Can Mahathir be wrong AGAIN?

Can former prime minister Mahathir Mohamad be wrong again? The people have all the right to change a government in a democracy. This happens in all democratic countries – poor or rich.  Changing of government has nothing to do with “natural calamities” such as floods, earthquakes or tsunamis. It has more to do with poor governance of any sitting government.

If the people find that there are weaknesses in the incumbent government they deserve to vote the government out. Politicians holding on to power under a decadent government have to be cast out at all costs. This is fair and democratic.

Going for a change

Why is not Mahathir looking at the bigger picture? The economic turmoil and uncertainties in some European countries – such as Greece – is due to poor governance. This is due to too much borrowing (debts) and money flowing freely without much economic productivity.

Natural disasters in Japan and the United States do not warrant a change of government. These are not man-made hazards.  In the local set-up “mild floods”, “slight high temperatures” and “haze” in the country are not the real issues that the people are very concerned with. They are more concerned about a better governance of the country.

Starvation due to natural calamities does not warrant a change of government. Africans and Asians have gone through this form of hardship, no doubt. But if the calamities are due to poor governance the people have the right to change government in a democracy.

The next general election is not going to be about trivial issues or personalities but serious matters that are affecting the country.  It is also about further endorsing a two-party system with the people choosing between continuing with a shady regime and going for a change of government to reduce widespread corruption, inefficiency and cronyism.

Malaysians are fortunate that there is now a better party-choice for the people unlike the era before 2008 when BN (Barisan Nasional) had almost absolute monopoly of power.

Bigger picture

BN has been in power for too long and in a way arrogance has made the coalition become complacent and weak. The people are now looking at the bigger picture and seeking a change of government. And Mahathir must be ignoring this reality.

Has he addressed on the weaknesses of the present sitting government? Closing one eye to the mess created by the sitting government will not convince the people into rejecting change.

Without a shred of doubt, the crime rate has increased and Mahathir seems to agree with this. Statistics have failed to convince the people of the high crime rates in the country. People live in fear thinking of “who next will be the victim of crime”. The economy is not flourishing as projected, corruption and financial leakages are rife, and the costs of living have risen.

The sitting government has in fact underperformed and failed to achieve economic targets despite the 3- fold increases in expenditure from 1998 to 2010 – RM68 billion to RM214 billion. The average economic growth from 2001 to 2006 was only 4.7 percent when the target was 7.5 percent. And the growth was only 4.2 percent from 2006 to 2010 when the target was 6 per cent.

The poorest among Malaysians

Almost 40 percent or about 4 million of Malaysian breadwinners earn less than RM700 per month. They are actually living below poverty line. 40 percent of Malaysian households earn less than RM1500 per month. 3 out of 4 in the lowest income group are Malays and the Orang Asal families. 60 percent of Indian and 20 percent of Chinese families are in the poverty group.

The poorest among Malaysians can be found in states like Sabah, Sarawak, Terengganu, Kelantan and Perlis in spite of the fact that some of these states have enough natural resources to sustain the economy. Unfortunately resources are plucked and plundered by a few capitalists and those politically connected to enrich themselves.

Added to this is the high costs of living that the sitting government has failed to address in a sustainable manner. Inflation is affecting the poor. One-off hand-outs of between RM100 to RM500 – eyewash to snip votes – are not really sustainable economic measures and plans to help the poor.

Book and tyre vouchers have purportedly been sold for cash at a lesser value giving profits to those in the business world.  The one-off RM500 aid to families earning less than RM3000 is not able to sustain the livelihood of the poor in the long-run.

Rising costs of living

The inefficiency of the present government has burdened the people more. Poverty rates have gone up due to high inflation and the rising costs of living. Basic essential items such as sugar, flour, milk and food prices have seen their prices spiralling out of control since the past 10 years.

Prices of petrol and gas have shot up despite the claim that it has been heavily subsidised. Electricity, highway toll and water rates have been indiscriminately increased for the past 20 years.  RM4 billion is given to the highway concessionaires each year and 62 percent of RM40 billion is paid in subsidies and compensation each year to a few IPP (Independent Power Producers) and highway corporations which have not benefitted the people.

It has only enriched the companies and the cronies who are well-connected with the sitting government. The people still have to bear the high costs of using these utilities.

