4 billion. However, it requires an additional RM5.1 billion based on the calculation of MCA President Datuk Seri Dr Chua Soi Lek.

It seems impossible to remove the subsidy system, while the administrative team has been continuously expanding. It is afraid that the debt might touch the national debt ceiling of 55%. The national debt has increased from last year's RM456.1 billion to the current RM502.4 billion, In other words, each person is averagely bearing RM18,000 of debt.

The government should tell the people how many oil resources are left and how long could they support our expenses. When would the country become a net oil importer and would it be in 2017, as predicted by the International Energy Agency?

The government should make public the national accounts to clearly show the people the country's financial situation, instead of keep pretending that everything is going well, telling the people that there is no big deal and distributing money.

If the financial direction and management are not changed today, I am afraid that Malaysians might one day walk on streets to protest against financial austerity. Such a scenario is horrible!

Subsidies important for vulnerable groups

Posted: 01 Oct 2012 01:34 PM PDT

Local thinktanks Refsa and Ideas have misplaced their focus on critiquing subsidies in the 2013 Budget.

We already have one of the highest levels of income inequality in the region. In pushing for a free market system without due attention to the structural defects of our political economy, proponents of a neo-liberal ideology run the risk of throwing out the baby with the bathwater.

Lim Teck Ghee

In their joint statement recently released on Sept 28, Ideas (Institute for Democracy and Economic Affairs) and not-for-profit research institute Refsa (Research for Social Advancement) drew attention to the "shocking federal government subsidy bill for 2012" which according to them is now expected to hit RM42 billion, a massive RM9 billion or 27% above the RM33 billion originally forecast for the year.

While it is true that subsidies have quadrupled in the past five years, and some of it is wasteful and not efficiently targeted at the most needy or priority sectors, the Refsa-Ideas contention of the debilitating effects of subsidies on our economic health needs to be challenged.

Yes, blanket subsidies for cheap petrol and sugar do result in a degree of excessive and wasteful consumption.

However the extent is debatable, and even if considerable, is not a sufficiently compelling reason for their immediate removal.

The other argument that such subsidies "discourage investments in improving productivity and efficiency" and "benefit upper class Malaysians who consume much more than their poorer cousins" also needs dissecting.

There is little empirical research to back up what has become an increasingly popular line of argument. For it to be useful or credible, echoing of popular opinion is not sufficient.

The Refsa and Ideas team need to substantiate their position with hard data and rigorous analysis on these so-called negative effects.

It is necessary to remind the Refsa-Ideas team that subsidies have an important role to play in providing a safety net for vulnerable groups.

They help bring down the cost of living as well as enable access to health, education, transport and other necessities.

They are a necessary burden in a highly skewed capitalist economy such as Malaysia's where the lower classes of labour do not get the fair remuneration that they are entitled to or deserve.

In their final argument Refsa-Ideas state that "restructuring subsidies is the low-hanging fruit that will help restore fiscal balance and improve our dwindling national competitiveness."

In fact, subsidies and price controls to help poor households comprise a small proportion of the total government operating budget.

The largest part of the budget is spent on salaries (to civil servants); pensions to retired civil servants and supplies and services – the last bloated by "excessive and wasteful" procurement and projects whose costs are inflated by rent-seeking and patronage charges.

There is a credible counter argument that the ballooning deficit and growing mountain of debt in the country is mainly due to government spending on itself, rather than spending on the rest of the country or on the poor.

The Refsa and Ideas team would be doing the country a greater service if they shift their focus onto this lower hanging fruit, especially the allocations provided to the political ministries which have been overrun with staff whose main function seems to be to look after the political and economic interests of the ruling party and its supporters rather than provide services to the public.

Dr Lim Teck Ghee is the director of the Centre for Policy Initiatives.

Only Anwar can fail himself

Posted: 01 Oct 2012 01:29 PM PDT

Umno is not only in a battle for its political survival but is now in a battle within itself between faction for Najib and those for Muhyiddin.

For Anwar, the time for greatness is nigh. Anwar is now locked in mortal political combat with Umno. Najib Tun Razak is irrelevant to the final outcome of this battle. Najib is the dead man walking. At best, Najib can say that he was once prime minister of Malaysia.

CT Ali, FMT

Sixteen years at the highest level of government followed by six years at its lowest in solitary confinement, and he is still a work in progress.

Today at 65, when Anwar Ibrahim talks of politics that transcends race and religion, of politics that champions the democratic process, of a government that respects the rule of law and accepts a multi-cultural society, of freedom of religion, of a government devoid of vested interest and corruption – when he talks of all this and more – we not only listen but we hear what he is saying.

But what are Anwar's convictions? Why is Anwar able to transcend partisan politics? How has he been able to make PAS understand that the Islamic state it passionately espouses cannot be a part of Pakatan Rakyat common agenda but it can still be PAS'?

And yet for Anwar, an Islamic state is not a choice he can consider in the context of an international environment. For him, there must be moderation in Islam.

The Islam that Umno talks about where people are detained without trial, denied their basic rights, the media managed and manipulated to serve the vested interest of their political masters and where corruption is rampant is not the Islam that Anwar aspires to.

Anwar is for reform and transparency. He is for freedom and civil liberties. He understands that the civic, social and cultural attitudes of our society have changed… and changed radically. The issues that concern the Malays – language, education, the economy and Islam – concern him, too, but he knows that race-based politics is not the way to go.

