Friday 29 March 2013

Malaysia's UMNO Scandals

Written by John Berthelsen   
Tuesday, 29 November 2011


A new set threatens
For weeks, just in time for Malaysia’s United Malays National Organization’s annual general assembly which opened this week, the party has been embroiled in an embarrassing scandal involving a 2007 government decision to spend RM300 million (US$94.3 million)to establish a national feedlot corporation to slaughter as many as 60,000 cattle annually under Islamic halal dietary requirements.

The scandal seems emblematic of a long series of such situations that imperil Prime Minister Najib Tun Razak’s vow in April 2010 that the government "can no longer tolerate practices that support the behavior of rent-seeking and patronage, which have long tarnished the altruistic aims of the New Economic Policy.”

The National Feedlot Corporation, as it is known, has never slaughtered 10 percent of the projected total and has since scaled back its target to 8,000 head but hasn’t been able to meet that target either. Worse, the company has been losing millions of dollars every year – while pouring funds into an RM10 million condominium in Kuala Lumpur, among other things, and spending RM800,000 for overseas travel and entertainment.

Read more:http://www.asiasentinel.com/index.php?option=com_content&task=view&id=3992&Itemid=380

Wednesday 27 March 2013

[REFSA Says] A big fat ‘F’ for Fail: The ETP has failed to meet its targets

 
This is a statement by not-for-profit research institute REFSA (Research for Social Advancement) released on Wednesday, 20 March 2013.

We are dismayed to find that perception manipulation and deception still surrounds the Economic Transformation Programme (ETP). The mainstream media today is full of praise and claims of excellent performance and transformation. This is exactly the opposite of the true picture. Today, REFSA draws attention to 3 points:
  1. Real national income growth has been pedestrian at under 5% per year, well below the 6% targeted by the ETP. PEMANDU is manipulating perception by trumpeting nominal GNI (Gross National Income) numbers, which include inflation, and in US$, which are irrelevant to the vast majority of Malaysians;
  2. PEMANDU still cannot get its basic math and data right. It said (nominal) GNI per capita hit US$9,970 in 2012, but also said it was RM 30,809 and the exchange rate was RM 3.058 (US$1). However, at that exchange rate, RM30,809 is equivalent to US$10,075. It is shocking that this high-powered unit cannot even get the basics correct;
  3. Based on Department of Statistics data, nominal GNI per capita grew an average of just 7.4% per year from 2009 to 2012, which is less than the 8.2% per year average growth rate registered from 2001 to 2010. PEMANDU and the ETP came into force in 2010. In short, the ETP and PEMANDU have failed to increase our GNI per capita above its long term growth trajectory.

Failed: Reaching the target to grow national income by 6% per year
“Propelling Malaysia towards becoming a high-income developed nation”, as promised by the ETP, requires Gross National Income (GNI) to grow by 6% per year. PEMANDU [1] gave much prominence to this 6% per year growth target in its “A Roadmap for Malaysia” report that launched the ETP with much fanfare in 2010 [2].

However, the recently published 2012 Annual Report of the ETP makes not a single reference to the fact that the ETP failed to meet this crucial 6% per year growth target last year. The fact is, real GNI grew by a pedestrian 4.3% in 2012 [3], well below PEMANDU’s aspirations and even lower than the 4.9% recorded in 2011.
Whatever happened to the 6% growth target trumpeted by the ETP on its launch?
Source: Executive Summary, Economic Transformation Program – A Roadmap for Malaysia, 2010 (page 5)

More perception manipulation and deception from PEMANDU


Rather than address the core issues impeding growth, PEMANDU continues to practise perception manipulation and deception in its efforts to hoodwink Malaysians into believing it has reached or exceeded its targets.

Firstly, its 2012 ETP Annual Report quoted real GDP (Gross Domestic Product) growth rates, which at 5.1% and 5.6% in 2011 and 2012 [4], were higher than GNI growth and presented a slightly better picture of the sad situation.

Secondly, when discussing GNI, PEMANDU used nominal numbers (which include inflation) and US$ instead of Ringgit. The 2012 ETP Annual Report states The country’s GNI per capita has risen from US$6,700 in 2009 to US$9,970* in 2012. This represents a 48.8% surge in just a two-year period. Based on current projections and barring unforeseen circumstances, this gives Malaysia the potential to achieve a GNI per capita of US$15,000 earlier than the 2020 target. [5]

 

As pointed out in our Focus Papers critiquing the ETP, quoting nominal numbers including inflation can be misleading [6]. Inflation does not make us any richer. If our incomes go up by 15% – as do the cost of things we buy – we are not any richer, because the extra income is spent on paying more expensive prices for the goods and services that we use.

We also pointed out that a weakening US$ will not directly help most Malaysians. Say your household income is RM3,000 per month (in line with about 70% of Malaysian households). At RM3 (US$1), that is equivalent to US$1,000. Say the US$ weakens to RM2.50. You still earn RM3,000 per month, but that’s now worth US$1,200, which PEMANDU can then claim to be an impressive 20% increase. But you live here and spend here. Your teh tarik still costs RM1.50, your coffee shop lunch RM5+. The US$ increase is certainly helpful if you are visiting the United States, but on a RM3,000 household income, that is an unlikely possibility. Rich Malaysians who travel overseas extensively would certainly benefit from a weaker US$, but not the vast majority of Malaysians [7].

