Category: Budget Debate

The crisis of confidence in the key institutions in the country is also highlighted by Raja Petra Kamaruddin’s two days ago, viz:

“To those who walk in the corridors of power, I wish to inform you that I know you are beating up my son in the Sungai Buloh Prison. Every day he is being subjected to beatings to force him to withdraw his not guilty plea and to plead guilty to the various charges he is facing.

“I also know he is being subjected to these daily beatings to force him to withdraw his not guilty plea and instead plead guilty because there is no evidence against him and the charges are merely trumped-up charges.

“Furthermore, I know he is being threatened with six additional charges to the ones he is already facing and he is being beaten up to force him to plead guilty to these charges as well.
Continue reading “RPK’s son beaten in prison?”

Ucapan Belanjawan Setiausaha-Agung DAP Dan Ahli Parlimen Kawasan Bagan Lim Guan Eng Di Dewan Rakyat Pada 26.10.2009 (Bahagian 4)

Teras III: Pembinaan kapasiti

Akhir sekali, DAP sangat menitik-beratkan pembangunan dan usaha menggalakkan bakat-bakat tempatan untuk membantu negara mencapai status negara maju. Sebagai tambahan, bagi meningkatkan daya tarikan Malaysia sebagai destinasi pelaburan global, beberapa rangkaian pendekatan akan diambil dalam sektor pendidikan, penjagaan kesihatan, pengangkuran, kewangan, teknologi, keselamatan, tenaga dan alam sekitar untuk meningkatkan daya saing di peringkat serantau dan global.

Kelemahan daya saing negara kini sangat ketara. Sikap kerajaan yang terus mendabik dada dengan kejayaan lalu akan menyebabkan kerosakan yang teruk kepada ekonomi dan daya saing negara. Walau bagaimanapun, jika kita menerapkan unsur-unsur ketahanan dan peningkatan daya tahan, kerja keras dan inovasi, Malaysia akan mendapat kedudukan lebih baik untuk merebut peluang pertumbuhan ekonomi dunia. DAP mahu membangkitkan semula semangat daya saing kepada ekonomi negara menerusi penerapan daya juang lebih tinggi, lebih bertanggungjawab dan peningkatan tahap ketelusan.
Continue reading “Merakyatkan Ekonomi Malaysia – Pembinaan kapasiti (Bahagian 4)”

Ucapan Belanjawan Setiausaha-Agung DAP Dan Ahli Parlimen Kawasan Bagan Lim Guan Eng Di Dewan Rakyat Pada 26.10.2009 (Bahagian 3)

Teras II: Penstrukturan dan pengagihan semula

Amalan dasar yang lemah dan hilang hala tuju serta salah guna kuasa oleh kerajaan semasa telah menyebabkan berlakunya agihan tidak betul dalam sumber negara yang terhad dengan menumpukan kepada pemberian manfaat kepada mereka yang mempunyai hubungan serta kaitan politik, sementara kebanyakan rakyat yang lebih memerlukan terus diketepikan. Dasar Ekonomi Baru (DEB) yang berdekad lamanya diamalkan dengan tumpuan pengagihan ekonomi berdasarkan kaum sambil megenepikan aspek keperluan dan merit, telah menyebabkan kelemahan struktur utama dalam sistem ekonomi negara sehingga menghukum kebajikan rakyat dan kecekapan sistem ekonomi. Di sebalik itu, agihan tidak betul ini telah menjana kekayaan beberapa individu yang berjaya mengeksploitasi DEB. Justeru, suatu usaha perlu dilakukan untuk menstruktur dan mengagih semula ekonomi bagi memastikan pembangunan lebih seimbang antara golongan miskin dan kaya, selain menambah kecekapan dan keberkesanan ekonomi dan daya saing.

Dalam sebahagian daripada teras penstrukturan dan agihan semula, kami mahu usaha dilakukan ke arah pelaksanaan sistem kebajikan yang berkesan untuk memastikan rakyat yang lahir dalam keadaan miskin tidak terus terperangkap dalam kitaran tersebut. Kebajikan harus diberikan mengikut keperluan dan bukannya berdasarkan kaum seperti yang dizahirkan dalam DEB. Rakyat yang mempunyai kekuatan Continue reading “Merakyatkan Ekonomi Malaysia – Penstrukturan dan pengagihan semula (Bahagian 3)”

Ucapan Belanjawan Setiausaha-Agung DAP Dan Ahli Parlimen Kawasan Bagan Lim Guan Eng Di Dewan Rakyat Pada 26.10.2009 (Bahagian 2)

Tema bajet alternatif kami iaitu Merakyatkan Ekonomi Malaysia bukan sahaja untuk memenuhi keperluan politik untuk demokrasi yang lebih besar malah mahu menjamin perbelanjaan kerajaan mampu dinikmati oleh rakyat yang membayar cukai sambil mengekang dasar kerajaan yang memihak kepada mereka yang mempunyai kepentingan politik sahaja sedangkan rakyat biasa berhak menerima bahagian masing-masing sejajar dengan sumbangan mereka dalam ekonomi dan keperluan kewangan rakyat.

