The Projects
Now on some specific programs outlined by Najib. Training and job placement programs of the type described by him are woefully inadequate. Those retrenched and displaced are in need of immediate assistance.
Malaysia lacks a safety net program of unemployment benefits as is the case in most industrial economies. Thus workers lack a cushion. The nation’s labor laws are skewed towards safeguarding employers as evidenced by the meager protections afforded to laid off workers.
It is also significant that both legal and illegal workers continue to flow into Malaysia – largely to permit employers to gain from cheap labor.
It is pertinent to question the Government as to why some of the resources being expended are not being set aside to launch a scheme that would provide income support to those laid off, or those who have seen a precipitous fall in income because of a fall in commodity prices. Equally, it can be asked why no program is being developed to aid those who are laid off with assistance in meeting their housing loan commitments.
These measures proposed under the various training schemes are palliatives and lack an imaginative attempt to address the key issue of assuring an income to those who fall victim to what has been termed the Great Recession. Displaced workers or those new entrants into the job market need to be assisted directly.
Training is and cannot be the first recourse. While such an effort may be appropriate in a time of cyclical upheaval, in a recession of the type now confronting Malaysia a vastly different approach is needed – one channeling resources to sustain incomes and support consumption.
The DPM proposes to recruit some 63,000 workers into the government services. Is this the best use of resources? It is generally acknowledged that the public sector is bloated and much larger than in other countries at a similar stage of development. It is also a fact that it is grossly inefficient.
In the face of these circumstances, it is legitimate to pose the question why it is necessary to further expand the sector. It would be far more cost-effective to use these resources to channel funds into a new fund to provide income support to those directly affected by the downturn. The further option of out-sourcing particular services to the private sector should be explored as it would provide opportunities to the private sector.
Najib has proposed a new scheme for post graduate education. The proposal is laudable in that it seeks to enhance the knowledge base of the economy. However, it is far from clear if the gradates will be channeled towards pursuit of studies that will go towards improving the nation’s competitive position. Given the dismal state of the public universities, the outputs from this program are unlikely to significantly contribute to national needs for particular nationally needed skills.
It would be more appropriate to use some part of the resources in strengthening the public universities by turning them away from being sausage factories that churn out unemployable graduates. Strengthening the universities will demand the hire of foreign lecturers, a freeing of the universities from bureaucratic and political control, the application of principles that place emphasis on meritocracy.
On the issue of poverty alleviation, the need to revise the poverty line is paramount. The current poverty lines are a flawed measure and grossly underestimate poverty. A new measure that accurately measures poverty in conformity with UN and World Bank methodologies is demanded. No program based on erroneous yardsticks can benefit those who are vulnerable and disadvantaged.
In his speech the DMP makes reference to various subsidies that will be given. He mentioned that a sum of RM 27.9 billion will be disbursed. No details are given to how much of this will accrue to households and how much to corporations.
Najib also made the statement: “The Government will also provide RM480 million to ensure that toll rates are not increased”! This is corporate “welfare” going to the well-heeled and cronies of the BN over one-sided contracts! It does not reach the hard-pressed road-users and therefore it is inappropriate for the DPM to claim that this is a support for consumers.
The litany of programs and projects listed in the speech is long. Many of the projects outlined are standard projects featured in almost every budget year in and year out. While there is no denying the need for allocating resources for improving the delivery of public services, the issue is one of priorities. At the current point in time it is more important and urgent to direct efforts to safeguard incomes, directly assist those who have suffered job loss, or suffered a sharp decline in disposable income
The DPM makes a rather remarkable pronouncement that the Government proposes to launch Savings Bonds with the objective of generating additional income. This is truly amazing. In any event, the promotion of savings at this juncture of the economic crisis is most odd; the current concern should be to sustain private consumption. Or is the real goal to get the little guy to lend to the Government? Surely there are enough vehicles to promote and capture savings without yet another new device.
Great play is made of the allocations ear-marked for Sabah and Sarawak. There does not appear to be any direct link to the impact of the recession. These programs for the most part were in the 9th Five Year Plan. Outlays on these projects will for the most part have trickle-down effects and are not likely to be felt in the immediate future given the lengthy gestation period involved in completing infrastructure projects of the type listed.
