Wednesday 30 October 2013

Ease of doing business index (1=most business-friendly regulations)

 Ease of doing business ranks economies from 1 to 185, with first place being the best. A high ranking (a low numerical rank) means that the regulatory environment is conducive to business operation.

The index averages the country's percentile rankings on 10 topics covered in the World Bank's Doing Business. The ranking on each topic is the simple average of the percentile rankings on its component indicators.


 Ease of doing business index (1=most business-friendly regulations)


Read more: http://data.worldbank.org/indicator/IC.BUS.EASE.XQ

World Bank, Doing Business project (http://www.doingbusiness.org/).
Catalog Sources World Development Indicators 

Tuesday 29 October 2013

Enough with fat salaries and overlapping agencies, DAP lawmaker tells Putrajaya

Enough with fat salaries and overlapping agencies, DAP lawmaker tells Putrajaya

BY LOOI SUE-CHERN
October 29, 2013



Najib announced the setting up of Magic, the acronym for Malaysian Global Innovation and Creativity Centre, during his Budget 2014 speech, last Friday. - The Malaysian Insider pic by Afif Abd Halim, Oct 29, 2013.

Putrajaya has been urged to stop setting up new agencies, especially those whose functions overlap with existing government bodies and which hire high-salaried contract staff.

DAP's Serdang MP Dr Ong Kian Ming said Prime Minister Datuk Seri Najib Razak should walk the talk by cutting expenditure in the Prime Minister's Department and not create more new and expensive agencies.

He was referring to Najib's announcement of a Green Foundation and the Malaysian Global Innovation and Creativity Centre (Magic) during the Budget 2014 speech last Friday.

Najib also announced that allocation for the Prime Minister's Office in 2014 will be increased next year to RM16.5 billion, from RM14.6 billion this year. The 13% increase is seen against the budget's overall increase of only 5.6%, from RM250 billion in 2013 to RM264 billion in 2014.

Ong said the two new agencies were unnecessary, and pointed out the existence of the Malaysian Green Tech Corporation and the Sustainable Energy Development Authority.

He said agencies such as Agensi Inovasi Malaysia, the Malaysian Productivity Council and others were already doing the job of the newly-announced Magic.

Ong said Putrajaya pays higher salaries to the top brass in these agencies and their contract staff, compared to the civil servants in existing departments, including the Chief Secretary.



"All these CEOs are paid monthly salaries which are higher than the monthly salary of the highest paid civil servant - the Chief Secretary, who has a maximum monthly salary of RM23,577.

"If the Prime Minister is serious about asking ordinary Malaysians to change their lifestyles to adapt to rising prices as subsidies are withdrawn and the Goods and Services Tax (GST) is introduced, he should also walk the talk by reducing the expenditure in his own department," he said.

He quoted a parliamentary reply on October 1 detailing salary, allowance and bonus of Agensi Inovasi Malaysia's chief executive officer, which amounts to RM830,500, an average of RM69,000 monthly.

The CEO of the Land Transport Commission, or SPAD, is paid a yearly salary of RM480,000 (RM40,000 a month), an annual allowance of RM162,000 and a bonus of RM60,000, totalling RM622,000, said Ong.

Meanwhile, the CEO of TalentCorp, said Ong, gets a monthly salary of RM30,000, in addition to a monthly car allowance of RM5,000, which works out to an annual income of RM420,000.


Ong (pic, left) also shared salary figures of top bosses in such government agencies as Iskandar Regional Development Authority (Irda), East Coast Economic Region Development Council (ECERDC), Northern Corridor Implementation Authority (NCIA), Malaysian Industry Government Group for High Technology (MIGHT), Unit Peneraju Agenda Bumiputera (Teraju) and the Performance Management and Delivery Unit (Pemandu).

"For example, a Pemandu director, whose position is equivalent to a JUSA A/B civil servant's, has a maximum monthly salary of RM49,000, while an associate director (who is equivalent to a JUSA C civil servant) has a maximum salary of RM31,600 a month.

"A senior manager at the unit, whose rank is the same as a Grade 54 civil servant, has a maximum salary of RM21,000 a month," he stated.

Ong said hiring contract staff in the Prime Minister's Department was one reason why Putrajaya's expenditure went up significantly over the past four years under Najib's administration.