Kami percaya dengan merakyatkan ekonomi Malaysia, kami mampu bukan sahaja membawa Malaysia ke tahap yang lebih baik malah menetapkan dasar dan institusi yang boleh menjamin hak ekonomi rakyat negara ini walaupun siapa juga kerajaan yang memerintah. Dengan Merakyatkan ekonomi Malaysia, kami menggalakkan pencapaian matlamat membina kerajaan yang Cekap, Amanah serta Telus (CAT).
Continue reading “Merakyatkan Ekonomi Malaysia – Penyahpusatan fiska (Bahagian 2)”

Ucapan Belanjawan Setiausaha-Agung DAP Dan Ahli Parlimen Kawasan Bagan Lim Guan Eng Di Dewan Rakyat Pada 26.10.2009 (Bahagian 1)

Malaysia hanya boleh berjaya menjadi ekonomi berpendapatan tinggi dengan mendemokrasikan ekonomi, reformasikan perkhidmatan awam dan membebaskan daya kreativiti dan innovasi sumber manusia. Syor-syor mendemokrasikan ekonomi telahpun dibukukan awal bulan ini oleh DAP dalam Belanjawan Alternatif DAP yang menggariskan strategi untuk menjana transformasi kepada ekonomi berpendapatan tinggi.

Refomasi perkhidmatan awam adalah perlu dengan ratio 4.68% anggota perkhidmatan awam dengan penduduk paling tinggi berbanding dengan Jepun 3.23%, Thailand 2%, Korea Selatan 1.85%, Filipina 1.8% dan Indonesia 1.8%. Emolumen sebanyak RM38 bilion pada tahun ini telah meningkat kepada RM42 bilion tahun depan ataupun meningkat 23.7% kepada 30.5% perbelanjaan mengurus. Sekiranya pencen ditambah adalah RM46 bilion pada tahun ini telahpun meningkat kepada RM53 bilion ataupun meningkat daripda 28.8% kepada 38.3% keseluruhan perbelanjaan mengurus.
Continue reading “Malaysia Hanya Berjaya Menjadi Ekonomi Berpendapatan Tinggi Dengan Mendemokrasikan Ekonomi, Reformasikan Perkhidmatan Awam Dan Membebaskan Daya Kreativiti Dan Innovasi Sumber Manusia (Bahagian 1)”

In his first budget, the 2010 budget, presented to Parliament on Friday, the Prime Minister and Finance Minister, Datuk Seri Najib Razak claimed that he is laying the foundation for the development of a new economic model to become a high-income economy.

He stressed that the new economic model must be based on innovation, creativity and high-value added activities so that Malaysian can remain relevant in a competitive global economy.

Najib announced that his government “will transform Malaysia through a comprehensive innovation process, comprising innovation in public and private sector governance, societal innovation, urban innovation, rural innovation, corporate innovation, industrial innovation, education innovation, healthcare innovation, transport innovation, social safety net innovation and branding innovation.”

So far, Najib’s most successful innovation in his First Two Hundred Days is “branding innovation”, as never before has a Prime Minister’s slogan, “1Malaysia”, been promoted so blatantly, not only during by-elections but there is even a 1Malaysia Toilet in Terengganu, Continue reading “End the 50-year New Economic Policy if Najib wants to lay claim to innovation or shift to a new economic model as the NEP had stunted Malaysia’s economic growth and prevented the nation from becoming a high-income country”

MCA leaders were as great a focus as the Prime Minister and Finance Minister, Datuk Seri Najib Razak in yesterday’s 2010 Budget presentation in Parliament – the visibly uncomfortable MCA President Datuk Seri Ong Tee Keat and the forlorn MCA Deputy President Datuk Seri Liow Tiong Lai.

This was a departure from the Budget Day in Parliament in previous years when the budget for the new year had no competitors for attention and would be the cynosure of all eyes and ears.

This distraction is highly pertinent to the relevance of theme of Najib’s first Budget, viz: “2010 Budget – 1Malaysia, Together We Prosper”.