It is also significant that no reference is made about allocations to other states leading one to conclude that the highlighting of allocations to the two East Malaysian states is a purely political gesture.
The DPM proposes to ensure the welfare of entrenched workers by way of tax exemptions on retrenchment benefits. These exemptions are paltry. What is wholly remarkable is that no direct assistance in the form of income support is contemplated under the Stimulus Package for those retrenched or facing a drop in disposal incomes.
It is pertinent to ask why out of a package of RM60 billion a modest sum cannot be set aside. It would be most appropriate to create a Retrenchment Fund to be used to provide those retrenched or facing a sharp decline in income because of a reduction in overtime. Such a program would be just and equitable and in a macro-economic sense be supportive of consumer demand. It is also likely to have an immediate impact on consumption and sustaining the overall level of economic activity.
The DPM proposes to pass a good part of the effort to help retrenched home owners on to the shoulders of the banks. It is pertinent to note that no provision is being made to help those who remain employed but suffer a significant drop in incomes. The DPM should expand the scope of the scheme to also include those who have seen a reduction in income from self employment, loss of over-time earnings etc.
A general observation is in order. The package is disproportionately skewed: it is skewed towards investment rather than to consumption; major beneficiaries are corporate entities; there is little indication that resources are being channeled towards those who are truly marginalized and disadvantaged.
It is remarkable for instance that nothing is being provided for the Indian community or for the poor in the states of Sabah and Sarawak. The message being conveyed is that business as usual is the order of the day.
The third thrust outlined by the DPM deals with the private sector. He asserts that The Government will implement measures to enhance foreign and domestic investor confidence in the Malaysian economy. However, the measures outlined exclude any reference to needed policy reforms. This is totally cynical.
True reforms encompassing anti-corruption, greater accountability and transparency would go a long way as would deregulation, together with a modification of the NEP. Equally, a better and more enlightened policy of interactions between the Federal and PR governed states would be appropriate signals that would promote stability and confidence.
A sincere effort on the part of BN to reduce the degree of race polarization would go a long way in correcting the slide towards disharmony. Najib should walk the talk and commit himself to a package of reforms e.g. reining in the police, a commitment not to use draconian laws that constitute barriers to trust and the expression of opposing views in a peaceful way. Reforms in this regard would send strong signals that he is cognizant of the importance of creating confidence.
Najib laments the fact that SMEs are often unable to access capital markets. The issue is why this should be so. It is probably because of the rigidities in place. Some part of this is linked to the exercise and abuse of powers by Little Napoleons’ with their convoluted interpretations of the NEP.
There is no assurance that the mere establishment of the new facilities will lead to greater access to funds by those in need. Najib needs to immediately revamp the implementation of the NEP. A strong signal is needed; one such measure would be a repeal of the Foreign Investment Committee accompanied by a relaxation of the listing rules of the stock exchange
Although the DPM proposes to revise processes involving the Securities Commission, it is remarkable that he ignores the fact that in the corporate sector the GLCs are major actors. Najib has made no reference to how best they should behave during a period of stress. They are indirectly owned by the rakyat and should be held accountable and be more transparent. His silence in this regard appears to indicate that “business as usual” will continue to be the order of the day.
The relaxation of conditions to attract highly skilled and high net-worth individuals can be welcomed. However there is need for a coherent plan e.g. what type of professionals do we need to attract; which industries will be prioritized; and how will this scheme be implemented? Past schemes have been dismal failures- the issue remains how the lessons from the past will be applied.
As regards the proposed exemption of the Human Resource Development Fund , it appears to be a belated effort to hand a sop to companies many of which are either scaling back their footprint in Malaysia or are even considering relocating to other countries in the region.
Measures to support the automotive sector outlined by the DPM are likely to be problematic, This is in essence a new subsidy to Proton and may well run counter to WTO and AFTA rules. In one sense this is protectionism and is likely to invite retaliation from other trading partners. Malaysia as a trading nation can ill afford retaliatory measures particularly at this stage of the economic cycle. The Government must therefore exercise caution before embarking on a course that may have severe consequences.
