Yet 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.
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?
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.
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.
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?
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.
Wednesday, April 16, 2008
Tuesday, April 1, 2008
Open Tenders and Crazy Economics
I 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.
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.
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?
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?
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!
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.
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?
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?
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!
Wednesday, March 26, 2008
Open Revolt
Time is fast running out for PM Badawi to make a graceful exit and ease the transition of power for the nation’s sake.
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.
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.
In his recent Cabinet announcements, 2 of his appointees declined his nomination.
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.
Malaysians from all walks of life has spoken, and for a PM with “big ears”, isn’t the message clear enough?
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.
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.
In his recent Cabinet announcements, 2 of his appointees declined his nomination.
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.
Malaysians from all walks of life has spoken, and for a PM with “big ears”, isn’t the message clear enough?
Sunday, March 16, 2008
Lazy Sunday Afternoon
2 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.
"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."
"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".
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.
"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."
"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".
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.
Thursday, March 13, 2008
Perak MB Swearing-In Cancelled
The 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.
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!
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.
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.
In a nutshell, welcome to the adults’ table – now, please start to act like one.
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!
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.
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.
In a nutshell, welcome to the adults’ table – now, please start to act like one.
Wednesday, March 12, 2008
The Fish Rots from the Head
BN 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?
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”.
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!
(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. )
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.
As Barack Obama says so eloquently, give us “Change We Can Believe In”.
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”.
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!
(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. )
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.
As Barack Obama says so eloquently, give us “Change We Can Believe In”.
Sunday, March 9, 2008
A Letter to the Star Editor
Dear Sir
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.
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.
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.
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.
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.
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.
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.
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.
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