Malaysia Today - Your Source of Independent News
Malaysia Today - Your Source of Independent News |
- Malaysia’s Coming Election: Beyond Communalism?
- Budget snub a ‘blessing in disguise’
- Forgoing reforms to buy PRU13
- Budget 2013 – only good from the outside
- Pengerang rally a sign of trouble for Umno in Johor
- Can you retire with RM1mil?
- Budget 2013 showdown: BN vs Pakatan
- Fixated on numbers?
- Is Mansor Pakatan’s ‘sacrificial goat’?
- GE13 will be referendum on CMs
- The way to go with Budget 2013
- Slighted by Anwar, SAPP out in the cold
| Malaysia’s Coming Election: Beyond Communalism? Posted: 01 Oct 2012 11:53 AM PDT
Both sides are furiously making calculations about tactics to win seats, tailoring their message to the communities concerned. The two eastern states of Sabah and Sarawak could be kingmakers, because they control 25 per cent of the available seats. International Crisis Group Malaysia's thirteenth general election, which Prime Minister Najib Razak will have to call by April 2013, could be a watershed in communal relations. More than ever before, there is a chance, albeit a very small one, that opposition parties running on issues of transparency, economic equity and social justice could defeat the world's longest continually-elected political coalition, the National Front (Barisan Nasional), that has based its support on a social compact among the country's Malay, Chinese and Indian communities. That compact, granting Malays preferential status in exchange for security and economic growth, has grown increasingly stale as the growing middle class demands more of its leaders. Both ruling party and opposition are using images of the Arab Spring – the former to warn of chaos if it is not returned to power, the latter to warn of popular unrest unless political change comes faster. Social and demographic change, coupled with effective opposition leadership and the rise of a broad-based movement for electoral reform, are likely to make this election at the very least a close contest. The ruling coalition, composed of the dominant United Malays Nationalist Organisation (UMNO); the Malaysian Chinese Association (MCA); and the Malaysian Indian Congress (MIC), as well as several smaller parties, faces the People's Alliance (Pakatan Rakyat), composed of the People's Justice Party (Partai Keadilan Rakyat, PKR), led by former Deputy Prime Minister Anwar Ibrahim; the Democratic Action Party (DAP) and the Pan-Malaysian Islamic Party (Partai Islam Se-Malaysia, PAS). More than ever before, the swing vote may be the Malay middle ground: urban professionals, students and "netizens" – internet users – who have benefited from constitutionally-protected preferential status for Malays but who are tired of cronyism and corruption and are chafing under the tight controls on civil liberties. The deck is stacked against the opposition for many reasons, not least because of an electoral system based on questionable voting rolls and carefully gerrymandered, single-representative constituencies where victory requires only a plurality (first past the post). Demands for a more level playing field gave rise in 2007 to a broad-based civil society movement, the Coalition for Free and Fair Elections, known as Bersih (Clean), that has held four mass street rallies drawing tens of thousands of participants: in November 2007; July 2011; April 2012 and August 2012. The first three were broken up by police with hundreds of arrests. In the third, violence on the part of a few participants led to harsh police counter-actions and allegations of brutality. Former Prime Minister Mahathir Mohamad, now retired but leading UMNO's ultra-conservatives from the sidelines, has been warning Malaysians to expect more violence in the streets if the opposition loses. The big issues are the economy, corruption and political reform. Bread-and-butter topics matter most to the electorate, and Barisan's vast resources enable it to dole out economic favours to strategic constituencies in the lead-up to the election. The opposition is getting plenty of mileage out of corruption scandals involving top UMNO officials, although UMNO is fighting back with legal challenges and defamation suits. Political reform is seen by both sides as a political winner. Prime Minister Najib has rolled back or reworked some of the draconian legislation – most notably the colonial-era Internal Security Act (ISA) – that Mahathir used to curb dissent during his 22 years in power, but the opposition denounces it as too little, too late. Two huge issues are largely off the official agendas of both coalitions but dominate them in many ways. One is the preferred treatment for Malays in virtually all spheres of public life and whether opening political space and promoting social justice would diminish that status. The ultra-conservatives within UMNO are determined to protect Malay rights at all costs. The other is the question of Islamic law and religious tolerance. Under Mahathir, Malaysia embarked on a program of Islamisation of the government and bureaucracy, culminating in his declaration of an Islamic state in 2001. PAS, once known for a hardline Islamist agenda, is now led by pragmatists who are willing to put contentious issues like Islamic criminal justice on hold, at least temporarily, in the interests of trying to defeat Barisan. But neither side is above trying to scare non-Malay communities, particularly the Chinese, by predicting greater intolerance if the other wins. Within the opposition coalition, relations between PAS and the Chinese-dominated DAP remain fragile. Both sides are furiously making calculations about tactics to win seats, tailoring their message to the communities concerned. The two eastern states of Sabah and Sarawak could be kingmakers, because they control 25 per cent of the available seats. Ultimately the question Malaysians will have to answer on election day is which of the two choices will be better able to accommodate political change, while protecting minorities against the hardline forces that more openness can produce.