Najib has yet again failed to grasp an opportunity to move Malaysia up the chain in the automotive field. He should promote research into the use of alternative energy sources in a new generation of vehicles e.g. electric-powered cars. In this manner Malaysia would be leaping to the forefront of innovation and making a contribution to the effort to reduce carbon emissions.
Reference is made to the need to look ahead and create new growth areas. There are multiple growth corridors that have as yet to show significant progress. It has been cynically remarked that these corridors lead nowhere and are largely schemes for land speculation to favor the chosen few. It would be highly appropriate to develop comprehensive plans that emphasize the need to avoid duplicative efforts and unproductive competition between the various corridors. There does not appear to be any element of new thinking or innovation. Najib is merely mouthing clichés.
The DPM dealt with the role Khazanah is expected to play. First and foremost an appropriate question is: Why is it necessary for Khazanah to undertake direct investments of this nature? Why is not feasible to allow the private sector or for that matter GLCs that have competence to take the lead in the enumerated sectors?
Khazanah appears to be an entity in search of a mission. Clearly, the first and foremost task it must address is the preparation of a well-conceived corporate plan. This is imperative if the country is to avoid yet another bailout of a public institution in the manner of Bank Bumiputra, Perwaja etc Khazanah was established as a sovereign fund and not as just another investment entity. There appears to be an element of “mission” creep with public funds being used in largely unaccountable ways. Or is Khazanah being entrusted with a role to bail out troubled enterprises?
The DPM has outlined measures to streamline the FIC regime. He offers some hope that the FIC regime will be relaxed. However, the proposed measures do not go far enough. The FIC has been a prop for the NEP and will continue to play that role. It is time that there is a re-think and the FIC is turned largely into an advisory and policy making body without regulatory powers.
The intention to streamline procurement processes is to be welcomed but there is an urgent need to introduce full transparency. In the statement there appear to be some exceptions which in time will become real loopholes so that there can be business as usual!
A rather disturbing remark made by the DPM concerns giving preference to local products and services. It is far from clear how these notions will be consistent with Malaysia’s WTO and AFTA obligations and commitments. It would be most remarkable if actions along these lines do not invite retaliation. The last thing Malaysia needs is a trade war in the midst of a major economic crisis.
Conclusion
Najib is grossly mistaken in claiming that the strategies and measures outlined by him are comprehensive. The truth of the matter is that the Stimulus Package he has outlined is neither a strategic policy statement nor a comprehensive and coherent action plan to enable the country to face the challenges posed by the Great Recession.
He is patently wrong in claiming that these proposed spending plans will enable the country from slipping into a recession. The reality is that the country is already in recession despite denials to the contrary. Furthermore it is becoming clear that a rapid turnaround is not likely. Recovery in the major countries, which are key markets for Malaysia’s exported oriented economy, is unlikely during 2009. Most analysts are projecting a slow recovery in the latter half of 2010. The markets have already indicated where matters stand.
It is regrettable that Najib and his acolytes refuse to acknowledge the realty of the circumstances facing the nation. To them solutions lie in spending their way out of the pit in which they have fallen. On the other hand, the Stimulus package delivered is seen as just another bonanza or opportunity to shovel public funds into the bank accounts of cronies, warlords and rent seekers.
The Minister fails to understand the nature of this crisis. There is a stark failure to appreciate that the Great Recession is a very different beast and that taming it will demand boldness, thinking outside the box and adopting radical new policies. Sadly, Najib’s statement lacked any indication that the Government recognizes in full the magnitude of the challenges Malaysia faces. He failed to articulate any understanding of the need for radical reforms and immediate actions to stem the bleeding.
There is nothing bold or innovative. The plans laid out are neither strategic nor focused. The package delivered is nothing but a “cut and paste” listing of unconnected spending proposals with no indication of how spending RM60 billion on top of the RM20 billion additional allocation in the budget for the current year supplemented further by the First Stimulus package of RM7 billion will contribute to a recovery. If the RM 7 billion for Value Cap is added, the amount expended will be a staggering RM 94 billion.
The sheer size of the amount contemplated is mind boggling. It is legitimate to ask: Has the economy the necessary capacity to implement a program of this size? What guarantees are there that the nation will be able to avoid the worst of the Great Recession? It is incumbent on Najib as the Finance Minister and the Prime Minister-to-be to be upfront and forthright if he is to retain any credibility.