The question that immediately comes to mind is how there can be a 1Malaysia Budget when it is founded on such shaky foundations like “1MCA”, with all top MCA leaders totally discredited after treating the MCA Central Committee members, over 2,300 MCA delegates, the Chinese community and the Malaysian people as “suckers”.
Continue reading “MCA leaders as great a focus as Najib in the 2010 Budget presentation in Parliament”

(Extracts from DAP Alternative Budget 2010 launched on 7th October 2009)

9. Thrust II: Rakyat First – Restructuring and Reallocation

9.3 Unfair Public Contracts
The Malaysian economic landscape is littered with many one-sided contracts and concessions under which private entrepreneurs reap supernormal profits while the government or government-linked companies continue to bear considerable business risk. Major privatisation exercises were conducted and concessions granted in manners that were not open, accountable and transparent through public tenders.

An Unfair Public Contracts Act will be enacted and an independent public commission to be known as the Public Contracts Commission will be formed to review such lopsided concessions that are deemed to be against the public interest.

Constitutional and corporate lawyer Tommy Thomas if of the view that such an act will be constitutional as it will be similar in nature to the Land Acquisition Act 1960 which allows the government to take over any private land for public purpose, provided adequate compensation is paid.

Such legislation is not unique to Malaysia. Eminent domain (United of States of America), compulsory purchase (United Kingdom, New Zealand, Ireland), resumption/compulsory acquisition (Australia) and expropriation (South Africa and Canada’s common law system) are examples of the inherent power of the state to seize or expropriate private property without the owners’s consent provided, of course, Continue reading “Malaysian Economic Democratisation – Extract 6”

(Extracts from DAP Alternative Budget 2010 launched on 7th October 2009)

9. Thrust II: Rakyat First – Restructuring and Reallocation

9.2 Managing Oil Wealth

Over-reliance on Oil and Gas

Malaysia is blessed with abundant natural resources. In particular, we are thankful that the country is rich in oil and gas, which created Malaysia’s sole representative in the Fortune 500, Petroliam Nasional Berhad (PETRONAS). Since the incorporation of PETRONAS Group 35 years ago, the Group has paid RM471 billion to the Government, in addition to bearing a cumulative gas subsidy of RM97 billion.

In the most recent financial year ending March 2009, PETRONAS achieved profit before tax of RM89.1 billion amidst the challenging economic backdrop. Of greatest importance was the fact that PETRONAS contributed RM61.6 billion to our national coffers in taxes, royalties, dividends and export duties last year. Contribution from PETRONAS Group alone was budgeted to make up some 46% of the Federal Government revenue for 2008. This represents a steep increase from approximately 20% in 2004. The heavier reliance on oil and gas industry for Malaysia over the years signals an alarming trend.

Despite the fact that the total Malaysia hydrocarbon reserves has increased marginally from 20.13 billion barrels of oil equivalent (boe) at January 2008 to 20.18 billion boe at January 2009, and the reserves replacement ratio (RRR) has improved from 0.9 times to 1.1 times during the same period, our reserves will inevitably run dry at some point. During an interview with Bernama in June 2008, the president and chief executive officer of PETRONAS Group, Tan Sri Hassan Marican said that “we will continue to produce for another 20 years or so.” In more immediate terms, “Malaysia will become a net importer when its domestic consumption, growing at six percent per annum, is expected to overtake national production in 2011.”
Continue reading “Malaysian Economic Democratisation – Extract 5”

(Extracts from DAP Alternative Budget 2010 launched on 7th October 2009)

8. Thrust I: Economic Democratisation – Fiscal Decentralisation

8.2 Fiscal decentralisation policies

Other countries, such as Canada, Spain, and the UK have been moving in the opposite direction recently compared to Malaysia, by increasing decentralisation. Nearer to home, China and Indonesia have also successfully decentralised much of their financial and economic decision-making process. Even smaller countries such as Switzerland and Belgium have developed forms of fiscal federalism. To ensure that Malaysia is able to tap into the sizeable latent potential benefits arising from the political accountability, economic efficiency and economic growth, DAP proposes that states are granted greater control over their finances.