Education costs have gone up. Places in the public universities are limited and with the racial quotas many students could not get to do courses of their choice. Opting for private education involves a fortune that many could hardly afford.

Prices of properties have shot up depriving the poor opportunities of owning a decent shelter. Rental too has increased making life tough for small-time businessmen. Prices of vehicles are high due to heavy government taxes and public transportation is in a dire state in most states.

An average car owner has to spend at least 35 percent of his monthly income on servicing their car loans. Beyond that, personal debts owed by Malaysian households to banks stood at 78 percent of the GDP (Gross Domestic Product) in 2010. This does not bode well for the people.

Why deeper into debts?

The sitting government has failed to manage the country’s wealth and resources when for 14 consecutive years they experienced budget deficits.  The 1st quarter of 2012 recorded a RM470 billion debt – highest in the nations’ history.

The country’s debt is about 54 percent of the GDP from about 36 percent in 1998 – the second highest in Asia. This amount excludes household and corporate debts and sovereign guarantees for GLCs (Government-linked companies) and projects. Indonesia has a debt of only 23 percent and Singapore – a country without natural resources – is debt free.

Malaysia’s debt is an impending danger to the country’s economy. At the country’s current rate of borrowing it will end up with a RM1.6 trillion in debt by 2020. It’s under BN rule that the country will become another Greece.

Why deeper into debt? The answer is simple: Irresponsible and inept fiscal spending, hefty leakage in government spending due to rampant corruption, cronyism and wasteful spending.

Seemingly, the sitting government has an incurable borrowing habit to finance development and at the same time has failed to plug the debauched ground rules that are ruining the economy such as massive leakages, corruption and mismanagement that are causing financial losses to the government.

There have been numerous cases of crony companies going kaput but the culprits are still treated like VIPs due to their political connections and social standings. Even when these perpetrators are brought to court the chances for them to be convicted is very slim.

Have drained RM20 billion of the nation’s coffer

The privatisation of essential public services is supposed to let free of the government of financial burdens and benefit the people but the people are not seeing this happening.  Extensive leakages and a culture of corruption have spoiled the image of the incumbent government.

Excessive leakages, financial improprieties and continuing corruption have drained RM20 billion from the nation’s coffer annually. The country is no doubt blessed with plenty of natural resources if well managed could help finance developments.

RM325 billions of hard-earned Petronas money was used by the government since 2007 and this is an annual average of about RM81 billion. The people are not informed for what purpose the money is used for.

As opposed to these let-downs, Selangor, Penang, Kelantan and Kedah have achieved enormously better economic results since 2008. For instance, in 2010 Selangor under the Opposition posted the largest budget surplus in the state’s history. And Penang recorded budget surplus for every year since 2008. Penang’s total debt of RM630 million in 2008 has now (2011) been reduced to RM30 million.

Seeing the success of Selangor and Penang

Mahathir’s pet project, Proton (Perusahaan Otomobil Nasional), used billions of the nation’s money to sustain the industry but flopped all the way through due to improper management, bureaucracy and advice.

It was finally sold off – majority of its equity is now owned by Malaysian conglomerate DRB-HICOM, which bought a 42.74 percent stake in Proton Holdings for 1.291 billion ringgit from Khazanah Nasional in January 2012.

Lesser taxes on the people would not lead to national bankruptcy. It’s excessive spending when there is no productivity, high pays and doles without any economic activities, corruption, mismanagement and financial leakages that can make a nation go bankrupt.

Change can certainly make things better especially in a two-party system. Politicians who make promises will then have to honour their promises or else they will be voted out in future elections.

55 years of BN rule has not achieved much in terms of narrowing the economic disparity among races, bridging race relations, curbing corruption and controlling financial leakages. The poor are becoming poorer and the poor states like Sabah and Sarawak have remained poor despite having vast natural resources such as oil and timber.

Apparently, the sitting government’s policies have only enriched their cronies but failed to address the people’s hardship.  To Mahathir we say: Seeing the success of Selangor and Penang since 2008 the people are more convinced of the Opposition than BN in governance.

Thus, it’s not going to be an act of ingratitude if the people wish to change the government.

Malaysia Chronicle