At such uncertain times, expenditure by the public sector is the only way to cushion the effects of recession. No private sector corporation is going to take the risk of expansion or further capex at this time. The pertinent issue to raise is then: how could public expenditure be transparently utilised for the biggest bang for the buck ? If history is anything to go by, we can expect leakages left, right and centre and most of these leakages end up in overseas bank accounts, with no trickle-down effect on the local economy.
We just have to keep an eye on who is really being stimulated by Najib’s package of goodies. Will companies like Gamuda be rewarded ? Will Daim be roped in to “disburse” the contracts ? God help Bolehland if all these happen……
limkamput Says:
Today at 18: 08.45 (19 minutes ago)
Out of RM60.00 billion, RM25 billion were loan guarantees. Although loan guarantees are not direct government expenditure, they represent obligation of the government.
Hmmm, government guaranteeing loans…. is this not moral hazard is all about. Once the loans are guaranteed by the government, I think both the borrowers and the financial institutions that lend the money would not be very vigilant and diligent. Borrowers may in fact treat the loans as income and the lenders would not be bothered very much with the viability of the loans and the ability of the borrowers to pay back. As the saying goes, the government will tanggong!
So which loans deserves govt guarantee and which does not? Which loans is viable and which is not? As I see it, ultimately it boils down to who you know again and not so much on viability. Just look at most loans given by Malaysia’s development banks so far. Are they not treated as income by most borrowers? It is a truism that people and institutions will behave differently when they do not have to bear the full consequences of its actions. We shall watch and see how this loan guarantee program will turn out.
The world has seen unprecedented bubble over the last 10 years. During this period, many “nothing doers” have gained enormously and became filthy rich. So now is pay back time. What saddens me most is those that did not gain when the bubble was built up are now asked to share the burden and help to preserve the ill-gotten gains of those who benefited earlier. Real baloney. If the global financial economic system can become stupid, governments everywhere can also.
limkamput Says:
Today at 18: 24.42 (3 minutes ago)
Fiscal deficit per se that is not a concern. It is how the deficit is financed. Resorting to printing press is course one of the extreme form of financing deficit. But financing through massive borrowing from commercial banks and other financial institutions is also highly inflationary. We must be aware that money, commonly defined as M1, is not just currency notes and coins. Demand deposits are also money. Commercial banks can routinely create money through current accounts. It is time to look at how the government finance its deficit – whether from the inflationary sources or non inflationary sources.
KUALA LUMPUR – Malaysia’s next prime minister has signalled he will not embrace radical reforms to the country’s race-based economic system that critics charge has stunted development and fostered corruption. Deputy Prime Minister Najib Razak, who is slated to become premier on March 31, told the Financial Times that Malaysia could embrace some reforms such as liberalising the services sector but was not able to dismantle policies favouring ethnic Malays. – Reuters. 12 March 09, 5:19pm.
With government guarantees, non-viable projects become viable. Najis complains that banks are not lending, but that is not true of domestic banks. They are more cautious and they want higher levels of equity commitment from project sponsors. This is only prudent so why interfere with private sector initiatives ? All of a sudden, projects like the East Coast Highway or the Desaru Highway could become financeable with minimal equity and with government guarantees on the debt. The construction companies make all their money upfront, then they throw the keys to these projects back to the government, and just walk away.
Heads I win, tails you lose syndrome. The return of Mahathirism and voodoo economics.
The guy who failed entrance statistics and ended up studying Islamic Studies at university said the other day that the stimulus package will help the country avoid a recession. No amount of money is going to help the country climb out of this recession. It’s only a question of whether it is going to be a V-shaped recession, a U-shaped recession or a toilet-shaped recession.
“However there is need for a coherent plan e.g. what type of professionals do we need to attract; which industries will be prioritized; and how will this scheme be implemented?” (Lim Kit Siang)
The past experience told us that relaxation on the government restrictions for recruiting the foreign expatriates would attract only Indonesian vegetable planting specialists, Bangladeshi cow milking specialists, Nepali fish farming specialists and Myanmar Gourmet Chef Specialists into residing and working in Malaysia.
