Malaysia: The Economy is in bad shape. Thank you, UMNO


September 18, 2018

Malaysia: The Economy is in bad shape. Thank you, UMNO

by Phar Kim Beng@www.malaysiakini.com

Image result for Najib Razak is Malaysia's best economist

Former Prime Minister Najib Razak should be awarded the 2018 Nobel Prize in Economics for his management of the Malaysian Economy. He pioneered the 1MDB method of robbing the Malaysian Treasury.

COMMENT | The Malaysian economy is in bad shape. Very bad.

Revisiting the 2014 magnum opus of the Prime Minister’s new Economic Advisor Dr. Muhammed Abdul Khalid, The Colour of Inequality: Ethnicity, Class, Income and Wealth in Malaysia, we see that Malaysia’s income gap has not changed much from 1957 levels, when the country first gained independence.

Between 1990 and 2018, Malaysians on the whole gained little, except the very rich. Muhammed describes a small breakthrough in 2012, but there is no telling if this was due to fiscal spending to ward off the effects of the 2007-2008 global financial crisis.

Muhammed’s reliance on the Statistics Department’s Household Income Survey, while illuminating, is not entirely convincing, especially when paired with numbers or assertions culled from Pemandu, the now-defunct government-funded performance delivery unit.

Image result for The poor in kuala lumpur

 

In other words, the actual picture of the Malaysian economy could be worse than what Muhammed actually describes.

Income from the manufacturing sector, for example, has been on the decline, which may be due to the over-reliance on cheap foreign labour – with an estimated 5.5 million migrant workers in the country – which further depresses the cycle of Malaysian wages.

Indeed, Muhammed correctly notes that “90 percent of each ethnic group does not have any liquid savings, and would not be able to survive more than few months in case they lose their source of income or employment”.

Ticking time bomb

This is not a very pleasant picture, even if it is colour blind. Why? The danger lies in the ticking time bomb that cuts across all races and groups. When the income chasm widens, people tend to blame one another for their problems, which in turn accentuates social, political, religious and racial tensions.

While democracy can ameliorate the tensions, it cannot overcome them completely. What democracy cannot structurally and systematically solve, groups of all religious and ideological fancies might rise to plug the policy gaps. When they do so, inter- and intra-ideological or religious pressures will only become more acute.

When political parties refuse to have elections, or postpone them indefinitely, they become blindsided by what the people want, which in turn hastens their own demise, as witnessed with Umno and BN.

Knowingly or unknowingly, as the book was completed well before the May 9 polls in which a kleptocracy was defeated, the above was one of the key takeaways of Muhammed’s simple but sophisticated book.

A bad economy will skew a political party’s fate, even if it well-larded with cash, corruption and connections. Reading the book now, after the 14th general election, it almost seems like a eulogy to UMNO-BN.

Barely a trickle

But The Colour of Inequality is also a sad indictment of how politicians and corporate leaders have steered the mighty Malaysian ship aground.

Image result for the colour of inequality ethnicity class income and wealth in malaysia

As Muhammed (photo, below) notes, most companies simply refuse to pay their workers well. When they don’t, and with less than nine percent of workers unionised, the bargaining power of the workers is overwhelmingly diminished, leaving them to the mercy of their corporate masters.

 

If the book is anything go by, the whole of Malaysia is sputtering to a halt – despite a GDP that “grew from RM5.1 billion in 1957 to RM1 trillion in 2012”. With the national debt now standing at RM1.09 trillion, Malaysia is caught in the vice-like middle-income trap.

The infamous trickle-down economics, for the lack of a better term, is not just non-existent here; wealth seems to be flowing upwards. Given when it was written, The Colour of Inequality references the Occupy Wall Street, where the 99 percent were trying, seemingly in vain, to challenge the grip of the exalted one percent.

In any case, widespread disempowerment is a phenomenon that should not be happening if the state and the market, as is the case in Malaysia, have vouched to work in tandem to help the poor – as reflected in the National Economic Policy and its derivatives.

But although Malaysia as a whole was becoming richer, the income differentials of Malaysians is growing wider. The lethal brew of myriad income determinants and gangly systems of income distribution have conspired to render the middle and working classes disempowered.

