Wherefore art thou, Shadow Budget?

Talk is cheap , Critisise is easy ,

By Aizuddin Danian

I think perhaps my biggest, most severe criticism of PR is that they've played a largely deconstructionist role in federal affairs and done very little of the opposite. While it's fine and good to tell us how the Government is getting things wrong, it can get pretty hollow after a while without telling us how PR would do things differently as the Government.

Demolishing a house is just a matter of swinging a wrecking ball hard and fast enough. Building a house is a whole different ball-game altogether.

Well, today would be a perfect day to prove me wrong. PM Najib is set to release the budget for next year at 4pm today. Widely billed as the "election budget" it's certainly going to contain some goodies for the people, and also elaborate on what the Government will be doing in order to tackle critical issues such as the budget deficit and policies to bring in more foreign direct investment (FDI). The hardest thing i think think the budget will have to deal with is how the Government's coffers are at the thinnest levels we've seen in years, and still dig up enough money to ensure that we can push through the (expensive) reforms and ideas for the next few years.

Regardless of whom is in power, this is going to be the question that will need an answer.

PR hawks will argue that if PR was in power, this would never have happened in the first place. That's a false argument; that's like saying, if the gun was never invented, Aminulrasyid would never have been shot. The fact of the matter is that the nation's finances are in the state that they are -- what are you going to do, in exact details, about it?

Motherhood statements that we find in PR's Common Policy Framework will not cut the mustard in something as important as a national budget. Let's "remove corruption", or "eradicate cronyism" or "open tender" are just buzzwords that mean nothing when you're dealing with actual accounts with actual ringgit in them. They are fine as principals guiding policies, but they aren't policies in and of themselves. That's the problem.

PR fanboys will say, "BN has had 50 years in power", it's time to kick them out and give someone else a chance. Or, as bad as PR might be, they can't be as bad as BN has been. Whatever the fanboys will say, it doesn't remove the fact that unless PR tells us exactly what they would do when we give them power, we will have to logically deduce that they just don't know any better. To a discerning voter with a critical and rational mind (i know, we might be the minority but our vote counts just as much as the next guy), i can promise you that this is just not good enough.

The last time i brought up the issue of the shadow cabinet, i think many said that (a) PR doesn't have the resources to support a shadow cabinet (in fact, Tony Pua said this exact same thing) and (b) when the time comes closer to the next GE, then PR will tell us what they plan to do. Well, on (a), fine PR doesn't have enough resources to support a shadow cabinet, but surely it has enough resources to respond constructively in key issues such as the national budget -- if you don't have the resources to offer a shadow to all of the Government's policies, at least you should provide a shadow budget. Arguably, there is no bigger annual policy for the nation.

Read more at: http://www.aizuddindanian.com/voi/2010/10/wherefore-art-thou-shadow-budg.html

If not for "monstrous hijack", 30% Malay-Bumi quota already met

If not for "monstrous hijack", 30% Malay-Bumi quota already met

Malaysia Chronicle

As Umno and MCA continue to wrangle over the country’s economic pie, Pakatan Rakyat leaders have ramped up calls for a Royal Commission of Inquiry to probe if it was true that if not for a “monstrous hijack”, the 30 percent Malay and Bumiputera target would have already been met.

“The real problems for Malaysia are not BN's claims of race or religion but deep-seated corruption, inefficiency, abuse of power, mediocrity and lack of rule of law,” DAP secretary-general Lim Guan Eng said in a statement.

“If the RM52 billion worth of Bumiputera shares still remained in Bumi hands, then the 30 percent Bumi/Malay equity target under the NEP would have long been achieved.”

No need for heated polemics, just do it

Lim was referring to shares allocated to Malays and Bumiputera worth a whopping RM54 billion since the New Economic Policy was launched in 1971. Prime Minister Najib Razak said in June last year that of this amount, only RM2 billion still remained in Malay hands.

“Clearly the RM52 billion worth of shares given to the few Malay and Bumiputera leaders was cashed out and sold off. Stern action and the full force of the law should be unleashed at this open sabotage of the NEP,” Guan Eng said.

PKR Youth chief Shamsul Iskandar Akin said the best way for Umno and MCA to prove to the people that it was not hiding any misdeeds was by agreeing to hold an independent full-scale RCI.

"We have to stand by principles of honesty and zero-tolerance for corruption. It is no point launching into heated polemics and boring everyone in the country to death because they know from the past, it will just be sandiwara. If Najib is sincere, call for a Royal Commission of Inquiry," Shamsul told Malaysia Chronicle.

