tag:blogger.com,1999:blog-44660669042918527652024-02-20T09:42:52.221-08:00MalaysianaireA collection of ramblings on Malaysian economic and political landscape.malaysianairehttp://www.blogger.com/profile/14296726517465801616noreply@blogger.comBlogger36125tag:blogger.com,1999:blog-4466066904291852765.post-88995264856439391332011-03-07T01:23:00.000-08:002011-03-07T01:24:28.716-08:00PIE....Pie.<br /><br />For all this talk about getting Malaysia to becoming a developed nation status in less than 10 years from now; in wanting to double our incomes when that day arrives, our leaders still display neither the discipline nor the confidence in making that economic leap. The Government still behaves like a lazy parent who tells one child to take a step back so that another can catch up. Instead of instilling confidence and telling all Malaysians that we have a great opportunity to collectively enlarge our economic pie, the ruling party allowed interest groups to pollute our minds that one group is after another group's slice of pie. <br /><br />Those who believes that expansion of the pie is more important than deciding who gets which slice, advocates meritocracy and free competition within the economy. Rightfully, if the pie gets much larger, in the end, everyone wins. This group does not want to waste time arguing who deserves which piece. Like parents who believes in extracting their children's maximum potential, they understand that the weaker child must be accorded extra help, of course, but not at the expense of his other siblings and certainly on the premise that the child has to work even harder, since eventually he has to stand on his own two feet alongside his siblings when they enter adulthood. That by allowing all Malaysians to participate freely in all its economic activities, and in fair competition with each other, it unleashes a force that pushes this blessed nation to achieve its fullest potential. Conversely, by limiting competition, or erecting artificial barriers to protect certain privileged individuals, this will at worse, doomed Malaysia to stagnation and at best growth way below its true potential.<br /><br />On the other hand, there is another group who purportedly supports positive economic discrimination, when in reality they are actually protecting their own piece of the pie. Noble national goals such as the NEP which aims to eradicates poverty amongst all the poor, are manipulated and twisted till it veers far away from its original objective and ended up being used as a shield to enrich a small coterie of politically-connected "masters of the universe". This latter group has little confidence in nor do they work towards growing this pie. It is easier just to demand their slice of the pie come what may, and if the pie shrinks, then they are entitled to a larger slice. They get the choicest cut, while leaving crumbs for those whom they are supposed to fight for. They rather put all their efforts into preserving their portion of the economic pie at all costs - even when the policies they stubbornly perpetuate cause this economic pie to grow much slower, as other nation's pie gets larger and larger.<br /><br />In the end, the government's economic transformation programme will not take off, if we fail to transform the minds of those who still insist that one group's gain necessarily mean the loss of another's - that our economy is a zero-sum game. It did not have to be this way. Instead of fighting over who gets which slice of the pie, we should be working together to expand it. For too many years these narrow-minded politicians caused us to stand still holding our "prized" piece of pie, casting suspicious eyes over other fellow Malaysians, afraid that they will snatch ours away, while other nations has whizzed us by. They divert our attention away from the global arena where the real economic battles are being waged, to concocted local strives which we are led to believe it exists. No more Malaysians, let us not be duped any longer that my gain is necessarily your loss. It is time for Malaysians to drive out those that seeks to divide us in order to protect their slice - and choose leaders who work towards building a larger pie for all of us. <br /><br />We all deserve a much bigger pie.malaysianairehttp://www.blogger.com/profile/14296726517465801616noreply@blogger.com1tag:blogger.com,1999:blog-4466066904291852765.post-34983564897550402362010-10-29T20:16:00.000-07:002010-10-29T20:20:23.268-07:00A Boros Government!It really shocked me that in the midst of a record government deficit, our Tourism Minister has nearly exceeded her travel costs for 2010 when compared to 2009, "Yen Yen's travel bills hit RM3.25mil, The Star, 29th Oct 2010".<br /><br />For a government that is seeking austerity measures - reduction of fuel and food subsidies, increase of service charges, plans to impose GST - a burden that it is asking the rakyat to bear, it is displaying a cavalier attitude when it comes to tightening its own belt. <br /><br />Ng Yen Yen is said to have travelled to 26 countries and 61 cities since 2009, and her efforts paid off as shown by the increasing numbers of tourists to Malaysia despite a global slowdown in the tourism industry. Furthermore, the Tourism Ministry stated that due to our Minister criss-crossing the world, we have been elevated to top 10 "most popularly visited countries". <br /><br />First of all, to directly attribute the increased tourist numbers to Ng Yen Yen's travels is on shaky grounds. Can the Ministry show a significant increase in the tourist numbers from the 26 countries that she visited? While the Ministry is trumpeting the single digit increase in tourist, our neighbour down south reported double digits. I wonder how many trips did her Singapore counterpart went to achieve these numbers?<br /><br />An astute online commentator righty pointed out that we do not make travel plans based on what a Minister recommends. We look at the costs, the unique features of the country, the culture, the sights and sounds, etc. Singapore saw a surge in visitors due to their integrated resorts for 2010. It was a "wow" factor that drew in record travellers. Without a "wow" factor, regardless of how many travels our Minister makes, no one is going to be easily convinced to choose Malaysia over another destination.<br /><br />This is a government that seemed to know the price of everything but the value of nothing. Isn't there a more cost-effective way to promote Malaysia? In her first class "budget" travel paid for by the rakyat, how many people did Ng Yen Yen managed to meet and talk about the unique characteristics of Malaysia? Seeing that she is travelling as a VIP, how many ordinary people did she actually talked to? Based on her travel reports, it seemed she was in effect promoting more of the countries she visited rather than Malaysia. <br /><br />And meanwhile, we lost the opportunity to take advantage of the World Expo in Shanghai to "sell" Malaysia. Glaringly, it was pointed out that there was bad spelling mistakes in our brochures, unmanned booths, leaking roof, etc. And yet our Tourism Minister's response is well, there was hardly any. How much time did she focus on making sure our Malaysian Pavilion stands out amongst the hundreds vying for attention? Ng Yen Yen could have done no better that to have spent her days stationed at the Expo, where visitors have already topped 70 million. 70 million! Here is the most desirable target audience, travellers who have come from all around the world with substantial budgets, and who are no doubt avid tourists. She could have saved the country money simply by serving teh tarik to the Expo visitors, making sure the queue is orderly to maximise the number of visitors, and handing out brochures or travel coupons! 70m travellers in one single location...RM3.25m divided by 70m - that is just 5 cents per hit!<br /><br />My suggestion to our Minister - save the rakyat money - visit our local sites for a change...there is much more to do within Malaysia than without!malaysianairehttp://www.blogger.com/profile/14296726517465801616noreply@blogger.com0tag:blogger.com,1999:blog-4466066904291852765.post-71237665569614785752010-05-26T22:28:00.000-07:002010-05-27T02:59:08.727-07:00People First, Really? Subsidies in MalaysiaSubsidies distort the allocation of resource. Sure. It artificially depresses prices below market level and hence consumption is artificially boosted.<br />The Malaysian government is now educating the people on the perils of subsidies on the nation's purse strings. No arguments about that - subsidies which eats up more than 15% of the country's federal government spending and that which continues to grow is not sustainable.<br /><br />But wait a minute here - before the government preaches prudence and wise spending, it ought to examine its head on the way it is squandering billions of potential revenue as well as its insistence on subsidizing certain privileged quarters. Before asking the people to pay for what it is worth, it better look at why it is looking the other way when there is clear gross mismanagement and theft of the nation's federal funds.<br /><br />Let's talk about the biggest "artificial" burden on the working population - price of cars. The price of cars in Malaysia is a big joke - high excise duties causes prices to be several times that of developed countries so that Proton can hide behind the protectionist walls. Every ringgit earned by Proton is simply a transfer from the people's pocket to the GLC's bank balance. Coupled with the free money printing presses in the form of AP's, the government foregoes hundreds of millions potential revenue so that a small group of politically-connected simply sit on their behinds trading a piece of paper for tens of thousands.<br /><br />And where is all the talk about open tenders? It does not take a genius to figure out that open competition for scarce resources will bid prices up. The federal government, still saw fit to build another convention centre, apparently so that the people who can no longer afford petrol or sugar can congregate there to discuss their plight, by exchanging a piece of prime land without calling for an open tender. And the contractor who got the project happens to be the biggest beneficiary of the AP system. Why not extract full value of the land by calling for open bids? With more established and bigger property players around, why deprive them of the opportunity to bid while depriving the nation of potentially much higher premium for the land?<br /><br />Do you remember the RM40 screwdrivers? Computers that costs several times that of the market price? Pens so expensive because it can write on its own? Building contracts that overshoot the initial budgets by hundreds of millions? Toll operators that enjoy guaranteed profits by raising the toll prices every now and then? Why on earth must the people, all 30 million of us, have to give up subsidies on essential items on petrol, sugar and rice while we are being rob by unscrupulous robbers who are never caught and who continues to enjoy easy wealth?<br /><br />And recently a sports betting license was given out - another potentially hundreds of millions of revenue forgone because no competitive bidding was called for what is a guaranteed money making gold mine. <br /><br />All this talk about People First is a farce. We taxpayers are asked to tighten our belts, but our hard earned tax dollars are not spend prudently. Why oh why the government find it so difficult to remove subsidies, whether direct on indirect on these few individuals/companies and continues to allow profligacy to be rewarded and not punished, but expect the people to understand that the money that we pay in taxes cannot be returned to us in the form of subsidies?malaysianairehttp://www.blogger.com/profile/14296726517465801616noreply@blogger.com1tag:blogger.com,1999:blog-4466066904291852765.post-43576436408363553202010-03-08T18:36:00.000-08:002010-03-08T18:39:27.435-08:00Why Pakatan Rakyat must surviveRecently, the mainstream media would have us believed that we have misplaced our trust in Pakatan Rakyat. This fragile coalition of political parties with vastly different ideologies, barely 2 years of age, cannot possibly compete much lest replace the mature Barisan Nasional. The recent turmoil in PKR; resignations of MPs; hostile criticisms from one coalition partner against another; accusations of corruption and power-hungry individuals; has indeed weaken the support amongst those whom have thrown their votes behind PR in the previous General Election.