In Budget 2014, the Prime Minister's Department received one of the largest allocations, with its Economic Planning Unit capturing all capital expenditures for development planning. - October 29, 2013.


Source: http://www.themalaysianinsider.com/

Monday 28 October 2013

The constitution is supreme, not religion (Part 2)



by Tommy Thomas
Malaysiakini
Oct 24, 2013
 
COMMENT A simple way to illustrate the point that the measure of protection given in the federal constitution may be absolute or limited is to compare the language employed in Articles 10 and 11.

Article 10 protects freedom of speech, assembly and association. But Parliament may, by law, restrict the rights under Article 10, whereas Parliament cannot enact any law to restrict or curtail the freedom of religion under Article 11(1) and (3).

This difference in text between Articles 10 and 11 means that persons who belong to, say, a chess club or a sports association, would come within the purview of Article 10, while members of a religious group would come within the scope of Article 11.

Because Article 11 is drafted in much broader terms than Article 10, members of religious groups enjoy a far greater measure of constitutional protection than members of a chess club or a sports association.

Conversely, state action can control, direct and regulate a chess club and a sports association much more than it can over a religious group. Additionally, only citizens enjoy Article 10 rights, whereas no such limitation occurs under Article 11.

In stating this position, Article 11(5) is not to be overlooked. But Article 11(5) does not permit Parliament to enact laws to restrict freedom. It merely provides that in the enjoyment of religious freedom, whether individually under Article 11(1) or collectively under 11(3), a person or a religious group should not carry out any act which could contravene any general law relating to “public order, public health or morality”.

Hence, for instance, those who participate in a religious procession like the annual Thaipusam pilgrimage to Batu Caves should not insult other religions. If they do, then the state can take restrictive measures on grounds of public order. But the onus is on the state to show that public order is affected.

However, Article 11(5) cannot be engaged if a worshipping community prays in a church or temple, or if a family prays in their house. Both are private places.

The overall effect is that Article 11(1) confers a personal freedom to be enjoyed by every person resident in Malaysia, regardless of his citizenship, nationality or domicile. So long as he is physically present in the country he can enjoy it. It is his right to choose whichever religion he wishes, and he can profess, practise and propagate it.

The government cannot interfere

Neither the government nor any other authority can dictate to any person his right to choose a religion, relinquish a religious belief (with limitations for Muslims), change religion and not to be religious (whether as atheist, agnostic or otherwise). This right is absolute, entrenched and inalienable.

Its absolute nature can be tested in three other ways. First, Article 149 of the federal constitution provides that if an Act of Parliament expressly recites that action has been taken or threatened by a substantial body of persons against the nation, then that Act of Parliament may enact laws that would be inconsistent with Articles 5, 9, 10, or 13. However, such law cannot impinge upon freedom of religion under Article 11.

Secondly, if a State of Emergency is declared by the Yang di-Pertuan Agong pursuant to Article 150, and emergency laws are enacted thereafter, such laws cannot relate to religion although it can curtail other fundamental liberties [see Article 150(6A)].

Thirdly, our courts have recognised the great importance of religion as a fundamental liberty. Since the enactment of the Internal Security Act, 1960 (ISA), nearly 10,000 persons have been detained by way of preventive detention under the ISA and other similar legislation. The very few successful legal challenges that resulted in the release of the detainees were because of procedural reasons.

One of the very successful challenges on substantive grounds (that is, on the merits of the detention) was the landmark case of Minister of Home Affairs vs Jamaluddin Othman, where Jamaluddin was detained during Operation Lalang in October 1987 for propagating Christianity to Muslims.

The High Court ordered Jamaluddin’s release and this judgment was upheld by the Supreme Court on appeal. Both courts held that a person cannot be detained under the ISA for his religious conviction and for propagating his religion (Christianity, in that case) to Muslims.

Accordingly, the position under the constitution is that Catholics are allowed to read any translation of their Holy Bible as part of their right to profess and practise their religion and under their right to manage their own religious affairs. These are absolute rights. Neither the state or any authority or any person can interfere with them. Followers of all religions enjoy equal rights with respect to their Holy Books.

