Category: Budget Debate

Who must bear responsibility for the deception and sleight-of-hand delaying tabling the 2010 Auditor-General’s reports on the annual and continuing “horror of horrors” of government financial hanky-panky, mismanagement and misappropriations of public funds until after the general debate in Parliament on the 2010 Budget (except for the official Ministerial winding-ups) is over?

Is he the Prime Minister or Chief Secretary? Or nobody need be held responsible for this gross parliamentary disrespect and deception?

Although the Auditor-General’s Reports for 2010 rated most ministries and government departments as “excellent” in their financial management, the Auditor-General nonetheless made history producing two thickest and most voluminous reports in Malaysian history on the Federal Government’s Accounts totally over 1,330 pages – retailing the hair-raising pecaddiloes and major transgressions in the government’s public finances in the first full year of Najib’s premiership in 2010.

The first public conclusion from the 2010 Auditor-General’s Reports is that there is no difference between Datuk Seri Najib Razak’s National Transformation Policy and his predecessor Tun Abdullah Ahmad Badawi’s “Islam Hadhari” – as horror tales of financial hanky-panky, mismanagement and misappropriations continue unchanged, year in and year out, whether under Najib, Abdullah or even Tun Mahathir’s time as Prime Minister.
Continue reading “Who must bear responsibility for the deception delaying tabling the 2010 Auditor-General’s reports until after the end of the general debate on the 2012 Budget – Prime Minister or Chief Secretary?”

By Lee Wei Lian
The Malaysian Insider
Oct 17, 2011

KUALA LUMPUR, Oct 17 — The largest-ever global survey of finance professionals by the Association of Chartered Certified Accountants (ACCA) shows that all signs of the global economic recovery have disappeared.

The confidence level in Malaysia also deteriorated markedly in the survey as out of 222 finance professionals who responded in Malaysia, only eight per cent reported confidence gains, down from 20 per cent in the last quarter, and 77 per cent believe the global economy is either stagnating or deteriorating compared with 54 per cent.

In terms of the global outlook, three-quarters of the 2,873 professionals who took part in the Global Economic Conditions Survey between August 19 and September 7, 2011 thought global economic conditions were deteriorating or stagnating.

The ACCA’s global business confidence index returned a reading of -34 for the third quarter of 2011, down from -8 in the previous quarter.

It said that based on past observations, a reading lower than -14 should indicate that the developed world is slipping into negative growth. Continue reading “Malaysian confidence dives as global recovery ends, says survey”

In May this year I visited Kampung Tambatuon at the foothills of Mount Kinabalu and which will be totally drowned in a proposed RM450 million Tambatuon Dam project.

Although the proposed Tambatuon Dam had been mooted for two years, there had been no proper and full consultation by the relevant authorities, including the MP for Kota Belud, who has become the strongest advocate for the Dam project, with the people who would be directly affected with the destruction of their traditional habitat and way of life.

The people of Kampung Tambatuon and concerned communities have protested to the various state authorities against the proposed Tambatuon Dam project. Continue reading “Save Kampung Tambatuon”

Proposals which would have given meaning to 2012 Budget as a National Transformation Policy

The theme of of the 2012 Budget is: “National Transformation Policy: Welfare for the Rakyat, Wellbeing of the Nation.”

It is supposed to be a very important budget as it is open up a new decade of National Transformation Policy or DTN effective from 2011 to 2020 when Malaysia is to become developed and high-income nation.

The National Transformation Policy is the final lap of development policies starting with the New Economic Policy 1971-1990, National Development Policy 1991-2000 and the national Vision Policy 2001-2010.

But is there “transformational” in the 2012 Budget which is to usher in a decade of transformation in Malaysia? I can’t find anything transformational or even visionary at all. Continue reading “5 transformation measures for Malaysia”

b) Judicial tribunal into serious allegations of graft and abuse of power against Attorney-General Abdul Ghani Patail

In the past few months, many serious allegations of graft and abuse of power had been made against the Attorney-General Tan Sri Abdul Gani Patail notably by the former Kuala Lumpur CID Chief Mat Zain Ibrahim in a series of open letters, former MACC panel member Tan Sri Robert Phang and blogger Raja Petra Kamaruddin.