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| Budget snub a ‘blessing in disguise’ Posted: 30 Sep 2012 02:12 PM PDT
Although there is no Budget cheer for Sabah and Sarawak, the people in the two states can now plan for alternative solutions in the coming general election. Luke Rintod, FMT Sabah and Sarawak, which have been treated as Barisan Nasional's "fix-deposit", have been sidelined in Budget 2013. But it is a "blessing in disguse" because the people in the two states can now plan for alternative solutions. It appears that Prime Minister Najib Tun Razak, his advisers and the ruling BN are very confident that both states won't slip away from BN grip at the coming general election. This explains why they could afford not to deal with the prevailing "touchy" issues in Sabah and Sarawak. Otherwise, they would have addressed several "heartbeat" issues in Sabah and Sarawak.. Besides development projects, the basic needs here are houses, roads, water and electricity – all priorities with East Malaysians. Important too is the abolishing of the chocking cabotage policy on transporting goods to the two states. The cabotage policy generally stipulates that imported goods to Sabah and Sarawak must come through faraway Klang Port, even if there is a shorter route and cheaper vessels to the states from the source of the goods. And to cap it all, in Klang, the cargoes must be unloaded onto Malaysian vessels only, many owned by proxies, to be brought to Sabah/Sarawak, across 1,000km of seas. As a result, it has caused the prices of goods to soar higher in the two states than in the Peninsula. Najib failed to address the cabotage issue. Instead, he planned to introduce more state-owned low-price stores in the states but the quality of their goods is unknown. 'Easier to decide now' Chairman of UK-based Borneo's Plight in Malaysia Foundation (BoPi MaFo), Daniel John Jambun, said now that the two states have been sidelined in Budget 2013, it would make it easier for Sabahans and Sarawakians alike to think about alternatives in the coming election. "While the budget is a good BN budget, we must bear in mind that Sabah and Sarawak contributed huge amount of revenue and yet we get nothing in return. "This is why we are the poorest now in Malaysia as the focus of development has always been in the Peninsula. This budget confirmed it. "If Najib is sincere, he should have listened to East Malaysia. Maybe he takes us for granted," he said when contacted. Jambun, who is also deputy chairman of the State Reform Party (STAR), said Sabah BN leaders would be heaping praises on the budget but right-thinking people would think otherwise and start looking for alternative solutions. "It is a blessing in disguise… there is always a silver lining in the clouds…" he said from Kuala Lumpur where he was attending a political meeting. Another issue of great importance to the coming general election is the oil royalty. While Pakatan Rakyat in its shadow budget unveiled a few days ago announced an increase royalty from 5% to 20% to oil-producing states if it takes over the federal government, Najib chose to confidently ignore it. Political scientist Dr Arnold Puyok, meanwhile, said Budget 2013 is a budget to expand or grow the economy in the face of the government's "alarming" deficit. "I would hope to see more measures to reduce wastage and to ensure financial accountability," he said. Nothing significant He said the good thing is that more incentives were given to fishermen and paddy farmers. "This will help grow the traditional economy and alleviate poverty in the rural areas. "Goodies to young and single people is an indication that the ruling party is set to win the hearts and minds of first-time voters in the upcoming election," he said. Economist Jerome Majanil viewed Budget 2013 as a political budget and was surprised that no major announcements were made for the corporate sector.
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| Posted: 30 Sep 2012 02:09 PM PDT
Najib's budget is tailored to ensure the survival of a regime with the premier being generous in dishing out cash handouts, but remaining silent on structural reforms. By Charles Santiago, FMT Let's see what we have here. Succinctly put a budget which is best described as 'more of the same', without new directions in managing the country's economy or creating new wealth including equitable distribution. It is a budget that is designed to buy and secure another five years for the BN. It's designed to help the regime tide over what has been described as the country's most fiercely fought polls by throwing money at poor households, civil servants and young people – all who are key in bolstering BN's vote bank and if possible give prime minister Najib Tun Razak a larger mandate. In the quest to stay in power, the government has forgotten the welfare of the people. Malaysian families are facing a cost of living crisis but the budget does not provide sustainable solutions to this pertinent problem. Instead it offers a one-off solution through BRIM 2.0 or RM500 in cash handouts to households earning RM3,000 and below. And throwing in RM 200 to youths to buy smart-phones is not going to solve the problem. The government needs to explain how giving RM200 for purchasing smart phones is going to cushion society from spiraling prices. This shows that this budget is about buying and securing BN's interest given a large number of the 2.2 million newly registered voters are likely to vote against the government. The RM3-4 billion could have been used to increase food production and provide affordable transportation. Increase in food production could lead to lower food prices, greater income for rural and suburban farmers while saving money from foreign imports. And affordable transportation linking the periphery to the core city centers would help to decrease transportation costs. Increase in food production and affordable transportation would have gone a long way to help manage the increase in the cost of living. But we have missed yet another chance. However the puzzling ways of the government do not stop here. For example, the Malaysian Anti-Corruption Commission (MACC) is getting a RM276 million-allocation to fight graft. No this has nothing to do with looking at restructuring the body which has come under severe criticism for lopsided investigations and targeting only opposition politicians. Instead, the government will make available an additional 150 posts annually to reach a target of 5,000 personnel in the MACC. And that's still not the end of the horror for it has made available RM300 million for 1.5 million young people to buy smartphones from an authorized dealer. While this deal smacks of cronyism, it also shows Najib's priority or shall we say the lack of it, given the case. Rosy economic projection While a desperate Najib slammed the opposition and took pot shots at Anwar Ibrahim during the last half hour of his budget speech last Friday, without mentioning names of course, he chose to give a rosy economic projection for the country. But growth rate projections of 4.5 % – 5% are highly optimistic. Malaysia is an open economy and thus highly vulnerable to external shocks. The Finance Ministry's Economic Report (2012-2013) notes that the country has experienced a 35-percent drop in FDI in the first six months of 2012. In fact, the International Monetary Fund's (IMF) most recent World Economic Outlook warns developing nations to brace for further risks from uncertainties in Europe and the USA. This together with the contagion impact on the Indian and Chinese economies will bite into Malaysia's growth for the coming year. A further problem for the Malaysian economy would be the impact of the euro-zone crisis on demand for palm oil and other commodities. Industry sources note that palm oil prices would drop further in the coming months impacting on the country's revenue stream. Let's not forget that 40% of Malaysia's revenue comes from the oil and gas sector which is very vulnerable to oil price fluctuations and production. Deficits and debts have become BN's preferred policy norm or option in economic management. The government's attempts in reducing its 15-year budget deficit to 4%, from about 4.7 per cent of GDP in 2012, is largely prompted by pressure from global fund managers and rating agencies. In the recent months, agencies such as Fitch and S&P warned of credit rating downgrades if the government did not reign in its fiscal deficit and ballooning debt of RM502.4 billion or 53.7% of GDP this year, with federal debt level at 55% of GDP being the legislated debt ceiling. The government argues that deficit would be reduced with efficient tax collection and higher economic growth projected at 4.5% – 5.5% for 2013. This is also unlikely given the euro-zone crisis and its contagion impact on China and India. Thus projected increase in taxes and growth rates might not materialise. Long term strategy missing And no where in Najib's two-hour budget speech did we hear anything about reducing wasteful spending like reducing the country's civil service, a move which is necessary but will create a backlash for his government come the next general election. So one can expect a supplementary budget in 2013 just like the RM13.8 billion a few months ago. What is clear is that the long term strategy in managing public finances in a sustainable fashion is missing. Crime is another pressing problem in the country. While we commend the government for responding to the crime-issues faced by the rakyat, the present strategy of buying hardware and increasing manpower in the police force are not going to solve the problem. What is urgently required is a strategy change and re-allocation of resources.