PEMANDU still cannot even get its basic Math right [8]

Let’s go back to the part saying GNI per capita had ‘risen from US$6700 in 2009 to US$9970 in 2012’ and that ‘this represents a 48.8% surge in just a two year period’. Not only is 2009 to 2012 a 3-year period rather than a 2-year period, the calculations for GNI per cap in 2012 are also misleading. Exhibit B footnotes GNI per capita in 2012 at RM30,809 and an exchange rate of RM3.058 to US$1. This translates into a GNI per capita of US$10,075 rather than US$9,970.

So what are the correct numbers? Until the high-powered and highly-paid staff and consultants at PEMANDU can get their basic math right, let’s start from first principles and use data from the Department of Statistics. The latest set of GNI figures from the Department of Statistics (which PEMANDU surely has access to as well), shows GNI per capita at RM24,879 for 2009 and RM30,809 for 2012. This works out to a mere 23.8% GNI per capita growth from 2009 to 2012, less than half the 48.8% figure cited in the Annual Report!

On average, this works out to a 7.4% per year growth in nominal GNI per capita for the three years from 2009 to 2012 which is less than the 8.2% per year average growth rate registered from 2001 to 2010 [9]. GNI per capita has been below the long-term trajectory after PEMANDU and the ETP came into force in 2010. In other words, the ETP and PEMANDU have had no impact in increasing our GNI per capita above its long term growth trajectory!

A big fat ‘F’ for Fail (Part 2): The ETP has failed ordinary Malaysians

The perception manipulation and deception surrounding the Economic Transformation Programme (ETP) masks much more than the mediocre economic growth and dodgy math that we spotlighted yesterday. Today, we draw attention to 3 points:
  1. The ETP experienced a spectacular reversal in investments in 2012 in its second full year. Committed investments slumped 82% from RM179.2b in 2011 to RM32.1b in 2012;
  2. Not only did investments shrink, they were also of lower quality. Each ringgit of committed investments in 2012 is expected to generate less national income and create jobs that pay lower than the investments committed in 2011;
  3. The sharp contradiction between the fact that over 20 million Malaysians, nearly 70%, of our population, are poor enough to qualify for the BR1M welfare handouts even while PEMANDU trumpets we are on-track to high-income status.
Read our full analysis here.

Tuesday 26 March 2013

Thousands attend Pakatan ceramah in Umno territory

by fmt
| December 3, 2012
More than 30,000 people turned up to hear Pakatan leaders tell why its best to vote for them and not for Umno in Johor.

BATU PAHAT: A Pakatan Rakyat ceramah here on Friday managed to attract more than 30,000 people in what Pakatan leaders say is a sign of support moving away from Umno to them.

Never in Johor’s political history has an opposition rally attracted such an enormous crowd.

The assembly was part of the ongoing state-level Himpunan Kebangkitan Rakyat (Peoples’ Uprising Assembly) series being organised by Pakatan nationwide.

It followed the national-level assembly staged in Taman Seremban Jaya in Senawang on Nov 3 which also attracted about 30,000 Malaysians.

Johor PKR chairman Chua Jui Meng and Opposition Leader Anwar Ibrahim arrived together at about 11pm and were pleasantly surprised by the mammoth crowd.

They both had to wade through a sea of people to get to the stage with their shoes and trousers covered with mud. PAS president Hadi Awang was then in the midst of his speech.

After Hadi wrapped up his ceramah, a brief ceremony was held to introduce and accept the membership application forms of several ex-senior Johor civil servants and former key Umno members who joined PAS.

Anwar was then called to the stage to deliver his ceramah and got the crowd roaring when he shot off with: “This is not an Umno assembly! What (Prime Minister and Umno president) Najib (Tun Razak) doesn’t understand is the emergence of Kebangkitan Rakyat (Peoples’ Uprising).”

“Malaysians today are well informed about socio-political issues. They are also much more intelligent and it is not so easy, as in the past, to fool them.

“There is no room for lip service and mere rhetoric in politics anymore. We must tell the rakyat (people) what we can offer and what we can do to provide good governance.

“We must make clear our people-oriented policies and that we are here to serve the people and to ensure their welfare and country’s progress.

“Unlike BN, if we are given the mandate to administer Putrajaya after the next 13th general election, we will ensure the eradication of corruption,” Anwar said.

The tiger is awakened
Speaking on the sidelines, Chua, who is also PKR vice-president, said: “Tonight is the turning point of Pakatan’s arduous journey not only to Putrajaya, but to also topple Umno and MCA in their political stronghold.

“Tonight’s crowd is simply amazing because they remained until 1am to hear us out. They were also not put off by the muddy ground caused by rain in the late afternoon. The tiger is awakened! Umno, MCA and BN beware.

“What is more telling is that some 90% of the audience were Malays. We are now witnessing a strong swing of Malay voters in Johor to Pakatan.

“In fact, I had arrived together with Anwar from the Johor PKR Deepavali Open House cum ceramah in Tebrau.

“The turnout was about 5,000 people and what was encouraging was that 90% of the audience were Indians. This indicates Johoreans want people-centric and cleaner state and federal governments.

“The strong turnout by the Indians in Johor also confirms that the community is also giving wider support to Pakatan compared with the March 2008 political tsunami,” he added.

Is anybody listening to what Sabahans want?