These allegations included falsifying facts and evidence in Opposition Leader Datuk Seri Anwar Ibrahim’s infamous “black eye” incident in 1998, the graft case against Shahidan Shafie and the judicial abuses in the Altantunya Shaaribuu murder trial.

Unless Gani Patail take legal action against these allegations, the Prime Minister should set up a tribunal to clear the name of the Attorney-General as these are very serious allegations which if unrebutted can only undermine public confidence in the professionalism, independence and integrity of the Attorney-General but also key national institutions, including the judiciary, the police and the MACC. Continue reading “Judicial tribunal for AG and Ct of Appeal judge”

3. Continued degradation instead of restoration of independence, professionalism and integrity of key national institutions in the country.

(a) Great flaw of TBH RCI report – failure to affix responsibility for TBH’s death on MACC despite evidence galore

The Teoh Beng Hock Royal Commission of Inquiry did not contribute to the restoration of public confidence in the independence, professionalism and integrity of key national institutions but their continued degradation.

A great flaw of the Teoh Beng Hock (TBH) Royal Commission of Inquiry (RCI) report is its failure to affix responsibility for Beng Hock’s death on the MACC although there were evidence galore before the RCI proceedings.

It was not just persons, namely various MACC officers led by Hishammuddin Hashim the then Selangor MACC Deputy Director and the “mastermind” of the illegal and massive 33-officer MACC “operation”, who must bear responsibility for Beng Hock’s death but also the institution of MACC as well. Continue reading “Teoh Beng Hock and Sarbaini – victims of MACC”

2. The undemocratic clampdown on July 9 peaceful Bersih 2.0 rally for fair, free and clean elections.

Democratic and political transformation must be furthest from the mind of a government which could mount the undemocratic clampdown on the July 9 Bersih 2.0 rally for free, fair and clean elections, launching mass arrests, locking down the Federal Capital and irresponsibly, indiscriminately and recklessly firing tear gas and chemically-laced water cannon at peaceful and patriotic demonstrators, including Pakatan Rakyat and Bersih 2.0 leaders.

The weeks before and after the historic Bersih 2.0 rally were undoubtedly the worst period for Datuk Seri Najib Razak since becoming the sixth Malaysian Prime Minister 27 months ago in April 2009 – his greatest failure of leadership which made him the object of ridicule and scorn not only in the country but also internationally, and forcing him to cut short his overseas trip.

Are Malaysians to believe that it was during this period that Najib had a sudden change of heart as to be converted to the agenda to democratisation and political transformation resulting in the establishment of the Parliamentary Select Committee on electoral reforms and the announcements on the repeal or amendment of repressive undemocratic laws like the Internal Security Act? Continue reading “Political ploy or genuine democratisation?”

Is Malaysia on the cusp of a major national transformation to restore national unity, achieve excellence and regain international competitiveness after the slew of policy initiatives, like the “1Malaysia, People First, Performance Now” and the impementation of the Government Transformation Programme (GTP) with seven National Key Result Areas (NKRAs), Economic Transformation Programme (ETP) with 12 National Key Economic Areas (NKEAs), the New Economic Model with eight Strategic Reform Initiatives (SRIs), and latest the Political Transformation Programme to repeal and reform undemocratic laws?

We are still very far from it and the following events and incidents in the past few weeks and months are salutary reminders of this solemn fact that we still have a very long way to go to have any transformational mindset and mentality, viz:

1. Exclusion of Malaysian universities from Times Higher Education (THE) 400 Top World University Ranking 2011/12.

The recent release of the Times Higher Education (THE) 400 Top World University Ranking 2011/12, where not a single Malaysian university is included, has punctured the elation and euphoria just two months ago over the QS 200 World University Rankings 2011/12 which saw University of Malaya making to the top 200 Top Universities moving 40 places to 167 compared to 2010.

In the QS World University Rankings 2011/12, four other Malaysian universities slid down the rankings – University Kebangsaan Malaysia (UKM) ranked 279 this year compared to 263 in 2010; Universiti Sains Malaysia (USM) ranked 335 (309 last year); Universiti Putra Malaysia (UPM) ranked 358 (319 last year) and Universiti Teknologi Malaysia (UTM) at between 401 and 450 (365 last year).

But in the just-released THE 400 Top World University Ranking 2011/12, none of the Malaysian universities made it into the placings.