<br /><br />Yet we must not be swayed by the BN or the mainstream media. We have to hold steadfast to the conviction that for a democracy to thrive, we need to have choices. Absolute power corrupts absolutely, and over the years of absolute power, BN has destroyed the concept of separation of powers as its consolidated its grip on the country. Our justice systems, media, public institutions such as the police force and anti-corruption agency has no credibility in the eyes of the public, when case after case of seemingly obvious misdeeds involving BN's bigwigs brought out neither repercussions or punishments. <br /><br />Prime Minister Najib, regardless of how genuine is his intention to bring about the concept of 1Malaysia to fruition, will always be hampered by the entrenched self-interests of a small but powerful group of UMNO politicians and those whom rely on them for their political and economic well-being. These people will fight hard and dirty to ensure their interests are preserved at whatever costs, for any change in government will bring about their downfall.<br /><br />For Malaysia's democracy to truly thrive, we, the voters have to be smart. Democracy requires competition. Competition for our votes. Only via competition will the political participants shape up. We have to break BN's monopoly on power, or at the very least, let them know we have to means to do so. Pakatan Rakyat may not be ready for power, given it still has to resolve many internal issues in order to reach a common political platform. But we must not abandon our only hope of a true 2-party political arena. Going back to status quo where BN has monopoly power, where citizens can be thrown into jail without trial or imprisoned for their "own protection", where the media is controlled in the age of the internet, where politicians are pitting Malaysians against one another when we should be uniting against global competitors, is plain crazy. We must not lose this opportunity to reclaim our rights as the political masters. Right now, only PR can provide us with that opportunity - lets not squander the momentous change we voters brought about during the 12th GE.malaysianairehttp://www.blogger.com/profile/14296726517465801616noreply@blogger.com0tag:blogger.com,1999:blog-4466066904291852765.post-85555927728073419452009-07-21T02:24:00.000-07:002009-07-21T02:25:44.421-07:00MALAYSIA - SOSI run a business that requires a fair amount of travel. I don’t profess to have travelled the whole world sufficiently enough to know which country has the best combination of the weather, political climate, economic conditions and social harmony. What I do know, based on my observations, is that Malaysia is still by far the best country to live in.<br /><br />Of course, which country does not possess its weaknesses, its failures, and its share of occasional episodes of lunacy? Of late, Malaysia is in the news for all the wrong reasons– the gruesome murder of a foreign citizen; racial understanding being stretched to its breaking point; political intrigues and scandals that would provide Jeffrey Archer with enough bestseller materials; ; and unexplained deaths that basically drained off whatever little faith the average Malaysian still has in Malaysia’s public institutions, namely the police force and the Malaysian Anti Corruption Commission.<br /><br />The perception that that the National Front’s leaders seemed immune to serious allegations against them, while the Opposition are being systematically persecuted for lesser crimes are being reinforced day by day. No one will be surprised if no big names are charged in the PKFZ scandal. Nor will anyone be surprised if nothing come out of the “Correct,correct, correct” judge-fixing allegations. The public has such low faith and trust in the judiciary and especially the ruling political masters that even a not-guilty verdict to a innocent person with connections to BN will simply scream “INJUSTICE!” in the public arena.<br /><br />MCA; MIC; Gerakan; the major Peninsula-based component parties of BN, have fallen deep into the abyss. The notion that these component parties are nothing more than foot soldiers of UMNO, without any real teeth and are used simply to aim their guns at their Opposition counterparts are not farfetched when their priorities and sensibilities seemed to be terribly muddled. Reports of a former UMNO chief minister’s palatial mansion and his nonchalant explanation of how he can afford it is not being pursued by the component parties, instead they turn their energies to decrying the Penang’s Chief Minister rental of a bungalow. Go figure. Is it no wonder that MCA/Gerakan/MIC is no longer worth even talking about, since it is a virtual certainty they will be wiped out in the next General Election? Superman or not, Ong Tee Keat is steering a ship that is already half sunk; Koh Tsu Koon is captain of a shipwreck; and lets not even bother about MIC.<br /><br />So the next Election will essentially be UMNO against the “rest of us”. No wonder UMNO is eager to enter into a unity pact with PAS. There lies its strongest chance of hanging to power. But the consequences of the pact, if it does materializes, will only tear apart this increasingly fragile multi-racial country, where even the pretext of power-sharing among all the major races will have shoved for the sake of power preservation, come what costs.<br /><br />Well, so we have all these troubles. And even more gruelling tests await this nation. But no one in their right mind should want to see chaos. The unfortunate death of a young Chinese political secretary must not be allowed to be politicized. The Opposition, especially DAP, must not paint this as a race-induced death. Neither should the Government treat this tragedy lightly without utmost sensitivity and diligence.<br /><br />So what is my point exactly? Sure, it all seemed in a mess. Where is the paradise that is Malaysia? But each country has its own troubles and shameful past. Malaysia is successful thus far because of tolerance. I grew up practically knowing only one Prime Minister. In the past 5 years or so we have had 2 different Prime Ministers. Whereas before we have a token Opposition, now we have a strong one who sees federal power as a very real possibility, if not inevitable.<br /><br />Now is that a sign of political maturity? Of course it is. Democracy works bests when there is real competition for our votes. Therein lies our greatest opportunity to take Malaysia to the next level. But beneath that lies a great danger as well – if we allow those with will stop at nothing to preserve or change the status quo by playing the race card to obtain power, whether they are from the ruling party or the Opposition. If we succumb to racial-based rhetoric, surely this blessed nation will be torn apart at its seams and may take decades to come together again. Then we would have squandered a once in a lifetime opportunity to realise this country’s fullest potential – and instead ignite a dynamite.<br /><br />So my fellow Malaysians – play smart. Look out those with smart ideas, give them your support. Shun those that appeal to your emotions via fiery rhetoric laced with racial divisiveness. We must not deprive our children of the same opportunities that we have enjoyed, nor should we allow the chance to transform this country to slip us by. Don’t be swayed by the divide-and-conquer tactics of any politicians. At the end of the day, it is up to us, the people, to bring about 1Malaysia.malaysianairehttp://www.blogger.com/profile/14296726517465801616noreply@blogger.com1tag:blogger.com,1999:blog-4466066904291852765.post-9394538685159783582009-05-23T03:39:00.000-07:002009-05-23T03:44:54.973-07:00India Shines, Malaysia WithersIt was such an unexpected outcome for the world largest democracy. Despite India’s sheer complexities - deep division along state lines, religious views and ideology, the Congress Party won just short of a simple majority to emerge with the strongest mandate in decades.<br /><br />The stock market responded swiftly. It simply erupted, prompting the circuit breakers into action to control the surge in stock prices. Clearly, investors love the fact that with these strong win, the Congress Party can spend less time politicking in pandering to its myriad of lesser coalition partners, and focus on building the country’s economic fundamentals, especially during this deep economic slump.<br /><br />Meanwhile, over in Malaysia, the Perak MB vs. MB crisis is still brewing with both political parties slugging out their political fight in the media, in the courts and in the hearts of the people.<br /><br />At the same time, the Sedition Act is invoked to arrest one single activist who demonstrated against the political upheaval in Perak. His supporters too were arrested. In a blatant act of intimidation, the police even arrested their legal representatives. It was such a farcical sight captured on camera – dozens of stern-looking police barging out their compound and arresting peaceful demonstrators bearing candlelight vigils and lawyers who were simply seeking legal counsel for their clients.<br /><br />These events played out as waves and waves of crime, some bearing most heartbreaking news, cause fear and anxiety among Malaysians. Even as the police declared crime rates to be down, it offers little solace to relatives and friend of victims who died as a result of petty crimes. It pains me when I read the news that a 5 year old, along with her mother and maid, were killed by a drug addict, all for the price of…one laptop.<br /><br />On the economy side, Malaysian manufacturing figures for March fell 25.5% year on year, demonstrating that Malaysia is not out of the woods yet. There is no doubt Malaysia can withstand the slump, and come out with some decent growth for 2010. This is because of god-given strong fundamentals – Malaysia is blessed with rich natural resources and various commodities with no shortage of arable land and water.<br /><br />However, there is no way Malaysia will continue to enjoy the high rates of growth which we took for granted in the past. Growth of 8% or more does not seemed possible because our political “leaders” are going to spend the next 3 years squabbling and campaigning for either the greatest victory or the greatest defeat in their political career and in Malaysian history, depending on which side of the divide you are on. Endless political wrangling; mudslinging; damaging personal attacks; etc – these “leaders” will continue to bleed Malaysia, instead of leading Malaysians.<br /><br />The Opposition under Anwar Ibrahim is likely to continue to draw more support. The people, especially younger voters who will have a large say come the next elections, will no longer be swayed by the old BN mantra of “if it ain’t broken, don’t fix it”. Malaysia is broken. We may have the gleaming Petronas Twin Towers; the prestigious FI Sepang race; the Monsoon Cup (?). But our hearts are heavy with apprehension. We fail to understand why the ruling party still insist on dividing the people to carves out pockets of power for their own ambitions; why cases and cases of corruption are perpetually being investigated but no one important is ever brought to shame; why our legal system is in shambles with the alleged culprits still at large; why are we afraid of letting our kids go out into the streets without the supervision of a trusted adult. We wonder how is it that politicians stresses the importance of racial harmony, but fail to condemn those within their party who utters divisive remarks. Have they not learnt anything since the General Elections?<br /><br />Anwar Ibrahim is riding this wave of discontent. The time is right – millions of young voters will come out strongly to cast their votes come the next General Election. And the ruling BN has given the Opposition plenty of ammunition to place the former on perpetual defensive mode. Given the consistent barrage of negative publicity on perceived transgressions of BN’s politics and politicians, Anwar will not let up the attacks and preserve his tag as “PM-in-waiting”.