Lucy Ahmed
Malaysiakini
Mar 4, 2013

When speaking of the recent Sabah intrusion incident, many people are trying to relate it only to the bigger picture of the Malaysian government’s political issues.

But it is much deeper than that as it has crept into the fabric of the social lives of Sabahans.

I am here talking because I am a Sabahan, and my hometown is Sandakan, which is only few kilometres from where the incidents are taking place.

I am definitely very concerned over the lingering issue of never ending claim by some non-existent sultanate that has no legitimacy at all since the Suluks “lordship” was only valid around 200 years ago.

While the main decisions are being discussed and taking place miles away from across the ocean in the peninsular Malaysia, we the people of North Borneo are all living in a tense situation and in uncertainty on our own soil.

We are not given any right at all to voice our opinions over the matter. We are just like a colony without any power to decide our future, but to simply follow orders from across the ocean.


What we strongly disagree is for other people to change our historical and cultural background.
Yes, historically a small part of North Borneo belonged to the sultan of Sulu, but they have never done anything much to North Borneo in term of developing it.

The sultanate existed around 200 years ago, and it has long been forgotten and no longer recognised anywhere in the world.

They do not have any existing kingdom thus by the international law, any claim from them is no longer valid.
Now North Borneo is an independent state, and it is part of Malaysia since the last 50 years.

Malaysia by law has to protect the welfare of the state and the people of North Borneo.

And what we want is for Malaysia to once and for all to stop all these illegal claims and intrusions from the non-existent sultanate or any pirates that come to our shore to disturb the peace of our state.

We do not want any more fruitless negotiations which have been going on for years and years since the formation of the Federation of Malaysia.

We are very disappointed with the marines for failing to protect the shore of our state. All those “pirates” should have been stopped at sea, disarmed and sent back to where they belong but instead they were given all kinds of leniency on our soil.

This is not a new issue at all as there has been many illegal entries from those living in the islands of Sulu.
Unfortunately, without the consent of the people of North Borneo, those illegal immigrants have been legitimised by the government of Malaysia.

The social fabric of North Borneo has now been much distorted creating the racial and religious imbalance in our state which are all to the advantage of the federal government.

We, the native people, once the majority group on our own soil have been turned into a minority group due to this legitimisation over the years.

Another complication that arises through this legitimisation is the grabbing of the “special privileges” of the native people.

Understand that all these Suluk immigrants are Muslims, and they are automatically entitled to the special privileges which all Muslims in Malaysia are entitled to.

Our poor native people of Sabah, who are not Muslims, have now become the second class citizens on our own soil.

In other words, those legitimised immigrants with their special advantage of being Muslims, have grabbed every opportunity entitled to the native people of Sabah.

Many have received all kinds of help from the government of Malaysia which has left a smaller piece of pie to the native-born.

In conclusion, had the federal government had the best interest of Sabahans in mind, those pirates would not have an easy access into our soil.

Now the Suluks are having a strong footing on our soil due to the leniency of the federal government during the past 30 years.

The so called ’100 gunmen’ can easily increase to 1,000 and even 2,000 gunmen because the Suluks have spread themselves into every corner of our state over these long years.

Historically, the Mahathir Mohamad government should be blamed for all the mismanagement of the state of Sabah.

He actively involved himself in the affair of the Palestinians, but failed to settle a similar basic problem of his own subjects.

Mahathir never tried to solved the long-standing problem of this Sabah claim issue, but instead had escalated it to our suffocation. Mahathir is the main devil here, all due to his hunger for power as premier for 22 long years

http://blog.limkitsiang.com/2013/03/15/is-anybody-listening-to-what-sabahans-want/

Thursday 21 March 2013

22-Day Countdown to 13GE – Najib deserves an “F” in his National Transformation Program (NTP) report card for failing to acknowledge, much less tackle the issues of Corruption, Crime and Education

Najib released his National Transformation Program (NTP) Report Card yesterday evening in his ‘State of the Union’ address that was broadcast live on mainstream media and also online. To no one’s surprise, he gave himself top marks in both the Government Transformation Program (GTP) and the Economic Transformation Program (ETP).

Nearly all of the KPIs set were met, if not surpassed, in each of the National Key Results Areas (NKRAs) and the National Key Economic Areas (NKEAs).

But to borrow a phrase from a popular author, there are ‘lies, damned lies, and KPIs’.

If we compare the stellar achievements of Najib’s report card in just three areas – Corruption, Crime and Education – to reality and also other more credible evidence, we are left with no choice but to give Najib an “F” for his NTP Report Card.


The Anti-Corruption NKRA achieved an unbelievable 97% score (out of 100%). Such a high score makes a mockery of the widespread perception that the BN government has failed miserably in walking the walk.
This absurd score must not have taken into account Malaysia’s world leading worst ranking in the 2012 Bribe Payer’s Survey where 50% of respondents in the country acknowledged that their company has failed to win a contract or gain new business because a competitor has paid a bribe. Our top rank put us ahead of countries such as Nigeria (24%) and China (27%).

For one of the components of this NKRA – the number of people in the database of convicted offenders – a score of 132% was achieved because 395 offenders were included in this database compared to the target of 300.

And yet, those who are guilty of grand corruption on a massive scale are left to roam and worse yet, allowed to continue to plunder the country and abuse their power.

No one captures this phenomenon more than the Chief Minister of Sarawak who has ruled the state for 32 years and counting.