The divinity, sacredness and purity of Holy Books of all religions should be respected by all, and protected by all nations across the globe, unless one is a monster like Hitler or Pol Pot. What that means in practical terms is that no state agency can re-write a single word in these Holy Books or demand that they be re-written.

None of these arguments on the centrality of freedom of worship were alluded to in the three Court of Appeal judgments against The Herald.

Effect of the Allah judgment

Although the publication that was before the court was Catholic weekly The Herald, the ruling affects all books and publications. That is the ratio decidendi or the fundamental findings in a decision that must be followed by all courts in similar circumstances in subsequent cases.

In other words, it is not possible to draw a distinction on facts and law between the use of the word ‘Allah’ in one publication (The Herald) and another publication (the Bible). The principle of stare decisis – the doctrine that subsequent inferior courts are bound to follow the fundamental findings of previous cases decided in similar circumstances – does not work that way.

Thus, it affects the Bible that is popularly used in East Malaysia by communities that wish to read it in the Malay language. Such a Bible cannot continue to use the word ‘Allah’ to describe God. When the case is put that way, the stark gravity of the appellate court’s decision becomes clear: it amounts to censorship of a Holy Book. That is not the business of any secular court in any nation in this world.

It is ironic that as Sabah and Sarawak celebrate 50 years in Malaysia, they are told by a court sitting in Putrajaya that their subjects cannot read their Holy Book in the translation of their choice. Malaysia was formed in 1963 over substantial opposition, internally in East Malaysia, which resulted in the formation of the Cobbold Commission to ascertain the wishes of the people there, and externally by Indonesia and Philippines, which resulted in intervention by the United Nations.

One of the key demands of Sarawak and North Borneo (as Sabah was then known) was a guarantee that British imperialism will not be replaced with Malayan imperialism, and that an exchange of colonial rule from London to Kuala Lumpur will not take place.

Can one imagine the horror that would have been exclaimed in the deliberations between 1961 and 1963 (which incidentally also involved the British and Singapore), prior to Malaysia’s establishment, if anyone had remarked that within 50 years, East Malaysians would not be able to read their Malay Bible containing the word ‘Allah’?

Instead of dealing with the facts that were before the court, one of the judges, Justice Zawawi Salleh, conducted extensive research on the Internet. None of the parties had provided these materials to the Court of Appeal (as I was informed by the lead counsel for the Church who argued the appeal before this court).
Thus, this judge carried out research on his own. In breach of the principles of natural justice, he did not invite lawyers representing all the parties to comment on the materials he discovered in the Internet. This is another fundamental error on his part. One can therefore expect the Federal Court to completely disregard such “judge-found” evidence.

Enforcement of court order

No court makes an order in vain: there must be practical utility to it. Hence, whether an Order of Court can be practically enforced is relevant. Insofar as The Herald is concerned, if the Catholic Church uses the term ‘Allah’, it runs the peril of losing its licence. But what about the Bible in Malay containing the word ‘Allah’?
The state can enforce the decision of the Court of Appeal by one of two ways:

(i) Confiscate the Bible in Malay by removing them from churches and homes, and thereafter burning or destroying them; or

(ii) Visit the churches and homes for the purposes of deleting the word ‘Allah’ in all the places it appears in the Bible or tearing the relevant pages from the Bible and thereafter returning them to their owners.

christians praying church attacksAgain, the gravity of the decision becomes clear when one considers how the state is going to enforce it. It is immediately foreseeable that the churches and the households will resist anyone from the state touching their Holy Book, let alone harming it.

Would the state then use reasonable force when confronted with resistance? What constitutes “reasonable force” in such circumstances? The national interest requires the delicate use of tact and sensibility when dealing with the rights of minorities, especially religious rights. The tyranny of the majority should not result in bloodshed and violence.

One is not scare-mongering: this is just the inevitable consequence of the decisions. Did the attorney-general advise the government of these consequences? Otherwise, the court decision would merely be a Pyrrhic victory, achieved at the high cost of damaging ethnic relations in a plural society. Is this responsible political governance?

In the Braddell Memorial Lecture that was delivered at the National University of Singapore in 1982, former Lord President and one of our greatest judges, Mohamed Suffian Hashim, described his fellow judges as follows:

“In a multi-racial and multi-religious society like yours and mine, while we judges cannot help being Malay or Chinese or Indian; or being Muslim or Buddhist or Hindu or whatever, we strive not to be too identified with any particular race or religion – so that nobody reading our judgment with our names deleted could, with confidence, identify our race or religion, and so that the various communities, especially minority communities, are assured that we will not allow their rights to be trampled underfoot.”

