Sunday, May 30, 2010

Malaysia Going Bankrupt in 9 Years?

Minister Idris Jala had sounded the alarm bell by stating that this country could go to the dogs or ended up bankrupt in 9 years if nothing is being done to the subsidy system. At present, the government spends a large chunk of its annual revenue on various subsidies.

Before we even start to debate the merit of dismantling these subsidies, we should look back at its historical background. Handing out subsidy was an easy way out to momentarily address issues of inefficiency, incompetence and inability to move up the higher value chain.

The government should have helped to address the issues through various capacity building programmes. The nation could have been prepared to go on a higher value chain and to be more productive and competent.

Unfortunately, for decades the government had lost various opportunities to revamp, reinvent and reenergize our socio-economic policy direction. The government never had the political will to implement any real reform. It looks like history is going to repeat itself again especially after the protest of 70 odd Malay NGOs against the NEM. Najib may yet again retreats from his policy like his predecessors.

Policy flip-flops and inconsistencies had ruined many good and well thought out policy vision including the Vision 2020 and the effort to become a knowledge economy.

Hence, dismantling the subsidy system which is sucking this country's resources dry must come with a steely political will to end mediocrity, cut wastage and adopt financial prudence. The government cannot expect the people to accept higher prices without first tackle its own financial mismanagement, wastage and internal corruption.

With limited resources, this government should be ashamed of itself for trying to use the same resources to buy votes at the by-elections in Hulu Selangor an Sibu.

Our workforce is suffering from a middle income trap. Our average income per capita has not grown that much since 1997 compared to other countries in the region. At USD7000, it has barely made a jump from USD5,600 more than a decade ago.

Any increase in the essential items, oil & gas, toll rates, sugar and others will trigger higher inflation.

What is the government plan to help boost per capita income of the people? What has the government done to create more higher paying jobs for the people?

What has the government done to tighten its own financial management, cut wastage, combat corruption and leakage?

It is important for Idris to realize that subsidy cut is not the only solution to avoid this country from becoming bankrupt. Barisan needs a total overhaul and we need more trustworthy people running the country.

Give us some action on the PKFZ. Why the deafening silence?

If Barisan cannot balance the book, perhaps others should be given a chance to try since we running out of time.

Why must only the people suffer for the mismanagement?

28 comments:

Anonymous said...

We are wondering when will they learn to admit their mistakes?

PANJI HITAM 61 said...

"What has the government done to tighten its own financial management, cut wastage, combat corruption and leakage?"
Well said Bro, one cLassic example is Idris Jala... after the RM 2 billions wastages due to fuel hedging he is still allowed to CONFIUS the rakyat by saying subsidies are the cause of all these mess.

Anonymous said...

Tell someone that cares.Those who care have migrated.Happy bankrupting Malaysians.

najib manaukau said...

Why try to balance the book ?
Any saving would mean the corrupted ones at Umno/BN will only get a bigger chunk of the saving and at the end there will be no saving at all. The only solution is to change the government completely at the next GE just kick them out of the office, period. No Compromise
and the people in Perkasa think they can save the Malays and demand more privileges and rights.
The truth is they just want to ensure the country still has the gravy train there for them to milk. Just like Umno was and is doing it in the name of protecting the Malays it is time that the Malays wake up and do not get into the illusion that Umno or Perkasa are there to fight for you they are all fighting for themselves. These people are already millionaires or billionaires time to wake up and get further into your illusions ! Just look at them they are owners of imported cars , holidays abroad with their family and live and owned mansions, and some even owned banks not just having an accounts in them and many other luxuries that you can only dream of !
Can you or are you any more inferior than the son of shenanigan Mahathir ? How come the shenanigan son has so many millions or billions and you are still at best a 'poor' civil servant at best ?

Anonymous said...

For your information, USD5,6000 in 1997 is worth far more than USD7,000 today.

That means we have moved backward!

Actually don't waste bandwidth on how country will overcome all the challenges/policies that kill the golden goose. We should instead focus on how we can go global in our business.

Investing overseas have many advantages too. Money earned by non Malay businessmen overseas and kept overseas will not be used by "Ibrahim Alis" as yardstick to get the 67 and it is easier to let the "Ibrahim Alis" to achieve equality in economic terms. .... all become paupers.

No headaches or concern about so many limitations.