“Which industries will be prioritized?” Obviously, Malaysia will still need the above-mentioned “specialists” to work in the Food Production Sector in order to provide adequate affordable food items for the domestic consumption of the fast growing population of Malaysia. About the need for a coherent plan, does any one know that what national niche does Malaysia possess that can really position Malaysia into a leading edge in the international market competition? It is sad to say that I have yet to find a product in Malaysia which really shows a great comparative advantage over the imported substitute!
ahhh now we all know …why we should not have small boys be elected as MP because it is very dangerous……
household economics to push the GDP? great now i can plan my vacations ……pls leave salty fish for me.
already there is work insecurity and you want to incite me to buy take up a burden.
come on ..dont entertain us what we should have that’s the magazine job ,
……how many times we heard we dont need a philharmonic orchestra or a new capital city or tall tower with restaurants..and a not so smart schools…and holiday sports villa in foreign lands
pls dont pretend our way of lives are on par or close to with US or Europe or Japan
We need equal opportunities ……not not just a phrase….let go
“It would be most appropriate to create a Retrenchment Fund to be used to provide those retrenched or facing a sharp decline in income because of a reduction in overtime.” (Lim Kit Siang)
Creating a Retrenchment Fund to help the retrenched or underemployed workers to overcome the financial difficulties sounds very compassionate towards the poors. However, implementation of such a proposed fund may not be easy. This is because many employers have already learned how to play smart. Many employers will not announce any retrenchment plan to the Department of Human Resources (The Labour Office). They will just ask the piece meal payrate workers to work three days in a week. Those workers who cannot survive with such an underemployed piece meal income will have to resign automatically by themselves or be compelled to stay in the state of being underemployed. Without a proof of being retrenched, how will the worker be able to claim any benefit from the proposed Retrenchment Fund?
Likewise, due to lack of retrenchment proof, those underemployed workers will also not be able to go see the bankers in order to request for indulgence or grace period for delay repayment of their housing loan. When Najib formulated the tax incentives to encourage the bankers to show grace to the housing loan borrowers who have been retrenched, it is very similar to a Chinese old saying which goes “to fill the hungry stomach with a piece of biscuit that is being drawn on the paper!” And the Westerners would like to call it the new dress of the King. It is a useless tax incentives for it won’t create any benefit to the underemployed or voluntary unemployed due to earned income falling short of commuting costs to workplace.
Najib’s has shown some of his true colours to the Malaysian public and the colours look quite ugly to some people who are either unemployed or underemployed now!
It is generally acknowledged that the public sector is bloated and much larger than in other countries at a similar stage of development. It is also a fact that it is grossly inefficient.
——————————
BN govt believes in quantity rather than quality….or, they have not have much of an option because universities and schools are churning out below par students. Needless to compared ourselves with developed countries. Take our immediate neighbor Singapore, the quality of their civil service far surpass us.
Is BN govt using taxpayers’ money to buy supporters from an enlarged civil service and in return, demand their loyalty?
Just a comment to Onlooker Politics,
Making workers only work 3 days may be sneaky, but it is the only viable way to maintain operations in such a low demand environment. That way, you avoid paying compensation while being able to keep your experienced workers so that once the recession ends and demand picks up again you don’t have to rebuild your workforce.
It’s either that, or just cut losses and close down the factory and retrench. And once the factory is closed down, when economy picks up again, the company will just start up a brand new factory in Vietnam or China to meet the increased demand.
It’s a win-win situation. Keeping people employed 3 days out of a week is a lot better in the long term for everyone rather than outright retrenchment.
“The DPM proposes to recruit some 63,000 workers into the government services.”
With the number of public service workforce of more than 1 million, the Federal Government is already bloated with heavy burden of recurring salary expenses payable to the current government employees and recurring retirement benefits payable to the retired public servants. To further recruit additional workers into the government services, even though it helps to ease the unemployment situation of the universitiy graduates, will be a short-sighted public policy. It will only add more weight to the already weary and heavy financial burden of the Federal Government and make the public service look clumsy and inefficient.