Protecting cronies

Indeed, the NEP was introduced in 1971 to eradicate poverty regardless of ethnicity. But due to decades of Umno political dominance, the policy has been turned into a symbol of Malay rights and special position to help the party camouflage the gross corruption amongst its top leaders.

Covers for graft, again in the name of Malay supremacy, have also been added to the policy through the years, mostly during the rule of former premier Mahathir Mohamad from 1981 to 2003.

“BN's refusal to take action against these NEP saboteurs and that they return the RM52 billion is an immoral act designed to protect their own cronies who have profited shamelessly from a policy that is supposed to assist the poor Malays and Bumiputera," Guan Eng said.

Calling a spade a spade

At at a recent economic congress, Najib’s brother Nazir, the CIMB CEO, openly described the NEP as having been "bastardized" into its current corrupt form. Najib has tried without much success to replace the NEP with the New Economic Model that strives to distribute economic wealth on a needs-basis - much like the Pakatan's own platform.

As expected, Nazir's comments sparked a furore from Malay rights groups such as the Mahathir-patronized Perkasa and Deputy Prime Minister Muhyiddin Yassin, who rushed to issue stinging warnings to the Chinese not to encroach on Malay rights. But their emotional rhetoric failed to impress.

“So long as the BN government refuses to demand full accountability and action over the ‘lost’ RM52 billion in bumi shares, they are using the NEP to divide and rule by playing racial antagonism against Malaysians,” said Guan Eng.

DPM warns MCA on Bumi equity

Mon, 16 Aug 2010 21:33

By Patrick Lee

KUALA LUMPUR: Deputy Prime Minister Muhyiddin Yassin today criticised MCA president Dr Chua Soi Lek for questioning the 30% Bumiputera corporate equity.

“In the Barisan Nasional, we all have the same stand when it comes to issues about racial interests. This is not a new concept,” Muhyiddin said.

“If MCA wants to fight for the interests of the Chinese, then it should not go against the interests of the Malays. That is only fair,” he said after attending a function at a mosque here.

He was commenting on the 13 resolutions passed at Chinese Economic Congress on Saturday, which call for the gradual removal of the Bumiputera equity, as well as the participation of non-Malays in government-linked companies.

The congress, organised by the MCA, said that these bold reforms were needed to liberalise the economy further.

Chua today reiterated that his party will push hard for the implementation of the 13 resolutions passed at the congress.

However, he came under criticism from Muhyiddin for failing to recognise the plight of the Malays/Bumiputera.

“The 30% target that was set by the New Economic Policy (for the Malays) has not yet been achieved,” Muhyiddin said.

“This (30%) is not a very big number, considering that the Chinese already command more than 40% of the country's resources,” he said. “(In comparison), the Malays only command 18% or 20%”.

He added: “We must understand that in order to uplift the Malays (Bumiputera), we will have to continue with the New Economy Policy until the 30% threshold is achieved.”

“If the Chinese share was reduced from 40% to 20% after it was taken by the Bumiputeras, then I would understand,” he said, adding that while the Chinese have progressed, the Malays did not.

“How can the Malays be expected to rise (economically) if they're looked at from such a narrow point of view?”

“Chua should know that the Malays are not developed yet,” Muhyiddin said, adding that the MCA president should not create anger, especially when talking about the sensitivities of a certain race.

“Whatever MCA does, it has to remember that it still is a component party of the BN. We have principles that we have to stand by,” Muhyiddin added.

“I don't believe the MCA would want to sacrifice the friendship and the cooperation that it gained within BN.”

He also reminded everyone not to play up racial issues, saying that people should not forget the 1969 riots which had caused much suffering.

Insider's trading

Insider's trading

Here are two economic articles of Pakatan spinning , lying , bluffing and pulling wool over one's eyes from rocky's bru .

Read it and decide for yourself . No wonder we are losing FDIs to other countries .

Sime Darby's RM1 B tab, Malaysian Insider's blunder and Pakatan Rakyat's blooper. An early morning Malaysian Insider report that Sime Darby would suffer its biggest-ever loss (of RM 2.5 billion) has punched a RM1 billion hole in Sime's market capitalisation, as outraged Pakatan politicians blindly bayed for blood (read here).