As Muhammed puts it: “(As of 2012), the top 20 percent held more than 52.1 percent of all wealth, while the bottom 40 percent held less than eight percent. The distribution of liquid assets was very extreme – the top 20 percent had 95 percent of all financial wealth, while the bottom 80 percent had only five percent.”This shouldn’t be happening

This process of emasculation should not be happening. Especially not after 61 years of independence.

In 1958, there were only 3,000 Malay taxpayers out of the overall of 33,000 taxpayers. A decade later, of the 1,488 students in Universiti Malaya – the only university in the country at the time – who graduated with a BSc, only 69 were Malays. Only four of the 408 who graduated with an engineering degree were Malays.

“During the same period,” Muhammed adds, “only 12 Malays graduated from the medical faculty, representing less than 10 percent of the total medical faculty graduates.”

But while the number of Malay graduates, technocrats and universities between 1970-2018 have risen dramatically, the chasm between rich and poor continues to stay the same, if not widened.

Statistics from the Employees Provident Fund (EPF) show that 92 percent of the people are earning less than RM 6,000 a month; four out of 10 Malaysians have no pensions at all; close to 40 percent earn less than RM3,000 per month; 25 percent of Malaysians have no properties to their names; and the money that pilgrims save for the hajj is spent entirely on the hajj, leaving their children with nothing to draw on.

Muhammed adds that it is “estimated that there were only 150,000 inter (-racial) marriages in Malaysia, a small figure in a population of 28 million”. Wealth, or, the lack of it, tends to have the same clustering effects in one group and one race.

An epilogue

One thing that Muhammed does not address at length is the extent to which the state can compel GLCs and GLICs to remunerate their workers well, or at least put a cap on the salary differentials between those at the top and the workers at the bottom.

Additionally, in the aftermath of the financial crisis and Occupy Wall Street, the honeycomb, gig, platform and sharing economy has emerged. If more people put their minds together, more bottom-up solutions – as manifested by Uber, Grab, Air BnB and other forms of electronic commerce – can and will emerge.

But are Malaysians ready for this, beyond the template of the digital free trade zone offered by Alibaba? Or will the proverbial cheese of Malaysians once again be consumed wholesale by a flood of new migrants from China, India and the rest of the world?

Come what may, Malaysians have to work together and understand the structural and systemic reforms that are needed beyond the mere creation of a few digital unicorns.

They need to empower themselves through education, especially online education, even if this involves disciplining themselves to start taking self-enrichment courses – including learning management systems such as edX or Class Central.

If anyone is in need of more inspiration, Muhammed’s book is the best place to start.

The Colour of Inequality, if not redressed, will lead to the panic of inequality, in which only the paranoid will survive. Especially because it is only another 20 years or so before Malaysia starts greying, a process that took European societies a century to experience.


PHAR KIM BENG was a multiple award-winning Head Teaching Fellow on China and Cultural Revolution in Harvard University.

The views expressed here are those of the author/contributor and do not necessarily represent the views of Malaysiakini.

Congratulations. Dr Khalid


August 24, 2018

Congratulations. Dr Khalid

PM appoints Muhammed Abdul Khalid as economic advisor

   Dr Abdul Khalid and Hwok-Aun Lee

Economist Muhammed Abdul Khalid has been appointed as the economic advisor to Prime Minister Dr Mahathir Mohamad.

This follows Muhammed’s stint as the secretariat head for the Council of Eminent Persons (CEP), which has served past its 100-day tenure.

Muhammed is best known for his talk show appearances, where he explains economic issues in simple language.

In 2014, he authored the well-received “The Colour of Inequality: Ethnicity, Class, Income and Wealth in Malaysia” which illustrated how Malaysia’s wealth gap was widening in tandem with its economic success.

He was formerly a research head at the Khazanah Research Institute, chief economist with the Securities Commission and senior analyst with the Institute of Strategic and International Studies.

He has also held positions with the United Nations Development Programme (UNDP), United Nations Children’s Fund (Unicef) and United Nations Economic and Social Commission for Asia and the Pacific (Unescap).

The Penang-born economist was awarded a PhD with highest honours from the Paris Institute of Political Studies, better known as Sciences Po, and is the founder of big data firm DM Analytics.

