Malaysian Economic Democratisation – Extract 5
(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.”
Read the rest of this entry »
Malaysian Economic Democratisation – Extract 4
Posted by Kit in Budget Debate, DAP, Economics, Finance on Thursday, 8 October 2009, 11:20 am
(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.
Read the rest of this entry »
Malaysian Economic Democratisation – Extract 3
Posted by Kit in Budget Debate, DAP, Economics, Finance on Thursday, 8 October 2009, 11:10 am
(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.
Read the rest of this entry »
Malaysian Economic Democratisation – Extract 2
Posted by Kit in Budget Debate, DAP, Economics, Finance on Thursday, 8 October 2009, 9:23 am
(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:
-
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.
-
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.
-
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.
Malaysian Economic Democratisation
Posted by Kit in Budget Debate, DAP, Economics, Finance on Wednesday, 7 October 2009, 10:22 pm
(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:
-
Economic Democratision – Fiscal Decentralisation
-
Rakyat First – Restructuring & Reallocation
-
Empowerment & Enablement – Capacity Building
DAP Alternative Budget 2010
Posted by Kit in Budget Debate, DAP, Economics, Finance on Wednesday, 7 October 2009, 9:54 pm
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. Read the rest of this entry »
Isa will become “mascot” of Najib’s 1Malaysia with BN victory in Bagan Pinang by-election
Posted by Kit in Corruption, Elections, Najib Razak on Wednesday, 7 October 2009, 3:42 pm
Speaking at the 35th Unesco general conference in Paris yesterday, Prime Minister, Datuk Seri Najib Razak said his 1Malaysia philosophy can be extended to the concept of 1Region and ultimately 1World.
Apart from the 1Malaysia gimmicry which now includes 1Malaysia jokes, what does Najib really mean by 1Malaysia?
Former Prime Minister, Tun Dr. Mahathir Mohamad has publicly expressed his bewilderment and incomprehension of Najib’s 1Malaysia.
Lesser mortals should be forgiven if they are even more confused as to what Najib really means with this slogan.
It cannot mean one overarching Malaysian objective, when it does not even mean 1Umno – which is why Najib had to succumb to pressures to name Tan Sri Isa Samad as candidate for the Bagan Pinang by-election when all the Umno/BN leaders could not be unaware that the choice is utterly inappropriate for a Prime Minister who wants to send out the message that he stands for a new tomorrow. Read the rest of this entry »
Sinking in solidarity with Samy
Posted by Kit in Indians, Mahathir, Martin Jalleh on Wednesday, 7 October 2009, 3:35 pm
By Martin Jalleh
7 Oct. 2009
Samy Vellu is here to stay – as long as he wants. He has been made indispensable, invincible…even immortal. He will remain as the “Saviour” of the Indians in Malaysia – a god-like status his “devotees” have strenuously bestowed upon him.
This strong message that Samy still reigns supreme was delivered by the majority of the 1,464 delegates at the triennial election of the Malaysian Indian Congress (MIC) held recently. It appears that they would prefer to sink with Samy – rather than swim in the current of change.
Dr M says “MIC is scared stiff of Samy Vellu”. But it is their very own political survival they are shivering and sweating over! Ironically, they felt very secure even if it meant strengthening Samy’s political stranglehold and further suffocating the whole Indian community!
With their future at stake the delegates were not prepared to stick their necks out. In fact, as Dr M once described the members of the MIC, they are “not even ready to stick their little finger out”. Such is the sordid state of affairs in the second oldest political party in the country.
“Everybody is playing safe. If I go against the chief, he’s going to hammer me. Then I won’t get contracts, I won’t be ‘ketua bahagian’ (party division chief),” Dr M succinctly described the sad scenario – which was very similar to Umno when Dr M was its president for 22 years. Read the rest of this entry »
Tomorrow D-Day for Malaysian universities – THES-QS Top 200 Universities Ranking 2009
Posted by Kit in Education, university on Wednesday, 7 October 2009, 2:31 pm
The Prime Minister, Datuk Seri Najib Razak went before the United Nations Educational, Scientific and Cultural Organisation (UNESCO) in Paris yesterday to extend his 1Malaysia motto to 1World.
