Archive for category Economics
Brimstone on BN!
Posted by Kit in Economics, Elections, Martin Jalleh, MCA, MIC, Najib Razak, UMNO on Tuesday, 26 February 2013
By Martin Jalleh
Pengiraan Detik 47 Hari ke PRU13 – Suruhanjaya Siasatan Diraja menyiasat kerugian RM100 bilion daripada skandal kewangan sepanjang 22 tahun Mahathir menjadi Perdana Menteri
Posted by Kit in Economics, Elections, Financial Scandals, Mahathir on Monday, 25 February 2013
Semalam, portal berita perniagaan yang baru berusia tiga hari KiniBiz melaporkan “Syed Mokhtar eyes Malaysia Airlines” oleh Jose Barrock, laporan bahawa Syed Mokhtar Albukhary mencadangkan kerajaan persekutuan mengambil alih cabang pelaburan negara, 69.3 peratus kepentingan ekuiti Khazanah Nasional Berhad di dalam Malaysia Airlines yang termasuk sebahagian daripada subsidi minyak jangka panjang oleh kerajaan untuk 60 tahun.
Rakyat Malaysia menanti pendedahan sepenuhnya perkembangan terbaru ini dalam kerumitan hubungan korporat-kerajaan, dengan “sumber yang dekat dengan Syed Mokhtar” menafikan terdapat cadangan untuk mengambil alih MAS dengan “dua sumber berlainan” mengesahkan bahawa urusan sedemikian sedang difikirkan.
Bagaimanapun laporan ini telah mengkedepankan isu utama dalam Pilihan Raya Umum yang bakal menjelang tentang kebimbangan orang ramai terhadap tadbir urus yang baik di Malaysia sama ada melibatkan skandal kewangan lama yang muncul dari penswastaan secara menyeluruh dan khususnya tentang penerbangan milik negara yang bermasalah; empayar perniagaan Syed Mokhtar dan hutang mega beliau mewujudkan kebimbangan sama ada ianya akan diselamatkan (bail out) kerajaan menggunakan duit penbayar cukai dan sejarah korupsi, kronisme dan penyalahgunaan kuasa di dalam senarai panjang Umnoputra yang diselamatkan dengan tanggungan rakyat sejak berdekad lalu.
Pilihan Raya Umum ke-13 merupakan waktu paling sesuai untuk meninjau kembali isu-isu yang membimbangkan orang ramai tentang akauntabiliti, ketelusan dan tadbir urus baik.
Read the rest of this entry »
Najib practices a two faced NEP cum NEM economic policy
Posted by Kit in Dr. Chen Man Hin, Economics, Housing, Najib Razak, NEM, NEP on Sunday, 24 February 2013
By Dr Chen Man Hin, DAP Life advisor
23 Feb 2013
Events have shown that the NEP is still enforced in the economic development of the economy – two faced NEP and NEM economic policy.
Soon after being Prime Minister, Najib launched his New Economic Model to stimulate development with the aim of achieving a high economy like that of the Asian Tigers of Singapore, S Korea, Hong Kong and Taiwan
To do this he had to get rid of the economic handicaps wrought by the New Economic Policy. It is on record that Najib announced on May 2nd 2009 that he would replace NEP with his New Economic Model (NEM).
It is now 2013, and the signs of a high economy are not encouraging. For Foreign Direct Investments (FDIs) of 2012 Malaysia scored 9 billion US dollars compared to Indonesia’s US$19 billion and Singapore US$130 billion. (World Bank figures)
Per capita income for Malaysia in 2012 was US$9500 million, compared to Hong Kong US$30 million, Singapore US$50 million and South Korea US$25 million. Can Malaysia reach a high income status of US$20million by 2020.
Read the rest of this entry »
47-Day Countdown to 13GE – Royal Commission of Inquiry into the RM100 billion losses from financial scandals in the 22-year Mahathir premiership
Posted by Kit in Economics, Elections, Financial Scandals, Mahathir on Saturday, 23 February 2013
Yesterday, the three-day-old business news portal KiniBiz carried the report “Syed Mokhtar eyes Malaysia Airlines” by Jose Barrock, reporting that Syed Mokhtar Albukhary is proposing to the federal government to take over national investment arm, Khazanah Nasional Berhad’s 69.3 per cent equity interest in Malaysia Airlines which includes as part of the deal a long-term fuel subsidy by the government for as many as 60 years.