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| Budget 2013 – only good from the outside Posted: 30 Sep 2012 02:07 PM PDT
At the end of the day, it's not about expensive infrastructure that are likely to resonate with the majority of voters. James Lim, FMT All the anticipation building up over Budget 2013 has finally ended when Prime Minister Najib Tun Razak unveiled it last Friday. Young, first-time voters will be treated to cash handouts, book vouchers (for university students) and even a discount on smartphone purchases. Homebuyers will supposedly see a reduction in speculative activity in the housing market with the hike in the Real Property Gains Tax (RPGT). There was no news on the goods and services tax (GST) which is meant to broaden the tax base in Malaysia as only a minority of Malaysians pay income tax. However, taxpayers below the RM50,000 bracket were entitled to a one percent reduction in payable tax. Elsewhere there was good news for others too. Bonus (1½ months) for civil servants, insurance schemes for fishermen, subsidies and incentives for farmers, increase in minimum pension for pensioners and so on. Tax and non-tax incentives were given to the oil and gas industry. Besides, the RM1 billion SME Development Scheme is welcome news to small and medium enterprises. On a bigger scale, Najib, who also holds the finance portfolio, aims to reduce the budget deficit from 4.5% in the previous year to 4.0% in 2013. This is taking into account the estimated RM208.6 billion government revenue for 2013. A Bloomberg article reported the strengthening of the ringgit, rising from "0.5% to 3.0620 against the dollar, the biggest gain in a week". "The benchmark FTSE Bursa Malaysia KLCI Index climbed 0.5%," added the report. Temporary sweeteners One can also point to the success of our government-backed initial public offerings (IPOs) which achieved worldwide status. One can hear a loud chant of "Malaysia Boleh" in the stock markets. However, the situation goes beyond our positive economic forecast. Many have wanted the Auditor-General's report to be released before the budget announcement, but that was not the case. Cash handouts to the young are mere temporary sweeteners. Besides, the previous gifts of book vouchers were not carefully regulated, resulting in a portion of the students using them to buy anything in book stores ranging from comic books, expensive stationery to water bottles, wallets, and even music CD albums. National House Buyers Association secretary-general Chang Kim Loong was sceptical on the RPGT revision. He says that the revision will allow speculators to purchase properties from developers upon launch and hike up the property price, while paying only the proposed 10% RPGT on the third year. Orang Asli Concerns director Colin Nicholas said that the allocation of RM88 million to implement economic development programmes and water supply projects for the Orang Asli community does not address the issue as most of the time there is already a water gravity system in place. (A water gravity system is a system whereby water from a source high up and deep in the jungle is channelled through PVC pipes.) "What is needed is proper delivery system with no leakages. Two years ago, a similar project was mooted but the project failed," he said Which brings me to my point that although things might look good from the outside, sometimes policies are ill-planned and may backfire. Long-term love affair with subsidies How about Malaysia's long-term love affair with subsidies? Research for Social Advancement (Refsa) and IDEAS, two local think-thanks, have revealed that expenditure on subsidies has quadrupled since 2007. Are we as a nation still heavily dependent on subsidies which give a false value on goods and services? Then there's also the issue of our development expenditure and operating expenditure. Malaysia's operating expenditure has increased from RM182 billion to RM201.9 billion.