Despite the many calls, both domestically and internationally, for our country’s anti-corruption agency to conduct a comprehensive investigation into his assets and finances; despite the fact that some sources, such as the Bruno Manser Fund (BMF), have listed Taib’s wealth at US$15b (RM45b) which would make him the richest person in Malaysia; our Malaysian Anti-Corruption Commission (MACC) still refuses to prosecute Taib for corruption.

The recent explosive allegations revealed in a ‘sting’ operation by international NGO, Global Witness, have once again put the spotlight on Taib and his cronies but needless to say, our toothless MACC, together with our even more toothless Prime Minister, who signed the Transparency International Malaysia’s Elections Integrity Pact with Taib looking over his shoulder, will do nothing to get to the bottom of this international scandal.

The Reducing Crime NKRA achieved equally ‘astounding’ results.

Overall crime has apparently been reduced by 27% over the past 3 years, Street crime has fallen by a whopping 41% over the same time period and the fear of becoming a victim of crime has also apparently fallen by an eye popping 57%.

But despite these seemingly significantly improvements in the Reducing Crime KPIs, there have not been any reports of even one neighbourhood in the Klang Valley which feels safe enough to stop operating private security guards in that particular area as a result of these improvements.

Doubts about whether crime has genuinely been reduced have not been assuaged by serious accusations that the Police have deliberately fudged crime statistics by shifting reports of crime from index to non-index crimes in order to meet their GTP KPIs.

And the Home Minister and the Police have not shown any degree of transparency by not releasing detailed breakdown of these crime statistics by district and by type of crime.

The PDRM annual report, which gives detailed crime statistics, was discontinued after the start of the GTP, perhaps in fear that the fudging of crime statistics would come to light.

Even the former IGP, Tan Sri Musa Hassan, has called on the PDRM and on the Home Ministry to publicly disclose all the relevant crime statistics so that the people can get a more accurate picture of the crime situation in the country and see where the reduction in these crimes have decreased.

It is laughable and disgraceful that Najib’s report card still uses rankings such as the Global Peace Index (which includes items such as defense spending and the presence of wars) to try to ‘convince’ us that Malaysia is ranked as the safest and most peaceful nation in Southeast Asia.

Under the Improving Student Outcomes NKRA, 10 out of 11 KPIs were achieved with a score above 90%. The % of Band 6 and 7 schools (the worst performing schools) were decreased by 43.6% (compared to a target of 20%) and the % of Band 1 and 2 schools (the best performing schools) were increased from 27% (compared to a target of 8%).

But these achievements fly in the face of Malaysia’s world leading fall in the International Mathematics & Science Study (TIMSS) 2011 rankings as well as scores. Malaysia fell being in 10th position in 2003 to 20th in 2007 and to 26th in the recently released 2011 results for Math scores. Malaysia also fell from 20th in 2003 to 21st in 2007 and then to the 32nd position in 2011 for Science scores.

Malaysia also had the ignominy for suffering the largest falls in the Math and Science scores across all content domains (together with Jordan).

Such a result would have led to the resignation or the sacking of any Education Minister in any normal democratic country but here in Malaysia, the Minister of Education and Deputy Prime Minister, Muhyiddin Yasin, has not even acknowledged this problem, much less try to find ways to address this serious decline in our education standards.

Not surprisingly, the drastic fall in our TIMSS scores are not even mentioned in Najib’s Report Card.
There is a saying that those who forget history are doomed to repeat it.

In our case, we have a Prime Minister who not only fails to acknowledge our past and current mistakes, he takes pride, assurance and comfort in giving himself high marks for achieving KPIs which are set and measured by his own government and government agencies.

Any rational person who evaluates just these three NKRAs would find the record of Najib’s government deeply and tragically flawed.

The only way for Najib and the BN to truly learn their lesson would be for the people of Malaysia to vote them out of government so that they can see what honest and efficient delivery will be like under a Pakatan Rakyat government.

While we cannot promise an immediate “A”, we are confident that we can perform significantly better than Najib’s “F” in not just these three NKRAs but also in all other aspects of governing and governance.
(Media Statement in Kuala Lumpur on Wednesday, 20th March 2013).

http://blog.limkitsiang.com/2013/03/21/22-day-countdown-to-13ge-najib-deserves-an-f-in-his-national-transformation-program-ntp-report-card-for-failing-to-acknowledge-much-less-tackle-the-issues-of-corruption/

Tuesday 19 March 2013

Malaysia Faces Capital Flight, Falling Trade Surplus


Monday, 18 March 2013 admin-s

(Asia Sentinel) - This may seem a surprise to outsiders who are rightly impressed with the strength of the nation's external position - RM139 billion (US$44.36 billion) in foreign exchange reserves and a record of huge annual current account surpluses dating back to 1998. Monetary policy is restrained and inflation is low. 
More things for voters to worry about
As the Malaysian election draw near, two worrying aspects of the country's economy are very much in evidence. They are just pointers but significant ones to a bumpy future.

This may seem a surprise to outsiders who are rightly impressed with the strength of the nation's external position - RM139 billion (US$44.36 billion) in foreign exchange reserves and a record of huge annual current account surpluses dating back to 1998. Monetary policy is restrained and inflation is low.