Malaysians await the full disclosure of this latest development in the byzantine government-corporate nexus, with a “source close to Syed Mokhtar” denying that there is such a proposal to take over MAS with “two separate sources” confirming that such a deal is being contemplated.
This report has, however, brought to the fore as priority issues in the impending 13th General Elections public concerns about good governance in Malaysia whether about past financial scandals arising from privatisation as a whole and specifically about the ailing national airline; Syed Mokhtar’s far-flung business empire and his mega-debts creating genuine fears whether they will require a massive bailout using taxpayers’ money and the history of corruption, cronyism and abuses of power in the long list of bailouts of Umnoputras at the public expense in the past few decades.
The 13th General Elections is the most appropriate time to revisit these issues of public concern about accountability, transparency and good governance.
Read the rest of this entry »
Investigate Malaysia’s debts now
Posted by Kit in Economics, Finance, Financial Scandals, Mahathir on Saturday, 23 February 2013
By Pak Sako | Thursday, 21 February 2013 11:34
CPIASIA
Former prime minister Mahathir Mohamad claimed last week that Malaysia’s current debt level is “healthy” compared with Greece’s.
But the debt-to-GDP percentage Mahathir relied on tells next to nothing about the full extent of Malaysia’s debts; the nature of these debts; or what can happen next.
The real devil lies in the details, namely:
(i) the trend in the debt level.
How has it changed in the recent past? Is there momentum in a certain direction? The federal government’s debt had doubled in just four years from 2007 and 2012. Will it stop growing, or will the trend and absolute totals continue their upward rise?
In the last decade, our finance ministers have repeatedly pledged to reduce the budget deficits. This has not happened. Instead, deficits have ballooned and the federal government’s debt has mounted.
(ii) the causes of debt.
For what are the borrowings and for whom? Are these borrowings for worthwhile investments that benefit the public? Are these liabilities being used to cover government operating costs or to prop up failing crony companies or the stock market? Is the use of costly loans for projects with low or no rates of return justified?
Almost a trillion ringgit was recently whisked out of the country in the form of illegal outflows. This is capital flight. It is conclusive evidence that our economy is ‘leaking out’ wealth.
Read the rest of this entry »
Pengiraan Detik 52 Hari ke PRU13: PRU13 bukan saja pungutan suara terhadap empat tahun “tanpa transformasi” Najib tetapi juga 22 tahun dasar korup Mahathir
Adakah parlimen akan dibubarkan bulan untuk untuk membolehkan Pilihan Raya Umum ke-13 diadakan bulan depan?
Dijamin jawapannya tentu positif, bersiap untuk pembubaran parlimen paling lama ditangguhkan di dalam sejarah negara daripada seorang Perdana Menteri tidak diundi paling lama dan berkemungkinan menjadi pilihan raya umum paling kotor dan mahal Malaysia!
Perdana Menteri, Datuk Seri Najib Razak, sedang pusing satu negara berkempen untuk jangka hayat politiknya, tetapi terdapat seorang insan di dalam UMNO/Barisan Nasional yang sedang mengatasi kempen Najib – dan beliau adalah mantan serta Perdana Menteri paling lama berkhidmat, Tun Dr. Mahathir Mohamad.
Pilihan Raya Umum ke-13 amat penting dan kritikal buat Najib – tetapi lebih penting dan kritikal lagi buat Mahathir, memandangkan ia bukan saja pungutan suara terhadap empat tahun “tanpa transformasi” Najib tetapi juga 22 tahun dasar authoritarian dan korup Mahathir.
Sebenarnya, untuk Mahathir, masa depannya turut dipertaruhkan dalam PRU13 – memandangkan PRU13 akan menentukan sama ada beliau dapat terus menjadi dalang politik untuk politik UMNO/BN, yang kini secara sendirian membuat keputusan dalam UMNO/BN selepas beliau Berjaya memaksa perletakan jawatan Tun Abdullah sebagai Perdana Menteri sesudah “tsunami politik” pilihan raya umum 2008.