Four years ago, at the University of Malaya’s centennial celebrations in June 2005, as Deputy Prime Minister, Najib threw the challenge to University of Malaya to raise its 89th position among the world’s top 100 universities in Times Higher Education Supplement (THES) ranking in 2004 to 50 by the year 2020.
Instead of accepting Najib’s challenge with incremental improvement of its THES ranking, the premier university went into a free fall for two years followed by completely disappearing from the Top 200 Universities ranking in the past two years.
After being ranked in 2004 at 89th position in the THES-QS World Top Universities, University of Malaya fell to 169th in 2005 and 192nd placing in 2006, and in the past two years of 2007 and 2008 rankings, not only University of Malaya but Malaysia fell out of the 200 Top Universities altogether!
We can only hope that Najib’s 1Malaysia and 1World calls will not be as dismal as his call in 2005 to University of Malaya to be among the world’s top 50 universities.
Tomorrow, Malaysians will know whether Malaysian universities could redeem themselves and get back into the World Top 200 Universities ranking when the 2009 THES-QS World Top Universities ranking is released, or whether Malaysia has fallen into the “black hole” of international university competitiveness stakes, unable to prove their academic quality, excellence and worth in the international arena. Read the rest of this entry »
Prime Minister of UMNO?
Posted by Kit in Hussein Hamid, UMNO on Wednesday, 7 October 2009, 10:09 am
Will someone tell if this Najib is the Prime Minister of UMNO, of the Malays or of Malaysia. I did not mention the Chinese, the Indians and the Others because by default and by his actions he has certainly made these people reject him as their Prime Minister. So that leaves the Malays and Malaysia because he certainly is Prime Minister of UMNO. Now because Malaysia is made up of not only Malays but also the others then again by default he cannot be Prime Minister for Malaysia. So that leaves the Malays.
The jury is still out and deliberating this issue. Yes there are only Malays in UMNO. But are the interests of UMNO and the Malays the same? The Malays are Muslims. And so, it seems are the profess religion of those in UMNO. Tapi cakap bukan serupa bikin. Islam frowns on greed, corruption, and deceit. UMNO does not. Read the rest of this entry »
Muhyiddin claim that BN unites various races in Malaysia never sounded so hollow when Umno most guilty playing racial card to cling to power
In the Bagan Pinang by-election, Deputy Prime Minister Tan Sri Muhyiddin Yassin claims that the government would not allow any quarters to disrupt racial unity in the country and would promptly act against those who played up sensitive racial issues.
He said since the Barisan Nasional (BN) governed the country, it had managed to unite the various races which had different cultures, customs and religions.
Muhyddin’s claim that BN unites the various races in Malaysia has never sounded so hollow when Umno is most guilty of playing the racial card to cling to power.
It is now Pakatan Rakyat which has a more legitimate claim to represent the diverse races, cultures and religions in the country than Barisan Nasional as demonstrated by the results of the March 8 general elections last year and subsequent developments. Read the rest of this entry »
Freeze on teacher-intake?
by TN
Letters
I would like to firstly thank you for your blog posts.
I do not know where to go with this but my sibling who is in a government university (UPSI) told me she will be not be getting any posting for the next 2 years after she graduates.
She said that the reason given by the university is that the economy is doing badly and no new teachers will be taken in.
I hope this issue would be investigated and higlighted to the mass media.
Najib’s defence of Isa’s corruption offence a mega-tonne explosion demolishing his NKRA to “fight corruption”
Posted by Kit in Corruption, Elections, Najib Razak on Monday, 5 October 2009, 2:03 pm
The Prime Minister Datuk Seri Najib Razak’s defence of Tan Sri Mohd Isa Ismail’s corruption offence as only a “technical matter” is a mega-tonne explosion demolishing one of the six National Key Result Areas (NKRAs) he announced on his Hundred Day as Prime Minister – “fighting corruption”.
Responding to the unabated criticisms of the choice of Isa as Umno/Barisan Nasional candidate for Bagan Pinang by-election, Najib told Malaysian students in Paris that Isa was chosen based on his capability and popularity, and that Isa’s offence was only a technical matter within UMNO and did not involve the judiciary of the country.
Najib said the question is whether Isa deserved a second chance or not, pointing out that in our system, even a criminal gets a second chance and can contest the post after serving his or her punishment.