But signs of concern are not just to be found in data but in anecdotes of behavior. One such anecdote that recently came to light courtesy of a Vanity Fair magazine article on London property is that Malaysians have now joined the ranks of Russian oligarchs, Nigerian oil plunderers and the latest generation of Gulf sheiks in paying astronomical prices for houses and apartments in the classiest parts of London. It may be an indication that some of the country's richest citizens are voting with their money if not their feet in advance of what appears to be a very tight election.

According to estate agency Jones Lang & Wootton last year Malaysian buyers accounted for 17 percent of all buyers of new top-of-the-line central London dwellings. In other words almost as many Malaysian are buying as Britons, who accounted for only 19 percent of this market. Identifiable Malaysians figure as buyers of One Hyde Park, the most expensive new building in London overlooking Hyde Park and others probably lie behind the various anonymous offshore companies which figure as owners of most of the owners of apartments ranging in price from US$12 million to US$50 million.

It is hard to imagine that these are safe investments compared with Malaysia, given that the market is thin, the properties are often left unoccupied and that further price gains must rely on yet more flood tides of easily gotten wealth. Such floods have always been associated with commodity booms or banker banquets. London property has long been a destination for flight capital and bankers absurd bonuses, one.

But what does the Malaysian role now tell us about flight capital from an outwardly stable nation? And about the prospects for the commodity price boom of the past 10 years not coming to an unpleasant end?

That takes us away from London anecdote to actual data out of Malaysia itself. January saw Malaysia's trade surplus sink to RM3.3 billion, less than half that of the same month a year ago. Of course one should not read much into one month's figures but a downward trend evident in 2012 looks to be gaining momentum. Then total exports rose only 0.9 percent while imports rose 5.9 percent and the overall surplus fell from RM 124 billion to RM94 billion.

The worrying aspect is not imports, which need to be rising if capital spending is doing so but the trend in exports prices. Palm oil was down 27 percent, gas down 6 percent and rubber down 19 percent. These may have further to fall and continue the reversal of the huge terms of trade gains made over the previous decade.

Of itself this need not be a worry but for the other aspects of the external account. The services account has always been in the red and is no particular cause for concern. Tourism is strong and the Islamic financial sector too. The RM64 billion deficits last on combined services, transfers and investment income is growing but should be quite manageable even if the trade surplus slides further.

There are more worrying issues given the likelihood that gas and palm oil prices at least are looking at a sustained downturn as new projects come on stream globally and China's demand for resources slows as the economy shifts emphasis.

One is that direct investment outflow is now almost twice foreign direct investment - RM51 billion against RM29. Some of this is doubtless one-off as Petronas has invested heavily in foreign oil and gas projects as its own profits have boomed and Malaysian banks have been buying overseas, especially in Indonesia. But there must be questions about the likely rates of return on much of this capital.

An even bigger question is how much has been squandered in lesser known ventures, particularly by politically connected and government linked- companies with scant accountability to shareholders. Some too is likely to be flight non-Malay flight capital preferring expensive but seemingly secure assets in Australia, the US or even London to the higher returns which ought to be available in younger, faster growing Malaysia.

Has Umno helped Malays?

P Gunasegaram
Malaysiakini
Mar 14, 2013

QUESTION TIME When former prime minister Dr Mahathir Mohamad said in typical acerbic but unsubstantiated fashion that Malay rights, privileges and its position would be affected if the opposition were returned in Selangor, it begged two other questions.
What did he do for the ordinary Malay during the long 22 years he was in power from 1981 to 2003, and how much was he responsible for the lack of their progress? And to broaden the question further, how much has Umno done for the Malay on the street and in the kampung?

A good starting point to answer the question is to look back at the New Economic Policy (NEP) of the seventies which provided the framework and target for economic redress between the races. The noble twin aims of the policy which few argued with were the eradication of poverty irrespective of race and the elimination of race identification with economic function.

This restructuring was supposed to have come from an increasing economic cake so that no community would feel deprived from the process which would be made over 20 years.

But the reality was different. While there was much effort in equalisation of opportunities initially through the education of Malays and giving them chances for jobs in the government service and the private sector, the policy morphed into one that focused on the equalisation of outcomes instead.

This resulted in drops in educational standards and minimum qualifications to accommodate weaker students instead of helping weaker students to cross existing bars by increased and better tuition.

The push to get more Malay teachers into the education system by lowering standards resulted in a plunge in teaching standards and led to the current problem that we have of poor teaching to weak students. Standards had to be dropped to ensure more students passed, resulting in a deteriorating public education system right from the bottom to the top.

Read more:
http://www.printfriendly.com/print?url=http://blog.limkitsiang.com/2013/03/16/has-umno-helped-malays/#

26-Day Countdown to 13GE – Federal Government Deficits and Debts« Lim Kit Siang

Unlike many developing countries, Malaysia had until the last 15 years, avoided deficit funding and the accumulation of high levels of external and internal debt that culminated in debt crises of the type that afflicted Argentina, Mexico and many countries in Sub-Saharan Africa.

The Federal Government followed prudent policies and followed fiscal policies that were viewed favorably. Both Foreign Direct Investment flows and the domestic private sector contributed to growth.

Thus, through the early 1970s and the decade of the 1980s small deficits were recorded, indeed in the early 1990s small surpluses were recorded. The size of the public debt was largely stable and did not exceed RM 100 billion.

However, the 1997 East Asia crisis, triggered by contagion effects of the crisis in Thailand, led to a radical change in fiscal policy. The Federal Government embarked on a pump priming effort to revive the economy.