Kuasa dan pengaruh Mahathir kini lebih besar daripada Najib yang merupakan Perdana Menteri.
Malaysia mempunyai enam Perdana Menteri sepanjang tempoh 56 tahun tetapi tidak ada sesiapa di dalam UMNO/BN berani untuk beritahu mana-mana Perdana Menteri supaya meletakkan jawatan sekiranya gagal memperoleh mandat yang lebih besar berbanding pilihan raya sebelumnya – seperti yang dilakukan secara terbuka oleh Mahathir di Malaysia Strategic Outlook Conference ke-15 pada 31 Januari yang mana beliau mengatakan Najib sepatutnya memberi laluan kepada Timbalan Presiden UMNO Tan Sri Muhyiddin Yassin sekiranya BN hanya memperoleh kemenangan tipis di dalam pilihan raya. Read the rest of this entry »
52-Day Countdown to 13GE: The 13 GE is not only referendum on Najib’s four-year “non-transformation” but also on Mahathir’s 22-year authoritarian and corrupt policies
Will Parliament be dissolved this month for the 13th General Elections next month?
The bet is that the answer will be in the positive, setting the stage for the longest-delayed dissolution of Parliament in the nation’s history by the longest unelected Prime Minister in what is likely to be the dirtiest and most expensive Malaysian general elections!
The Prime Minister, Datuk Seri Najib Razak, is out on the hustings throughout the country campaigning for his political life, but there is one person in UMNO/Barisan Nasional who is out-campaigning Najib – and he is former and longest-serving Prime Minister, Tun Dr. Mahathir Mohamad.
The 13 General Elections is important and critical for Najib – but it is even more important and critical for Mahathir, as it is not only a referendum on Najib’s four-year “non-transformation” but also on Mahathir’s 22-year authoritarian and corrupt policies.
Actually, for Mahathir, his future is also at stake in the 13GE – as it would determine whether he could continue to be the kingmaker of Umno/BN politics, as now single-handedly calling the shots in UMNO/BN after he successfully forced the retirement of Tun Abdullah as Prime Minister after the “political tsunami” of the 2008 general elections.
Mahathir’s power and influence now writ larger than that of Najib the Prime Minister.
Malaysia has had six Prime Ministers in the past 56 years but no one in UMNO/BN had dared to tell any incumbent Prime Minister that he would have to step down from office if he could not win with a stronger mandate than in the previous polls – as Mahathir has openly done at the 15th Malaysia Strategic Outlook Conference on 31st January where he said that Najib should give way to Deputy Umno president Tan Sri Muhyiddin Yassin if BN only scores a slim majority in the elections.
Read the rest of this entry »
Will the Share Market Rise or Fall if there is a Pakatan Victory?
By Koon Yew Yin
Quote from an angry Internet reader
If [the] market plunge(s), it will rise up again but if a country goes bankrupt, it is gone forever. I don’t know why you can’t get it in your brain unless your brain is always thinking of sex with your mistress.
During the last few weeks there have been increasing predictions from Barisan leaders emphasising that there will be a sharp fall in the share market should there be a Pakatan Rakyat victory.
The latest prediction by MCA leader Chua Soi Lek in a party event at Kepong argues that Malaysia will witness a “‘huge financial disaster if Pakatan Rakyat comes to power in the 13th general election”.
This type of electioneering tactic aimed at frightening the electorate is dangerous and irresponsible. How can the MCA president be so confident as to openly declare that our stock market will drop to 500 points within a week if the opposition wins power?
Challenge to Dr. Chua Soi Lek
Let us subject his prediction to closer analysis. Firstly, it is not clear whether he stated that the KLCI will drop by 500 points or drop to 500 points. Whichever is the correct version, his claim implies that anything from one to two thirds of the total share value of the KLCI will be wiped out due to the election result.
Read the rest of this entry »
What change? A reply to Dr M
― Pak Sako
CPI
Jan 04, 2013
JAN 4 ― Former prime minister Dr Mahathir Mohamad published a piece called “Change” yesterday in his blog.