It seems that Najib has no intent to start a reform for downsizing and improving the workers’ efficiency of the Public Service Sector. He provides no leadership direction to the productivity improvement of the whole nation and he is only a blind and retarded follower of Franklin D. Roosevelt’s New Deal Policy of BIG GOVERNMENT!
” He provides no leadership direction to the productivity improvement of the whole nation and he is only a blind and retarded follower of Franklin D. Roosevelt’s New Deal Policy of BIG GOVERNMENT!”
Do you even understand what you are writing here??!
“Keeping people employed 3 days out of a week is a lot better in the long term for everyone rather than outright retrenchment.” (katdog)
I can only accept that making the workers underemployed be permitted as a temporary expediency measure in order to overcome a shortfall in the company’s sales order. I do not see any benefit of it to both the employers and the workers as a whole if it is to be implemented for a long period of time. In the long run, all economic factors are subject to change. Why don’t just keep a few good workers and retrench others who are less productive? Let the hardworking and efficient workers be rewarded in accordance with what they merit and deserve. Let the lackadaisical and inefficient workers be retrenched and be given a new opportunity to find another much more suitable job for themselves or be retrained again by the Government for a much needed job like plantation workers. This is the right way for the proper functioning of meritocracy.
Sometimes it is not right for us to blindly protect the social equality only at the expense of job efficiency. We should always adopt a meritocracy policy in a work environment for the hardworking, competent and efficient ones be rewarded based on merit. Social justice shall be provided with the implementation of a social welfare programme. Social Justice shall not be abused as a reason to jeorpadise the job efficiency in the work environment.
It is obvious the second stimulus bill is loaded with goodies for the UMNOputras:
– RM 350 million for maintenance and upgrading works.
– RM500 million for Program Penyenggaraan Infrastruktur Awam (PIA) and Projek Infrastruktur Asas (PIAS) Projects.
– RM230 million for electricity and water supply in rural areas
– RM350 million will be provided for the construction of rural roads
– RM 1.2 billion for infrastructure and economic activity projects in Sabah and Sarawak
– RM20 million to improve the facilities of day care centres, shelters.
– RM200 million to upgrade infrastructure in tourist spots
– RM 2 billion KLIA LCCT
– RM250 million Penang Airport expansion
– RM2.4 billion for telecommunication infrastructure in rural areas
– RM 100 million for skyways and covered bridges
– RM 2 billion for PFI projects (examples:infrastructure for the Tanjung Agas industrial park, biotech cluster in Iskandar Malaysia, upgrading the traffic infrastructure system around KL Sentral)
A GRAND total of RM 9.6 billion of infrastructure projects!
Guess what? All those UMNOputra companies that have been getting lucrative government contracts are going to be the direct benefiters of this 9.6 billion.
Unless you are someone working for a construction company this ain’t gonna do squat for you. The benefits (if any) can only be felt much too late to have any effect on the recessionary period we are entering.
Let’s also not forget the following:
RM 10 billion for Khazanah? Don’t be naive. Who do you think will get these injection of funds?
And RM 480 million for toll concessionaires and RM200 million to the Automotive Development Fund
That’s another 10.68 billion for UMNOputra companies.
So the final tally as i can tell:
A WHOPPING RM20.28 billion proposed to ‘save’ all those UMNOputra companies out there!
And not a single cent for tax rebates or tax breaks for companies or individuals.
“Do you even understand what you are writing here??!” (undergrad2)
What is the point of recruiting several ten thousands of the MACC workforce but this workforce is only meant for use as the private tool of Umnoputras in order to launch persecution or inqusition unto the political opponents from Pakatan Rakyat?
Sorry, wrong spelling. “inquisition” is the more correct word than “inqusition”.
Do you even understand what you are writing here??! undergrad2
This talk big ass. Ok, we all don’t understand, can you make us understand? You have not contributed a single bit recently and yet want to continue insulting others.
Onlooker Politics Says:
“Why don’t just keep a few good workers and retrench others who are less productive?”