You also contribute to the economy too if you bring back and spend the money here (cheap. Earn there spend here)

Anyway, there are just tooooo many challenges and too many free loaders for the malnourished goose to lay good eggs. Very soon we shall be getting rotten eggs.

Cheers Malaysia. You are in hell of a trouble.

Cheers Perkasa, you are making Malaysia what it is today and tomorrow.. join the ranks of Zimbabwe, Burma, and Phillipines.

As for the rest of us, we are investing overseas and earning/getting good money. Who cares. This is 21st century. ... a century where globalisation is the key word.

Anonymous said...

The reason why the people suffer is because they are the smallest entity in the entire food chain bereft of the courage of calling a spade a spade en masse. The collective indifference or fear of change, choose which ever you please, will lead all who are "stuck on the boat without either an engine or oars" down to oblivion and the basket case of Asia.

Anonymous said...

Good news, Malaysia is going to be bankrupt the sooner the better.
Vision 2019 Malaysia Bankrupt

Anonymous said...

1. Abolish the NEP and AP system with immediate effect.

2. Force the majority to work hard and to be more productive like the Chinese and Indians, and make them pay equal amount of tax, and to compete on level-ground in all aspects of everything.

3. Launch a Cultural Revolution.

Anonymous said...

Barang naik is taking the easy way out. Make the rakyat pay. Next Ge is barang naik waterloo!!

Anonymous said...

bankrupt, kasi bankrupt la, just do it.

Anonymous said...

The subsidies is to buy votes for decades.Lifting it will draw away voters from BN!The Civil service is too FAT and too well paid.Thousands of Companies/Individuals are escaping paying taxes!How not to go bankrupt lah!!!

Broken Vessel said...

Get Tony Pua to manage the finance. I think he is capable

Anonymous said...

Precisely!!

Anonymous said...

Totally agreed with u, Mr. Khoo.
The rakyat should not be punished because of government mismanagement.
WAKE UP MALAYSIAN!

Beetle said...

On one hand Idris Jala told the people that unless there is a cut in subsidies over a period of 5 years the nation would become bankrupt.

Yet,today we read in the news ,our PM says that if we are able to maintain the 6% annual growth we would become a develop nation by 2020.

Who is right? Maybe the PM meant a bankrupt develop nation.

Forget about subsidy cut and get rid of corruption and wastage first.

Anonymous said...

We are know it is not subsidies that will bankrupt Malaysia. It is corruption that will bankrupt Malaysia. No amount of cut in subsidies will save Malaysia unless corruption is eliminated.

All right thinking Malaysians will agree to cut subsidies but firstly they want to eliminate corruption first.

To Idris Jala - tell your fellow cabinet members to cut corruption first and tell them that is the first step to prevent a bankrupt Malaysia.

Anonymous said...

Actually, i quite respected Idris when he was getting "Mana Ada System" around. Since he joined B..eNd, i have my second thoughts. Before he become a tool of BN/UMNO, we hope Idris should at least help exposed all the wrong doings of BN/UMNO and all the component parties(esp one big white ex-shark in MCA and another equally big black one in MIC, just to name a few). Billions and billions of dollars are wasted or ended up into those big sharks and cronies pockets.Yet nothing has been done to recover or at least stop the bleeding of our poor rakyat money till todate. Just take a look at that biggest and greatest "Slime Derby" GLC. Its is totally UNBELIEVABLE that none of the thousands of staff, some with incredible credentials, are totally unaware of the billions$$$$$$ siphoned and wasted during the project implementation all these years.
Come on, Idris, i personally believe you still have some dignity and courage to do what you should do. If your hands are tied for whatever reasons, then RESIGN from BN and work for PKR. At least you stand and walk with your head high wherever you go. ACT NOW!!!!!!!!

Anonymous said...

HOW TO HELP THE ROGUES OF UMNO BN CORRUPT THE NATION AND LINED THEIR OWN POCKETS FULL AND BANKRUPT THE NATION'S COFFER THAT WAS THE MEANING OF "I HELP YOU, YOU HELP ME" OK? SO NOBODY WILL EVER FALL FOR THE UMNO BN ROUGE'S LURE EVER AGAIN RIGHT, FRESH FROM SIBU.