<br /><br />PM Najib does not really have any choice. He cannot hope to ride out these negative sentiments by assuming the electorate will swing back by some token gestures. He has to act boldly and silence the Opposition’s guns. Repeal the ISA. Repeal the Sedition Act. Allow peaceful demonstrations. Political warlords and powerful businessmen who manipulated the legal system and/or abused their positions must be named and shamed and brought to justice. Revamp the police force by setting up the Independent Commission as recommended by the Royal Commission. A true leader must not be afraid of opposing views nor should they be afraid of making difficult decisions.<br /><br />Particularly in the context of Malaysia, the PM must be seen to serve all interest of Malaysians, by levelling the playing field and espousing meritocracy and transparency. Stop this tyranny of the minority (the BN/UMNO elites) against the majority (the people!). It is time to put an end to this nonsense of pitting Malaysians against Malaysians, but to unite Malaysians to compete against the World. We wait with bated breath for a true Malaysian leader to show us the way.malaysianairehttp://www.blogger.com/profile/14296726517465801616noreply@blogger.com0tag:blogger.com,1999:blog-4466066904291852765.post-47090750840243676992009-03-11T00:10:00.000-07:002009-03-11T00:24:30.824-07:00RM60billion mini budget, but little cheer for the man on the streetIn the face of the global slump for exports, and coupled with the fact that exports accounts for 100% of Malaysia’s GDP, the stimulus need to have 2 basic ingredients – 1) boost domestic consumption to replace dwindling export demand; 2) reduce business costs especially for exporters which are facing shutdowns due to the sharp decline in foreign demand. While the government has announced measures to deal with the latter, little is being introduced to address the former.<br /><br /><em><strong>Spurring Domestic Demand</strong></em><br /><br />There is little in the budget which raises disposable income for Malaysians. Instead, the Government opted to spend a subsidy of RM674m to AVOID PRICE INCREASE for necessities like bread, flour and sugar. Another RM480m is allocated to compensate toll operators NOT TO raise their rates. So, after RM1 billion of spending, it is still status quo for Malaysian consumers. The largest beneficiary of the RM1bn largesse is the toll companies, who despite the global recession, is still enjoying guaranteed profits. The only silver lining for Malaysian tax-payers is the tax relief given on housing loans. <br /><br />The stimulus should have bold measures to put more money in the pockets of Malaysians IMMEDIATELY, as this is the fastest and most direct way to recycle more ringgit into the local economy, raising aggregate demand and via the multiplier effect, increasing incomes for everyone. This could be achieved by providing higher income tax relief for 2008, or better still, free spending coupons ala Taiwan-style to jump-start local spending. <br /><br /><em><strong>Reducing Costs of Running a Business</strong></em><br /><br />The RM30billion or so worth of corporate/loan guarantees is a right step in enabling cash-strapped but otherwise healthy companies that are still seeing demand for their products to have access to fast and cheap credit. This will prevent companies who are still cost-competitive from collapsing simply because of the tighter credit market.<br /><br />However, when a business is suffering from a slump in demand for its product or services, easier access to credit will not ensure survival if the recovery in demand does not come fast enough. In this aspect, it is more critical for these companies, many whom are exporters, to receive subsidies to reduce their operations costs or some form of export tax rebates. Otherwise, the only option left for these companies to slash costs is to fire staff. One way is to abolish the Human Resource Development Fund (HRDF). A cursory look at the balance in Fund would reveal hundreds of millions unutilised. It is perverse to force companies to continue to pay even 0.5% of their total wage bill to the HRDF, which then lay idle, when they are struggling to pay normal wages. And since the government is already spending billions on re-training and HRDF is a means to spur companies to train their existing staff, why the need to tax companies wage’ bill? The government should be subsidizing the companies’ costs of retraining, not taxing them. <br /><br />There are also no incentives given to companies to retain their workers. In fact, companies now have an incentive to terminate their current workers and then re-employ those retrenched since they can enjoy double tax deductions equivalent to the annual salary of the re-hired worker. <br /><br />The government has to remember this – Governments cannot create private sector jobs – it is the businesses that create these jobs. The governments’ role is to facilitate private businesses - by creating robust consumer spending and simultaneously reduce the operational costs of businesses. Instead of shuffling those retrenched or unemployed into temporary jobs or into some retraining schemes which may or may not match potential employers’ requirements, the funds for these schemes should instead be diverted to companies who are not retrenching workers to help them cope with the current slump. <br /><br /><em><strong>On Equity Investments</strong></em><br /><br />There is also a statement in the Stimulus package which is kind of quirky. It states: The poor performance of Bursa Malaysia has also adversely impacted investor and consumer sentiment as well as the services sector, which normally is a high-growth sector “.<br /><br />The cause and effect is reversed here. More accurately, it is the poor investor and consumer sentiments which caused the poor performance of the Bursa Malaysia. The poor sentiments are in turn caused by the falling demand for Malaysian goods/services and deteriorating corporate earnings. Indeed, while private think-tanks has been forecasting at best zero growth for Malaysia, the Government as recent as few weeks ago was still preaching the "fundamental strength" of the local economy. Investors clearly did not share in this optimism, which then sent the Bursa index falling.<br /><br />In all, fiscal spending only amounts to RM15billion in this 2nd RM60 billion budget. The balance is in the form loan/corporate guarantees, etc. So lets not get wowed by the RM60billion figure being bandied about. The government should have opted to put more money directly into the rakyat’s pocket – the impact would certainly be more forceful in stimulating the local economy – vs. largely depending on public expenditure to boost local consumption. The latter, as we know, is prone to slow execution and leakages via corruption/rent seeking. Still, at least the government is now admitting that Malaysia, despite its “stellar fundamentals”, is not immune from the global economic malaise after all. Better late, than never, I suppose.malaysianairehttp://www.blogger.com/profile/14296726517465801616noreply@blogger.com0tag:blogger.com,1999:blog-4466066904291852765.post-658980644369428242009-02-09T00:17:00.000-08:002009-02-09T00:48:36.636-08:00A Recession of Immense ProportionsMalaysia is definitely mired in its worst recession ever in its half a century of independence. No, not just the economic type – though our government is still re-assuring the people that the country’s engines are humming on nicely. No, we have a great recession of common sense and responsibility, a major slump in ideas and leadership.<br /><br />While the US, Europe, China, Japan and a host of other nations are busy fighting against time to mitigate the biggest financial crisis and collapse of confidence since the 1930’s, our Finance Minister is surely displaying lack of judgement in his exercise of priorities and responsibility by his personal involvement in Perak's political upheavals.<br /><br />The Finance Minister couldn’t hide his glee at the press conference announcing the defection of 3 assemblymen from Pakatan Rakyat. His Cheshire cat grin said it all. And no wonder. Shortly after assuming the leadership in Perak UMNO, he was able to engineer the fall of the PR government, and return the state to BN. He outfoxed Anwar Ibrahim in his own game, sending a message to all those within UMNO and the Opposition that he too can be a wily political strategist.<br /><br />But what the country needs desperately now is an economic strategist, a role that surely falls to the Finance Minister. Shouldn’t he be busy chairing meetings with his advisors on formulating a comprehensive plan to get us out of the impending economic quagmire, rather than divert his focus to local state affairs? Which is of greater importance in these critical times - the role of the BN Chairman of one state or Financial Minister to an entire country?<br /><br />Will this victory to UMNO and a huge personal one to the DPM come at a great cost to the nation? The front page news of the mainstream newspapers would have a reader believed that we all can now breath with ease now that an entire state is now back under the control of BN – this is the economic impetus we were waiting for to boost our economy which are by the way, sputtering with exports down, foreign reserves steadily declining; thousands of jobs already lost and more at risk. Perak has returned to the fold to save the country!<br /><br />To the factory operator who have just lost his job; to the employer who is cracking his head on how to retain his staff when both orders and cash flow has dried up; to the mother who is stressed thinking of whether her husband will still have a job next month – our leaders, from BOTH sides of the divide, has truly let these people down by engaging in a non-conducive political fiasco while an entire country is sliding slowly but surely down a hole. Only our former PM seemed to display genuine statesmanship by bringing back the focus to how best to counter our greatest economic challenge.<br /><br />It may be unimaginable to our perpetually- politicking leaders that Malaysia will ever slip into a depression with hundreds of thousands jobless; companies shutting down due to lack of competitiveness; budget deficits spiralling out of control and foreign investors fleeing our shores for better placed economies. With their current style of leadership (or rather lack of it), they may risk turning into reality what was once inconceivable (given Malaysia’s rich resources and once strong fundamentals) to one that is inevitable.malaysianairehttp://www.blogger.com/profile/14296726517465801616noreply@blogger.com0tag:blogger.com,1999:blog-4466066904291852765.post-34467707956789458532009-01-09T05:54:00.000-08:002009-01-09T06:09:33.924-08:00Small Businesses – The Quiet Heroes of Malaysia’s EconomyEvery year, Fortune magazine celebrates big businesses’ accomplishments in the US by publishing its annual Fortune 500 rankings. Colossal companies like Exxon Mobil, are venerated as being the pinnacle of American innovation, hard work and risk-taking. We have seen how CEOs of these huge companies are being touted like rock stars – indeed, one might construed that the strength of the US economy is being driven by these corporate giants.<br /><br />The true drivers of the American economy however, are the small business owners. It is often cited that US small businesses are responsible for half the US GDP, and more than three-quarters of new job creation. While the global financial crisis forced once revered CEOs to make a beeline to Washington for handouts in the billions to save their companies (and their own behinds), small businesses were toiling quietly for survival -they remain the best hopes of turning the economy around, with old fashioned hard work, agility and focus on business fundamentals.