Well in most cases you don’t have all that many ‘poor’ workers to retrench. reducing to 3 day work weeks is equivalent to a manpower reduction of 40%. No company (except GLC’s) operates with 40% of it’s manpower being inefficient. (And trust me, if a company has been operating with 40% inefficiency, no employer is willing to even offer 3 day work weeks in such economic conditions. Complete closure and sale of the factory and retrenchment will be the immediate action as we have seen happen to several unproductive factories in Malaysia)
Shorter work weeks is the last step before retrenchment. and retrenchments are bad for everyone. Do you think retrenched jobs will return to Malaysia once the economy picks up again? Of course not. Like i said it would be far cheaper to hire and retrain new workers in China and Vietnam than to hire and retrain new workers in Malaysia.
“Like i said it would be far cheaper to hire and retrain new workers in China and Vietnam than to hire and retrain new workers in Malaysia.” (katdog)
If Malaysia has already lost its comparative advantages to China and Vietnam in the labour-intensive industry, the best solution is to allow the painstaking process of structural employment reform be freely taking its own course of natural selection. Why do we need to hold down our footstep stucking in those labour-intensive industry which employs only unskilled workers?
However, the structural change in employment patterns will not usually happen by itself without the proper government intervention. Singapore has gone through a painstaking transitional period to transform its labour-intensive electronics assembly industry into the high-tech capital-intensive chip-making industry. If Singapore is able to do so, I believe Penang and Selangor will also be able to do so. Lim Guan Eng and Tan Sri Khalid Ibrahim should be the right persons to initiate such a structural reform in employment patterns. Please don’t ever harp too much hope on Najib since he knows not much about Economics!
Whenever I think of Najib swearing by the Koran…saying never met Atlantayu before….with so many other well known political and respectable Malyasians ..all…saying Najib is a liar….and from his track record….how he played out Tengku Razaleigh favoring Mahathir…and played out Mahathir…favoring Abdullah……Najib is a real selfish and cunning man.
Yes….appointed as PM end of this month…gives him absolute power.
Can anyone tell me…one incident or good deeds……Najib has ever done for the country and benefit Malaysians?
What have he done big?…except buying Russians submarines and confirmed Rm540 million given as commission….and this one deal….having a female as Russian and Malaysian government… broker..and a friend of Najib…..which he denied….. got C4ed.
Which person is showing Muslims…….how to prove they are innocent of a crime…by swearing with the Koran?
He is going to be Malaysian PM.
Such an act..by a PM..should be made law for muslims…saving long court cases..to call witnesses.
All swear by the Koran…no need to attend court.
Talking about Najib…makes me sick of our government…….keep showing the world…what a stupid and weird country…. Malaysia is.
Congratulation Najib…way to go…. PR only talk ..talk..and talk nonsense…look at Penang and Selangor state government …quite lethargic..
Ha! ha! chengho, you very funny. Talk ..talk..and talk nonsense…look at Malaysian government …quite lethargic..
Up to early this year government still saying Malaysia will have GDP growth of 3.5% when all analysts were saying only 1% or even worst case a recession.
But only after Q4 results of growth show only 0.1% the government only say this year GDP will be 1% or less. Then only start to propose mini budget.
Hello friend! Wake up! China’s economic stimulus started last November already starting to have some positive impact on it’s economy.
Malaysia’s first economic stimulus nowhere to be seen. And only now announce second economic stimulus. How lethargic!
Last year, this man, ‘Mr. Stimulus’, had the EPF deduction cut from 11% to 8%.
His idea is that with less deductions from our income for EPF, each of us would have extra money to spend.
But later it was clear that with less EPF deductions, our incomes would be taxed more which ends up in the govt’s coffers.
Thus, there were a lot of us who had to fill up forms, instructing EPF to leave the deduction at 11%.
Let’s not forget that this is the same man who, with the resources of the federal govt behind him, had earlier managed to convince a monarch to allow his political party to wrest the control of a state govt from his political opponents.
Again, using his authority over the federal govt, he’s trying to convince the people of this nation that he’s their saviour against the great global recession, while making the opposition controlled state govts look helpless, exploiting the fact that the might of the federal govt is greater that of these state govts combined…
Look at the second economic stimulus and observe that there is very little tax breaks or tax cuts. Only tax breaks offered to those retrenched (and even then not much of a relief). No reduction in EPF payments. No adjustment of income tax brackets.
The government can’t afford to provide tax breaks cause they need the money badly.