Anwar knows that race-based politics is the easy way to go. His times in university politics, Abim and Umno can attest to that. He chose PKR, a multi-racial entity, because it is the more difficult option and the right option for Malaysia's future.

His task now is to see Pakatan evolved into a credible government. So what does liberty and liberalism entails in the concept that Anwar aspires to?

Anwar wants the Malays to be less intolerant of those who are not of the Islamic faith. The Malay understanding of Islam must not be so superficial. There must be moderation in Islam. Allah does not need to be defended. The Malays must deal with the realities of living in a multi-cultural and multi-racial society without resorting to the crutch of Ketuanan Melayu or Islam.

Let not Islam come into politics. Let Islam not be used for political gain. Let no one say that Islam is unjust.

Battle within Umno

Time has transcended Umno. There is too much moral hypocrisy in Umno. Umno ignores, nay it condones corruption. The rakyat are no longer complacent, they are disillusioned. The rakyat no longer trusts Umno and the commitment it makes.

Tunku Abdul Rahman and Tun Razak meant for the ISA to be used against militant communism. Today after the excesses of Dr Mahathir Mohamad, we know that the ISA is used by Umno and its leaders for their own vested interests.

So for the rakyat, political commitment is no longer enough – there must be put into place due process to ensure that the ISA and any other policy and issues are not abused for political gain.

Government policies must no longer be negative or punitive in nature. Anwar wants this too.

Our country is in a flux. Our values are changing, our aspirations for personal freedom to express ourselves on issues that matter to us are more defined and we seek a way out of the present impasse imposed upon us by the Barisan Nasional government. Is Anwar the way out of this impasse?

But what a prime minister!

He failed himself in all respects except one – just as Kepala Batas was the recipient of much physical development during Abdullah Ahmad Badawi's time as prime minister, Pekan became the recipient of same during Najib's time – at our costs.

Everything else that he did while prime minister – from his inability to move from under the shadow of the domineering Rosmah Mansor, the kow-towing to Mahathir by having Mahathir's son in his Cabinet, his use of money politics (Perak and the Sibu incident among the best documented) – belies the pedigree that he had come from.

How could the eldest son of Tun Razak proved to be so totally inept at everything that he did? We could all see that every policy that Najib sought to implement was an election policy.

His concern was the relentless persecution of his political nemesis rather than to do the business of government. Najib was all bluster with no substance. All talk with no action.

The Umno that Najib is president of is not only in a battle for its political survival but is now in a battle within itself, between faction for Najib and those for his deputy, Muhyiddin Yassin.

Najib has been adept at constructing his own political descent. Now the much older Muhyiddin feels the time has come to hasten that descent less his own opportunity for political greatness passes.

And so Muhyiddin plots the political demise of Najib just as he plotted the political demise of Abdullah who counted Muhyiddin among those who he thought he could depend upon when his back is against a wall.

READ MORE HERE

Votes in the moneybag

Posted: 01 Oct 2012 01:26 PM PDT

Budget 2013 is a sweetener to secure another deal from the people but it may not be enough to save the skin of the prime minister.

Free Malaysia Today

Was it an election budget? The government says no, but all the goodies dished out unerringly indicate the way is paved for the prime minister to ring the bell and call for election. He dangles many carrots and wants the people to buy them with their votes. The budget is the only story left to tell the people that there is a happy ending if the same government is returned to power. All the promises will be fulfilled only when the mandate is safely in the pocket of the prime minister. The most powerful man in the country hopes the people will forget all the old chapters on corruption and abuse of power. He wants a new beginning and a new licence – to continue his old ways.

Money can be a potent weapon to manipulate public opinion, especially when times are hard. A government will look good when it throws money to the poor. A leader becomes a hero when he satisfies the material needs of the impoverished masses. He becomes a deity when the downtrodden adores him for his boundless generosity. With all the wealth of the country at his disposal, the prime minister can do no wrong. Money is on tap and can be used at any time. It is most useful when election is around the corner and when the prime minister is in danger of losing his pants.

Billions will be spent to develop the country in the relentless quest for a high-income status. Indeed, 2020 is the vision set for us to become a developed nation. By then, the promised land will rise and all will live in splendid circumstances. The only flaw in this story line is that the rich will become richer and the poor poorer. All the mega projects are for the enrichment of companies and individuals linked to the political establishment. The majority of the citizens will stay stuck in the quagmire of rural and urban poverty.

The push for a modern state will leave many people dispossessed and dislocated. They do not matter in the grand scheme of things. They will be ruthlessly driven out to make way for the playthings of conglomerates supported by the unscrupulous politicians. New soaring skylines will emerge as Malaysia races to be on par with the technologically advanced economies. The only people who will marvel at the new "shiny city on the hill" are the corrupt, the depraved, the rapacious. The others who live on the fringes can only seethe with frustration.

Political ambitions

Budget 2013 promises a better quality of life in this resplendent city. All are cared for: the young, the old, the sick, the fishermen, the farmers, the jobless graduates, the homeless, the civil servants and many more – in return for their votes. Billions will be pouring in to finance the programmes although no one knows how and where the money will come from, given the unpromising domestic economic trends and the depressing global business scene. Prudent spending or fiscal responsibility is not our strength. Millions in public funds have gone down the drain over the years unaccounted for. Still, there is not a care in the world about the misuse of taxpayers' money.

READ MORE HERE

Kredit: www.malaysia-today.net

Selasa, 2 Oktober 2012

Malaysia Today - Your Source of Independent News

Malaysia Today - Your Source of Independent News

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