ALL MALAYSIANS IRRESPECTIVE OF RACE OR CREED ARE SUFFERING THE OPPRESSIVE RULE BY THE ROUGES OF UMNO BN AND WE ARE HOPEFUL THAT THERE ARE MORE RPKS WHO DARE TO EXPOSE & BRING OUT ALL THE WRONG DOINGS OF THE CORRUPTED LEADERS OF UMNO BN TO THE KNOWLEDGE OF THE WHOLE WORLD SO THAT ALL MALAYSIAN VOTERS WILL VOTE WISELY COME GE 13 AND BRING DOWN THE CORRUPTED AND OPPRESSIVE UMNO BN GOVERNMENT SOONEST POSSIBLE FOR THE FUTURE WELL BEING OF ALL MALAYSIAN CITIZENS AS THE COUNTRY’S RESOURCES WILL SOON BE DECIMATED IN NO TIME UNDER THE WASTEFUL AND CORRUPTED UMNO OFFICIALS MIS-MANAGING THE MALAYSIAN ECONOMY.

The war that was necessary to be fought by all Malaysians is the only war against corruption by UMNO Rouges and their oppressive rule by their using Police Force as their tools to suppress dissents ok?

This is necessary so the said Govt. Coffers will not be empty when the new PR Govt. took over from them come next GE, Malaysian Voters should know what is required to throw them all out then because future generations of Malaysians will suffer great poverty after Umno BN would have bankrupted the Govt. Coffers by then if there is no CHANGE OF HANDS AFTER DECADES OF MIS-MANAGEMENT OF THE ECONOMY AND HIDING THE DAMAGED DONE BY POSTING RECOVERY STORIES AND THE OVER-GLORIFIED NEM IN THE MSM FOR SHOW ONLY, HOW TO BELIEVE THE MSM WHEN WHAT THEY TRULY DID WAS TO TELL ALL SORTS OF LIES OR DISTORTIONS FOR THE UMNO BN GOVERNMENT IN POWER WHO CONTROLLED THEIR YEARLY RENEWAL PUBLISHING LICENCES.

ANOTHER OF THE GREAT LIES AND DISTORTIONS THE CORRUPTED UMNO BN WILL TRY TO SPREAD A PROPAGANDA AND IN ORDER TO BRAINWASH AND HOODWINK THE MALAYSIAN GENERAL PUBLIC INTO BELIEVING THERE ARE REAL FUEL SUBSIDIES IN OIL (PETROL & DIESEL) AND GAS, THERE CAN NEVER BE ANY SUBSIDIES IN THESE ITEMS BECAUSE MALAYSIA IS A NETT OIL AND GAS PRODUCER MEANING AFTER THE DEDUCTION OF DOMESTIC CONSUMPTION MALAYSIA HAS PRODUCED AN EXCESS OF THESE ITEMS FOR EXPORT AND WHATEVER IS FOR DOMESTIC CONSUMPTION IS SOLD AT A DISCOUNT AND NEVER CONSIDERED AS SUBSIDY AT ALL QUOTING AN EXAMPLE LIKE OIL AND GAS PRODUCER LIKE BRUNEI AND SAUDI ARABIA AND OTHER GREAT OIL PRODUCERS, DOMESTIC PETROL AND DIESEL PRICES ARE SOLD LOCALLY AT A VERY STEEP DISCOUNTED PRICES AS COMPARED AGAINST WORLD IMPORTERS NON-OIL PRODUCERS’ LOCAL CONSUMPTION PRICES AND THE UMNO BN ROUGES ARE TRYING TO TAKE ALL MALAYSIANS FOR A RIDE BY INSISTING THAT THERE IS A SUBSIDY IN THE OIL AND GAS PRICES BUT IN FACT THERE WERE NONE BUT A STRATEGY TO CHEAT FOR THEIR OWN END TO PRACTISE MORE CORRUPTIONS FROM THE EXTRA THAT COULD BE MADE FROM THOSE LIES AND DISTORTIONS THEY TRY TO SPREAD IN THE MSMES CONTROLLED TIGHTLY BY THEM WITH THE RESTRICTIVE YEARLY RENEWAL PUBLISHING LICENCES.

roland shen loong said...