Suffian, who became a vocal critic of our judiciary after Salleh Abas was sacked as Lord President in 1988, would have wholeheartedly agreed that his comment does not apply to this case, with the overwhelming public perception being that the religion of the three judges in The Herald case was a factor in their decisions.

A fundamental principle of our law is that justice must not only be done, it must also manifestly and undoubtedly be seen to be done. In an appeal where the central issue is a clash between Islam and Christianity, the judges ought to have been Hindus, Buddhists, atheists or agnostics.

Alternatively, there should have been a delicate balance between judges of the Muslim, Christian and other faiths. Hopefully, such a combination will form the panel for the Federal Court when The Herald appeal is heard.

Friday 25 October 2013

Najib’s Budget 2014 acid test



Bridget Welsh
Malaysiakini
Oct 25, 2013


COMMENT Malaysia’s Budget 2014 represents the most important economic policy initiative of Najib Razak’s premiership. After scraping through GE13 and deal-making his way to an unchallenged presidency of Umno, there are no immediate political obstacles undermining his ability to implement the economic reforms he has repeatedly promised investors and international financial institutions such as the International Monetary Fund.

Najib has gone on record to claim that he will reduce government debt, tighten spending and make the Malaysian economy more competitive. International watchers were initially bought over by all the different acronyms coined by the government, such as the ETP (Economic Transformation Programme).

However, they have become increasingly negative with regard to Najib’s financial management which continued to involve massive overspending and this led to a negative rating by Fitch in July this year. With debt reaching 54 percent of gross domestic product, near the 55 percent government self-imposed limit, Malaysia stands on the precipice of future downgrades.

As the Budget debate begins, it is important to highlight some of the key issues and patterns that have characterised Najib’s tenure as prime minister.

A political adept captive

First of all, it is necessary to appreciate that arguably more than any other premier, Najib uses the Budget to win political support. His four years in office has seen the practice of seeking public approval, time and again. He has not been willing to make hard decisions, especially at Budget time.

This deep-seated insecurity of Najib has led to Budget after Budget full of goodies. This was put down to electioneering. He no longer has this excuse.

This Budget will test whether Najib is confident enough to make unpopular decisions, or continue to be beholden to his need to seek public approval. If the Budget includes additional cash handouts such as BR1M (Bantuan Rakyat 1Malaysia), this is a sure sign that Najib is still not on firm political ground.

Second, Najib has been adept at spreading out the pain. His approach to the reduction of subsidies has been to do it slowly, hoping that the public can be duped by these initiatives and not lay blame on him. Petrol and gas prices have increased through this method.

Energy subsidies are one of the main areas placing great strain on government finances. They are keenly watched by the public who depend on these subsidies, especially in states like East Malaysia where incomes are comparatively lower and transportation costs higher. The approach has been to wean the public off these subsidies, but without taking blame for doing so.

The same can be said for other measures on revenue that involve public spending, such as the recent increase on cigarette taxes. He hides the pain and showcases the sweet, all of which is a pattern of Najib’s financial management.

Spending without development

Third, spending has reached record proportions. Najib has spent much more than any other premier in real terms and on an annual basis. When one looks at spending in the last two years, he has shattered records.
Najib has outspent his own father, Abdul Razak Hussein, Tunku Abdul Rahman Putra, Hussein Onn and Abdullah Ahmad Badawi and is now going after the record of the spending of the entire Dr Mahathir Mohamad’s 22-year period.

The place to look at this is not the Budget speech but the supplementary budget, which is passed by Parliament often without effective debate to cover what was spent after the fact. Last month Najib’s government passed a supplementary budget of RM15 billion! This is the spending beyond what was originally forecast. Indeed, Najib is a big spender.

Fourth, the spending has not been targeted beyond seeking political support. Let’s take the Bumiputera Economic Empowerment (BEE) Agenda. It has no targets, no timeline, no clear objectives, no parameters for assessment and frankly no rationale beyond seeking political support.
The racial basis of BEE is seen by the market as limiting competition and hurting the development of the Malay community, as it increases their dependence on the government rather than nurturing globally competitive entrepreneurship.