Malaysia this round is in a far worse shape than in 1997. No one in the world is going to buy our exports this time. Prices of oil palm and other commodities has dropped tremendously. Price of oil has dropped and this has robbed the government of much needed cash from royalty payments. The government had been operating at a deficit (even in the good times of high oil prices) purchasing submarines and warplanes, financing National Service and sending a tourist to space, we have very little reserves to call upon to bail out our economy this time.
Some 63,000 are to be engaged into government service. Financial crisis has provided an opportunity for the government to reward the unemployables on a permanent basis. UMNO government has since 1970s turned government service from a neutral government institution to UMNO charitable organization. That is why 90% of government servants, other than teachers who are at least trained to perform designated functions, are mainly UMNO members.
There are some 2 million legal and illegal workers in the country, and they are performing jobs which the 63,000 unemployables can easily be trained to work on. Clearly the 63,000 have gone through a minimum secondary school education, and they have able bodies which should enable them to perform functions now undertaken by foreign workers. If they should require any special skills, it would be better for the government to train them than to provide government employment. That simple logic cannot escape UMNO leaders. The problem lies in the mindset of the people whom the government intends to employ. It has been rooted on TDM’s argument that so long as there is Malay driver employed to drive for Chinese, NEP has not met its objective. TDM conditioned Malay minds to think that some occupations are only fit for foreigners, and Malays should be workers in air-conditioned environment. Flowing from that thought, Malays who used to work in agricultural sectors have left the field, and now we require foreigner workers in plantations. Malays workers are seldom found in construction sites where Indonesians predominate. Clearly if the descendents of the cousins of their ancestors can excel in the construction sector, Malays should have no genetic problems in doing well in those areas.
The over dependent on foreign workers coupled with the local unemployables only shows that human resource training in the country has structural problems. That is rooted in the prejudice against menial work which has been exacerbated by the claim that occupation should not be tied to race as desired by NEP. It was a determined effort to move Malays away from what they do traditionally for an honest living that UMNO have driven Malays from those respectable occupations to be engaged into government service. With the bloated service, government servants have found ways to enrich themselves from off-budget income. That results in rampant corruptions. That practices have now spread to UMNO election. The truth that one harvests what he sows come true in a poetic way.
The great concern is that BN government is spending tens of billions of ringgit which it does not have in its coffer to ‘stimulate’ economy of the country.
The future generation will have to bear the consequence of this monumental debts left behind by this generation through no fault of theirs.
If all these ‘stimulus’ package with tens or may be hundreds of billion of ringgit do not work out and fail eventually, the monies will go down the drain.
How well thought out these stimulus plan is a doubt in the minds of many. Todate, we do not feel the impact in any way in our economy.
limkamput Says:
Yesterday at 22: 21.20
You have not contributed a single bit recently and yet want to continue insulting others.”
I’m only insulting you and not the others.
Secretary – we dont need to employ any more govt servants now as economy is slowing down and nothing much to do also as we already have computer system to help us to do our works. We just need to key in data and the system will take care of it.
Minister – We need to increase another 63000 or more so that the mistakes made by keying into the computer will be reduced further. If one officer is checking on another officer’s works before approval, please assign another one to check on the checker and if the checker still make mistakes, please assign one more checker to check their works, we want to achieve zero error!!! If any checker is on MC, Leave, or anything, please factor that into the headcount calculation too. This will not only reduce mistakes made but also help the country to keep all our UMNO’s members’ children employed.
Secretary – But Sir, we dont want any more staff because it is not necessary and give us lots of headache because they will push one another to do the work when they are too many of them!!!
Minister – You just do what I say, I know best because I’m a politician and you are just another govt servant. If not because of this policy, you wont even be here in the first place!!! so shut up and just write you need another 63000 staff!!!
KATDOG,
come to China you can see your self , factory is closed almost every day , what have not been reported by CCTV is up to now 16 million peoples already layoff and have to go back to their villages , peoples becoming very angry with the whole situation ,lucky China do not have a political system like Malaysia otherwise China will be fall like former USSR the big breakout , they have to introduce the dole system , the replacement of salary to calm down the peoples…
how lucky are you…