Najib now vulnerable: Budget 2012's biggest gainer is Muhyiddin

If Prime Minister Najib Razak had hoped to 'wow' the country with his record-size Bugdet 2012, then he must have been disappointed with the response. Not only were the opposition and independent financial analysts scathing about his lack of long-term planning, the deafening silence from the public gallery could not have gone unnoticed by his peers in Umno.

Already, the camp supporting Deputy Prime Minister Muhyiddin Yassin to take over is stronger and outnumber those who side his boss. To Umno watchers, the Budget 2012 presentation now confirms that Najib has run his full course. He and his advisers appear bereft of ideas, they seem to have exhausted their savvy.

What more can Najib offer?

What other bullets does the PM have to fight Muhyiddin? This is the question going viral amongst Najib's foes within his fractious Umno party.

"We don't want to get caught in a guessing game over the GE-13. But Najib won't hold it this year, that's looks quite certain. The thing is, after such a huge Budget and so many goodies, what else can he introduce to change voters' perception of him and his administration? If the current response is any indication, Najib and Umno may well lose big, which is what former PM Mahathir himself has pointed out," PKR vice president Chua Jui Meng told Malaysia Chronicle.

"We are now looking at a very exciting few months ahead. Pakatan Rakyat will be very busy preparing for GE-13 but Umno might be even more busy.That there is infighting between the Umno No. 1 and No. 2 cannot be denied and Budget 2012 plays into the hands of Najib's rivals."

There has been talk that Umno might attempt to either 'persuade' Najib to draw up a succession plan in favor of Muhyiddin to appease the warlords, who dislike Najib's weak hold on the country.

Speculation is now intensifying that hardliners are plotting to unseat him before the 13th General eelection is held. Najib has until 2013 to stay in power, with the Election Commission confirming that Parliament will dissolve automatically on April 24, 2013 unless Najib does it earlier.

"One-off" PM

Indeed, if there was a catch-phrase that Malaysians learnt last week, it would be the term “one-off”. A term that not many strategic planners like to use when describing a project as it gives an impression that a particular event is short term and not able to achieve any long term goals. And this is the feeling one gets from the Budget tabled on Friday, which may well result in Najib becoming a 'one-off' himself - a one-term PM.

It left more people wondering what was the rational behind the formulation of a Budget that had more one-time payments than any so far tabled by the country's previous 5 premiers? And just, how would such payments really help reduce the impact of inflation and a slumping economy?

In fact, “one-off” payments are akin to placebos that give short-term reliefs. Reliefs that are plays on the mind rather than realistic solutions to a medical ailment. And this is the essence of Budget 2012. It is a short term placebo, meant to grant a “feel good” effect among a select few of the populace. Just enough to effect the 5% vote swing back to the Barisan Nasional in order to retain the two-thirds majority in Parliament. How else can you explain its irrationality and disregard for financial responsibility?

The textbook vouchers

For example, how much effect can giving out RM200 vouchers to purchase books have as compared to a higher tax exemption when buying books? What was the primary goal in giving out the vouchers? Was it to encourage reading among students or simply to help pay off the cost of buying books? At the end of the day, one has to wonder - who really benefits from granting RM200 book vouchers.

In granting vouchers, it must be assumed that a select few bookstores are authorized to redeem such vouchers. And from the collection of these vouchers, the lucky bookstores are allowed to claim from the government the money due to them. How then should the selection of the bookstores be done or has the government identified the participating bookstores? Are the book vouchers a mere proxy scam to withdraw money out of public coffers to enrich a select few during a time when the economy is slumping?

The police 'one-offs'

The ambiguous “one-off” payment to the police personnel seems rather odd considering that it was also used to take a swipe at PAS deputy president Mat Sabu for his comments on the Bukit Kepong incident. A rather low blow by Najib but then, all is fair in politics. Yet, why only now? Have retired police personnel and those who served the country during the tumultuous years of Malaysia’s formation really been side-lined by the government? Then these mere “one-off” handouts are no way sufficient.

Additionally, what about due recognition given out to these heroes especially those who reside in Sarawak and Sabah? Remember, those in East Malaysia also played a huge part in the armed forces, a fact strangely unrecognized by the government of the day.

Yet with all the hand-outs given in Budget 2012, how much of these really benefit the man on the streets? The “one-off” handouts look and taste sweet in the small picture but are truly horrendous in the bigger picture.

What a joke, govt is increasing its expenditure!

At RM230 billion, an increase from RM213 billion in 2011, government spending has continued to soar without taking into consideration the long term effect on the nation. Moreover, much of the increment goes to the operating expenditure which rises from RM162 billion in 2011 to RM181 billion, while the development budget increased marginally to RM51.25 billion from RM51.18 billion in 2011.

How can Malaysians support a budget that increases the operating expenditure of the government? Should not the government be the first to lead the way in reducing expenditure? To plug the leaks, cut down on unnecessary spending and implement wise and smart money management?

Instead, we have Najib announcing a need to review the allowances of the parliamentarians. And this is probably the worse bit of Budget 2012. It seems a joke, that at a time when the country’s coffers are dwindling and its economy stagnant, the prime minister is considering a pay rise for the parliamentarians.

By right, the parliamentarians should set the example to reduce expenditure and improve productivity. Was it not Najib who asked all Malaysians to tighten their belts and change their spending style to accommodate the current situation when money is scarce?

Thus, it is safe to say that Budget 2012 was a joke in itself.

Placebo

There were no clear indicators that the Executive was interested in boosting the economy through the introduction of new high-tech industry initiatives, or measures that could assist the bottom 40% of households which are the poorest in Malaysia.

Nor were there indicators to increase jobs for Malaysians, no new wage structure to help elevate the middle-income group and create a “high-income” society. Neither were there any clear indicators that money used in Budget 2011 was properly spent.

This is clearly an election budget, a placebo to scam the electorate into keeping BN in power. For this, Malaysians should stand up and send a clear message that mere “one-offs” are not enough to garner their votes. For their own sakes, Malaysians must demand firm initiatives that will help strengthen the economic health of the nation.

Malaysia Chronicle