Najib’s argument and logic are full of holes and do not stand up to scrutiny. They merely expose the hollowness and hypocrisy of the Najib administration in declaring “fighting corruption” as one of the six NKRA priority areas for constant assessment of “key performance indicators”. Read the rest of this entry »
Bagan Pinang…there is no Plan B (part two)
Posted by Kit in Elections, Hussein Hamid, Najib Razak, UMNO on Monday, 5 October 2009, 11:33 am
UMNO’s championing of Ketuanan Melayu from the time of Mahathir is not the result of its beliefs in the superiority of the Malay race nor was it looking at raising the lot of the Malays to what was promised in the context of the NEP. It was simply a ploy for the rise and rise of UMNO’S to its dominant position in Malaysian Politics so that they could enrich themselves to their hearts content….and their hearts are not content yet! .And so with Mahathir begun the divide and rule of the Malaysian people.
But now the Rakyat has seen that the rot has set in. We can see how precisely this policy was being used. In the enriching of the UMNO elite but not the Malays.
UMNO could not.
In the injustice and sufferings it had caused to the non-Malays by denying them basic rights and decency in a country they call home.
UMNO could not. Read the rest of this entry »
Najib and Muhyiddin should apologise for Umno’s racist muck-spreading and mud-slinging tactics which make nonsense of the PM’s 1Malaysia slogan
Posted by Kit in Elections, Najib Razak, UMNO on Sunday, 4 October 2009, 3:16 pm
Deputy Prime Minister Tan Sri Muhyiddin Yassin said yesterday he was confident that the 1Malaysia vision has spurred the people to a new level of optimism which will translate into a stronger support for Barisan Nasional (BN) in the Bagan Pinang by-election.
However, the muck-spreading and mud-slinging campaign launched by Umno/Barisan Nasional in Bagan Pinang yesterday even before the completion of the nomination process had in one fell swoop exposed the hollowness and hypocrisy of Najib’s 1Malaysia slogan as an overarching unifying national objective.
Two racist books were distributed in the Bagan Pinang constituency inciting communal hatred and animosities against Pakatan Rakyat leaders with scurrilous and baseless allegations about the sidelining and betrayal of the rights and interests of Malays – one entitled “Wajah Sebenar Tan Sri Khalid Ibrahim: Nasib Orang Melayu Selangor” (The Real Face of Tan Sri Khalid Ibrahim: The Plight of the Selangor Malays) and the other “50 Kemusykilan Tentang Manusia Bernama Anwar Ibrahim” (50 Questions on The Man Called Anwar Ibrahim) Read the rest of this entry »
Grassroots – The other definition, the destructive definition
Posted by Kit in Augustine Anthony, Elections on Sunday, 4 October 2009, 12:06 pm
by Augustine Anthony
This is awful!
And I mean awful by the decision of UMNO and Barisan Nasional in fielding Isa Samad (Tan Sri) as the candidate for the Bagan Pinang constituency by-election. I will say no more about the Barisan Nasional candidate or the Bagan Pinang by election but let us explore election time in Malaysia in general.
During election time, it is common to see and hear voters being promised with all kinds of frills in the coming days before polling. It will be the same re-run of the past election campaigns with no thrills of a nation building agenda. For too long, too many politicians from the ruling coalition have engaged Malaysians in this primitive barter trade shamelessly. “You give me the votes and I will give you the roads, boats, goats, dough in loads etc. etc. etc.” This scheming scheme had even turned some opposition politicians into tricky toads.
And the usual ceramahs with a generous dose of hate message. One will be disappointed if the expectation is that the speakers will engage in topics of nation building issues like creating new leaders out of the younger generation, eradication of corruption, improving the system of governance, encouraging better race relations, a promise of better education for our children, assurance of more job opportunity for voters that brings security for families, dedication in fighting escalating crimes, etc. Read the rest of this entry »
A vote for Pakatan is a vote against corruption
Posted by Kit in Corruption, Elections on Saturday, 3 October 2009, 10:30 am
by Thomas Lee
The Bagan Pinang by-election on Oct 11 is an opportunity for the voters to tell the Braisan Nasional in no uncertain term that the practice of corruption and cronyism must be wiped out in the country. They must go all out to ensure the defeat of the Umno candidate.