His appointment will take effect on August 27.

Judge Pakatan Harapan in 5 years, Dr. Rais Hussin


August 17, 2018

Judge Pakatan Harapan in 100 days, maybe too soon, but in 5 years definitely too late, Dr. Rais Hussin

Shocking  Admission

Image result for Pakatan Harapan Manifesto

 

The Pakatan Harapan Manifesto was launched in March 2018. It is now more than 100 days. How much more time do our new  Yang Berhormat Menteris and Timbalan Menteris need to read and understand their own pledges? What a shame.–Din Merican

Pakatan Harapan ministers and deputy ministers must take the time to read the coalition’s election manifesto, said Bersatu policy and strategy bureau chief Rais Hussin, who was part of the Harapan manifesto committee.

–www.malaysiakini.com

Interview with Dr. Rais Hussin, Pakatan Harapan’s Top  Spinner

by http://www.malaysiakini.com

100 DAYS | Pakatan Harapan ministers and deputy ministers must take the time to read the coalition’s election manifesto, said Bersatu policy and strategy bureau chief Rais Hussin, who was part of the Harapan manifesto committee.

“It is an observation but even ministers and deputy ministers have not read the manifesto.

“So, my first request is that the people, who are supposed to chaperone and deliver the promises, must read the manifesto,” he told Malaysiakini in an interview conducted in conjunction with Harapan’s 100 days in government.

Rais said this should also be expanded to chief secretaries and top civil servants.

“All those implementers, they also need to read this manifesto. It is important for them to read because this is the policy and main points of the Harapan administration – therefore they should be in the know,” he said.

Harapan had made 10 pledges for its first 100 days, but moving on, its longer-term promises will comprise 60 items.

However, Harapan was only able to fully fulfil two of the 10 promises within the first 100 days, namely the abolition of the Goods and Services Tax (GST), and the review of mega projects.

Rais stressed that this was not a case of promises being broken, pointing out that the ministers were hard at work to try to fulfil them, albeit with a delayed timeline.

He reiterated that Harapan’s manifesto was drafted based on public information and without details that have now become available after the coalition became the government, particularly on the debt level.

“But we believe that given some time and recalibration of our plans, all these promises can be fulfilled,” Rais said.

Instead of finding excuses to justify failing to deliver on promises, he added, he believed in looking for solutions.

Post-GE attention on manifesto ‘unprecedented’

He added that the fact that Harapan’s manifesto is being talked about on a daily basis after the 14th general election was an achievement in itself.

“In the last 13 general elections, manifestos were only discussed before a general election but not afterwards.But after the 14th general election, everyone is talking about the manifesto every day. There is a new intensity in participatory democracy… people have become more sensitive,” he said.

Rais was also asked about Prime Minister Dr Mahathir Mohamad downplaying the manifesto, such as his statement that it was “not a Bible” or that it was too “thick“.

“If someone comes and say that it is not a ‘kitab suci’ (holy scripture) and all that, I leave it up to that person. Maybe it is to build a narrative to soften the blow or pressure on the ministers.

“In managing the country, you can’t write a thin manifesto. You need a thick manifesto, especially when it covers all walks of society.

 

“What is important is that what is contained, regardless if the manifesto is thin or thick, is the deliverables. We should not focus on excuses but on how to deliver,” he said.

Rais, who had previously said on May 14 that a manifesto monitoring committee would be formed, said he did raise the subject with the government.

‘Judge us in five years’

However, he said the government decided to have the committee within the cabinet and that the committee is chaired by Mahathir himself.

“If I was the Prime Minister, I would have an external person to audit (the manifest) because there’ll be an independent perspective – you can’t audit your own work.

“But it is his wisdom to have it at the cabinet level – to show its significance,” he said.

He stressed the promises in the manifesto were not arbitrarily drafted, and had gone through a rigorous process.

He said the pledges were derived from public consultation, research firms and party consultation before being approved by the leadership of the respective parties as well as the Harapan presidential council.

“I think with the capable ministers that we have now, under the very capable stewardship of Mahathir and his Deputy Wan Azizah Wan Ismail, I think this is doable.