<br /><br />In Malaysia, things are not that much different. Sure, we talked about the contributions of small businesses, but largely get seduced by mega-projects. The Malaysian Inc. model, first launched by Dr. Mahathir, looked good on paper since it espouses, among others, de-regulation, improvement to delivery systems, and last but not least, privatisation. The last of which, privatisation, held the highest promise. However, Malaysia Inc. soon resemble a “Big Boys Club” – as favoured business personalities are handpicked to purchase pieces of former national assets at lucrative terms. Concessions are given to the same circle of tycoons, enriching them further. Since then, big businesses and politics became entwined, with big businesses getting the lion share of the government’s largesse. The Malaysia Inc. Club did not want to let the SMEs into its party.<br /><br />This is a costly mistake.<br /><br />If one scrutinize the list of the largest Malaysian companies, on deeper analysis one will find that most often than not these companies has in their stable of subsidiaries a single corporate entity that acts as the group’s main (and only) cash cow. This cash-rich company – could be in the form of a toll operator; a power generator; a gaming license; a water monopoly, etc. These single entities form the bulk of the groups’ profits and cash flow – take these concessionaires away, and suddenly, these giant groups does not yield superior returns after all.<br /><br />Take the example of toll concessionaires. From the limited information available, they are virtually guaranteed of a certain level of revenue, profits and even growth. Business-wise, these are manna from heaven – with the government backing you up - there is almost no risk to the venture. We know from finance studies that low risk corresponds with low returns, and vice versa. But instead, the converse is true – these toll operators enjoy disproportionate returns on their investments that outweigh the risk it is taking. In other words, they have a free lunch.<br /><br />We see the phenomenon again from the power deals signed with the Independent Power Producers (IPPs). First off, they are getting subsidised gas. Secondly, prices are locked in, often much higher than what the market would dictate. Thirdly, they can sell as much as they want to TNB, who has to purchase from them regardless of actual market demand. Because of the low risk nature, financing is relatively cheap. However, the returns are super-normal. Who says you can’t have your cake and eat it too?<br /><br />In a zero-sum game, someone has to lose in order for someone else to gain. In this context, the winners are the few “successful” companies that have secured these fantastic deals, while the losers are the millions of Malaysians that has to pay higher prices. In reality, most of these successful companies are little more than rent-seekers – their success are predicated on near zero competition, minimal risks and guaranteed profits which the government served to them in silver platters. Whether they can replicate their successes under real competitive conditions are questionable.<br /><br />In a 2006 paper prepared by the National Statistic Department entitled “SMEs: Building Blocks of Economic Growth”; it reveals that SME’s form 99.2% of total business establishments in the three main economic sectors of manufacturing, services and agriculture. In the services sector alone, SMEs account for 86.5%. What’s more, employment generated by SMEs is approximately 65% of total employment in the three main sectors, and is the largest contributor in the services sector. The report also reveals that SMEs generally still face difficulties in accessing financing, with nearly 60% still relying on internally generated funds or borrowings from friends and families as their main source. Only 14% chose financial institutions or government loans as their first choice of funds.<br /><br />It is time the Government focus more of its energies on these unsung heroes of the Malaysian economy. In the stimulus package announced in late 2008, only RM100m is specifically allocated to assist SMEs. Surely the government can do more. Take the proposal to borrow RM5bn from EPF and channel these funds to Valuecap for the purchase of shares. This stock purchase does not create jobs; it does not increase workers’ productivity; it does nothing to quickly spur domestic consumption directly. All it does is support share prices for the benefit of shareholders - mostly the big business owners themselves. Why not take this RM5bn and provide cheaper financing to SMEs, who are struggling with increased energy costs and falling demand? How about small exporters who are facing difficulties securing letters of credit (LCs) for their raw materials and others who are unable to obtain LCs from their buyers? Why not take this RM5bn and provide bridging loans at minimal costs so these small business owners have the necessary funds to run their businesses?<br /><br />It is time that the Government re-model Malaysia Inc to favour small businesses. Small is beautiful. In our “Boleh” attitude to build the biggest this and the largest that, we should not forget hard-working entrepreneurs who are struggling to pay their small workforce as their products face dwindling demand. As we construct mega super-corridors to attract large overseas investors, do not neglect small business owners who are still facing hurdles in obtaining government support here at home. In an article “ The Big Deal about Small Businesses”, the US Federal Reserve stated plainly, “A healthy growing small business sector makes our economy more nimble, better able to respond to new market trends and needs, and ultimately more productive as the results of small business experimentation and innovation weave their way throughout the wider economy”. It is time for Malaysia to strongly revive SMEs and restore them to their rightful place in Malaysia’s business hierarchy, on top of the priorities of big businesses. The government must address this in its second stimulus package so that the true drivers of employment and value to Malaysia’s economy are quickly given ample assistance, particularly in the current economic malaise.malaysianairehttp://www.blogger.com/profile/14296726517465801616noreply@blogger.com0tag:blogger.com,1999:blog-4466066904291852765.post-71172620734759673802008-12-31T20:25:00.000-08:002008-12-31T20:28:20.381-08:00Forces of Creative Destruction in 20082008 has been deemed by many to be a woeful year. Yet I see it differently. I see it as a year where excesses is finally curtailed; where the arrogant is humbled; and where great despair is slowly replaced by small glimmers of hope for better days ahead.<br /><br />Global financial markets suffered huge volatility and trillions of market capitalisation were wiped out. Giant financial institutions once thought to be too big to fall, fell. We are all Keynesians now – as governments are now looked upon as the only saviours able to save their countries’ economies from further collapse. Massive government stimulus; re-regulation and ultra loose monetary policies are now the flavour of the day. The free market ideologies of the Chicago School are being quietly discarded as its disciples presided over the worst financial turmoil and scandals, brought about by their over-zealous beliefs that markets are self-regulating. <br /><br />Politics-wise, well, some bad, some good. Zimbabwe is still ruled by a President who is perversely spending his energies in a desperate bid to cling to power, by instituting brutal oppression of any opposition. Meanwhile, epidemics, runaway inflation and hunger ravaged the country. The Middle East could not see a ceasefire last beyond 2008 between Israel and Hamas – and greeted the new year with hundreds dead and thousands injured in Gaza. On a brighter note, US saw the election of the first non-white President, which cast a warm glow of optimism around the world as many countries partake in the hope of a new era after the destructive foreign adventures of George Bush.<br /><br />In Malaysia, we too had our ups and downs. BN losts its two-thirds majority. Five states, which together accounts for the major portion of the country’s GDP, fell to the Opposition. The destruction of BN saw the birth of a viable two-party system, and the emergence, hopefully, of a true democracy, where the people are the masters, not their political representatives. However, the BN seemed to have decided that its setback was only momentary, and that the people will come back to its senses in the next General Election. So out comes the usual “divide and conquer” politics – racially-charged statements; senseless use of ISA (for its detainee’s protection); and instructions to the media “to behave”.<br /><br />President Ronald Reagan, in the 1992 GOP Convention, said, “Whatever else history may say about me when I am gone, I hope it will record that I appealed to your best hopes, not your worst fears, to your confidence rather than your doubts.” I certainly hope that for 2009, our new Prime Minister will echo the same thoughts – that in the face of immense challenges facing Malaysia, if the government insists on instilling fear by emphasizing what we can lose, instead of what we can gain, from meritocracy, transparency and the courage to reform our many failed institutions; then the seeds of opportunities brought about by the “creative destructive” forces of 2008 will be forever squandered. Malaysia will be further left behind, as governments around the world re-tool their economies and restructure their institutions in the face of a new global reality caused by the near collapse of the global financial system.<br /><br />I prefer to remain optimistic that change is in the air for 2009. After all, we Malaysians are lucky in that there is still so much to hope for in this country of plenty.<br /><br />Happy New Year to all you hopeful Malaysians out there.malaysianairehttp://www.blogger.com/profile/14296726517465801616noreply@blogger.com0tag:blogger.com,1999:blog-4466066904291852765.post-64239328265267835512008-12-07T22:59:00.000-08:002008-12-08T01:22:27.605-08:00Petrol Tax at the Worst Possible TimeIt is a fact that current pump prices are higher than what the market would dictate. This indicates that the government is effectively imposing a sales tax on petrol. The government has admitted to pocketing windfall revenue from the differential. The quantum of RM16m per day reported by the Star may be over-stated. But that is not important. The crucial issue here is that – is this the right time to collect petrol tax?<br /><br />When the price of petrol was raised by a whopping 40% back in June, the government took a “shock therapy” approach – by announcing one huge price hike instead of a series of smaller increases, or the gradualist approach. Perhaps it was the spiralling costs of the subsidy that prompted the government to brave public backlash. Whatever the reasons, in one single day businesses saw their costs soaring as a result of higher energy costs while consumers have less money to spend after filling up their car. There was no adjustment period given.<br /><br />In the 6 months since the 40% price hike was announced, crude oil prices has tumbled from above USD120 per barrel to about USD42 per barrel today. That is a fall of over 65%. In contrast to the manner in which petrol price was raised in one big swoop, the price reduction was announced in a series of small instalments. Traders were then taken to task for not reducing their prices quickly enough in tandem.<br /><br />But can you really blame local businesses, whom the government hit with a double whammy – 1) unexpected huge increase in operating costs overnight; and 2) while reducing domestic spending power– for being cautious in re-adjusting their prices less crude oil prices reverse course and the government singularly increase price again? Without information on the government’s pricing mechanism, how does it expect businesses to plan their pricing strategies?<br /><br />With the global economic crisis, the only silver lining for businesses and consumers is falling energy prices. Every penny counts for cash-strapped business owners and middle class Malaysians. Expectations of the future are bleak among most Malaysians. Under such dire circumstances, the responsible family head or company CEO will want to save more cash and spend less. Finance Minister Najib must find ways to put more money in these worried Malaysians’ pockets fast, as the only catalyst left for our economy’s growth is strong, sustained domestic consumption.