Putrajaya must know, it’s the economy, not partisan politics

Ahmad Maslan's comment today that savings from fuel subsidy cuts be used on rural areas, has come under fire. The Malaysian Insider pic, September 4, 2013.The fuel subsidy cuts announced this week are part of Putrajaya's measures to fix structural issues in the country's economy, where rising subsidies and runaway public spending have bloated the country's debt.

Prime Minister Datuk Seri Najib Razak had to bite the bullet to start reforming the economy as global ratings agencies have warned of an impending negative outlook that would affect the country's finances and loans.

But it would seem that others in his administration are more interested in playing partisan politics than saving the economy.

Deputy Finance Minister Datuk Ahmad Maslan said today the Barisan Nasional (BN) government will use part of the savings from the fuel subsidy cuts to focus on rural areas.

"The savings can be channelled to many areas. We want to focus on developing rural areas," the deputy minister said in Kuala Lumpur.

Left unsaid is the fact that voters in rural areas kept BN in power, contributing to the 133 federal seats won in the May 5 general election although the coalition lost the popular vote.

Is Ahmad Maslan suggesting that the fuel subsidy cuts are not so much about the economy but more about rewarding supporters in rural areas?

That a potential RM1.1 billion savings this year and RM3.3 billion saved annually with a 20-sen price hike in RON95 petrol and diesel is more about reallocating funds to supporters and punishing those who voted against BN?

If it is, it reflects that it has always been a challenge for Malaysia to come up with sensible policies with political operatives like Ahmad Maslan in the Finance Ministry.

The country needs more even-handed and sober professionals to run the Federal Treasury, not someone who thinks it is a kitty to be used for dispensing favours to supporters, financed by the detractors through taxes and subsidy cuts.

Such partisanship is dangerous because should the 51% who voted for Pakatan Rakyat (PR) also decide to play partisanship, Malaysia will have no future as a country.

Also, the markets will punish Malaysia if they are not convinced that talk about cutting the fiscal deficit is not serious. The commitment is to cut the deficit by 3% by 2015 and have a balanced budget by 2020.

That is less than seven years away.

Ahmad Maslan must realise what ratings agencies have warned about Malaysia if it does not take the crucial steps of reforming the economy. A negative outlook will increase the cost of money and that means a higher debt burden for each and everyone of us Malaysians.

Having a high-income nation status by 2020 means nothing if it comes along with a higher debt.

That is what will happen if Putrajaya plays partisan politics instead of keeping a watch on the national purse strings and making sure everyone is treated equally - socially and economically - in Malaysia.

Politicians like Ahmad Maslan must think of the long-term, not hold a short-term view just to enjoy popularity at the expense of the country's economy.