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| Pengerang rally a sign of trouble for Umno in Johor Posted: 29 Sep 2012 03:18 PM PDT
The Petronas' Refinery and Petrochemicals Development (RAPID) project is expected to turn Pengerang into a boom town for global petroleum investors. - Picture by Siow Feng Saw But the government's plans have still run afoul the local communities living in the many fishing villages girdling the southern shore of Pengerang. Clara Chooi, The Malaysian Insider A sea of green and noise will break the characteristic silence of Kampung Sungai Rengit here this morning as thousands converge to this sleepy corner of Johor to rally against the development of Petronas' RM60 billion petrochemical complex — a major event that could see Umno's Johor bastion crumble. The Himpunan Hijau Lestari mass rally is expected to blow the lid off months of simmering frustrations felt by Pengerang's 28,000-odd villagers who believe the mega project would come at too great a cost to their livelihoods. According to media reports, the state government has already invoked compulsory land acquisition under Section 8 of the Land Acquisition Act 1960 to resettle the seven villages occupying the 6,424-acre space earmarked for Petronas' Refinery and Petrochemicals Development (RAPID) project. The total value of the Pengerang Integrated Petroleum Complex (PIPC) in Johor, which includes Petronas' RM60 billion RAPID, is believed to involve a whopping RM170 billion worth of investments in total, once it starts operations in 2016. The mega project is expected to turn Pengerang into a boom town for global petroleum investors, rivalling neighbouring Singapore as Asia's most vibrant petrochemical hub, and creating over 40,000 job opportunities for locals from construction to downstream activities.  A lone cyclist enjoys a quiet ride in the sleepy Pengerang town.- Picture by Siow Feng Saw Apart from fear over reports that one of the investors in RAPID-KuoKuang Petrochemical had to abandon its plan to house a petrochemical project in Taiwan following concerns that those living in close proximity to such developments would see their lifespans reduced, a number of the affected 3,129 villagers in Pengerang are also unhappy with the government's compensation payment. According to previous reports, licensed fishermen have been offered RM30,000 in compensation payments for their loss of livelihoods while unlicensed fishermen are offered RM15,000. Smallholders of between one and two acres of land have been offered between RM65,000 to RM105,000. The government has also offered villagers the option of subsidised alternative housing on a 6,000 square foot piece of land with a built-up area of between 750 and 1,600 square feet, some 15 to 20km from their villages. But local villager Kasran Dollah said the government was out to "kill the Malays" with their offers. "It is not like we are fighting the government. We are just asking them to help," he told The Malaysian Insider yesterday. "At first, us Malays agreed with the compensation... but when the rates dropped to just RM2.80 per square feet... we were dissatisfied... it's like they are out to kill the Malays," he said. The retired school teacher will be among the many keynote speakers headlining this morning's Himpunan Hijau Lestari protest at Dataran Sungai Rengit, joining a host of others from Johor-based and national NGOs, including organisers of the anti-Lynas rally in Kuantan. According to local coalition NGO Pengerang chief Anis Afida Mohd Azli, the mass rally is expected to draw in some 10,000 people, turning it into yet another massive show of public anger that could potentially turn into major concern for the Barisan Nasional (BN) federal government ahead of the coming polls. "We hope that the local villagers will come out. They are indeed angry with the situation, they are very angry," she said. Since yesterday, protestors from across 25 locations nationwide had begun streaming into Kampung Sungai Rengit, located at the southernmost tip of Johor here, turning the quiet coastal township into a hive of activity ahead of this morning's protest. When met, organisers told The Malaysian Insider that they have already run afoul the authorities as both the local council and the police have refused to give their go-ahead for the mass rally.
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| Posted: 28 Sep 2012 02:48 PM PDT  Dwindling value: With the high cost of living and rising inflation on an annual basis, RM1mil won't be sufficient to retire for long.Eugene Mahalingam, The Star A MILLION ringgit is a lot of money. In the past, it was always considered "the benchmark" in terms of a person's success. After all, having RM1mil officially makes you a millionaire. However, realistically, is RM1mil big enough to survive on today, especially once you retire? According to official statistics, the average Malaysian male has a life expectancy of up to 75 years, while for females its up to 77 years. This means that a retiree aged 55 has to support hinself or herself for another 20 years or more. But let's be a little bit conservative for the purpose of this article, let's put the average life expectancy at 80 years old. With RM1mil at 55 years old, you would need to divide that money to last you another 25 years, which comes to an average of RM3,333 a month. Is that enough to sustain you? "It really depends on your living standards," says Whitman Independent Advisors Sdn Bhd managing director Yap Ming Hui. "With rising inflation on an annual basis, that monthly sum (of RM3,333) will be worth a lot less as the months and years go by, so it's definitely not enough to sustain you for 25 years," he tells StarBizWeek. Yap nevertheless believes that a person is able to "make do" with RM1mil once he or she retires. "You would definitely need to readjust your lifestyle," he says, adding that a person without financial obligations, such as a pending house or car loan can still survive on RM3,333 a month. "Of course, if you have a posh lifestyle, especially when you're living in Kuala Lumpur, then that amount won't be enough. But if you live outside Kuala Lumpur and live within your means, then it's still possible." MyFP Services Sdn Bhd managing director Robert Foo says living for 25 years with RM1mil in today's environment "would be tough." "If you're married and have a few children and ongoing commitments such as a loan, it's tough. If you're not generating any more money after 55, it will definitely run out. "By the time most people are 55, their children are probably working but some of them might still depend on their parents. They could be living under the same roof or might need financial help to buy their first car, for instance." CTLA Financial Planners Sdn Bhd managing director Mike Lee also feels that RM1mil would only sustain a person for a limited period of time. "RM1mil might be enough for the first few years. However, with the high cost of living and rising inflation on an annual basis, that sum won't be sufficient." Foo maintains that it is ultimately up to how the individual manages his or her lifestyle. "It truly depends. For some people, RM1mil might not be enough to even last them 10 years." He says RM1mil might not be sufficient for a bachelor with no commitments to retire on. "As a bachelor, you're probably going to want to go out with your friends and see the world. You're unlikely to be cooking your own food, staying at home everyday and living hand-to-mouth every month. "That's not considered living, that's existing!" How to retire with RM1mil While RM1mil might not be enough to retire with, it's still a lot of money, which can be used for investment purposes and to grow your wealth even further. Foo believes the best thing to do is to continue working well into your retirement years if health permits,. "Don't retire! We advise our clients that if it's possible, they should continue working. At 55, you're still young enough to generate more income for yourself. Even if it's just half of the amount that you used to earn, it's still money coming in," he says. Yap says readjusting your living standards would also help, adding that an individual could further invest his or her money in shares, unit trust or even property. In terms of shares, Lee says a retiree should put some of his money in stocks that provide good dividend returns. "Real estate investment trusts also give good dividends. Have a mixture of investments and don't just leave everything in your fixed deposit account. "Leaving all your money in the bank is not a good idea, as it won't generate good interest rates. With the inflation rate growing at an even faster rate, you'll just end up losing out." Foo says it's also a good idea to start your own business. "By the time you retire, you would have acquired valuable skills that still make you marketable," he says, adding however that starting your own business can be either a rewarding or risky endeavour. "Starting your own business can generate high returns. But you can either make it or lose everything."