Many large scale projects were mounted; many heavily indebted crony corporations were bailed out. The public sector surplus of RM 6.6 billion recorded in 1997 evaporated and became a deficit of RM 5 billion in 1998.

Since 1998, despite the recovery, the Barisan Nasional (BN) Government has continued to run deficits ever increasing deficits which peaked under the Prime Ministership of Datuk Seri Najib to RM 47 billion.

Indeed, during his tenure, deficits have exceeded RM 40 billion a level double that in the previous years under Abdullah Badawi.

Much of the deficit can be attributed to the launch of mega projects handed over to crony capitalists, the increase in the size of the public services, and rampant abuses in procurements of equipment and services.

The total debt (domestic and foreign) of the Federal Government now stands at over RM 500 billion. This amount is close to the Debt/GDP ratio of 53 percent.

That percentage represents the limit to which the Government is permitted to borrow. Indeed, that limit has in all probability been breached if account is taken of the partial disclosure of contingent liabilities said to amount to over RM 100 billion.

These amouts of debt do not take account of the unknown levels of debt accumulated by the GLCs.

Therefore, taken as a whole, the overall debt situation is reaching critical levels and placing the Malaysian economy in grave circumstances.

Malaysia now risks facing a serious debt crisis of the type confronting several EU countries such as Greece, Spain, Italy, Portugal etc.

It may be compelled to embark on an austerity program that would have devastating implications for all Malaysians.

Despite repeated pledges made in successive Budgets to curb the deficits and to check the growth of debt, the BN government has been on a reckless spending binge, the main beneficiaries of which have been a selected group of cronies and well-connected individuals.

The policies that are being followed have also contributed to a massive out-flow of capital, estimated at over a RM 1 trillion by a respected Washington DC-based think-tank.

The BN Government has offered no clear policy statement as to how it proposes to reverse current policies and change the trajectory of its highly irresponsible fiscal policies that result in unsustainable level of deficits and a ballooning debt level.

Correction of these policies is critical if Malaysia is to avoid a calamitous economic crisis and more mired in the middle income trap.

The present policies if continued will led to a severe fall in confidence and a collapse of the private sector as markets and the rating agencies downgrade Malaysia.

There is also a clear and present danger that a re-elected BN government will make a belated attempt to change course and attempt to curb the deficit.

It is most likely to do so by taking steps to bring about a so-called “widening of the tax base”.

This will be attempted via the introduction of the long announced Goods and Services Tax (GST).

This regressive tax effort is likely to be accompanied with a withdrawal of a number of consumer subsidies and the further privatization of government services.

The latter in all likelihood would include the handing over of health services to BN-linked corporate entities. Taken as a whole, these measures would impact adversely on the middle and working classes. These measures will be regressive and burden ordinary citizens.

The Pakatan Rakyat promise

The Pakatan Rakyat Manifesto has outlined in clear terms as to how it will protect living standards and provide a safety net for all vulnerable groups. It will adopt responsible policies to achieve these goals and restore fiscal responsibility and take steps to stop the unsustainable growth in debt. It is appropriate to further spell out some of the strategies it will adopt.

As a first and urgent step, the Pakatan Rakyat Government upon assuming office will appoint an independent panel to undertake a Public Expenditure Review.

The Review will identify areas where savings can be made through elimination of waste and inefficiencies.

So-called new “development” or mega projects will be strictly evaluated to assess rates of return that are commensurate. There would appear to be ample scope for such savings. An area with particular promise, are the procurement policies of the Government.

Transparency in procurements with competitive bidding and elimination of rent seeking offer considerable prospects. The experience of the Pakatan Rakyat-run state governments will be applied at the Federal level.

Another area that will offer savings is that concerning payments and subsidies provided to corporate entities such as toll operators and Independent Power Producers.

These “corporate welfare” payments do not have a place in the fiscal system. Loss making GLCs will be restructured and will be hived off by way of management buy outs.
The present fiscal regime on the revenue side has not been reviewed. There are numerous tax exemptions and so-called incentives that have been granted. Their actual impact for private sector growth has not been examined.

There is a case for a review and the adoption of a revenue neutral system. Pakatan Rakyat is committed to creation of a business friendly environment that is pro-growth and supportive of Small and Medium sized Enterprises. Pakatan Rakyat is of the view that the introduction of a GST is inappropriate ant unwarranted in the current circumstances and stage of development.

The extent of the contingent liabilities that add to the stock of public debt will be studied. Certain of these liabilities can be transferred to the commercial banking sector. An effort will be made to do so in an orderly manner.

The Pakatan Rakyat experience and record in prudent management of public finances at the state level is indicative of how a Pakatan Rakyat administration would perform its fiscal responsibilities.

It is a proud record of effective financial management commended by the Auditor General. That record includes the absence of scandals and inappropriate behavior. It also demonstrates the professional competence of those in public office and confirms their commitment to high standards of integrity and honesty.

Friday 15 March 2013

With your head buried in the sand
NO HOLDS BARRED


Friday, 15 March 2013 Super Admin


I speak to Malays here in the UK -- professionals who work in the UK, say for the last 10 or 20 years, and whose children were born and now school in the UK -- and they still ask me whether what I am propagating is wise. Do you think we really should end the New Economic Policy (NEP) in favour of meritocracy? What will happen to the Malays if we do that? Won’t we ‘lose’ the country to the Chinese?

