Deputy Prime Minister Muhyiddin Yassin has mooted to the government to hand out more cash via the BR1M programme as low-income Malaysians are facing the brunt of global economic slowdown. Is giving out more cash the answer?
The last round the government had forked out almost RM3 billion in direct cash payouts. Did the payouts help the economy? If yes, the government would not have mooted a second one. Ironically, a large number of those who received the RM500 had used the cash aid to clear their household debts. History is bound to happen again and it is scary trying to imagine the seriousness of our household debt situation.
The government should consider longer term solutions such as helping to improve our domestic economic health and to help to stimulate jobs.
Instead of giving out more cash, the government should consider continuing with the New Economic Model reforms mooted by PM Najib when he first succeeded Abdullah Badawi. There's not much being heard about the economic model which proposes reforms of the New Economic Policy which was blamed as a major hindrance to economic growth.
Through the NEM, the administration had liberalised several sub-sectors which do not have significant Bumiputera participation. However, his reform pledges under the NEM came to an abrupt halt when the politics of race took firm hold of his administration.
Next, he should restructure the public sector mindset to become more competent and efficient in supporting the private sector. Government linked companies should be scaled down and allow free up competition in the economy. At the moment, it is very difficult for SMEs to flourish in the local economy which is being overwhelmingly controlled by GLCs and huge local conglomerates.
This is not a healthy trend. It other countries, the SMEs are important employers and often employ up to 60% of the total work force. The SME sector has been long neglected by the government. It clearly does not have good and effective policy and programmes to help these businesses.
There should be a review of the foreign labour policy. The difference between Singapore and Malaysia is stark and serious. The former is good at attracting high net worth individuals and employers but the latter is a hub for low skilled manual workers of over 2 million. Malaysia's over dependence on low cost labour is a huge contributor to its economic malaise and middle income trap.
A lot more can be done with the RM3 billion direct cash handouts. The government should use our limited financial resources wisely. BR1M should become a political tool. It should not be used to help the ruling regime to buy support at the coming GE.
It is time for the ruling to embark on history making and significant reforms instead of depending on populist policy to help them stay in government.
6 comments:
The outcome of the job is money. When there are employments there are money for the jobs. Jobs will continue earn money. Whereas BR1M is only money given off as a token. Some sort of sweets given to small kids to satisfy them. Like ants attracted to sugar (sweets). RM3 Billions given freely will be wasted and people will ask for more free gift and to no end. Nothing should be given freely becsuse it would be wasted. What say you, do you agree.
UMNO idiots scream about free education will drive the nation to bankruptcy. Well, so can BR1M because handling out FREE CASHES to vagrants just aren't productive and instead creating more liabilities not just for the government but also the taxpayers, who are the ones paying these jobless pengemis
Jobs are what our present GOM has no idea what it is all about.For a ruling regime to win elections the rakyat must be happy and be fully employed.When their pocket books and bank accounts are in the black,the rakyat is happy.When they are happy incumbents are reelected.When the rakyat is unhappy,incumbents are chased out of office.
Because of corruption and cronism,the economy is under a monopoly controlled by stooges of politicians.And there will be no more new jobs created.Investors and potential entrepreneurs will shun the local economy,thus not creating new jobs.
No investors and entrepreneurs want to do business in an unfriendly environment and at a huge disadvantage.Even super businessmen cannot compete against monopolised businesses subsidised by the taxpayers.
With no competition,they can overcharged their goods to be able to afford kickbacks to their political masters.Thus with no competition comes an uncompetitive workforce.Thus the politicians and their cronies,with their monopolies on the local economy and industries with no competition,have priced themselves out of the open markets.
Real businessmen knows that competitive quality goods sell,whereas overpriced bad quality goods do not.Therefore which person with a sound mind would like to invest in a country that produces overpriced goods.No wonder our FDI has dropped like a rock.Therefore we hear of politicians talking of selective FDI only.
For the tongkat,clutches and wheelchairs dependents of Umno,beggars cannot be choosers.Mr Moo will be happy and laughing his fat ass off when he reads this.Hahaha.
Are you related to John Peng?
Patrick Dooley pjdooley@skynet.be
In other words is I help you today you help me later dude.. such a sick parties. Well as a malay i feel ashamed of these stupid program as it only benefited the mass people one time.. its like telling these people to ask for more .. you want something .. i can give you but you must do something for me first..talk about bribery ..
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