In it he asked why change governments.
He then criticised the socialist ideology. He strangely claimed that “Malaysia has no ideology”.
That is completely untrue.
When Dr Mahathir came into power in 1981, Malaysia was introduced to the neoliberal ideology.
This is an ideology that is biased in favour of corporations and capitalists.
It is the opposite of socialism, which aspires to put people first.
The neoliberal ideology was aggressively promoted around the world in the early 1980s by influential global networks of business interests and their supporters.
Their mantra? Read the rest of this entry »
Hanya kroni yang tergugat dengan dasar ekonomi DAP yang telus dan bertanggungjawab.
Zairil Khir Johari | 18 Disember 2012
Penolong Setiusaha Publisiti Kebangsaan DAP
Dalam laporan akhbar Sinar Harian yang bertajuk “Izat: Ekonomi Melayu gugat jika DAP diberi kepercayaan” pada 17 Disember 2012, Presiden Persatuan Pedagang dan Pengusaha Melayu Malaysia (Perdasama), Datuk Moehamad Izat Emir telah dipetik sebagai berkata bahawa “sokongan orang Melayu terhadap DAP akan hanya menyebabkan ekonomi dan masa depan orang Melayu terumbang-ambing.”
Kenyataan Datuk Izat ini jelas dangkal, bermotif politik perkauman dan langsung tidak berasas. DAP adalah sebuah parti politik yang konsisten dalam pelaksanaan dasar tadbir urus yang cekap, bertanggungjawab dan telus, sepertimana yang dibuktikan oleh pentadbiran kerajaan negeri Pulau Pinang selama hampir lima tahun ini. Keberkesanan tatakelola pentadbiran yang dilaksanakan oleh kerajaan Pulau Pinang telah pun mendapat pengiktirafan dan pengesahan daripada Laporan-laporan Ketua Audit Negara setiap tahun.
Bagaimanakah ciri-ciri ketelusan dan kebertanggungjawaban boleh menjadi ancaman kepada orang Melayu? Hipotesis yang kurang waras ini hanya digunakan oleh sesetengah pihak yang tidak mampu berdaya saing akibat kebergantungan mereka kepada sistem kroni dan amalan rasuah.
Read the rest of this entry »
Rethinking wage policy to reposition our economy
Posted by Kit in Economics, Labour, Public policy on Friday, 30 November 2012
― Liew Chin Tong
The Malaysian Insider
Nov 28, 2012
NOV 28 ― Although the minimum wage law is scheduled to take effect in January 2013, the Barisan Nasional government does not seem to be particularly committed to re-imagine the Malaysian economy through wage policy reform. Efforts to smoothen the transition for small and middle industries are seriously lacking too.
Minimum wage is meant to tackle several long-standing structural issues of the economy at once. As the United States and Europe struggle to stay afloat economically, Asia can no longer remain as an exporter, we need to grow our domestic/Asian markets; a higher income among locals will help generate a more vibrant domestic market which in turn will generate more jobs.
Also, with minimum wage, companies and industries will likely to rely less on cheap labour but invest in longer term potentials, capabilities and hence productivity of the workforce.
This is a virtuous cycle that will check dependence on unskilled foreign workers and brain drain at once. Skilled citizens who work in foreign countries are likely to consider resettling back to their homeland if the wage difference between their home and host countries is narrowed. Read the rest of this entry »
Malaysia becomes rich ‘Tiger Cub’, but still intolerant
Posted by Kit in Economics, Education, Human Rights on Thursday, 1 November 2012
The Malaysian Insider
Nov 01, 2012
KUALA LUMPUR, Nov 1 ― Malaysia has been singled out together with Vietnam, Thailand and Indonesia as “Tiger Cub” countries fast catching up with regional leaders on a list of the most prosperous economies in the world, but was also named as among the worst countries for promoting personal freedom of its citizens.
Malaysia was ranked as the 45th most prosperous nation, trailing behind Singapore at 19th and with Indonesia fast catching up at 63rd position, on the Legatum Prosperity Index.