“If we set our mind and focus towards fulfilling the promises rather than being defensive, I think it’ll be better for us.“At the end of the day, end of the fifth year, assess us then. We should be able to fulfil most of it,” he said.

This interview was jointly conducted by NIGEL AW, NORMAN GOH and ZIKRI KAMARULZAMAN.

RELATED REPORTS

What’s the progress of Harapan’s 100-day pledges?

New M’sia, 100 days later: A look back at Harapan’s first 100 days in power

100 days under Harapan – whither the national economy?

10 promises in 100 days – monitoring Pakatan Harapan’s manifesto pledges

KJ: After 100 days, time for BN to stop harping on the manifesto

Mustafa defends Harapan ‘failure’ in fulfilling 100-day promises

 

 

Finance: Partying like it’s 1998


August 16, 2018

Partying like it’s 1998

by Paul Krugman

And now for something completely similar.

Image result for Krugman The Return of Depression Economics
Dr Paul Krugman in the United States
“How it works: stop the explosion of the debt ratio with some combination of temporary capital controls, to place a curfew on panicked capital flight, and possibly the repudiation of some foreign-currency debt. Meanwhile, get things in place for a fiscally sustainable regime once the crisis is over. If all goes well, confidence will gradually return, and you’ll eventually be able to remove the capital controls.
Malaysia did this in 1998; South Korea, with U.S. aid, effectively did something like it at the same time, by pressuring banks into maintaining their short-term credit lines.”–Dr Paul Krugman

For a while, those of us who devoted a lot of time to understanding the Asian financial crisis two decades ago were wondering whether Turkey was going to stage a re-enactment. Sure enough, that’s what seems to be happening.

Here’s the script: start with a country that, for whatever reason, became a favorite of foreign lenders, and experienced a large inflow of foreign capital over a number of years. Crucially, the debt thus incurred is denominated in foreign currency, not domestic (which is why the U.S., also a recipient of large inflows in the past, isn’t similarly vulnerable — we borrow in dollars).

Image result for jomo kwame sundaram on capital controls and bailouts

Dr. Jomo Kwame Sundaram in Malaysia

At some point, however, the party comes to an end. It doesn’t matter much what causes a “sudden stop” in foreign lending: it could be domestic events, like appointing your son-in-law to oversee economic policy, it could be a rise in U.S. interest rates, it could be a crisis in another country investors see as being similar to you.

Whatever the shock, the crucial thing is that foreign debt has made your economy vulnerable to a death spiral. Loss of confidence causes your currency to drop; this makes it harder to repay debts in foreign currency; this hurts the real economy and further reduces confidence, leading to a further decline in your currency; and so on.

The result is that foreign debt explodes as a share of GDP. Indonesia came into the ’90s financial crisis with foreign debt less than 60 percent of GDP, roughly comparable to Turkey early this year. By 1998 a plunging rupiah had sent that debt to almost 170 percent of GDP.

How does such a crisis end? If there is no effective policy response, what happens is that the currency drops and debt measured in domestic currency balloons until everyone who can go bankrupt, does. At that point the weak currency fuels an export boom, and the economy starts a recovery built around huge trade surpluses. (This may come as a surprise to Donald Trump, who appears to be levying punitive tariffs on Turkey as punishment for its weak currency.)

Is there any way to short-circuit this doom loop? Yes, but it’s tricky. What you need to reduce the costs of crisis is a combination of short-run heterodoxy and credible assurances of a longer-run return to orthodoxy.

How it works: stop the explosion of the debt ratio with some combination of temporary capital controls, to place a curfew on panicked capital flight, and possibly the repudiation of some foreign-currency debt. Meanwhile, get things in place for a fiscally sustainable regime once the crisis is over. If all goes well, confidence will gradually return, and you’ll eventually be able to remove the capital controls.

Malaysia did this in 1998; South Korea, with U.S. aid, effectively did something like it at the same time, by pressuring banks into maintaining their short-term credit lines. A decade later, Iceland did very well with a combination of capital controls and debt repudiation (strictly speaking, refusing to take public responsibility for the debts run up by private bankers).

Argentina also did quite well with heterodox policies in 2002 and for a few years after, effectively repudiating 2/3 of its debt. But the Kirchner regime didn’t know when to stop and turn orthodox again, setting the stage for the country’s return to crisis.