8.2.1 Tax revenue sharing agreements
It is proposed that the federal government enter into tax revenue sharing agreements with states so that there is a stronger link between a state’s performance and its revenue share. 20% of individual and corporate income taxes collected in a state, as determined by the residence of the taxpayer and location of the establishment, will become the state’s entitlement. Income taxes will continue to be collected by the federal government using the existing infrastructure, but the states’ portion will be distributed back to the states for each financial year. This is the system which has been adopted by Germany.
Continue reading “Malaysian Economic Democratisation – Extract 4”

(Extracts from DAP Alternative Budget 2010 launched on 7th October 2009)

8. Thrust I: Economic Democratisation – Fiscal Decentralisation

8.1 Greater economic efficiency and political accountability

Many countries have pursued fiscal federalism and have devolved or are devolving more power to state and local governments. China and Indonesia’s recent economic success has also been linked with the decentralisation of economic decision-making. In the UK, the Calman Commission has recommended that Scotland be given greater tax-varying powers in order to further improve their devolution process. This is largely because of the economic efficiency and accountability arguments.

Certain areas of expenditure responsibilities should be decentralised because states and local governments are better placed to tailor their programmes to local needs. For example, state governments are more likely than the central government to know their region’s comparative advantage and hence promote investment initiatives accordingly. In order to decentralise expenditure, revenue must also be shared with states. Instead of being dependent on the federal government spending directly in the states, states would be able to implement their own programmes encouraging tourism, SMEs and industry. In this case, when the 13 states are unshackled in their courting of investment projects with their tailored policies, it is very likely that more and better investments will be attracted and made.
Continue reading “Malaysian Economic Democratisation – Extract 3”

(Extracts from DAP Alternative Budget 2010 launched on 7th October 2009)

5. Key Policy Highlights

Based on the 3 key thrusts outlined above to achieve greater economic democratisation via fiscal decentralisation, to place rakyat first with restructuring and reallocation, and to empower Malaysians through economic capacity building, the key policy measures proposed include:

1. Tax revenue sharing agreements where 20% of individual and corporate income taxes collected in a state will become the state’s entitlement. For Selangor and Penang, this revenue sharing agreement would entitle them to approximately RM 3.2 billion and RM 500 million respectively. An equalisation and development grants formula based on a function of population, poverty, area development, cost, human development and gross revenue per capita indices will also be given to ensure that poorer states do not lose out.

2. States will be given the rights to borrow up to a maximum of 50% of their annual ownsource revenue, which is revenue raised directly by the state governments.

3. We will set up a fund of RM 400 million to provide grants to state governments to reinstate local council elections, conduct delineation studies, hold trainings and promote awareness via publicity and education campaigns after amending the Housing & Local Government Act.

Continue reading “Malaysian Economic Democratisation – Extract 2”

(Extracts from DAP Alternative Budget 2010 launched on 7th October 2009)

4. Budget Objectives

To meet the challenges of improving Malaysian global economic competitiveness while addressing the growing rich-poor disparity in Malaysia and being mindful of the fiscal constraints and harnessing our oil resources effectively, the DAP Budget 2010 is themed “Malaysian Economic Democratisation”.

The goals of economic democratisation is to ensure that public funds and expenditure by the government will be more effectively and efficiently spent in accordance to the needs of the people, ensure that public projects are structured in mechanisms which will benefit the rakyat as opposed to politically-connected operators as well as enabling Malaysians to achieve greater economic freedom.

The process of “economic democratisation” will hence focus on 3 key thrusts, that are:

1. Economic Democratision – Fiscal Decentralisation

2. Rakyat First – Restructuring & Reallocation

3. Empowerment & Enablement – Capacity Building

Continue reading “Malaysian Economic Democratisation”

The DAP Alternative National Budget 2010 marks the progress the Party has made in the field of economic policy making, and our readiness to assume the role of a governing party in the Federal Government as and when such opportunities arise in the near future.

Our first Alternative National Budget was launch on the 5th September 2007 for the year 2008, before the last historic general elections where Pakatan Rakyat denied the Barisan Nasional two-third majority in the parliament, and winning government in 5 Malaysian states. This new Alternative National Budget 2010 picks up from where we left off in 2007, enhancing our proposed economic policies with stronger strategies and proposals based on further in depth research and analysis.

As Malaysia face one of the most challenging economic period in times of uncertain global demand, it is critical that the Malaysian government takes decisive actions to spur the economy and ensure that we will not only recover from this recession, but also emerge stronger and more competitive than we were before the onset of the recession. However, a review of the Barisan Nasional (BN) government’s actions to date coupled with its track record over the past 12 years paints a less than optimistic picture.