By fielding a candidate suspended by his own party for corrupt practice, the Barisan Nasional is obviously snubbing the people, indicating that it couldn’t care less about what they think and feel. It is a de facto endorsement of corrupt practices.
By nominating such a tainted candidate for the Bagan Pinang by-election, the purported high moral ground on which the Umno leaders have been self-righteously proclaiming has been exposed as a mere hollow sinking ground.
Umno is arrogantly confident and cocksure that it will win the Bagan Pinang battle even with a corruption-contaminated candidate.
The voters of Bagan Pinang must come out in full force to show Umno through the ballot box that the days of its exaggerated sense of superiority are numbered. Read the rest of this entry »
Malaysia in unchecked plunge in IT international competitiveness as illustrated by another adverse global study – the 2009 Oxford/Cisco Global Broadband Quality Score
Thirteen years ago Malaysia proclaimed the Multimedia Super Corridor (MSC) as “a gift to the world” and the centrepiece of the country’s strategic initiative to leapfrog the nation into the IT era to become one of the world IT powers.
Since then, MSC and Malaysia have faded away from the world radar screen as an international IT hotspot – and Malaysia’s unchecked plunge in IT international competitiveness in the past decade has been confirmed by another adverse global study, the 2009 Oxford/Cisco Global Broadband Quality Score.
This study of the global state of broadband quality put Malaysia 53rd out of 66 countries in terms of the quality and reach of its networks – understandably behind countries like Korea, Japan, Sweden, Denmark, United States but also trailing countries we should be leading like Turkey, Chile, China, Qatar, Brazil, Argentina, Saudi Arabia, Cyprus, Costa Rica, Bahrain, Thailand, Tunisia, Mexico, Philippines and UAE.
Read the rest of this entry »
With no statute of limitation, will the Attorney-General charge Isa in court for the corruption of money politics in Umno?
Posted by Kit in Corruption, UMNO on Thursday, 1 October 2009, 1:18 pm
When he was announced as the Barisan Nasional candidate for Bagan Pinang by-election on Tuesday, Tan Sri Mohd Isa Abdul Samad declared that he did not “commit a crime, but had violated the party elections’ code of ethics” in addressing the issue of his qualification and credibility as a candidate on account of his money politics in Umno which caused him to be suspended as an Umno for three years.
This is a fallacious argument and it does not speak highly of the commitment of the Prime Minister, Deputy Prime Minister, the Cabinet Ministers and leaders of the Barisan Nasional parties whether Umno, MCA, Gerakan, MIC or the Sabah and Sarawak parties that no one finds anything wrong with such an argument or prepared to make a stand of principle.
Technically Isa had not committed any crime, as he had not been convicted, in fact, not even charged in court for corruption arising from Umno money politics which led to his three-year party suspension.
But was this because money politics in Umno was a mere party infraction and not a criminal offence of corruption, or was it just another example of the double-standards of the Attorney-General and the anti-corruption agency failing to uphold the law without fear or favour, regardless of status, wealth or position?
Read the rest of this entry »
In the beginning he was DPM!
Posted by Kit in Anwar Ibrahim, Hussein Hamid, UMNO on Thursday, 1 October 2009, 8:57 am
What was Anwar’s biggest contribution to what we are today? I sat and ponder over this question the whole day today. I wanted to write about it and yet I cannot because there were so many thoughts that came and went inside me. All I could do today was about two half page – notes on times go by – Cakap cakap about AP and then I revisited the “Bentong car park” issue because one of our friends sent me something new about that car park. It is now 11.42pm and I have been thinking since 7.15am this morning….fifteen minutes ago it hit me! I believe that what Anwar did to me and to many of us can be conceptualised in two words:
“POLITICAL AWAKENING”
Before Anwar was dismissed by Mahatir I was a Bumiputra intent on pursuing my “rights” as a Bumiputra. The right to have a share in the perceived richness brought into the consciousness of the Malays as a result of the New Economic Policies. All that was in my mind was where the next ringgit was going to be found. Tenders, project proposals, pink slips, AP’s, IPO, licenses, Privatisation opportunities…life was a whirl of meetings and discussions in five star hotels and lunches in restaurants whose name you find hard to pronounce – Troika was one of those that I can still remember – in Jalan Raja Chulan. The evenings were again another whirl of coffee houses and meetings until the early mornings. Read the rest of this entry »