The London-based think-tank Legatum’s Prosperity Index assesses 142 countries based on performance in eight areas such as economy, personal freedom, health and social capital.
This year, Norway again topped the list of 142 countries, followed by Denmark, Sweden, Australia and New Zealand. The United States, the United Kingdom and Germany came in at 12th, 13th and 14th spots, respectively.
The Central African Republic propped up the list.
The Legatum Institute, which publishes the index, noted that “a new generation of Asian ‘Tiger Cub’ countries has emerged, according to the latest findings from the Legatum Institute’s Prosperity Index, with Malaysia, Vietnam, Thailand and Indonesia all appearing in top half of the worldwide rankings this year.” Read the rest of this entry »
Before meddling with subsidies, ask why we need subsidies
Posted by Kit in Economics, Finance, Public policy on Friday, 26 October 2012
by Pak Sako
26th Oct 2012
Two groups, CPI and REFSA-IDEAS, are debating government subsidies.
This debate is critical because politicians are taking their cues from it.
It is important that good judgement prevails. Much is at stake.
But first, what is a subsidy? Why do we need it?
Some believe subsidies are government money spent on primary healthcare, infrastructure, culture or the environment.
But these are not subsidies. These are fundamental public provisions that a decent society would collectively provide for all its members in most ordinary circumstances.
A subsidy is different. It is a special kind of public expenditure.
A subsidy is designed to support a disadvantaged group that cannot secure the needs and necessities for survival because an underlying condition is persistently preventing their fulfillment. Read the rest of this entry »
Refsa on subsidies: Still off the mark
Posted by Kit in Economics, Finance, Lim Teck Ghee on Thursday, 25 October 2012
Dr Lim Teck Ghee
CPI
The response by Research for Social Advancement (Refsa) institute to my note is disappointing. It provides little value added to the current knowledge on subsidies in Malaysia; repeats various motherhood statements about the need to rein in subsidies and selectively focuses on so-called various ivory tower statements that they have detected in my note to triumphantly declare victory.
The major contention in my note is necessary to repeat:
It is necessary to remind the REFSA-IDEAS team that subsidies have an important role to play in providing a safety net for vulnerable groups. They help bring down the cost of living as well as enable access to health, education, transport and other necessities.
They are a necessary burden in a highly skewed capitalist economy such as Malaysia’s where the lower classes of labour do not get the fair remuneration that they are entitled to or deserve. Read the rest of this entry »
Deeper Debt
Posted by Kit in Economics, Martin Jalleh on Wednesday, 17 October 2012
By Martin Jalleh
Budget 2013: Federal government subsidies go up in flames while poor Malaysians watch
Posted by Kit in Budget Debate, Economics, Lim Teck Ghee on Friday, 12 October 2012
By Teh Chi-Chang, CFA
Executive Director
REFSA (Research for Social Advancement)
Friday, 12 October 2012
We write to rebut Dr Lim Teck Ghee’s assertion that “There is little empirical research to back up what has become an increasingly popular line of argument” that blanket subsidies such as for cheap petrol and sugar “benefit upper-class Malaysians who consume much more than their poorer cousins[1]”.
These are the basic facts:
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The federal government subsidy bill is expected to exceed RM42 billion this year.
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If we can agree that subsidies should go only to the poor, and we define the poor as the bottom 1/3rd of households, there will be 2.3 million households or nearly 10 million Malaysians[2] who will get subsidies.
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RM42 billion is enough to give these bottom 1/3rd of households RM1,650 per month – which will more than double their current incomes of RM1,500 per month!
BFM interview Koon Yew Yin
Posted by Kit in Economics, Good Governance on Thursday, 27 September 2012
Follow Koon Yew Ying’s BFM interview. Koon said: “There are hundreds of big buildings and structures, can you tell me which buildings or structures are won by Bumiputera contractors through open tender? There are hundreds of K. meter of highway, can you point out the stretch of highway awarded through competitive tender?
“Record shows that it is easy to produce doctors, surgeons, lawyers, engineers and other professionals but it is very difficult to produce competent contractors or entrepreneurs.