At a time when the economy is faltering globally, is exactly the time for the government to be pump-priming to boost domestic demand and competitiveness. However, despite the urgent need to boost government expenditure, the BN government is now finding out the hard way that they have in essence, run out of money to spend and are struggling to contain and maintain the high and escalating cost of government. Continue reading “DAP Alternative Budget 2010”

As the Deputy Prime Minister and Finance Minister, Datuk Seri Najib Razak is leaving for Peru and the United States tomorrow and will not be back until early next month, when the 2009 Budget would have been passed by Parliament, there is one important thing he should do in the next 24 hours before he goes abroad.

Najib should not leave behind a RM7 billion “black hole” in the 2009 Budget and should direct Second Finance Minister Tan Sri Mohd Nor Yakcop to take necessary action to incorporate the economic stimulus package into the 2009 Budget for parliamentary approval.

All over the world, governments are preparing their countries to face the world’s worst economic crisis in 80 years. China has announced a US$586 billion economic stimulus package while South Korea unveiled a US$11 billion stimulus package. In the United States, Congress is working with the Bush Administration to craft a US$700 billion bailout of troubled US banks.

Malaysia, however, is an oddity. Although the government has announced a measly RM7 billion economic stimulus package when winding up the debate on the 2009 Budget on November 4, this RM7 billion economic stimulus package is quite a mirage as it has not been formally presented to Parliament by way of an amendment to the 2009 Budget and is therefore not before Parliament for approval when every sen of government expenditure must be passed by the House. Continue reading “Najib should not leave the country with a RM7 billion “black hole” in 2009 Budget”

Yesterday, the Sabah Chief Minister Datuk Seri Musa Aman presented a walloping RM2.78 billion budget for the state for 2009, declaring that the amount allocated would be able to keep up the economic momentum to ensure Sabah’s continuous growth, especially amidst the current economic turmoil.

He also announced a higher state development fund for next year to the tune of RM1.040 billion.

Very impressive but where have all the past billion-ringgit development funds for Sabah gone to, and will the huge budget and massive develoment funds announced by Musa yesterday go the way of past funds – disappearing into thin air instead of translated into projects on the ground to directly benefit the people?

In Tawau this morning, I visited Jalan Sin Onn, an important artery for Tawau but which is choked with traffic. The Barisan Nasional Government had promised to build Jalan Sin Onn into a four-lane dual carriageway, way back in the Seventh Malaysia Plan as part of its “Sabah Baru” manifesto to capture power in Sabah state.

It was in the Seventh Malaysia Plan as well as in the Eighth Malaysia Plan. It is now in the Ninth Malaysia Plan but will it again be shunted to the Tenth Malaysia Plan into a ‘never-never” future, without a single foot of construction? Continue reading “RM7 billion “black hole” in 2009 Budget – Najib has got lousy advisers”

Yesterday, the Speaker, Tan Sri Pandikar Amin Mulia made the ruling that Parliament was debating the Abdullah budget presented on August 29, 2008 and not the Najib Budget of an additional RM7 billion economic stimulus package announced during the 2009 Budget winding-up debate on Tuesday, as no changes to the Abdullah Budget had been tabled in the House.

The Speaker is right as MPs could not possibly be debating a revised 2009 Budget incorporating an additional RM7 billion economic stimulus package, when neither the details of the supplementary RM7 billion package have been tabled in the House nor an amendment to the 2009 Budget proposed in Parliament.

The trouble with such an interpretation is that MPs would have to live the fiction of pretending that the RM7 billion economic stimulus package announced by Deputy Prime Minister and the new Finance Minister, Datuk Seri Najib Razak, in his speech winding-up the2009 Budget policy debate had disappeared into thin air within 24 hours and does not exist!

In fact, the nation and Malaysians are being asked to join in his fiction, if Najib persists with this unprecedented solution to the parliamentary faux pax he had committed in failing to follow the correct parliamentary procedure of submitting a proper parliamentary amendment to the 2009 Budget incorporating the new RM7 billion economic stimulus package.

This was why I had likened Najib to the illusionist David Copperfield yesterday when the Deputy Finance Minister Datuk Ahmad Husni Hanadzlah, responded to my query in Parliament and explained that the RM7 billion economic stimulus package announced by Najib on Tuesday was a hypothetical one, as it depended on savings made from the downturn in global fuel prices, and what the government will do with RM7 billion when the situation arises. Continue reading “RM7 billion economic stimulus – Najib wants MPs and nation to live a fiction”

Junket to Taiwan, what have BN BBC learned?

Revise the obsolete 2009 Budget

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HSBB – High Speed BroadBand, why subsidy to Tm Net? Why no open access?

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Eurocopter adding to the collection of defense purchase scandals; Scorpene Submarine, Sukhoi Jet

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Police Helicopter Purchase and E-Police

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Utusan again

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