The MI report would have a good April fool pun, but April's long gone. Sime Darby's infamous 'on the ball' board fiddled while shareholders were being burned throughout the day. Sime could have sought a suspension from the market regulator but, instead, it stood still and watched the carnage.

Sime Darby did, eventually and after the market had closed, issue a statement that it would be posting a profit and NOT a loss as reported by the MI. But by then these bloopers had caused RM1 billion of Sime's capitalisation to be wiped out in just one day. It also allowed some very rich people, who scooped up the shares on the cheap yesterday, to become richer.

FDI: When big is not always better

"A STIR of sorts has been caused by the story that foreign direct investment (FDI) into the country for 2009 fell 81% to US$1.4bil from US$7.3bil. But really it should not. If we want higher value-added, then labour-intensive industries are not our target. This is the area which many foreign investors like because they can get tremendous cost savings by using cheap labour in places like China, Vietnam etc.If greater value-added is what we are after athen increasingly more investments have to be made in the services area – think tourism or education for instance. That does not necessarily need foreign investment – we can use local money ...." 10 ways of doing without FDI by P. Gunasegaran, The Star, 1 Aug 10

Before you decide to migrate to Vietnam, the Philippines or Indonesia because they have bigger FDIs than us, please read Guna's piece.

It's an easy-to-understand article as to why we should not be too excited about their bigger size. Tony Pua would have been spot on if this had happened 10 years ago. But we have passed that early stage of development, believe it or not. We are not in the same class as Vietnam, Indonesia and the Philippines. Low value-added and labour-intensive investments go to them. We've said we wanted the high-value added, high-wage, and hi-tech investments.

Pua tells Nazir to study report on FDI

Harakahdaily

PETALING JAYA, July 27: DAP economist Tony Pua has responded to CIMB chief Nazir Razak's claim that the plunge in foreign investment was not necessarily negative, saying Nazir should look into details provided by the UN's Foreign Investment Report (WIR) 2010 before giving his judgement on the country’s performance. “Nazir should study this chart; (it) tells you that net negative investment flow is not 1-time-off but a clear-cut trend,” said Pua in a message on Twitter. He was responding to media report quoting the top banker as saying it was not necessarily a bad thing to have lower net investment flow for the country, and urged that the 2009 plunge in Malaysia’s foreign direct investment be studied carefully before jumping to conclusions. Nazir’s optimism was not shared by Pua, who said the data clearly showed that the trend of both local and foreign investors existing Malaysia for overseas was unmistakable as the country had been suffering from a steady outflow of FDI over the past decade based on the chart. Pua, however, said Nazir was probably only responding to a question. “To be fair, Nazir probably didn't see the full data. Bernama just asks him off the cuff,” wrote Pua, who is also the Petaling Jaya Utara member of parliament. Referring to the chart, Pua pointed out that not only foreign investors had been unwilling to invest in Malaysia, both local investors and foreign investors have a total lack of confidence in the ability of the country's economy to generate an attractive return for their investments. Well , blame it on the continuous politicking across the divide , with the Opposition continually raising all sorts of ridiculous issues in Parliament and turning the institution into a Circus . With the Perak Royal Circus and the dramatic monkey shows ! Every single issue has been politicised and neglecting in the real issues affecting the government . They have been elected to govern , instead they are following the Taiwan parliament with no holds barred . And with the Penang Cheap Minister deemed as arrogant and still thinking he is Mr Opposition , first with his PKR colleagues and now with his SDO . Then we have the Mamakutty and the Perkasa Idiot on the racist chants every now and then . When people in power trying to reverse , go stan on every policy made by the PM , like the 30% Malay equities holding in all new companies . And with the issue about Singaporeans investing in Iskandar , Johore by the Mamakutty fella . Which investor , foreign or local would want to invest when they can make more Returns of Investment in other emerging markets like Cambodia and Vietnam where there are less communal , racial discrimination . And in particular China the largest market in the world , today . This contributed to a decline in FDI from US$2.56 billion in 2004 and US$1.09 billion (2005), to a net negative US$0.02 billion (2006), negative US$2.7 billion (2007) and negative US$7.67 billion in 2008. “The figures show clearly that there is money to be invested, they are just not investing in Malaysia. The investors now see improved and better opportunities in the region and abroad even during the times of crisis,” he said. Pua also warned that if there were no necessary and critical changes to the Government's economic policies, the economy would continue to drift and shunned by local and foreign investors, while neighbouring countries would steadily improve their economies beyond the nation’s reach.