And maybe that example shows how hard dealing with this kind of crisis is. You need a government that is both flexible and responsible, not to mention technically competent enough to implement special measures and honest enough to carry out that implementation without massive corruption.

That, unfortunately, doesn’t sound like Erdogan’s Turkey. Of course, it doesn’t sound like Trump’s America, either. So it’s a good thing our debts are in dollars.

A Hundred Days of Prevarication


August 15, 2018

A Hundred Days of Prevarication

Press statement by Kua Kia Soong, SUARAM Adviser

Image result for kua kia soong

The GE-14 election defeat of the BN which had ruled the country since 1957 was testimony to the determination of the Malaysian people and civil society who had opposed BN rule for decades. Sixty-one years of BN domination had included 22 years with Prime Minister Mahathir at the helm. The Malaysian people chose to cast their votes for the PH coalition because PH had promised in their GE14 manifesto to implement wide ranging reforms that made them seem radically different from the governance experienced under the BN.

In the first 100 days of the new PH government, we find that their report card scores around 20% based on their own promises alone. The flip flopping over the abolition of BTN and National Service shows the importance of civil society to voice our opposition to such bitterly toxic and noxious institutions in the country. Nor do their promises consider the more urgent comprehensive list of reforms that civil society has long argued is of higher priority. On top of all that, we have witnessed a disturbing trend of autocratic decision making and policies symptomatic of the old Mahathir 1.0 era.

Sacrifices at the altar of the trillion-ringgit debt mountain

The convenient opt out clause for the new government is to pile much of the blame on the previous administration including the accusation of them of having run up a debt of RM1 trillion, or 80% of our GDP and apparently stealing RM19 billion of GST refunds. That blame frame then provides the new government with an emotional basis for gaining sympathy by starting a ‘Tabung Harapan’ and appealing for donations. While the way in which this fund will be used remains unclear, it is probably the only fund in the world set up with the apparent aim of trying to plug a country’s debt hole. It is telling that while a little boy has contributed his piggy bank to the fund, the two richest men in the country who happen to sit in the “Council of Eminent Advisors” have not made a comparable sacrifice to the fund.

Image result for Mahathir wins

As for the actual size of the national debt, there is dispute between economists depending on whether we include government guarantees and lease payments under public-private partnerships. The size of Malaysia’s government debt in international statistics for 2017 is actually 64% of GDP, compared to China’s 65%, Singapore’s 110%, US’ 108% and Japan’s 236%. Clearly, what is at stake is the country’s economic fundamentals, which the new Finance Minister assures us are still strong. It also depends on how the debt is financed since relying on overseas borrowing can carry higher risks. It also depends on the country’s prospects for economic growth. Japan has one of the largest public sector debts in the world but it also has a large pool of domestic savings on which to draw.

Nonetheless, this mythical “trillion-ringgit debt mountain” has become an altar on which promises made by PH in the GE14 manifesto are sacrificed – local government elections, new approved Chinese schools, minimum wage, abolishing highway tolls and postponing PTPTN loans. This is definitely not acceptable as an excuse for putting off these urgent election promises since PH had assured us that they could manage the economy once they had ousted BN.

But then the much-trumpeted review of all mega projects so as to reprioritise and reduce the debt mountain is not consistent with the approval of the Penang Transport Master Plan nor with the recently announced Proton 2.0 project by the PM. The Infrastructure Development Minister Peter Anthony has also announced that a dam costing RM2 billion will be built at Kampung Bisuang in Papar when Parti Warisan Sabah had promised to scrap the Kaiduan Dam project.

Back to privatising national assets and Proton 2.0

So far, the new PH government has not spelled out their fundamental difference in economic policy from the old BN regime. What we have heard so far is the alarming news of the return of the old discredited Mahathirist policies, namely, privatisation of our national assets in the name of Bumiputeraism and the revival of the national car, Proton 2.0.