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| Budget 2013 showdown: BN vs Pakatan Posted: 28 Sep 2012 02:17 PM PDT
Lee Wei Lian, The Malaysian Insider Now that both Budget 2013 from the ruling coalition and the shadow budget from the opposition have been presented, let's take a look at how the two budgets stack up against one another. This is the last budget before the general election and the stakes are high. Barisan Nasional (BN) has had a lot of experience in crafting budgets and surprised no one when it dished out cash and other goodies, particularly to the younger generation who are a significant chunk of the newly registered electorate and are an unknown quantity in terms of their voting inclinations. It scored some points however for not going overboard with spending as expected by some economists and still managed to pare down its expected budget deficit to four per cent from an estimated 4.5 per cent this year. Pakatan Rakyat (PR) is a relative novice when it comes to federal budgets and presented one that appears to be much more geared toward reforming the economy than the one from the Najib administration which appeared to have more-of-the-same type policy tinkering rather than sweeping fundamental changes.  Najib gives the thumb's up to Budget 2013 which he presented in Parliament on September 28, 2012. — Picture by Choo Choy May But PR's budget, on the other hand, is more exciting as it really shows teeth when it comes to tackling things like monopolies, cartels and downsizing the state's involvement in business. Not everything in the two budgets can be compared directly but one of the things that can be put side by side is the fiscal numbers. So we start off with: The Balanced Budget Category Budget deficit BN: 4 per cent PR: 3.5 per cent Winner: PR BN managed to cut the projected deficit from 4.5 per cent this year to 4 per cent in 2013 but it wasn't enough to beat PR. BN can say of course that PR can promise anything since it is less accountable as it is not in power. PR meanwhile has talked a lot about eliminating corruption, leakages and wastages but all that effort appeared to yield only a slightly better deficit number than BN's. Still, the slight improvement is enough to give it an edge over BN in the eyes of ratings agencies and economists. Economic Development BN's approach appears to be via a sprinkling of incentives based on wish lists from industry groups while PR's approach looks to be tackling things at the fundamental level by boosting the country's intrinsic competitiveness. BN advocates incentives such as tax relief for R&D, a RM1 billion fund to boost domestic investments, incentives to take over foreign firms, incentives for the tech industry such as income tax relief for Angel investors and recognising intellectual property as collateral, and a RM10 billion Working Capital Guarantee Scheme for SMEs. PR has gone for the reform route for development, saying that it will seek first to purify the economy of toxicities and flush out rent seeking, corruption, cronyism by dismantling cartels, abolishing monopolies so that the economy can more easily flourish free from the scourges of distortions and inefficiencies. By aggressively reducing state capitalism by reforming the role of GLCs, it also promised to make entrepreneurship the bedrock of the economy. Winner: Both approaches have their merits. BN's incentive-based approach is safe but boring and PR's reforms are more exciting and have the potential to send the economy to first-world status. A hybrid approach would be best as SMEs shouldn't have to choose between a working capital guarantee scheme and a business environment free from cartels and rent-seeking. But based on the potential value that the approaches will bring over the long term, PR wins this one. Education A country's future is won or lost in its schools. BN recently launched an education blueprint devised with input from experts but surprisingly cut its education budget drastically from RM50 billion in the last budget to RM38.7 billion in 2013. The prime minister did say that they wanted to "look at the outcome of each child per ringgit spent" during the blueprint launch so maybe they found ways to cut out wastage and increase efficiency. PR, on the other hand, had little to say about education in the budget and the most noticeable thing was that it wanted to abolish the National Higher Education Fund (PTPTN). While the intention is good and some restructuring of PTPTN might be in order which includes a certain degree of debt forgiveness, and its proposed fee subsidies for private education is a good idea, wiping out PTPTN debts could backfire as it would give students a sense of entitlement and increase their reliance on the government. Many ex-students who paid back their PTPTN loans are already complaining that they should have waited. Winner: BN admitted Malaysia's poor showing in international testing and vowed to improve it via the new blueprint. The apparent cut in education spending is puzzling but PR's move to wipe out PTPTN debt smacks of populism and vote-buying. What kind of message does that send to students? That they don't have to pay back debts? Based on this and its recent blueprint which drew mixed reviews but was nevertheless a step in the right direction, BN wins education. Personal Income BN has once again committed to direct cash transfers to the low income to help with the rising cost of living. PR, on the other hand, says that it will increase money in the pocket indirectly by making cars cheaper via excise duty reductions, toll abolishment, waiver of PTPTN and savings from lower fuel and transportation charges. BN also cut income tax rates for taxable income up to RM50,000 but tax experts expect that this is just in preparation for the introduction of GST. Winner: Both have their pros and cons. Direct cash transfers can help in times of economic slowdown as it boost domestic consumption. It however can also be perceived as a vote-buying tactic and is one-off so it is not sustainable. A one-percentage point cut in income tax is not much when you consider that other countries have income tax as low as 11 per cent for RM300,000 in taxable income or have higher income tax than Malaysia but offer better public services in exchange. PR's approach by increasing income by removing economic distortions is more sustainable so it wins this one although it's a hold-your-nose winner as it includes PTPTN waivers as part of its income boost.