<br /><br />The government knows this – which is why they announced the 3% reduction in employees’ contributions to the EPF. But it is hypocritical to ask Malaysians to spend more now by dipping into their retirement savings fund, while the government sits on millions of windfall tax collected on a daily basis. We do not need more tax now. We need fewer taxes, and more government spending on those items which has high multiplier effect. If the government has no clue how to spend these windfall proceeds, let us have our money back by charging market prices for petrol in these difficult times. Responsible Malaysians are unlikely to be rushing out to drive more or switch en masse from public transportation to private ones as a result of substantially lower fuel prices. More likely, it will be a welcome relief for millions struggling to balance their stagnant real incomes against the significant increase in costs of living, caused by the fuel price jump in the first place.<br /><br />Granted, petrol subsidy is not good for the economy – it distorts consumption choices and it is not particularly equitable. The billions should be spent on health care or education where everyone can benefit. But swinging from a petrol subsidy to a petrol tax just when every Malaysian is looking to tighten his or her belt is perverse, and does not make economic sense. With so many bad economic reports out there, give Malaysians a break – let us enjoy some savings, while the market still allows.malaysianairehttp://www.blogger.com/profile/14296726517465801616noreply@blogger.com0tag:blogger.com,1999:blog-4466066904291852765.post-1098788111864598412008-11-05T15:29:00.000-08:002008-11-05T15:32:41.021-08:00Daring Us to Dream Once MoreAmerica has every reason to celebrate the historic election of Barack Obama as President. It is important to remind ourselves again just how insurmountable the odds were against Obama when he decided to launch his presidential bid. Within his own Democratic Party, he has to secure nomination against what once assumed to be the Party’s natural choice – Hillary Clinton. Even after his party’s nomination, with the Democratic base deeply split, Barack has to face off against the candidate from Republican Party, traditionally, the party that has access to huge funds from businesses; a huge (some might say fanatical) religious base, and more critical, a party that tend to whip up religious and even racial overtones in order to secure the Presidency. What does a junior Senator who is of mixed blood, who is without political pedigree, has against McCain, an American war hero whose family has been in the service of the American Navy for generations?<br /><br />Obama pulled of this momentous win because his campaign, as one political commentator put it so succinctly – was inclusive, engaging and empowering. He organized his support from the grassroots up. He uses the internet to reach out to young voters. Whereas the Republican Party continues to rely on big donors/businesses for funds, Obama democratize his campaign contribution receipts by actively seeking funds from everyone, whether $10 or $20, who yearned to see change through him. He dared Americans to embrace change, telling the young and old, the cynical and the apathetic, that they can restore the American dream by voting – that they have a role to play. Believed him they did – first time voters and the young came out in droves, braving long queues because they really believed they can make history by securing a better future for America and for themselves.<br /><br />Obama’s closing statements in his victory speech, “…And where we are met with cynicism and doubts and those who tell us that we can't, we will respond with that timeless creed that sums up the spirit of a people: Yes, we can”. Doesn’t this remind us of our very own failed leadership who is always holding us back from embracing a truly united Malaysia, without regard to colour and race? A tarnished political entity that has no courage to overturn its ludicrous beliefs that 50 years after Independence and into the 21st century, we Malaysians are not ready to be Malaysians first, and our respective race, second?<br /><br />It is thought that Malaysia ushered in a new era when for this first time in Malaysian politics we created a viable 2 party system after the March general election. Though it was a clear message to the ruling elite that Malaysians have found their voice, and that we have, and will, exercise our right as citizens to accord power only to those that uses them for the good of the country, alas, the ruling party continues to practice a divisive brand of politics. In his speech, Obama immediately reached out to those who had not voted for him, saying, “I will be your President too”. In contrast, the National Front is sidelining the PKR-ruled states, creating disunity within our own state borders, while trying to undermine the PKR by harping on the perceived racial/religious differences between its partners.<br /><br />Meanwhile, the country slides into deep economic uncertainty. We are still waiting for judicial reforms; tougher legislation against corruption; lower crime rates. Changes we the people have been promised but yet to be delivered. We may have a change of leadership next year but great skepticism persists whether a PM-in-waiting whose name has been dragged into a sensational murder case and a questionable billion-dollar helicopter deal can effectively inspire change. While America may face a steep economic recession next year, it will be fighting with a sense of renewed purpose that in the midst of gloom, it can emerge with a bright future if they stand together, rallied on by an inclusive new President. For Malaysia, in 2009, we would most probably still be breathing in the same stale air of zany economic policies that encourages rent-seeking; backward politicians that still bicker how to divide a rapidly shrinking pie when other nations are busy expanding it; and the delusion that Malaysia is not ready for change simply because they themselves are not prepared to.<br /><br />“We are ready for Change. We are one Nation, We are One People” so exclaimed the new US President-Elect. Malaysians are still waiting for a leader that has the courage to espouse this dream. Congratulations, America. You have once again given us hope and dared us to dream.malaysianairehttp://www.blogger.com/profile/14296726517465801616noreply@blogger.com0tag:blogger.com,1999:blog-4466066904291852765.post-89977954132175348372008-10-13T02:39:00.000-07:002008-10-13T02:46:01.040-07:00Minimum Wages and Foreign Labour in MalaysiaThe argument for minimum wage is essentially a socialist one – the notion that there must be a government mandate that employers pay a statutory minimum wage, irregardless of the productivity levels or the skills set of a particular employee, runs counter to the free market mantra that the price of labour (i.e. wages) should be determined by market forces.<br /><br />Dr. Toh (The case for a minimum wage, The Edge, October 13, 2008) did try to camouflage his support for minimum wage (and for the discontinuing of foreign labour usage) with free market arguments. I would like to state my disagreement with some of his points.<br /><br /><em>The shift to greater automation in the firms’ production functions in our country has been hampered by the practice of government to allow the liberal import of unskilled or semi-skilled workers from overseas. This at once distorts market forces of supply and demand of labour in the labour market. Labour shortage is augmented by unlimited supply from overseas.</em><br /><br />The above is a contradictory statement of sorts. The free movement of labour across borders is not a distortion of market forces. Labour shortage is. In an environment of labour shortage, wages are artificially raised without a corresponding increase in output, simply because there are insufficient labour supply. Why is labour different from say, from apples? If Malaysia is short of apples, should we simply bear with the high prices of apples? Why shouldn’t we import apples from countries with surplus stocks and then let the market decide on the price?<br /><br /><br /><em>Labour shortage is augmented by unlimited supply from overseas.</em><br />Dr. Toh acknowledged that there is a labour shortage crisis in Malaysia. This shortage is most acute in the so-called 3D work; dirty, dangerous and demeaning. Most foreign labour are found in industries such as construction, manufacturing and agriculture, jobs which Malaysians shunned anyway in favour of better-paying and more pleasant occupations. If these labour shortages cannot be overcome by supply from within or without Malaysia, then what does Dr. Toh suggest we do? Let constructions sites grind to a halt?<br /><br /><br /><em>Many countries have adopted a minimum wage policy, yet their competitiveness remains high. </em><br /><em></em><br />Competitiveness will surely be eroded when a minimum wage is introduced, at least initially. The consulting firm Booz & Co conducted a survey of 66 multinationals with operations in Shanghai and found that 54% suggested that China has become less competitive due to rising labour costs. The reason is straightforward – labour costs are a significant portion of a manufacturer’s total costs. When labour costs go up, profit margins fall. Pricing power is weakened, and competitiveness eroded. Note that the manufacturing sector is still the largest contributor to Malaysia’s GDP in 2007. The introduction of a minimum wage will definitely adversely affect manufacturers’ competitiveness from a cost perspective.<br /><br /><br />The question is how existing players and new entrants will react to a new minimum wage. If manufacturers have the resources and initiative to modernize their plants, hence preserving their profit margins by using less workers, then competitiveness is maintained or may even improved. If new entrants are encouraged to move up the commercial food chain by venturing into higher value products or services where the inputs are biased towards capital and knowledge as opposed to labour, Malaysia’s economy will be boosted. <br /><br /><br />However, these are very big if’s. Those huge multinational companies with operations in Malaysia are most probably already employing the latest technologies there are available. It would not be inaccurate to say that these MNC’s set up shop here in Malaysia precisely because of its better skilled workers but relatively lower wages vs. the more developed countries. This is our competitive edge. A minimum wage which erodes this advantage could spur these companies to uproot and relocate to a cheaper country with cheaper labour costs, and they will be welcomed with open arms by these less-developed countries. Also, only well-capitalized firms will be able to upgrade their processes. Weaker ones will be run out of business as their costs spiral and they are unable to compete. As for many local manufacturing companies which are by nature labour-intensive, they have limited ability to create or purchase new automated techniques that mitigate their increased labour costs. Automation can only go so far, and the savings made by using a little less labour may not necessarily render net savings. The result is that both international and local manufacturers, both large and small, may relocate, reduce labour, or simply close down; too quickly for new entrants to come into the market to take its place. As one economist commented on the closure of thousands of factories in China due to rising labour costs – “it is easy to push people out, but harder to create new industries”. At the end of day, Malaysians are priced out of work, without any net gain to the economy.