Image result for khazanah and its stable of top flight companies

 

The PM has said that the sovereign wealth fund, Khazanah will be privatised for the benefit of Bumiputeras. Malaysians need to be reminded that during the financial crisis of 1997/98, it was Khazanah that had stepped in to take over the assets of the failed companies owned by the Bumiputra crony capitalists in Renong, MAS and TRI. After taking over the assets, Khazanah revamped these GLCs with professional managers and better rules of governance. Khazanah currently owns 51% of PLUS Expressways, with the EPF owning the other 49%. By end 2017, the net worth of companies under Khazanah was RM125.6bil. Thus, Khazanah is successfully achieving its purpose of creating a sovereign wealth fund for the benefit of ALL Malaysians. Its expressed purpose never has been to be privatised to Bumiputera crony capitalists.

Mahathir’s privatization drive during his first term (1981-2003) was a boon for private crony capital, especially those linked to UMNO. Malaysian tax payers were the losers since these erstwhile profitable public utilities were sold for a song to the private capitalists and we became captive to UMNO-linked monopolies, such as the North-South Highway operator. Furthermore, these failed crony capitalists had to be bailed out with our money during the financial crisis of 1997/98.

During these 100 days, the Prime Minister has also announced the revival of yet another national car, or Proton 2.0. After the fiasco of Proton 1.0 and the huge cost to Malaysian taxpayers, our public transport system and Malaysian consumers, it is unbelievable that such a failed enterprise could be supported by a PH leadership full of former critics of the first Proton project. Another national car project will surely fail with further losses to the national coffers and we will have to underwrite the losses. The PH government won’t have 1MDB to blame for that anymore. We should further note that one of Mahathir’s former crony capitalists, Syed Mokhtar Al-Bukhary, owns a majority 50.1% in Proton Holdings through DRB-Hicom. This hare-brained idea to start another national car project reminds me of what somebody said about politicians: “Politicians are people who, when they see light at the end of the tunnel, go out and buy some more tunnels…”

Back to Mahathirist autocracy

It is truly alarming that no Cabinet member nor “eminent person” in the CEF has voiced any objections to Mahathir’s proposed plans to privatise Khazanah and to start another national car. They will have to bear collective responsibility for the consequences in the event of its failure. We are witnessing the same “silence of the lambs” culture for which the DAP used to criticise the BN leaders under Mahathir 1.0 with the new ministers saying “We’ll leave it to the prime minister” and “I’ll discuss this with the prime minister to let him decide”, ad nauseum.

The PH manifesto prohibits the PM from also taking over the Finance portfolio but Dr Mahathir has in the 100 days taken over the choicest companies, namely Khazanah, PNB & Petronas under his PMO. It is the return to the old Mahathirist autocracy. Was the Cabinet consulted in the decision to start Proton 2, privatise Khazanah, Malaysia Incorporated and the revival of the failed F1 circuit?

Image result for Economics Minister Azmin Ali and Mahathir Mohamad

 

The appointment of Prime Minister Dr Mahathir Mohamad and Economic Affairs Minister Azmin Ali to the board of Khazanah Nasional Berhad also goes against the PH manifesto promise of keeping politicians out of publicly-funded investments since it leads to poor accountability. Only by insisting on boards being comprised of professionals and on rigorous parliamentary checks and balances for bodies such as Khazanah can we ensure a high level of transparency and accountability. Mahathir’s response to this criticism was the old feudal justification: “I started Khazanah so why can’t I be in it?” In other words, “Stuff your high ideals and democratic principles!”

We will have to wait for Lim Guan Eng’s memoirs in the future to see how he responded to Mahathir leaving him out of Khazanah. Did the PM even discuss this with him? After all, Khazanah is still under MoF Inc. If the finance minister is left out of the Khazanah board, how will he be privy to what the Khazanah board is doing? No doubt Mahathir knew that having given the DAP Secretary-General the Finance Minister post, he could get away with anything…

Consistency in the war on kleptocracy

The new PH government had pledged to wipe out kleptocracy and this promise was key to the victory at GE14. They have disappointed the people of Malaysia and especially Sarawakians who have seen the wealth of their state sucked dry by the rapacious greed of the kleptocrats there. The PH government has not yet acted to make the former Chief Minister Taib Mahmud declare all his assets and those of his spouse and family’s. The PH Government has shown us that where there is a political will in getting to the root of the 1MDB scandal, there is a way to get rid Malaysia of corruption and crony capitalism. However, by letting off his long-time ally in Sarawak, Taib Mahmud, arguably the richest man in Malaysia, the Prime Minister makes his campaign against the former PM Najib look like a personal vendetta. The Prime Minister has also failed to lead by example and declare his assets and those of his spouse and children’s.