“Bumiputeras must be willing to start from the bottom and learn the business. Tan Seri Yeoh Tiong Lay started as a small time contractor. Tan Seri Lim Goh Tong started as a scrap iron dealer in Sungei Besi.
“I, Koon Yew Yin and 3 other small time contractors started with Rm 200,000 capital in 1966. As a result, I was one of the founders of IJM Corporation Bhd.
“I am completely retired from business and I hope you are not offended by what I have expressed here. I trust we will elect politicians who will not simply give out large contracts or concessions without open tenders.”
Playing a risky waiting game
Posted by Kit in Economics, Elections, Najib Razak, NEM on Monday, 17 September 2012
Free Malaysia Today
September 17, 2012
The prime minister is holding back on the election date to shore up flagging support and give his reforms more time to work.
KUALA LUMPUR: Prime Minister Najib Tun Razak could call national elections anytime between now and April 2013, but he may wait to announce a generous budget on Sept 28 as he plays a risky waiting game.
The ruling Barisan Nasional coalition is widely expected to win the election but further gains by the opposition after its strong performance in 2008 could undermine Najib’s standing.
Holding back until after September would give Najib more time to shore up flagging support among ethnic Chinese voters, and to convince Malaysians that his reform efforts are working as he tries to reverse the ruling coalition’s worst election showing in 2008.
It would also make him vulnerable to any worsening of the global economy or the emergence of fresh corruption scandals that could push swing voters over to the three-party opposition. Read the rest of this entry »
Growth without private investment
— Jayant Menon
The Malaysian Insider
Sep 12, 2012
SEPT 12 — It was not long ago that the Malaysian development story was hailed as a model of FDI-driven, export-led industrialisation worthy of emulation by aspirants in the developing world.
Malaysia remains an outstanding model of how openness to trade and FDI can transform a poor, agrarian economy into a thriving, manufacturing-based, middle-income one in a generation. During this time, Malaysia also successfully preserved social harmony in its multiracial society, relying on economic openness to sustain growth under an expensive affirmative action programme that skewed incentives, the New Economic Policy (NEP). In this sense, the NEP performed an important signalling role and played its part in delivering the peace and stability that enabled Malaysia to sustain high growth. This growth, combined with revenues from large oil reserves, facilitated a massive tax-transfer scheme that favoured the majority, without significantly eroding macroeconomic stability.
But all that changed after the Asian financial crisis. FDI flows fell sharply and continued to remain low even after recovery. While foreigners continue to shun Malaysia, even domestic investors seem to have fled, with Malaysia becoming a net exporter of capital since 2005. Malaysia continues to grow, but without private investment it is unlikely to break out of the middle-income trap. Indeed, these days Malaysia is often discussed as a classic case of the middle-income trap. Growth without private investment is also unsustainable and Malaysia risks sliding back. Read the rest of this entry »
1MDB’s RM2.3b acquisition of Genting Sanyen – Questions
By Sentinel
Several months ago, 1MDB had won the bid to acquire Tanjong Energy from Ananda Krishnan for a consideration in excess of RM 8 billion. One weekend in August, rumours swirled regarding a new major acquisition by 1MDB in the power sector.
The “rumours” became reality when an announcement by Bursa said that 1MDB had agreed to acquire a unit of Genting Energy for RM 2.3 billion. That unit of Genting Energy was Genting Sanyen, one of the first generation IPPs with a capacity of 720MW and which came into operation in 1995. The power purchase agreement (PPA) with TNB will expire in 2016. Separately, Genting made a parallel announcement regarding the divestment, adding that it will book a extraordinary gain of RM 1.9 billion from the sale.
Any person with some commercial sense will realise that the book value of the Genting asset in question is only RM 400 million. The PPA has 4 more years to run, after which the asset will be worth nothing more than scrap metal. Even if TNB decides to extend the term of the PPA, it will be on TNB’s terms, and not on Genting’s terms because the alternative to Genting is scrap value of the plant. So why would 1MDB pay RM 2.3 billion for the asset ? Can it recover the RM 2.3 billion in the 4 years remaining of the PPA? Read the rest of this entry »
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