<br /><br /><br />Dr. Toh, in his closing statements, said “<em>one good reason to legislate a minimum wage is the moral consideration of ensuring that our workers live dignified as human beings. The minimum amount must be sufficient to buy the means of sustenance.” </em><br /><em></em><br />This proposition is fair. Workers are stakeholders of a company, and it is in the company’s interest to look after the welfare of its employees. However, Dr. Toh is over-emphasizing the influence of the private enterprise. It is dangerous to suggest that the private firm is responsible overall for the social welfare of its employees, and thereby must be mandated to compensate its staff a sum that is required for a minimum standard of living. Ultimately, the role of a private enterprise in ensuring a minimum standard of living for its employees is limited, since it has no influence over a myriad of factors that may cause the costs of living to go up. This is within the domain of the government. What happens if runaway inflation causes costs of living to go perpetually up? Does the private firm need to raise its minimum wage again and again to compensate for the shortfall? Where does it end? Until the firm goes bust and the employees have zero income?<br /><br /><br />Dr. Toh also mentioned that “<em>many workers are not paid subsistence or living wage....these workers will not be motivated to work hard and not likely to have high productivity”. </em><br /><em></em><br />Then the right market solution must to pay based on productivity, not mandate a minimum pay level that may not correspond to skill levels. The government, instead of mandating a blanket minimum wage across industries, should embark on a study of the profitability of each industry, and then link pay with productivity that is commensurate with the individual firms’ surplus. Paying a higher (minimum) wage to workers who should received less because of their persistent low productivity creates a disincentive to upgrade themselves, while it may penalize productive ones because the firm has to subsidize inefficient workers while economic output remains the same. A uniform minimum wage across different industries is likely to be damaging to those that are barely surviving and the end result is both good and weak workers are thrown out of work.<br /><br /><br />Minimum wages is a market distortion. Obstructing movement of labour is also a market distortion. Market distortions are rarely good for the economy. While there is a weak economic case for minimum wages, there could be a social argument for it. Dr. Toh must make the distinction clear, and understand that the role of the private enterprise in serving a social purpose is at best limited and at worst, even damaging to the worker that Dr. Toh intends to “protect”, when the private enterprise is unable to compete in its natural form in the face of various market distortions that Dr. Toh is advocating for.malaysianairehttp://www.blogger.com/profile/14296726517465801616noreply@blogger.com0tag:blogger.com,1999:blog-4466066904291852765.post-64718113786859558222008-09-13T21:50:00.000-07:002008-09-14T01:29:07.600-07:00Protection, not Detention....Just a few weeks after PM Badawi told Malaysian journalists to do their job without fear, a young female reporter is arrested and detained for 24 hours before being released today. The reason for her arrest under ISA, according to the Home Minister, is for her own protection.<br /><br />It is incredible that the Government can offer up such farcical explanation for the arrest. One can only draw 2 conclusions from this excuse given - either the government is totally clueless as to how absurb the explanation sounds OR it is a veiled message to the people that the ruling party has near totalitarian powers such that it need not give valid justifications for acting against its own citizens.<br /><br />The ISA, by allowing the police to detain anyone swiftly and without due legal rights accorded to the detainee, should only be invoked under the most dire circumstances where the country's internal security is so compromised that without drastic and quick action, it will descend into utter chaos if the alleged perpetrator is allowed to hide behind the laws of the country while continuing his or her threat against national peace. <br /><br />Such immense power should be exercised with great caution, what's more when it is used against one's own citizens. Sound-minded Malaysians must be wondering how is it that the Malaysia's peace can be so fragile, or that the Malaysia's legal system is so porous, such that three law-abiding citizens, has to be detained without trial.<br /><br />It pains me to see the parents of Theresa Kok, who tearfully appealed to the authorities to disclose the whereabouts of their daughter. And mind you, Theresa is an elected Member of Parliament. She has denied any involvement in the allegations made by Selangor's former MB, and there she is, detained without any legal means to defend herself while the accuser is not even being investigated.<br /><br />If the arrests are meant to project strength and control, it hasn't. Instead it smacked of desperation and despair.Any last ounce of goodwill that this current Badawi Administration has among the peace-loving, forward-looking Malaysians has just evaporated together with this unjustifiable ISA detentions.Come next elections, the party that has the courage to discard this archaic piece of legislation will win my vote; and I dare say, this is the same sentiment shared by millions of young Malaysians out there.malaysianairehttp://www.blogger.com/profile/14296726517465801616noreply@blogger.com0tag:blogger.com,1999:blog-4466066904291852765.post-26950104270100963432008-06-16T00:12:00.000-07:002008-06-16T00:33:21.098-07:001-3 hours delay still considered "on-time" and of "5-star service"?Air Asia today announced that in their efforts to offer a "5-star service" to passengers, any delay exceeding 3 hours from time of departure will mean affected passengers will receive compensation. This will come in the form of an e-gift voucher worth RM200. The e-voucher is part of its "On-time Guarantee" initiative.<br /><br />Hmmm...the fuel increase must have really begun to affect airline service standards. Afterall, any delay under 3 hours is still considered "5-star" and "On-time"?!malaysianairehttp://www.blogger.com/profile/14296726517465801616noreply@blogger.com0tag:blogger.com,1999:blog-4466066904291852765.post-25354885135316464752008-06-15T06:48:00.000-07:002008-06-15T18:41:45.932-07:00Wither the next generationOur children face a bleak future. This is the result of the complacency and short-termism of our country’s leadership, whether past or present. We have squandered away precious resources and time, by embarking on one grandiose project after another, focussing narrowly on expensive infrastructures and monuments, while consistently neglecting the one resource that can maintain Malaysia’s place in the global economy – our human capital.<br /><br />From our primary schools to public universities, standards have been falling for years. Our PM has been busy criss-crossing the country officially launching economic corridors here and there. Perhaps the PM should be visiting schools and universities to see how well our young generation will be able to cope when they enter the workforce. For all the multi-billion dollar super-corridors, which is basically just hardware, what good is it to have IT hubs, biotechnology facilities; R&D centres; when we cannot have competent and qualified professionals to work in them?<br /><br />Education policies aren’t “sexy”. A comprehensive, well-thought out and laboriously implemented education blueprint might take years, even decades before its results became apparent. Hence, given the short attention span of the Malaysian public,politicians do not want to waste time outlining good education proposals when fiscal policies like tax cuts will generate instant popular support (hence votes). Furthermore, our government tends to go for the quick-fix, short cut solutions. It revels in instant success that takes little effort. Just throw money, loads of money at the problem and you will get a fast solution. Want a Malaysian in space? Why, just hold a Malaysian Idol-like Contest, spend millions to buy a ticket from the Russians, and voila!, after a couple of months, you have your very own Malaysian Angkasawan. Why bother spending the same millions (and years) in developing a space programme that actually sends qualified Malaysians into space? National unity failing? No problem! Cobble some training camps together, supply some crisp new uniforms, install some vigorous physical training programmes, and presto!, after 3 months, our National Servicemen will go back to their daily routine fully immersed with the spirit of Muhibah.<br /><br />It is then not surprising that when it comes to our education policies, our government is guilty of not having a consistent, coherent and well-executed plan. The Education portfolio is often seen as a stepping stone to a higher office. As a result, every Education Minister that comes in tends to wants to stamp his mark by introducing new ideas, which is then hastily implemented, often discarding the previous’ structure, both good and bad. Substance does not matter here– what matters is we have something new. A case in point – we are still debating whether teaching Science and Mathematics in English is a viable idea.<br /><br />In an article in the Edge, it stated that a 2007 World Bank report reaffirms the poor standards of our public universities. Our primary and secondary schools can’t be that much better off. The report went on to say that Malaysia would lose its competitive edge if it fails to produce a world class education system to propel the country into an innovative economy. Already, Malaysia’s strength in manufacturing is fast eroded by countries such as China who have vast supply of labour who are gaining in sophistication. In the services sector too, other developing countries has been furiously pouring in billions to upgrade their knowledge-based economy, and at the same time engaging the best brains to develop their future scientists.<br /><br />So where does that leave us? Not only have Malaysia failed to carve out a niche to replace its waning dominance in manufacturing and to an extent services, our future generations of local graduates are ill-equipped with the creativity and knowledge in order to compete with the rest of the world. Because our manufacturing and services sector has no clear advantage over other countries, this can only mean our graduates will end up with jobs that are easily replaceable in other parts of the world. This in turn means the jobs available to our less-than-competent graduates will most likely offer remunerations that reflect its commoditized nature.<br /><br />Parents of young children have not much choice. Those who can afford it will likely enrol their kids in private schools. Many of the young professionals today will no doubt do whatever they can to ensure their offsprings will be able to enter into foreign universities in the future, in order that they can secure a globally-recognized education that will give them that extra edge in getting good paying jobs. And where will these jobs come from? At this rate, no one will be putting their money on Malaysia. So we have a vicious circle – the Malaysian economy is stuck in the 20th century because our education system could not produce sufficient scientists, engineers and finance wizards who can transform it to a knowledge-based economy, whilst those with the knowledge will most likely offer their services to other countries because they could not find high-value employment back home. In the meantime, our neighbours have leapfrogged us, with our best brains contributing to their advancements.<br /><br />How about parents who have no choice but to send their children to government schools? They can only pray for a miracle that somehow the standard of teaching improves; that the government appoints school administrators based on competence, not political obedience; that the entire education system is predicated on merit; that deserving students are given the means and support all the way from primary school to university to pursue their dreams.