IDRIS JALA, THE KPI MINISTER WILL BE AXED BY PM NAJIS FOR REVEALING THE TRUTH , WHOLE TRUTH AND NOTHING BUT THE TRUTH OF THE MISMANAGEMENT AND INCOMPETENCY OF UMNO-BEEND GOMEN !!!!

Anonymous said...

To ALL MALAYSIAN,

WHO IS AT FAULT HERE? BLAME OURSELVES i.e THE STUPID MALAYSIAN PEOPLE for voting the bloody BN goverment. Now go and suck EGGS

Anonymous said...

I went to the Open Day by Idris Jala last week. And I think we should look at this issue based on facts and fiscal aspect.

For the last 10 years, our debt and GDP are increasing. But the fact is that our debt is growing faster than our GDP. Our debt has increased by 12%, but as for our GDP, at only 3%.

And you have to understand, IF we continue to let this happen, our debt will be equal to our GDP (DEBT = GDP). IF this happens, our country will go bankrupt.

There are several things suggested by Idris in order to avoid this situation from happening. (Yes, we can actually do something to prevent it from happening, now!) :-
1. Increase our revenue and focus on 12 NKEA's
2. Reduce expenditure (including subsidy)

The Govt already begins a total of 12 NKEA labs. These labs are participated by business leaders from various sectors, and will be running for 8 weeks. The objective of the labs is simple: to find solution on how to achieve higher GDP and national income.

According to statistic, to avoid the bankruptcy, our GDP needs to grow at 3% per annum (or higher).

But GDP growth is not enough to cover our debt. We must reduce our spending. One of the ways to do it, is to rationalize our subsidy. Our govt organized a Forum and an Open Day to gain feedback from the public. It proves that the govt is still concern abt the needs of the people, especially the middle or lower class citizens.

You may claim that this is all abt politics. Actually, it is not. It is abt our own economy, our living. If we dont help ourselves, no one is going to help us.

Let's put aside our political standing and beliefs. Its abt our competitiveness, our future and younger generations. I am sure that, we dont want debt to ruin our kids. We have to develop this country without compromising the ability of future generations to meet their own needs.

Anonymous said...

The issue is that subsidies are a distortion to the economy and I dont think the country can afford to continue having a large chunk of GDP on subsidies.

Its inefficient and it looks like we are even subsidising the rich. The key is allocating subsidies to those in need/poor.

But agree with the rest, reducing corruption, etc must also be done

Act Now! said...

Government = govern + ment. Ment is mente in Italian meaning mind. Government = control the mind (of the people) through GOD. GOD stands for Gold/Money, Oil, Drug.

Explore these two links to see the BIG PICTURE and ACT NOW.

http://groups.google.com/group/1-malaysia ???

http://groups.google.com/group/the-venus-project

Anonymous said...

It is sad to see that the Malays are being treated as second class citizens as they are being treated as zombies by the powers that be. They are told how to behave, how to dress, what to see on TV that is filtered and received 5 minutes after they have been looked at by some people. Malaysians thus get their foreign TV channels 5 minutes later as they are not capable of knowing what to see. Come on, wake up, you need a change for the better. Why let a once great country like Malaysia go to the dogs!

Anonymous said...

nice blog.!!
keep bringing the good stuff.!
lets bring down the stupid malaysian government.
especially the stupid toyol prime minister, NAJIB.
we need new people.
new leaders.
not the corrupted ones.!
duh.
wake up laa malaysianss...
especially the melayuu...
i malu laa jadi melayu ini macam..

FIGHT FOR YOUR RIGHT.
VIVA LA PUNK.

kokokai said...

why are we so worried? Just let it be. Karma will takes it course.
The strong one will survive. The weak one will be wiped out.

Anonymous said...

what a very wise opinion... but Government should be given the chances to put everything back in right track.. changing to the new government do not promised stability like what we have now.. choosing government is not as simple as trying new brand.. the future of our generation is not something that can be bargain..

Anonymous said...

Well there are only 2 ways to go for Malaysia . Either end up like a few European countries , bankrupt , or like a few Muslim countries of North Africa and the Arab world , with massive revolts against authoritarian and unjust regimes .
Either way the current racist and religious system will have to change , or Malaysia could be the first country in the region to go bankrupt , which will definately bring instability to the region for many years .
Malaysia is not alone with all these problems , most of SE Asia has bad political systems . Change is on the way everywhere , it just happened to start in North Africa .