It is poised to foster more corruption in a system that is deeply burdened by graft and is skewed to the elites with access within the system, the Umnoputras. The RM30 billion in spending for BEE is pure politics.

BR1M is another measure blinded by politics. How much have people been able to bring longer security from these short-term handouts? At best it has been a band-aid on the fiscal challenges on high household debt – also at record levels of 70 percent of household incomes – and the increasing high cost of living. What is clear is that the spending has centred on short-term initiatives, not long-term development.

Fifth, Najib has yet to clearly outline his development priorities. There is little development planning going on. In fact, the development budget under Najib has shrunk.

Unlike Abdullah, who presented a framework to address development and poverty, including an initiative on rural communities, the broader vision is missing from Najib’s planning. Abdullah did not meet his targets, but put on the table initiatives that generated discussion, such as the development of the halal industry and northern corridors.

All current indicators are that manufacturing exports are on the decline. The only industry that seems to be coming out of the Najib government are the money-making big infrastructure projects such as the MRT (Mass Rapid Transit) expansion. In fact, Najib’s development model appears to replicate the “big” projects and spending of Mahathir, with little attention to how this spending is affecting ordinary people and its long-term implications.

Some go as far to suggest this big project focus is about making money for the elite, rather than promoting development. Where ordinary people fit in, and how Malaysia is to raise incomes, promote jobs and improve the quality of life for citizens is not fully clear.

Najib may be be touted as a technocrat by market watchers, but as a leader focused on development, he has yet to effectively address these concerns.

Managing the money

The Najib administration continues to highlight that it knows how to manage public funds. This claim has increasingly come under scrutiny and raised scepticism.

There are three issues: First is Malaysia’s fiscal deficit – now at record proportions as a result of Najib’s spending. The related second is Malaysia’s revenue shortfall. The third is the excessive government debt.
It is in this vein that the Najib pre-budget spin has been assuring that Malaysia will reach a target of 3.5% fiscal deficit and increase revenue through the introduction of the Goods and Services Tax (GST).

The reality around each of these measures is clouded by exaggerated estimates of growth and performance in the economy (which has been slowing and on the decline), a lack of transparency in how funds are being managed in different accounts and through different government-linked companies and with less than clear estimates on actually how much the GST will bring in as a source of revenue.

There are no timelines and this creates a void in credibility. The costs of these measures have not been outlined, as the burden for revenue moves regressively towards ordinary citizens irrespective of their incomes and backgrounds with little attention to the real wastage for taxpayers – corruption.

By most domestic and international measures, corruption has increased under Najib’s tenure, not decreased. The sources for additional growth in the economy, especially in light of global uncertainties, are not being made clear. The pattern is to rest on the past, with increasing dependence on oil and gas revenue, commodities and government spending to promote growth, rather than prepare for the future.

The Najib administration has engaged in spending cuts: these have come from operating expenditure in the funds to implement policies and carry out government policies. While directly providing civil servants with more money as salaries, the budgets they have had to work with have shrunk.

Najib is the only premier in the history of Malaysia that has repeatedly cut funds for the implementation of government policy. The effect is that government departments are now struggling to actually carry out programmes compared to the past. While everyone can agree that tighter spending can improve efficiency, butchering cuts in operating funds is not helpful for governance.

This is one of the ironies of Najib’s spending – he has increased allocations to salaries which cannot be easily reduced and are in effect permanent increases in outlays, while simultaneously hurting government programming through cuts to actual governance. These cuts can be seen in lower funding of maintenance of facilities, less engagement with citizenry and less funds for training and improving the quality of the civil service.

Today, Budget 2014 will be announced. We will see whether Najib uses his ‘victories’ – however imperfect – for setting Malaysia on a more financially viable track for quality governance for all Malaysians. The test is whether there is a clear direction that is putting Malaysians first and looking out for future generations.

Whatever happens today – from goodies to the GST – Najib will be showing how he envisions the country’s development. One can hope that he shows leadership in making fair decisions, rather than continuing the pattern of trying to play politics. One can hope that he can come out of the shadow of trying to please and point to a path for inclusive development for all Malaysians.