<br /><br />If the government continues in its slumber by its fixation on billion-dollar infrastructures, and ignore the crucial need to revamp our education system now, our children will suffer the consequences of low-paying jobs in a less-than-competitive economy in the future. Coming at a time when we are running out of oil and high inflation looks to be a permanent fixture; our next generation will be the ones bearing the costs of our profligate and myopic ways. Low paying jobs in a less than dynamic economy; no more oil; high fuel and food prices – aren’t we condemning our next generation to a lifetime of meaningless slog, struggling to earn just enough to cover their bills with no light at the end of the tunnel? Can someone wake the government up now?malaysianairehttp://www.blogger.com/profile/14296726517465801616noreply@blogger.com0tag:blogger.com,1999:blog-4466066904291852765.post-16839449457697738452008-04-16T06:05:00.000-07:002008-04-16T06:07:46.493-07:00Stop Squandering the People's MoneyYet another study – a cost analysis to be exact – will be carried out to determine if it is viable to send a second Malaysian into outer space.<br /><br />Why is it that that the government seemed so intent on wasting public funds on grandiose projects, at a time when costs of basic necessities such as food and fuel are hurting the people deeply? Just recently, the 2nd Finance Minister announced that the government may not be able to keep to its budget deficit target. Isn’t this a clear sign that expensive expenditures that do not yield any economic or tangible social returns should be discarded straightaway? Why are we looking towards space when we are facing a potential socio-economic crisis on the ground?<br /><br />First of all, I have no idea what the learned Minister meant by a cost analysis. Does he not know the costs of a ticket into space? It must have cost the Malaysian government at least USD25m, since that was what other space tourists, e.g. American billionaire Charles Simonyi paid for his space trip on board the Russian craft Soyuz. The Minister must have meant a costs-benefit analysis. Perhaps he realized it is extremely difficult to quantify the benefits side of sending a Malaysian into space, hence omitting the most important consideration of the equation.<br /><br />If there is indeed any commercial benefits of the space “programme”, there must be hundreds of companies lining up to sponsor the trip in return for some work carried out in space. The reality is that there is little commercial value that can be extracted from this space programme as there is no long-term plan being spelled out.<br /><br />What about national pride? Can we put a price on this? A blog suggested that assuming the programme benefitted 3 million Malaysians, the cost per person is minimal, and the Angkasawan programme is worth every penny. Can the 3 million Malaysian please come forward and identify themselves?<br /><br />There are much cheaper and effective ways to get young Malaysians to be interested in space. If we want to have a Malaysian in space, lets do it the proper (albeit the hard way). Let a Malaysian astronaut do more than simply strap himself into the spaceship when it takes off and unstrapped himself when it lands. We want a Malaysian that truly qualifies as an Astronaut. And is USD25m a small price to pay to for national prestige? Perhaps. However, when we still have pockets of poverty that will face severe hardships with rising food prices, it is time to turn our dreamy eyes away from space and focus on thousands of Malaysians who have trouble standing on their own two feet. Please Minister, junk the costs analysis and let common sense prevail.malaysianairehttp://www.blogger.com/profile/14296726517465801616noreply@blogger.com1tag:blogger.com,1999:blog-4466066904291852765.post-40671229426127094662008-04-01T06:59:00.000-07:002008-04-01T07:00:15.074-07:00Open Tenders and Crazy EconomicsI am very perplexed by a recent statement made by our Finance Minister. He opined that open tenders are not necessarily equitable, as it prevents financially-weak companies from competing. This is crazy economics.<br /><br />A company with weak financial fundamentals (Company A) is likely to obtain a bank loan with higher interest rates (given the higher risk), vs. another one (Company B) with solid financial standing. This means for any project that Company A tenders for, it is going to demand a higher rate of return to compensate for its higher interest costs, which translates into higher tender price. This essentially means that it will lose to a lower bid by Company B if price was the only determining criteria.<br /><br />Yet the Finance Minister is saying this is “unfair”. Is it fair to the tax-payers (if Company A was chosen) who will end up paying more, for say, a bridge, when some companies are willing to build it for less? The Government has no business to prop up companies by awarding plum projects to them, as it is akin to gambling with the rakyat’s money. What if Company A fails to deliver the project? Why take this risk when there are other companies who are far more reliable and cheaper?<br /><br />Of course, there is nothing to prevent Company A from subcontracting the project to Company B, who can pull off the project with lower costs and hence price. Company A ends up with a profit by doing nothing, apart from securing the fat government tender. Company B gets the project it is fully qualified for in the first place, albeit from the “winning” bidder, and delivers. However, we, the tax-payers end up with a higher tab. Is this fair?<br /><br />Ultimately, the Government, as custodians of the people’s money, must have the interests of the people in mind. So what if “only the strong and those with financial capacity” benefit from open tenders, if the people also benefits? After all, it is the rakyat that the Government is subservient to, not businesses. Equity to the People first, not companies!malaysianairehttp://www.blogger.com/profile/14296726517465801616noreply@blogger.com0tag:blogger.com,1999:blog-4466066904291852765.post-37861919365745781202008-03-26T00:29:00.000-07:002008-03-26T00:31:10.828-07:00Open RevoltTime is fast running out for PM Badawi to make a graceful exit and ease the transition of power for the nation’s sake.<br /><br />The electorate registered a huge protest vote against his leadership by stripping the BN of their two-thirds majority in March 2008. This is a massive swing from his 2004 landslide win. In addition to Kelantan, the people of Penang, Perak, Kedah and Selangor punished his complacency by putting an Opposition government in power.<br /><br />Right after the elections, in the states of Perlis and Terengganu, His Majesties delivered a huge blow to his credibility as Prime Minister by rejecting his choice of Menteri Besar. His own UMNO assemblymen gave him a slap in his face by accepting the appointments with the full knowledge that it is a direct challenge to his authority.<br /><br />In his recent Cabinet announcements, 2 of his appointees declined his nomination.<br />The Prime Minister’s Office, as an institution, is bigger than any one man. It is clear than the current holder can no longer wield the full power and influence that this office bestows. By postponing the UMNO General Assembly, he is telling Malaysians that even his UMNO Presidency (and hence PM of Malaysia) is under threat. This means right until May 2009, PM Badawi will be embroiled in an internal fight to keep him in office, instead of exercising his Prime Ministerial duties in the face of what has been billed the biggest economic challenge since the Great Depression.<br /><br />Malaysians from all walks of life has spoken, and for a PM with “big ears”, isn’t the message clear enough?malaysianairehttp://www.blogger.com/profile/14296726517465801616noreply@blogger.com0tag:blogger.com,1999:blog-4466066904291852765.post-69804662169049727062008-03-16T00:09:00.000-07:002008-03-16T03:52:08.907-07:00Lazy Sunday Afternoon2 statements by RANDY DAVID (Sunday Star, 16 March 2008) caught my eye. It is from an article titled " When modern institutions work", illustrating how a fast-rising Democrat and potential presidential nominee Elliot Spitzer being brought crashing down to earth due to a sex scandal exposed no less by the banking system, the internal revenue office, the FBI and the courts.<br /><br />"Institutions are the evolutionary achievements of society, the means by which stable collective life is assured. They begin to malfunction when they get corrupted, when they allow themselves to become the extension of personal power."<br /><br />"The legal system is represented in the form of a blindfolded lady holding the scale of justice. The law weights the evidence, but is blind to the social standing or power of those appearing before it".<br /><br />Democracy may have prevailed in the 12th GE, however, our judicial system, as evidenced by the shambolic revelations in the Lingam Royal Commision hearing, remains crippled and beholden to executive powers and manipulation by big names. Lets see if the wind of change will blow through the courts as well.malaysianairehttp://www.blogger.com/profile/14296726517465801616noreply@blogger.com0tag:blogger.com,1999:blog-4466066904291852765.post-35819560019377597742008-03-13T19:06:00.000-07:002008-03-13T20:13:54.389-07:00Perak MB Swearing-In CancelledThe Opposition coalition has to quickly recognize the position it finds itself now –a position of 2 polar opposites – they are Governments in the 5 States that they have won, and they are Opposition at the Federal level. This calls for careful re-evaluation of their strategies because the realities have changed, which can work for or against their favour. The two starkest changes are obvious: Power and Media.<br /><br />Absolute power corrupts, abrupt Power intoxicates. The initial signs are that the Opposition has allowed the euphoria of winning to make them forget what clinched them the historic victory in the first place. It was the people who were willing to give the Opposition coalition – PKR, DAP and PAS a chance – by voting across racial and religious lines – Chinese for PAS, Malay for DAP/PKR. And they rightfully demand that they work together and prove to them they are a better alternative to the ruling BN. And how they have let the people down. The Opposition has already started to engage in internal bickering to see who gets what. Have they lost sight of the real prize? The real prize is the Federal Government, and the Opposition coalition has less than 4 years to get their act together to prove that what they preach in Opposition, they can deliver in Government in the 5 states they now rule. Stop fighting for scraps under the dinner table. The people has given you power, so start governing!<br /><br />Secondly, whereas before the Opposition has to resort to alternative media to get their voices heard, they are now the media darlings. All mainstream newspapers and broadcasters want to get a piece of them. This Britney-Spears attention has obviously got them unprepared, as they are still fumbling to get out a coherent, unified message. Instead of exploiting the current BN shaky foundations, they allowed themselves to become the focal attention of a coalition in disarray. Press statements are given by various Opposition Leaders without conferring with each other, eliciting swift contradictory statements and perpetuating the notion of disunity and confusion in the Opposition ranks.<br /><br />I echo one statement made by a prominent blogger - can all the Opposition Leaders shut up? You are now a YB, not a MC. Your job now is to govern, not to give press statements. Create a media team that has to get any media release approved by the 3 respective Parties’ central committees. Issue press releases that are with substance – new state policies that are transparent, fair and beneficial to the people. Expose any corruption of previous state administrations. Let the media focus on BN – they are the ones with a weak foundation and an infighting that will eventually unravel.