A total of 60 Asian Universities made it into the THE 400 Top World University Ranking, with 16 from Japan, 10 from China, eight from Taiwan, seven from South Korea, six from Hong Kong, two from Singapore, and one each from India and Thailand. Continue reading “Why Malaysian universities fallen so low in international rankings?”

Prime Minister-cum-Finance Minister Datuk Seri Najib Razak’s 2012 Budget achieved many “firsts” in Malaysian parliamentary and budgetary history.

First, it beat all the other 53 budgets since 1957 in being the greatest cornucopia of goodies for votes in the forthcoming 13th general elections to reach out for voter support from a whole swathe of targetted groups comprising important vote-banks.

Second, it ranks at the most brazen and cynical budget exercise chalking up the highest Federal Government debt in history – set to break the RM500 billion mark next year, when for 2011, the Federal government debt to GDP (Gross Domestic Product) ratio of 53.8% has increased by 12% from RM 407 billion 2010 (i.e. 53.1% of GDP) to RM456 billion in 2011.

After 13 consecutive years of budget deficit, the Federal Government debt has increased by leaps and bounds – more than quadrupling from RM103 billion in 1998 when it was 38.3% to GDP to RM455.7 billion in 2011 or 53.8% to GDP.

Thirdly, in painting an overly-rosy picture of the economic future without taking into realistic account the grim international picture. Continue reading “Najib’s many firsts in 2012 Budget”

By Andy Bruce
Reuters

LONDON (Reuters) – Stagnation is probably the best many of the world’s biggest developed economies can hope for over the next year, with several facing a significant chance of recession, Reuters polls of around 350 economists showed on Thursday.

After a promising start, 2011 has turned into an enormous disappointment for major rich world economies, which have been hobbled by a noxious combination of austerity, debt crises, natural disaster and political impasse.

Backed up by Thursday’s weak trade figures from China, which pointed to profound global economic weakness, the October quarterly survey suggested a bout of weak growth in many G7 economies could extend deep into next year and beyond.

The world economy will grow 3.8 percent in 2011, the poll showed, and just 3.6 percent next year — a stark contrast to the 4.1 percent and 4.3 percent forecasts from the last quarterly survey in July.

But even these tepid growth rates could depend on progress in clearing some of the world’s biggest economic hurdles, like the euro zone sovereign debt crisis and finding ways to boost growth in the United States. Continue reading “Rich world economic malaise to endure into 2012: Reuters poll”

By KELVIN CHAN
AP Business Writer – 3 hours ago

HONG KONG (AP) — The International Monetary Fund trimmed its economic growth forecasts for Asia on Thursday because of financial turbulence in Europe and a possible slowdown in the U.S.

The risks to Asia’s growth are “decidedly tilted to the downside” reflecting the negative outlooks for Europe and the U.S., which are the major markets for the region’s exports, the IMF said in a twice-yearly report.

Asia’s economic growth is forecast to average 6.3 percent in 2011, rising to 6.7 percent in 2012. That’s lower than the IMF’s April forecast of nearly 7 percent in both years.

The report covers 20 economies in a vast region stretching from India to Japan to New Zealand. Continue reading “IMF trims Asian growth forecasts as risks grow”

By Lee Wei Lian
The Malaysian Insider
Oct 13, 2011

KUALA LUMPUR, Oct 13 — The Malaysian Institute of Economic Research (MIER) cut to 4.6 per cent, from 5.2 per cent, its projection for the country’s economic growth this year, citing a sliding global economy that it said could hurt exports.

The government-funded MIER also downgraded its estimates for 2012 to 5.5 per cent, which is within the Najib administration’s projected growth range of between five and six per cent.

Some market and bank analysts have described next year’s projections as too rosy, with RHB Research Institute saying this week that Malaysia’s economic growth could slow to just 3.6 per cent next year, from a projected 4.3 per cent, this year due to the increasing risk of a double dip global recession.

MIER executive director Zakariah Abdul Rashid said today that while the 2012 Budget unveiled last Friday will help boost private consumption, it will not be able to offset a slump in external demand.

“The 2012 Budget is insufficient to overcome external weakness,” he said in a briefing today. Continue reading “MIER trims GDP estimates as global economic slump bites”

The government still offers handouts instead of reforms to woo voters.