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| Posted: 28 Sep 2012 01:53 PM PDT
Many Malaysian voters are still gullible and can be easily swayed, many of them are lazy to get informed in regards to the current issues. Selena Tay, FMT It is now five months since the Bersih 3.0 event on April 28. Lest we forget, of the Bersih's eight demands, only the use of indelible ink has been agreed upon by the Election Commission (EC). But still we cannot be too sure of it as in the previous general election the use of indelible ink was withdrawn at the 11th hour. There is still no news in regards to the cleaning of the electoral roll. This is very irresponsible and unbecoming of a federal government who is always harping on 'transformation', whatever that means. BN leaders have mocked Pakatan Rakyat's tagline of 'Change' by saying that by choosing Pakatan, the rakyat would have chosen change for the worse. Certainly transparency, accountability and responsibility do not rank highly in the current government's code of governance. Otherwise, how else can you explain the EC's reluctance to clean up the electoral roll? They should remember the Spiderman movie tagline 'With great power comes great responsibility'. There are too many discrepancies in the electoral roll. PAS Pokok Sena MP, Mahfuz Omar has compiled a few thick files on irregularities in the electoral roll but the relevant authorities have not shown any interest at all in the matter despite his efforts in highlighting the same. Instead the BN leaders are more interested in showing numerical superiority. Two examples highlighted involve a Hari Raya Aidil Fitri Open House function in Putrajaya and an event in Pekan, Pahang. There are allegations that the crowd pictures have been manipulated to make the crowds seem larger. Does this reveal a very desperate move to project a false image of popularity? Hopefully, someone can come forward with solid evidence to prove that the allegations are false. Simple mere denials do not count. This is very important as our image in the world arena is at stake! However, it must be noted that ever since Bersih 3.0, Prime Minister Najib Tun Razak has constantly sought to portray that BN's events are more popular than 'Duduk Bantah' on April 28. One thing for sure, BN can never beat Bersih 3.0! The 'Himpunan Jutaan Belia' gathering in Putrajaya organised by BN in May this year seems to have drawn in millions in numbers. But it was an event spread over a few days unlike 'Duduk Bantah' wherein a concentration and mass convergence of people was required in just two hours from 2 pm to 4 pm. "The constant obsession to display numerical superiority shows that BN leaders are envious of a people's movement. They are incensed that a people's movement can prove to be so very popular. This shows that these leaders are insecure, immatured and petty-minded," commented PAS Kuala Selangor MP, Dzulkefly Ahmad. This brings to mind the prime minister's statement that he intends to defend Putrajaya at all cost and his reluctance to answer the question of whether there will be a smooth transition of power in the event Pakatan wins the 13th general election.
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| Is Mansor Pakatan’s ‘sacrificial goat’? Posted: 27 Sep 2012 04:42 PM PDT
Patsy Thomas, The Malaysian Times Is Penang Deputy Chief Minister 1 Datuk Mansor Othman being abandoned by Parti Keadilan Rakyat (PKR) after the leaked tape fiasco? Is he PKR's sacrificial goat? Mansor who has been making headlines a month ago when minutes of a party meeting held in March were leaked and posted on a blog called "Gelagat Anwar" in June. In the alleged leak which was also aired on prime time news by TV3, Mansor was caught stating that Guan Eng was cocky and arrogant and that he was viewed as a tokong (deity). He was also heard saying that DAP had wanted to 'kill off' PKR in the next general election and take control of Penang. He also said that DAP was sure of winning 19 (state seats) and that the party now wanted more to enable it to rule Penang on its own. The Malaysian Times today contacted Datuk Reezal Merican UMNO Youth Information Chief to get his comment on this matter. According to him, the statement made by Mansor was a clear statement of the true character of Guan Eng.  Datuk Reezal Merican "The testimonial of Guan Eng being a cocky and arrogant peron is not far from the truth. This was not said by any members from BN but from Mansor himself who is the Deputy Chief Minister. What could be clearer?" asked Reezal Merican. He added that anything said behind closed door is the truth and that the people in Penang will now be able to see the coalition in its true form as a party without trust, accountability and competency. Meanwhile, Umno Wanita Chairman Datuk Seri Shahrizat Abdul Jalil had said that Mansor had been practically abandoned and left to defend himself alone without the help of the party. This action shows many that PKR is planning to completely hand over the state to DAP. Shahrizat had said that Anwar who had practically abandoned one of its member, Mansor, had seemed to be afraid of Guan Eng. In pressing for an answer, the UMNO Wanita Chairman is calling for Anwar to explain his actions and why he was giving full authority to DAP and Guan Eng to rule the state unilaterally.  Shahrizat Abdul Jalil Is trouble brewing again in Penang? The trouble between PKR and DAP is becoming worse as state PKR Information Chief Johari Kassim called for the suspension of those who attended a meeting in which Penang Deputy Chief Minister 1 Datuk Mansor Othman had revealed his dissatisfaction towards the state's Chief Minister Lim Guan Eng. Mansor was however determined to stay and ride out the storm which was coming towards him. Mansor had recently denied using certain words against Lim but had however agreed that he had described him as a 'tokong' because he was revered like a "deity" in Penang. "It is a compliment. People in Penang look up to Lim like a tokong. That is how I meant it. My comment was taken out of context in the blog," he said. When asked the source of the leak, Mansor had admitted that the recording was leaked by someone within the party (PKR) itself who had attended the meeting. Apart from that he had also said that he had offered a reward for the return of the recording. In commenting on the issue, DAP former Vice President, Tunku Abdul Aziz Tunku Ibrahim had said that Mansor should remove himself from holding any post in the state government.  Abdul Aziz Tunku Ibrahim PKR's Disciplinary Body has launched its own investigation into the alleged leak of the recording aired on TV3. The party's Secretary General, Datuk Saifuddin Nasution Ismail said, that the party has yet to receive any report from the Disciplinary Body in regards to the issue. "An internal investigation is being carried out. Should there be any element of sabotage or if it actually took place, we will not hesitate to take action. We are awaiting the report from the Disciplinary Body before any action could be taken," said Tengku Aziz. He also said that Mansor should take responsibility on the statement given rather than 'beating around the bush'. "A good leader should not be giving excuses. A leader should have the strength in stating the truth. Mansor should voluntarily recuse himself from his job within the Penang state Government for the sake of the community," said Tunku Aziz. In commenting on the investigation held by PKR's Disciplinary Body, he said that such investigation was unnecessary as the recording had clearly shown who Mansor is. "What is there to investigate? The recording is there… TV3 has aired it," he said