<br /><br />In a nutshell, welcome to the adults’ table – now, please start to act like one.malaysianairehttp://www.blogger.com/profile/14296726517465801616noreply@blogger.com0tag:blogger.com,1999:blog-4466066904291852765.post-51988321095957922982008-03-12T01:03:00.000-07:002008-03-12T18:29:47.104-07:00The Fish Rots from the HeadBN has not learnt its lesson. It fielded many new faces in the 12th General Election in its bid to convince the electorate that it is in a process of rejuvenation. Its severe loss however, clearly showed that the strategy failed. In contrast, many new faces from the Opposition went on to thump veteran BN candidates. How is it that the same rejuvenation strategy yielded huge defeats to one party but handsomely rewards another?<br /><br />The answer is so obvious, that the BN leadership must be in denial as it seeks to absolve itself of its responsibility. A rejuvenation process has to start from the top-down, not bottom-up. Whereas the Opposition presented a clear new direction, with its leadership espousing brave changes to the way it wanted to govern the country, the BN leadership stuck to its old agenda. Whereas the Opposition leadership is ready to stake its credibility by challenging the status quo, the BN leadership stuck to its old tired formula of “if it ain’t broken, don’t fix it”.<br /><br />Hence, even with many fresh faces in the line-up, the people have no reason to believe the renewal process is a genuine one, when old hands in the leadership is still steering the ship. Fresh faces are needed at the top, not at the bottom!<br /><br />(For example, in the UK, Tony Blair’s transformation of the Labour Party into New Labour convinced the British people to break more than a decade of Conservative rule and gave him a landslide majority. New Labour was successful because Tony Blair himself presented a fresh change from “Old” Labour (under John Smith), and he successfully moved the Party to the centre by purging the leadership of veterans who were still clinging to the left. )<br /><br />In the aftermath of their heavy loss, the BN leadership is still living the illusion that they can “rejuvenate” the party. If they have failed to convince the electorate before the 8th of March 2008, what makes them think they can after this historic day? If the BN leadership genuinely wants to rejuvenate the party, it has to hand over the reins to a new leadership. Only a new leadership can convince the people that change is at hand. Save yourselves, destroy the party. Leave now, and there is hope for BN.<br /><br />As Barack Obama says so eloquently, give us “Change We Can Believe In”.malaysianairehttp://www.blogger.com/profile/14296726517465801616noreply@blogger.com0tag:blogger.com,1999:blog-4466066904291852765.post-16149110248369857012008-03-09T18:46:00.000-07:002008-03-09T18:47:47.857-07:00A Letter to the Star EditorDear Sir<br />It is not the Opposition that has broken the National Front’s seemingly invincible two-thirds majority. It is the People. It is not that the Opposition wrested the states of Selangor, Penang, Perak, Kelantan and Kedah. It was the People that consented to the new governments.<br /><br />This was despite the extreme biased reporting on the part of the mainstream media, of which Star was part of. I have never seen such one-sided opinion in favour of the ruling party. Positive spin was poured on ruling coalition candidates’ campaign rounds, while the opposition’s campaigns were barely covered. And when it was, it was mostly negative commentaries.<br /><br />Where is the responsible and fair journalism? Do not mock our intelligence. By demonstrating such blatant disregard for unbiased reporting, the Star failed in its duty to play a role as an important pillar of Malaysia’s democratic process. It only serves to push the readers to resort to alternative media, while the Star’s reports was read with great scepticism, and in some instances, even anger at the complete disregard for fair competition in a democratic country.<br /><br />Of course we know that the Star is not an independent corporate entity, since its ultimate owner is a component party of the ruling BN. However, unless it wants to maintain its relevance as an important institution in the Malaysian society whose editorials are respected and read without preset prejudices, it has to break its shackles from its political masters. Let us form our own opinions by giving us both sides of the stories. If the Star continues to neglect its role as a provider of balanced views and genuine news to the People, then it will be a matter of time before its readers forsake the Star and turn to other sources that will.malaysianairehttp://www.blogger.com/profile/14296726517465801616noreply@blogger.com0tag:blogger.com,1999:blog-4466066904291852765.post-27881501658124932008-03-08T23:02:00.000-08:002008-03-09T17:46:03.203-07:008th March 2008 - A Glorious DayI woke up today to a glorious morning. A perfect storm has swept, leaving not destruction in its wake, but an upheaval in the political structure and a fresh beginning throughout the peninsula.<br /><br />Malaysians today can proudly proclaim that their thunderous message can be heard through-out the entire country. No more political hegemony. No more race-based politics. The opposition coalition, led by the multi-racial Party Keadilan Rakyat, has delivered a huge blow to the seemingly invincible two-thirds Parliamentary majority that has been held by the ruling party for so long.<br /><br />BN has only itself to blame. This time, its substantial loss of seats is not due to one particular race switching to the opposition camp. Malays, Chinese and the Indians have indicated that PKR, DAP and PAS is a viable alternative coalition. How did the BN, from a formidable 90% majority in the 2004 elections, could have stumped to substantial loss in a matter of 4 years, a huge pendulum swing?<br /><br />Prime Minister Badawi has to shoulder the responsibility as the BN leader that has led the coalition to its first two-thirds majority loss in its entire history. He won a huge mandate in the 2004 elections, by promising to be a PM to all Malaysians, by promising to act on corruption and reduce excess spending, by promising to improve the civil service. But he failed to deliver - crime became more rampant; there was no open tender of projects; virtually no convictions for exposed cases of corruption. He said he is a PM to all Malaysians, yet engage in a scare tactic to cower Chinese and Indian to vote for MCA and MIC, otherwise, their voice will be lost in the Cabinet, and hence, excluded from decision-making that will affect their livelihoods.<br /><br />Malaysians did give PM Badawi more time to fulfil his promises. We still elected BN into government in this 2008 elections. However, this time, we are telling the BN party, we want to see results this time. No more empty rhetoric. No more arrogance that we should be told what is best for us. Whether we are Malays, Indians or Chinese, we want to see transparency; tolerance and respect in the way Malaysia is governed.<br /><br />It is a healthy development for Malaysian politics. 8th March 2008 is a day I will remember forever. It is the day my faith in Malaysia is restored. It is the day where I smiled even though I haven’t slept in the last 22 hours, knowing my daughters can look forward to a brighter future in Malaysia. It is the day, where we the Malaysian rakyat finally did something which the ruling party BN has preach but never practice religiously, that it is just possible, for the Malays, Chinese and Indians, to find a common voice in order to achieve a common good that transcends race and religion. This is not so much a defeat for the ruling BN, or a win for the opposition. It is a victory for Malaysian politics – for all Malaysians.<br /><br />It is a glorious day.malaysianairehttp://www.blogger.com/profile/14296726517465801616noreply@blogger.com0tag:blogger.com,1999:blog-4466066904291852765.post-81494008161769502922008-02-24T17:58:00.001-08:002008-02-28T17:18:05.640-08:00Malaysia Chooses 2008"Let our track record speak for itself." This the the rallying cry coming from all Barisan Nasional candidates. Indeed, it is an impressive track record. Since independence, Malaysia has been transformed by successive Prime Ministers into a modern country with many achievements to be proud of. I am proud to be a Malaysian, and I stand in awe of the work and accomplishments that our leaders has brought to our nation.<br /><br />However, lets not confuse past performance with future performance. Malaysians are generally avid stock punters, and those with long memories of the local stock market will tell anyone who would listen how they were burnt by a "darling stock" - a stock that was previously touted to be a blue chip investment based on its track record and strong fundamentals, only to be routed to penny stock status when the reality is exactly the opposite.<br /><br />Apart from that, we need to ask, "Whose track record?" The present leadership of BN, under the current Prime Minister, has been in power for 4 years. To critically access whether it has been a successful one, we need to ask: whether the new administration has advanced the track record it has inherited from its predecessors; whether it has made positive changes to rectify obvious weaknesses in the previous administration; and finally, whether the new leadership has made any concrete changes in policies and governance that benefit the people.<br /><br />PM Badawi got a landslide victory in 2004 because many people, myself included, believed that he is a breath of fresh air, a noble man who will fulfill the true destiny of Malaysia by being a PM to all races. A PM who will push Malaysians to reach their potential via hard work and intellect, not via connections. A PM who will strive to reward competence and success, and penalize mediocrity and failure. A PM who will lead a responsible and transparent government, one who will unite the various race, so we compete not with each other but against other countries (say Singapore) whom has exceeded our achievements.<br /><br />However, what we have seen in the 4 years since PM Badawi's victory is disheartening. The pain is made worse when we have given such a strong mandate to the PM, only to see the mandate being squandered away. BN MPs are openly raking the May 13 incident, when we should be looking forward, not backwards. Zero marks for tolerance. BN MPs are openly humiliating women in parliament. Zero marks for respect. BN's elected representatives who broke the law are getting away with it, while ordinary rakyat are hauled up for the same offence. Zero marks for integrity.<br /><br />Prices of essential goods have risen substantially. This cannot be blamed on the current administration, since it is a worldwide phenomenon as commodities prices surged. Yet, instead of practicing responsible governance, the current BN leadership espoused the rakyat to "change our lifestyles". Instead of tightening its pursestrings, the current leadership continue to splurge on prestige events (the Monsoon Cup), proposed to build a sports centre in a foreign land that costs hundreds of millions of ringgit, sending a Malaysian on a tour of space, to name a few. Low marks for prudence.<br /><br />How about the promise to revamp the police force? Where is the independent commission recommended by the Royal Commision? Why has the ACA not produced any conviction?<br /><br />PM Badawi asked for more time, and it is given that he will be given more time. With the formidable resources and organization that the BN has in this General Election against the Opposition, the outcome is heavily in the former's favour. With the mainstream media skewed to paint a favourable picture of the government, we will not get to enjoy the robust workings of democracy in action. In the US, the media is an integral part of the democratic system where investigative journalism and critical editorials let the voters decide if either side are speaking the truth. In Malaysia, the broadsheets display little independence from their business owners, who are the ruling political parties or affiliated to them.<br /><br />The election will yield huge wins for BN. This is a certainty. However, lets hope there will be one or two major upsets, one or two surprises, one or two miracles. Lets send out a message, that we the people matters.malaysianairehttp://www.blogger.com/profile/14296726517465801616noreply@blogger.com0