Conflict of interest having corporate heads in Councils

Image result for council of eminent person

The Constitutional status of the appointed ‘Council of Eminent Persons’ has already been called into question especially when the Chairman of the Council, Daim Zainuddin is in a position in which he is able to call up judges and even represent the Government in negotiating with the Chinese Government over their investments in Malaysia. Now it has been reported that the Perak government has established the State Economic Advisory Council (SEAC) with corporate heads of MK Land Bhd, KL Kepong Bhd and Gamuda Bhd as “eminent advisors”.

There is gross conflict of interest with such arrangements when these corporate leaders still have interests in the local and international corporate scene. It is well known that Daim Zainuddin has corporate and banking interests all over the world. His business interests extend beyond banking to other key sectors of the country’s economy such as plantations, manufacturing, retailing, property development and construction.

Delaying urgent reforms is unacceptable

Using the excuse of the government debt to delay local government elections which have been suspended in our country since 1965 is not acceptable. It is a simple matter of abolishing a provision under the Local Government Act 1976 and reviving the Local Government Election Act in order to introduce local government elections. If the PH government is prepared to see billions going down the drain with the revived Proton 2.0 project, don’t tell us there is no money for running local council elections please.

It is equally absurd to tell Malaysian Independent Chinese Secondary School graduates that their UEC certificate can only be recognised in five years’ time. The UEC certificate went unrecognised by the BN for 61 years even though it has internationally proven its efficacy with thousands of graduates since 1975. This is a serious breach of promise in the PH GE14 manifesto since more than 80 per cent of Chinese voters voted for PH because of this promised reform. The only steadfast decision made by the Education Minister so far is the decision that students will have to wear black shoes instead of white ones.

Many lawyers have pointed out that the repeal or review of our laws that violate basic human rights can be expeditiously accomplished within the first 100 days of the new PH government. These include abolishing laws that allow detention without trial, namely, the Security Offences (Special Measures) Act 2012 (Sosma), Prevention of Crime Act 1959 (Poca), and the Prevention of Terrorism Act (Pota) 2015.

It is alarming to hear the Law Minister Datuk Liew Vui Keong say recently that the PH government is now reconsidering its initial pledge to abolish several contentious laws including, the Sedition Act 1948, Prevention of Crime Act (Poca) 1959, Universities and University Colleges Act 1971, Printing Presses and Publications (PPPA) Act 1984 and the National Security Council (NSC) Act 2016. This is totally unethical backtracking on the PH GE14 manifesto.

The death penalty is a violation of human rights and must be abolished. Meanwhile, there ought to have been an immediate moratorium on all executions pending abolition and commuting the sentences of all persons currently on death row. The implementation of the Independent Police Complaints & Misconduct Commission (IPCMC) and other recommendations of the Royal Police Commission in 2005 is long overdue to ensure transparency and accountability by the police and other enforcement agencies such as the MACC.

During the 100 days under the PH government, we have witnessed the Sedition Act and the CMA still being used against activists and prevarication on the issue of child marriages. We have also seen the rule of law being flouted when a Minister in the PM’s Department can order the removal of portraits of LGBTQ Malaysians from an exhibition in Penang. Just as alarming is the statement by another Minister that cyanide used by gold miners in Bukit Koman is perfectly safe and non-hazardous to people or the environment.

Reneging on manifesto promises

Image result for pakatan harapan manifesto

From the failure by the PH government to fulfil their election promises in the 100 days, it is clear that the GE14 manifesto was drafted in a slipshod manner in order to secure populist votes. These include the promises to abolish toll from the highways within the stipulated time promised; no firm position regarding the PTPTN loan repayments; wavering on the promise to pay a 20 per cent instead of 5 per cent royalty to oil producing states based on revenue from gross production; the deduction of a percentage from a husband’s EPF contributions to go into the accounts of his wife, etc. PH has so far implemented less than half of their election promises. Will the PM apologise for reneging on these election promises?