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| GE13 will be referendum on CMs Posted: 27 Sep 2012 01:53 PM PDT
Whether these chief ministers will succeed in their re-election bid will depend on how they can overcome issues at the constituency level. Selvaraja Somiah, FMT If Umno-Barisan Nasional fares poorly in Penang in the coming 13th general election, it will be mainly due to its inability to challenge the DAP's popular Chief Minister Lim Guan Eng and not necessarily because of the BN government's failures in managing the economy or maintaining internal security. Given the voter fixation with state issues and chief ministers, national issues have become rather irrelevant in this upcoming polls. Altantuyaa Shaariibuu, Scorpene submarines and Shahrizat Abdul Jalil's RM250 million "lembu" episode and price rise on food items which opposition Pakatan Rakyat had hoped to raise in this election in a big way seems to have failed to take off. Why, you may ask? Because the 13th general election has become a virtual referendum on the performance of the chief ministers. Currently, four states are helmed by chief ministers – Malacca, Penang, Sabah and Sarawak. Sarawak, of course, has already had its state election last April and Taib Mahmud is back in his seat as chief minister for the fourth term. He will keep a tight grip on at least 25 parliamentary seats which he "controls". Sarawak has 31 parliamentary seats. Whether these chief ministers will succeed in their re-election bid will depend on how they can overcome issues at the constituency level. But incumbent leaders do have an edge over others in their states. My believe is that the "war" this time will be less about parties and more about the leaders. Much of this view hinges on the fact that many Malaysian voters have begun choosing governments not on the basis of party ideology and long-prevailing preferences but on specific party leaders. This trend has become more obvious with an increasing number of young people emerging as a major voting bloc. Leaders must have own profile In general, party loyalty and party identification among the youth is weaker compared with older Malaysian voters. In which case Penang, Malacca and Sabah will be turned into a sort of referendum on the performance of the chief ministers. People are craving for leaders who are honest, easily accessible and have a strong, pro-rural and pro-people orientation. Incumbent chief ministers of the latest poll-bound states don't necessarily have all these qualities. Yet, overall, they have performed remarkably well on these attributes; this is what makes it difficult for their challengers. Take, for instance, Malacca Chief Minister Mohd Ali Rustam. He was barred from contesting in the Umno elections after the party's disiplinary board found him guilty of violating party ethics for indulging in money politics. Mohd Ali was aiming to contest the post of deputy president (which Muhyiddin Yassin now holds). But he still remains as the Malacca Chief Minister. In the past, it was only national leaders such as Dr Mahathir Mohamad, Anwar Ibrahim, and some regional icons such as Musa Aman, Pairin Joseph Kitingan and Taib, who had the magnetism to win on their sheer personal strength.
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| The way to go with Budget 2013 Posted: 27 Sep 2012 01:47 PM PDT
Three Pakatan Rakyat's leaders share their vision on how Budget 2013 should address long-term issues plaguing the economy and rakyat. Teoh El Sen, FMT Even before Prime Minister Najib Tun Razak unveils Budget 2013 today, three Pakatan Rakyat leaders showed him how to steer the country in the right direction. According to them, the country needs long-term measures to address challenges the economy and society would face in the long run. PKR's Rafizi Ramli, PAS' Dzulkefly Ahmad, and DAP's Liew Chin Tong shared with FMT their thoughts on how the prime minister should handle the economy when asked, "what would you do if you were Najib?" Rafizi took a swipe at how Najib "was good at giving away handouts to quell public anger", noting that such measures would not resolve long-term issues. "I think Najib cannot run away from pressing issues such as house prices and the rising cost of living… these are systemic problems that Najib wants to hide," the PKR strategy director said. Rafizi also said that corruption is a serious issue as it contributes to wastage in the budget, and the economy could not be tackled independently without anti-corruption measures. "In Selangor, we saved 24% of our funds in the past nine months, just by doing open tender for public projects." Rafizi argued that if such savings could be practised in the federal budget, the deficit can be brought down by about 3.2%, which is 1% lower than the government's target of between 4% from 4.5%. "Let's say budget spending is RM250 billion. Of this, almost RM120 billion will be on procurement. If we can save 20% on these deals, we save RM24 billion, and our budget will be brought down to RM226 billion," he claimed. 'There's a lot of fat'
"There is a lot of fat we need to trim," he said, adding that without such anti-corruption measures in place, it was unfair to start cutting subsidies. "We shouldn't punish the people. We need to punish endemic corruption." "I disagree with some of our analysts' views. They assume that the RM250-billion budget is already clean and corruption-free… but you know that the budget is bloated. Any good organisation will say that before you cut spending, you must cut out the rent-seekers, cronies, and middlemen." Rafizi said he also disagreed with those, including economists, who say implementing goods and services tax (GST) is a good idea. "In other countries, when you introduce GST, you usually reduce income tax too. That's not the case in this country, where income level has not improved and only 1.2 million people are able to pay tax, while the rest don't earn enough to pay tax. "We need to grow at 6%, then we can start talking about GST." On housing, Rafizi said that Pakatan has proposed in its shadow budget that a powerful government body similar to a housing development board be established. This could change the way public housing is built." Rafizi said that currently private developers are not building the right affordable homes for the vulnerable groups. "When private developers build houses, it's about making profit. Unless you address this problem, no matter what you do, developers will not provide enough numbers of affordable homes." 