Wall Street Journal
12th Oct 2011

Malaysian Prime Minister Najib Razak has unveiled a budget full of freebies designed to win over voters in the next general election, expected in the next six months. In the process, he is dashing expectations of economic reforms needed to promote growth.

This contrasts with the political reforms Mr. Najib announced last month. A promised overhaul of the country’s colonial-era legal code would guarantee political and civil freedoms long denied to Malaysians.

Mr. Najib seems to have thought of a handout for nearly everyone in 2012. The country’s 1.3 million civil servants will see salaries and pensions rise, in many cases by as much as 30%; households earning less than 3,000 ringgit ($960) a month will receive one-off payments of 500 ringgit; parents will find many school fees abolished or reduced. Then there are the taxi drivers who get fat tax exemptions. Continue reading “Malaysia’s Old Economic Model”

By Lee Wei Lian
The Malaysian Insider
Oct 12, 2011

KUALA LUMPUR, Oct 12 — Malaysia’s economic growth could slow to just 3.6 per cent next year from a projected 4.3 per cent this year due to the increasing risk of a double dip global recession, said the RHB Research Institute.

The RHB unit’s growth projection issued yesterday is significantly lower than Prime Minister Datuk Seri Najib Razak’s forecast of five to six per cent growth for 2012 in his proposed RM232 billion Budget 2012 tabled last Friday.

The research house said that the risk of a double-dip global recession is high and rising as both the US and Europe cannot withstand another shock although a recession could be averted if leaders in both continents act fast enough to contain the debt crises and avert a contagion that could lead to a complete meltdown in confidence.

It also expected businesses to cut spending in view of rising uncertainties although some growth will come from the implementation of the Economic Transformation Programme (ETP).

Private investment growth is projected to soften further to 4.6 per cent in 2012, after slowing to an estimated 5.7 per cent for 2011, the report added.

Exports, meanwhile, are expected to grow at just 1.1 per cent compared to 3.4 per cent this year due to dampened foreign demand for electronics and electrical items.

Domestic demand is projected to grow at a slower pace of 5.1 per cent in 2012, compared with an estimated 5.8 per cent for 2011.

RHB said, however, that consumer spending is expected to remain “reasonably resilient” and grow at around 5.3 per cent in 2012, compared with 6.0 per cent for 2011, given high savings, rising consumerism and an increase in salary.

Most research houses have lowered their 2012 growth projections for Malaysia despite Najib’s optimism in the Budget proposals, which critics have say is primed for the next general election that must be called by early 2013. Continue reading “Recession risk high and rising, says RHB”

By Shannon Teoh
The Malaysian Insider
Oct 11, 2011

KUALA LUMPUR, Oct 11 — Global banking giant Goldman Sachs believes Malaysia must push through tougher reforms such as a goods and services tax (GST) and slashing subsidies if it wants to transform into a high-income nation.

Its review of Budget 2012 proposals said the recovery in private investment since the 1997 Asian financial crisis has been held back “by scepticism over the government’s transformation efforts over the years.”

“Pushing through tougher reforms is ultimately what is needed to catalyse the economic transformation process. Continue reading “Goldman Sachs says Malaysia needs tougher reforms”

By Zairil Khir Johari | October 11, 2011
The Malaysian Insider

OCT 11 — And so it has come to this. The last push. With the general election expected soon, both Pakatan Rakyat and Barisan Nasional are preparing themselves for the final assault. Barricades have been erected, cannons lined up and guns trained on the other side. In the last week, we have witnessed the opening salvos launched by both sides.

First to the tilt was Pakatan Rakyat with a modest offering encapsulated in the title “kesejahteraan untuk semua” or “prosperity for all’. And just as it was about to gain traction the ruling Barisan Nasional descended with a no-holds-barred mega welfare budget, coincidentally called “bajet membela rakyat, mensejahtera negara”, or “defending the people and prosperity for the country”.