Real reforms we expect in “new” Malaysia

Within the first year of the PH administration, Malaysians expect serious transformational reforms that will reconstitute truly democratic institutions and improve the lives of the 99 per cent and especially the B40 Malaysians. Of the highest priority, we expect urgent initiatives to implement the 8 key reforms including:

1. An end to race-based parties and policies especially replacing race-based policies with needs-based measures that truly benefit the lower-income and marginalized sectors and basing recruitment and promotion in the civil and armed services strictly on merit;

2. Re-instatement of our democratic institutions including bringing back elected local councils and enacting a Freedom of Information (FoI) Act at federal and state levels;

3. Zero tolerance for corruption and political leaders who have been charged with corruption must step down while their case is pending in the courts;

4. A progressive economic policy that will renationalize privatised assets, especially land, water, energy, which belong to the Malaysian people instead of local and foreign capitalists, opening up GLCs to democratic control of the people and directing them to implement good labour and environmental policies;

5. Redistribute wealth fairly through progressive taxation on the high-income earners, their wealth and property and effective tax laws to ensure there are no tax loopholes for the super-rich;

6. A far-sighted and fair education policy with equal opportunities for all without any racial discrimination with regard to enrolment into all schools including tertiary educational institutions;

7. Defend workers’ rights and interests especially their right to unionise and a progressive guaranteed living wage for all workers, including foreign workers;

8. People-centred and caring social policies including an effective low-cost public housing programme for rental or ownership throughout the country for the poor and marginalized communities;

9. Prioritise Orang Asal rights and livelihood by recognizing their rights over the land they have been occupying for centuries, prohibiting logging in Orang Asal land and ensuring all Orang Asal villages have adequate social facilities and services;

10. Sustainable development & environmental protection by allowing all local people to be consulted before any development projects and all permanent forest and wildlife reserves are gazetted.

The lesson of the first 100 days of the PH administration teaches us that, as always, civil society must be ever vigilant to push for these reforms because the government of the day will drag its feet and renege on these election promises when they have the opportunity.

 

Image may contain: 8 people, people smiling

Dr Kua Kia Soong hits out at PH ‘flip-flops’ ahead of 100-day milestone


August 15, 2018

Dr Kua Kia Soong hits out at PH ‘flip-flops’ ahead of 100-day milestone

Suaram Adviser Kua Kia Soong also says Putrajaya appears more interested in playing the blame game than getting down to business.

Image result for dr kua kia soong

Dr Kua Kia Soong, prominent activist,former Isa detainee, and prolific analyst, today accused the Pakatan Harapan (PH) government of flip-flopping on a number of issues, just days before the administration led by Dr Mahathir Mohamad marks its first 100 days in power.

Giving the example of the Unified Examination Certificate (UEC), Kua Kia Soong asked why it would take five years to recognise it when PH had stated in its manifesto that it was ready to accept it. He said other issues included the oil royalty promised to East Malaysia and the abolition of highway tolls.

Image result for Dr. Mahathir

In July, Mahathir announced in Parliament that Putrajaya would honour its promise to provide 20% royalty to petroleum-producing states. But he later clarified the statement, saying the 20% payment would be based on profit instead of royalty.

The Suaram Adviser said it was also unacceptable that local elections could only be held after three years. “Delaying reforms in unacceptable. A really important reform we want to see concerns the redistribution of wealth,” he added.

Dr. Kua was speaking at Suaram’s presentation of its report card for PH’s first 100 days in government.He said following the election, Putrajaya seemed more interested in playing the blame game than getting down to business.

“We read news of the missing goods and services tax (GST) money, yet there has been no movement. Have the Police or Attorney-General acted on it? We should be told what happened to the money within a week,” he said.

He also took issue with Tabung Harapan Malaysia, a fund established to help settle the country’s RM1 trillion debt, saying he could not accept “sob stories” related to the initiative.

Image result for Malaysian Economy

 

“It’s about the management of the economy to plug the leaks, not the piggy banks of little boys,” he said, referring to the story of a youth who donated his savings to the fund.

As for the government’s war on kleptocracy, Kua asked why authorities had yet to zoom in on former Sarawak chief minister Taib Mahmud, who was accused of corruption in the past.

“And why haven’t Mahathir and his children declared their assets?”