'Najib will face backlash' Rafizi said the government body on housing should have full powers to talk to state governments and take over the land, adding that profit should be of secondary importance. "In the long term, private developers will then bring down prices. In the mid-term, we can build houses at a much lower market rate, because the funding is done by the government." Rafizi also said that Najib would have to announce something to reduce car prices due to public pressure. "A lot of pressure is on Najib. I don't think he can get away without doing something to reduce excise duty. He will face a backlash," he said, adding that PKR has promised to slash excise duty if it comes to power. On public transport, Rafizi said that Pakatan is proposing to inject some RM2 billion to add about 1,000 buses in the Klang Valley immediately. "Will Najib commit to doing something like that? The MRT will take another four to five years, and the whole city can't depend on this alone. There is a huge under-investment on buses." Rafizi also said that Najib should implement a "comprehensive social safety net", which would track everyone below a certain income level, and regularly uplift them, instead of giving one-off tidbits such as BR1M (Bantuan Rakyat 1Malaysia). He said that under Pakatan's Caruman Wanita National, families will pay RM10 to RM100 a month and the government will pay a flat contribution of RM50 per month. "It's like EPF. This is to help out; if anything happens to the husband, the housewife will get [financial] aid." Ballooning debt
He said Najib should also not neglect development in Sabah and Sarawak but bring the two states at par with the Peninsula. Meanwhile, PAS's Dzulkefly hoped Najib would address several issues, among others, reducing the national debt and increasing disposable income. He said Budget 2013 should look into measures to promote prudent spending and curb corruption and leakages. "We have been pump-priming the economy for many years, during good and bad times, creating a ballooning debt that is reaching 55% of our GDP. Najib should avoid pushing us further into debt," he said. Dzulkefly, a PAS central working committee member, also called on Najib to find ways to reduce dependence on oil and gas revenue. "Currently, 40% of our budget is financed by oil money," he said. He also said that Budget 2013 should find ways to increase disposable income rather than offering piecemeal solutions like BR1M and Kedai Rakyat 1Malaysia programme. One way to do this is to reduce the prices of essential things such as food and transport. "As for transport, let's empower local councils to have their own bus system. We can also work on a hybrid transport system by integrating the bus system with the MRT project," he said.
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| Slighted by Anwar, SAPP out in the cold Posted: 26 Sep 2012 02:36 PM PDT
Anwar Ibrahim's 'new warlords' Lajim Ukin and Wilfred Bumburing together with their 'parties' appear set to assume Pakatan's role in Sabah. Luke Rintod, FMT KOTA KINABALU: The Sabah Progressive Party (SAPP) appears to have parted ways with Pakatan Rakyat after initially showing signs of building ties with the peninsula-based opposition coalition. The fallout stems from PKR supremo Anwar Ibrahim informing SAPP president Yong Teck Lee that Pakatan was now bringing in Lajim Ukin and Wilfred Bumburing as his new trusted warlords in Sabah. That decision was made known last month in a meeting room at a hotel here when Anwar met Yong and Jeffrey Kitingan, the Sabah chapter chairman of Sarawak-based State Reform Party (STAR). Since then, Yong has not appeared at Pakatan functions unlike in the past when he made an effort to attend nor has he sent senior members to represent the party at such events. His latest snub of a Pakatan function was the Sept 15 gathering in Tuaran of Pakatan's top leaders to mark the 49th anniversary of Malaysia Day. In the past Yong would have been loath to miss an event like that since the Sept 16, 1963 date of the formation of Malaysia has been was high on SAPP's agenda. However he did not even send a junior party leader to the function hosted by Lajim and Bumburing in the grounds of a restaurant. The event was staged to show Sabahans that Pakatan leaders empathised with them about how Sabah and Sarawak were equal partners with Malaya in the formation of Malaysia but had since been reduced in status equivalent to those of the peninsula states. Yong would not have wanted to ignore this gesture as among those present with Anwar were PAS president Hadi Awang, Penang CM and DAP secretary-general Lim Guan Eng, Selangor Menteri Besar Khalid Ibrahim along with senior Pakatan component party leaders Tian Chua, Mohamad Sabu, Mustaffa Ali, Husam Musa and many others. The fracturing of ties can be traced to the closed-door meeting last month as soon after the brief meeting with Anwar, Yong left with his waiting SAPP colleagues to his residence near here and not long after issued a statement that his party was interested in contesting in Sepanggar, Penampang and Kota Kinabalu. He specifically mentioned the three parliamentary seats that Pakatan component DAP is eyeing as a direct challenge to the coalition's influence in the state. Anwar's new warlords DAP is the incumbent in Kota Kinabalu through Hiew King Chew, a former SAPP man himself who quit to join DAP. According to the political grapevine, Yong and Kitingan are irked by the inclusion of Lajim and Bumburing in the opposition equation and Anwar's declaration that Pakatan now has five components with APS (Angkatan Perubahan Sabah) and PPS (Pakatan Perubahan Sabah) joining PKR, DAP and PAS. APS is headed by Bumburing while PPS by Lajim. The two were in the meeting room with "guests" Yong and Kitingan along with PKR vice president Tian Chua and DAP MP Teresa Kok and Anwar's aides. No one from PKR Sabah was present. Yong and Kitingan were accompanied by senior leaders from their parties but they were not included in the meeting with Anwar.
According to those familiar with discussions, Anwar signaled that APS and PPS would be the main players in Sabah even duplicating some of PKR Sabah's role and the message to Yong and Kitingan was "we now have them, so are you coming in or not?" or more bluntly "we can do without you". The meeting lasted only 20 minutes, according to insiders who said that Yong was also irked by Lajim's condescending tone after the meeting when he allegedly told the SAPP president that he could help deliver Lahad Datu constituency to SAPP. The assumption that Yong and his party would need outside help in his own hometown was seen as a slight, according to party insiders. Two days after the meeting with Anwar, Yong and his men turned up at the United Borneo Alliance (UBA) fourth meeting to meet Kitingan. Some have taken that as a signal that SAPP could be working with Kitingan's STAR instead to counter the Pakatan-Lajim-Bumburing tie-up.
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