NO HOLDS BARRED

Raja Petra Kamarudin

Yesterday’s article, Malaysia at the crossroads, is a most interesting experiment in comprehension. There were more than 100 comments and none answered the point of that whole article: which is, how is the opposition going to woo the Malay voters? That is what the whole article was about and which no one addressed.

I understand, and at times even appreciate, that readers are taking the opportunity to post comments merely to lepas geram (let off steam). They are not really interested in debating or to enter into any discourse. They just want to vent their anger and frustration. 
 
It is like going to the gym to punch the punching ball because you are sexually frustrated and/or your job is a dead-end job with no real future. So you need to hit out at something. Some kick the cat, some punch a ball, and many of you post nasty comments in Malaysia Today.

The 2008 General Election is said to be a landmark for Malaysia’s opposition. We would like to believe that a new political culture has emerged. Some say that, finally, the racial divide has been bridged and today people think as Malaysians and no longer as Malays, Chinese and Indians, or as one of the natives of East Malaysia.

Is this true? Many of you who post comments in Malaysia Today appear to think so. But what is the average age of those who post comments in Malaysia Today? 30? 35? 40? How many of you who post comments in Malaysia Today are 65 or 70? How many of you who post comments in Malaysia Today were born before the Second World War, or before Merdeka, or before 1970?

Okay, let us just look at Malaysians who live, work and/or study, say, in the UK. We have Malaysians here in the UK from all the races. UK is an advanced society. Racism is a crime in the UK and you can get sent to jail even for the mildest of racial slurs. If that same law was applied in Malaysia and was strictly enforced, probably 80% of Malaysians would end up in jail.

There are Malaysians who have lived in the UK for 20 years or more. Some were married in the UK and some even born in the UK. Hence these Malaysians in the UK should not have been exposed to Malaysian-style racism and should by now be insulated from racism. 

But this is not so. Chinese mix with Chinese. Malays mix with Malays. In fact, most Malays in the UK only want to live in certain residential areas that are monopolised by their ‘own kind’ -- fellow Malays and in the absence of fellow Malays at least in areas which are predominantly Muslim. And don’t tell me that the Chinese are not like that because if this were true then there would not be so many Chinatowns all over the world, the UK included.

I speak to Malays here in the UK -- professionals who work in the UK, say for the last 10 or 20 years, and whose children were born and now school in the UK -- and they still ask me whether what I am propagating is wise. Do you think we really should end the New Economic Policy (NEP) in favour of meritocracy? What will happen to the Malays if we do that? Won’t we ‘lose’ the country to the Chinese?

Now, these are Malay professionals who are doing well in the UK not because of the NEP but because of merits. They got their positions not because of the colour of their skin but because they are qualified. Their children are in a local Mat Salleh school and are top of the class or at least in the top ten or top five.
You are doing well, I tell them. Are you doing well because the UK has an NEP and you got your job because you are Malay or because you are good at your job and/or qualified for the job? Your children are doing very well in school and can compete with the ‘whites’. Is this because of the NEP or because they have brains?

They agree that the NEP has nothing to do with it. Maybe in the beginning it was because of the NEP -- and because of the NEP they managed to receive a good education. But from thereon it had nothing to do with the NEP. They compete on a level playing field and they excelled, as did their children in school, entirely on their own merits and with no handicap or advantages.

Okay, I tell them, in short, you are who you are has nothing to do with the NEP and the only benefit that you can see from the NEP is that you received an education. However, judging by how well your children are doing in school, even without the NEP you would still have made it in life just as long as you were allowed the opportunity of a good education. 

In short, I ask them, if Malaysia did not have any NEP but had enough schools, colleges, universities, teachers, lecturers, etc., you would have still made it even without any quota system and the only reason you need a quota system is because of a shortage of educational facilities?
They agreed that that is correct.

So we do not need the NEP, right? We need more institutions of learning so that the quota system can end.

When I summed it up that way they hesitated. As logical as this argument may sound, they were not too sure. They still felt that removing or abolishing the NEP would not be good for the Malays.

My wife, Marina, would listen to this exchange and later, when we are alone, she would express her awe at the mind of these Malays. They live and work in the UK. They and their children are doing well. And they are doing well not because of the NEP. So they do not need the NEP. And yet they are not prepared to let go of the NEP in spite of the fact they do not need it. 

That is how the mind of the Malay works. And these are Malays in the UK. What about Malays in Malaysia? Would they not also be thinking like this, or worse?
Earlier this year I gave a talk in Cambridge called For God, King and Racism (lifted from the saying ‘For God, King and Country’). It was a one and half hour talk about the history of racism in Malaysia, mainly the ‘three Rs’ that I had written about before more than once -- race, religion, royalty. 

As I had explained before, these are the concerns of the Malays -- even Malays who have lived/worked 20 years in the UK and who should, therefore, not be concerned about such matters. And Umno is aware of these concerns. And Umno knows how to play on these concerns to garner Malay support.

The non-Malays in the opposition, however -- many of you who post comments in Malaysia Today -- are not sensitive to these concerns. Instead you do the opposite. Rather than address these concerns you engage in Malay-, Islam-, and/or Royalty-bashing.

Do you really think this will ensure that the opposition is going to get Malay support? 

