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Malaysia Today - Your Source of Independent News

Power of student activism
Could Malaysia's ruling coalition be swept from power?
Malaysia’s Coming Election: Beyond Communalism?
Budget snub a ‘blessing in disguise’
Forgoing reforms to buy PRU13
Budget 2013 – only good from the outside

Posted: 03 Oct 2012 01:59 PM PDT

It is fair to say that the students can be the spark for a broader struggle ahead.

By Khoo Ying Hooi, FMT

Given the current dynamic atmosphere of Malaysian politics, campus elections in the public universities are steadily gaining attention.

Last year, a Pro-Mahasiswa (Pro-M) candidate Masturah Abu Bakar from Universiti Malaya was allegedly kidnapped during the campus elections.

(Pro-M is widely regarded as an anti-establishment party as opposed to the pro-government Pro-Aspirasi.)

This time, Pro-M student leaders claimed that they received intimidation and death threats while UM Pro-M national chairman Edikoup Lakip Sediyantoa claimed that he was assaulted by unknown assailants.

With the rise of the new generation, voices of dissent are shaking the foundations of the old order around the globe.

When it comes to campus polls, the question always arises: should students be kept away from politics or should they be allowed to take an active part in politics?

Historically, the 1960s saw student activism and discontent erupt all over the world and were seen as a significant force for social change.

Student movements have played a crucial role in many major social and political transformations. Clearly, students around the world have been part of various movements to promote democracy and human rights.

Their role is indeed crucial as they are the backbone of society. Nowadays, students are often asked to reflect on the future challenges of their society. So, if they are not taught in the way they should, the future of society will be in danger.

Interest in politics as an academic subject in Malaysia is certainly increasing and it is undeniable that the university serves as one of the places to nurture political ambitions.

Looking at the development of student activism in the country, are our students nowadays like their counterparts in the 1960s?

The student activism in the 1960s was so influential that it not only changed the political climate, it also paved the way for the rise of the current generation of students.

Student activism elsewhere

It is important to look at the famous national student organisation, Students for a Democratic Society (SDS).

The SDS was founded in 1960 at the University of Michigan by a group of students and youths intending to search for an alternative path to Cold War politics. It was the largest and most influential student organisation in the US during the 1960s.

Posted: 02 Oct 2012 12:53 PM PDT

(Value Walk) - Even if BN should retain its majority and Prime Minister Najib continues to enjoy high approval ratings, there is a high risk that he will be pushed from office anyway.

Since its independence in 1957, the United Malays National Organisation (UMNO) has ruled over Malaysia uninterrupted. UMNO has controlled Malaysia through a coalition, first called the Alliance, and later expanded and renamed Barisan Nasional (BN). In the recent 2008 elections BN lost its absolute majority, marking the first time the ruling coalition has lost its absolute majority since 1969, the year of the Race Riots. BN could now find itself losing its majority position entirely in the up-coming elections.

UMNO and BN have traditionally controlled the political scene in Malaysia. UMNO relies on the "Malay" vote from the Malay community, which makes up approximately 50 percent of the population. The Chinese, who are by far the wealthiest demographic in Malaysia, make up 25 percent of the population, and Indians make up an additional 7 percent. Other Bumiputras, or "sons of the land" make up most of the rest of the population.

The date for the election has not been set, but must be held by June 27, 2013. Many observers believed that elections would be held this past summer, with tell-tale signs, including increased investments in public projects and reduced toll charges. Often, as elections approach BN will push for the increased provision of social services. Trains start to run more frequently, subsidies and cash payments will be handed out, and numerous other policies will be instituted, which critics charge as "vote buying." So far, the election date has not been announced but must be approaching soon.

In recent years Malaysia has seen mass protests and heightened demands for political reform. The Bersih movement, or "coalition for clean & fair elections" has attracted a large following in Malaysia. The movement has staged several rallies in recent years. In April 2007, the first Berish rally attracted some 30,000 people, and is credited with having a major impact on the 2008 elections that saw BN lose its absolute majority for the first time in decades. In July 2011 the Bersih 2.0 movement was launched and staged another rally, attracting between 10,000 to 20,000 protesters, though many more were kept out of the Kuala Lumpur city center due to government clamp downs. Bersish 3.0 in, April 2012, saw renewed strength and effort from protesters, with approximately 100,000 people protesting for reform.

Meanwhile, Barisan Nasional is increasingly losing the trust of the Malay community, which it has relied on to stay in power. Traditionally, BN and especially UMNO has relied on the rural Malay vote, which through gerrymandering has a disproportionately large representation in parliament. Now educated and urban Malays are starting to turn to the opposition. At the same time, UMNO is losing some rural votes in some areas to the Pan-Malaysia Islamic Party (PAS), an Islamist political party.

BN has never fared as well in cities, or among the middle class. With Malaysia's population rapidly urbanizing and becoming better educated, BN's traditional base of power is shrinking. Unless the party can adapt to changing times and modernize its policies, it may someday find itself representing a "minority" segment of society.

The domestic scene can be described as complicated, at best. Malaysia has posted strong growth since its independence, with national development projects being fueled by petro-dollars. The country also enjoys a strong manufacturing sector, though many of the workers in this sector are foreign.

The nation has had a harder time competing in high-value industries, and its education system remains subpar. In order to keep unemployment low, the government has traditionally "mopped" up unemployed graduates, especially Malays. As a result, government payrolls have expanded to some 1.4 million people, in a nation of only 30 million. With petro-dollars running out (Malaysia is projected to run out of oil as soon as 2030), the government will not be able to afford expanding payrolls forever.

Certainly Malaysia has launched attempts at reforms. Prime Minister Najib has launched a "1Malaysia" campaign to try to rectify the tensions between the three major races. The Prime Minister has also launched the New Economic Model (NEM), which will increase emphasis on creating high-skilled middle class jobs and ensuring that Malaysia does not fall in the Middle Income trap.

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.

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.

Read at: http://www.crisisgroup.org/en/regions/asia/south-east-asia/malaysia/235-malaysias-coming-election-beyond-communalism.aspx

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.

READ MORE HERE

Forgoing reforms to buy PRU13

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.

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.

READ MORE HERE

Kredit: www.malaysia-today.net

Khamis, 4 Oktober 2012

Malaysia Today - Your Source of Independent News

Malaysia Today - Your Source of Independent News

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