Without a doubt, both sides have angled the budget with an election in mind. Thus, there is no escaping the menial comparisons between the two sets of proffered “goodies” — RM500 for lower-income households compared to RM1,000 for lower-income housewives, or cash and book voucher bonuses for students compared to RM700 childcare allowances, or a restructuring of teachers’ salary schemes compared to an outright increase in teachers’ allowances. In short, most comparative discourse has been about whose sack contains bigger and better presents — Santa Najib or Santa.
Continue reading “A philosophical comparison of the budgets”

By Lee Wei Lian
The Malaysian Insider
Oct 10, 2011

KUALA LUMPUR, Oct 10 — Economists said today that the 2012 Budget risks committing Malaysia to the path of unsustainable spending at a time when the global economic outlook remains uncertain.

Bank of America director of global research Chua Hak Bin noted that both Malaysia’s public and household debt levels were at worrying levels, and said the government appeared to be kicking the debt can further down the road by not addressing it in the Budget.

“Will debt dynamics increase and will Malaysia face a year of reckoning?” he asked at the post-Budget dialogue organised by the Malaysian Economic Association and University of Malaya here.

Chua said there was a chance government revenues would be hit by a recession, which would make it harder to meet the commitment to trim the deficit to 4.7 per cent next year from 5.4 per cent now.

“The deficit is extremely sensitive to the state of the economy,” he pointed out. Continue reading “Economists uneasy over sugary Budget”

Prime Minister cum Finance Minister Datuk Seri Najib Razak’s 2012 Budget on Friday was a veritable cornucopia of goodies for votes in the 13th general elections – the most brazen and cynical budget exercise in the nation’s history to reach out for voter support from a whole swathe of targetted groups comprising important vote-banks.

But the inequitable and corrupt system which bred decades of injustice, inequality and exploitation remains completely untouched.

The 2012 Budget is designed to win the next general elections for Najib and not to reform and transform the country’s system, structures and institutions to end the rot which has seen Malaysia losing out in international competitiveness and being overtaken by more and more countries in national, economic and human resource development including in South East Asia. Continue reading “2012 budget – cornucopia of goodies for votes”

by Tony Pua
8 Oct 2011

It is difficult not to “feel good” after a record-breaking pre-election budget where goodies big and small, were liberally handed out to practically all segments of society. The question is, beneath the sweeteners, are there substantive reforms proposed in the Budget 2012 to make “transformative” changes to our economy to achieve the goal of becoming a “high-income nation” by 2020.

The answer, when compared side by side with Pakatan Rakyat (PR) Alternative Budget is obvious. There is little in the Barisan Nasional (BN) federal government’s budget that indicates a determination to slaughter sacred cows and take the Malaysian economy to the next level.

Both the PR and BN’s budgets had proposed cash grants to various deserving segments of society in order to help alleviate their increasingly heavy burdens. However, PR matched its welfare benefits with policies to rectify the distortions created by the current government to reduce inflationary pressures and the cost of living over the longer term.

PR has called for the abolition of artificial monopolies licensed by the Government such as Bernas which monopolises the sale and distribution of local and imported rice. In addition, predatory market strategies by Telekom Malaysia to stifle competition will be made illegal while the monopoly of satellite and cable television will be abolished. Continue reading “Barisan Nasional’s Budget 2012 is like a sugar-coated placebo – makes you feel good after taking it, only to tax you more later”

— Subramaniam Pillay
The Malaysian Insider
Oct 07, 2011

OCT 7 — In the past couple of years, there has been a lot of talk on subsidy rationalisation i.e. the removal of subsidies for basic items like cooking oil, sugar, flour and petrol. The argument is that it subsidises the poor as well as the rich; it is unfair to provide subsidies for the rich, so we must eliminate the subsidies and let market forces work.

Many of these subsidies help the poor and the rich equally. For example, if a family consumes 5kg of cooking oil per month, they get the same subsidy regardless of their wealth and income. Usually, consumption of basic food items does not increase with increasing wealth and income.

However, there is a large hidden subsidy which favours the rich over the poor that has been conveniently forgotten. And this comes in the form of the various tax reliefs offered to taxpayers. In this week, before the 2012 Budget is announced, there have been numerous calls to increase the tax relief for various items including premiums for medical insurance, educational insurance and life insurance.

Tax reliefs are is a very regressive form of government subsidies to the taxpayers. The richer the taxpayer, the more subsidy she gets from the government. Thus it is unfair and inequitable. Continue reading “Tax reliefs: Hidden subsidies that favour the rich”