Look at the results of the 2008 General Election. Look at where the seats that DAP won are. Look at where the seats that PAS won are. Look at where the seats that PKR won.

Is it merely a coincidence that the seats that DAP won were mostly in areas where the Chinese voters were more than 50% or the Malay voters were less 40%? Of course, there were some seats that DAP won where the Malay voters were higher than the Chinese voters, mainly in the cities or main towns, which were ‘delivered’ by PAS.

PAS won seats where the Malay voters were predominantly Malay while PKR did well in areas where it was about 50:50 Malay:non-Malay.
In short, the voting pattern was along racial lines. Race still very much determines how people vote. As much as we would like to believe that the 2008 General Election was a landmark election where Malaysians no longer voted along racial lines, this is not true.

Many of you who comment in Malaysia Today make the Malays saki hati (hurt the feelings of the Malays). Hell, even I saki hati with the DAP Chinese supporters and can no longer tahan the arrogance in your comments (in case you are too stupid to realise that). No, Umno did not win us over, as many of you allege. Instead, your foul mouths have sent us away. And this is the feeling of many Malays who voted Pakatan Rakyat in the last general election.

In 2008, many people screamed ABU (asal bukan Umno or anything but Umno). Today, these same people are screaming ABC (asal bukan Cina). Is this how you want to face the coming general election?

As I said earlier, many of you are in your 20s, 30s or 40s. Some of us who were born before the Second World War, before Merdeka, or before 1970 have seen what it was like in the old days. And what is frightening is that we seem to be seeing a repeat of that era. And yet even more frightening is that many of you just do not see this. And when we point this out and try to caution you that the situation is not at all healthy, you respond with allegations that we are serving Umno’s agenda and are trying to play up the fear factor.
That is what is called denial syndrome.



 

Wednesday 13 March 2013

Sulu Sultan’s long-standing ties with Umno, so who’s bullshitting?


The following is a reproduction of an email being circulated by Malaysians:



Sultan of Sulu

TAN SRI Abdul Aziz Shamsuddin political secretary to Tun Dr. Mahathir & former Minister of Rural and Regional Development with the Sultan of Sulu!

2nd Photo...

ABDULLAH BADAWI with the SULTAN OF SULU

3rd Photo...

YOU KNOW WHO with the SULTAN OF SULU...

UMNO's TOP DOGS have had a LONG HISTORY of relations with the "Kiram's"

Yet for what is happening in LAHAD DATU, SABAH...they're blaming it on 'Anwar'???

It's NO WONDER that in BOTH newspapers in the Philippines reporting in the "MANILA BULLETIN" & "THE PHILIPPINE STAR" saying that that the Stand Off in Sabah is mere "DRAMA"???

http://www.philstar.com/headlines/2013/03/05/915945/sulu-sultans-widow-fighting-sabah-mere-drama

and

http://www.mb.com.ph/article.php?aid=2403&sid=1&subid=1#.UTcYPLLiYpo

-w.i.w.c

Pro-Pakatan blogs link Najib to Sulu Sultan

Pro-Pakatan blogs link Najib to Sulu Sultan
 
 | March 6, 2013
Several pro-Pakatan Rakyat blogs posted pictures in their blogs; one being the sultan attending the Umno annual general assembly and the other, Najib posing with Jamalul's brother.
PETALING JAYA: With several mainstream media linking Opposition Leader Anwar Ibrahim to the instrusion in Lahad Datu, several pro-opposition blogs posted pictures linking Umno and Prime Minister Najib Tun Razak to the Filipino intruders.
Greenboc.blogspot.com posted a picture of the self-styled Sultan Jamalul Kiram III, the leader of the Sulu intruders, attending the 2012 Umno general assembly.
“He was guest at the Umno annual general assembly. Jamalul was invited as a sign of friendship. What are you going to say now?” reads the post in the blog.
Blogger Tulang Besi, who runs the Malaysian Waves site, posted a picture of Najib posing with Sultan Eslam Kiram II, brother of Jamalul Kiram.
“There are many other Umno leaders who took pictures with Eslam but it’s not out yet,” he said.
Tulang Besi also said that Umno supporters were upset with Moro National Liberation Front (MNLF) supremo Nur Misuari as the latter blamed Najib for the mess in Sabah.
“Before this, these Umno supporters didn’t even say a word about Nur Misuari. Now they are trying to link the MNLF leader to Anwar,” he added.
However, the most intriguing part of the story comes from Philippines-based media, Manila Bulletin Publishing Corporation, quoting Nur Misuari on Feb 

Read more:http://www.johorpkr.blogspot.com/2013/03/pro-pakatan-blogs-link-najib-to-sulu.html

Sunday 3 March 2013

Malaysia per capita income expected to increase one third by 2020


Source: icaew.com


GDP growth in 2013 and 2014 is expected to be healthy, according to ICAEW’s quarterly Economic Insight Report, with rising output supported by a thriving service sector and strong export earnings. However, the export-dependent country will likely be affected by continual weakness in the global economy through 2012.

The ICAEW report Economic Insight: South East Asia, is produced by ICAEW’s economic partner Cebr (The Centre for Economics and Business Research). The report is a quarterly review of South East Asian economies, with a focus on the six largest countries; Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam.

Read more:http://www.icaew.com/en/about-icaew/newsroom/press-releases/2012-press-releases/regions/malaysia-per-capita-income-expected-to-increase-by-third#