The Gomen Is Already Broke

This is actually about the GST. Before that let me say something about that 1MDB arbitration in London.

The United States DOJ's seizure of assets that were ill gotten from 1MDB adds a huge twist to that arbitration process in London (the IPIC vs 1MDB arbitration).

The US Attorney General has clearly stated fraud, theft, embezzlement etc have happened on a huge scale and it also implicates officials of 1MDB. Meaning the fraud and embezzlement are also 'inside jobs'. 

These findings - once proven in Court - can be admitted as supporting evidence  in that arbitration in London. In such event it will not act in favour of 1MDB. 

Moron has already said that without the GST collections (RM32b) the gomen will not be able to pay the Civil Servants their salaries. 

If they lose the London Arbitration, they will have to fork out about RM27b. That is close to a year's GST collection already. They are going to be broke.

(Yes they can choose to ignore the arbitration but that would be the haramjadah management style again wouldnt it?)

The gomen has said that it is pondering stopping the Pension Scheme and instead convert it into an EPF type scheme where the Civil Servants begin to pay for their own retirement.  Obviously this is another sign that the gomen has no money.

Now listen about the gomen killing the goose that lays the golden egg:

 

The GST has really killed business. I am referring retail, wholesale and cash businesses. My wife and I run a business ourselves. We speak to our counterparts, business colleagues, suppliers and other business people all the time.  Everyone we spoke to has complained of a drop in sales (30% is frequently heard) since the GST was implemented in April of 2015. 

Some pro gomen propaganda morons have tried to say the opposite - like Moron Mat Maslan above. They are lying.

Unemployment has increased to over 500,000 people in January this year.  And most of these unemployed are bumiputras.  With the gomen not renewing the work permits of foreign manual workers, many Banglas and Indons are also roaming the country without jobs. Not all have gone home. We know of many businesses that have shut down or changed hands. Things are just bad.

Most certainly the GST has had a compounding effect on prices. Prices have risen across the board because at each node in the supply chain the transaction adds 6% GST. 

If there are four nodes in the supply chain, without adding on any profit margins the selling price is as follows : 

1. From factory to wholesaler 6% GST is added. RM1 becomes RM1.06.
2. From wholesaler to stockist another 6% is added. RM1.06 becomes RM1.12
3. From stockist to retailer another 6% is added. RM1.12 becomes RM1.19
4. Finally from retailer to customer is another 6%. RM1.19 becomes RM1.26

In a 4 node supply chain, just the GST alone adds a 26% price increase which MUST be borne by the man in the street, the customer. Even in a 3 node chain, the incremental is 19%. 

Yes we do the netting off when we pay the GST to the Customs every month or every 3 months but that is a back office calculation. As businesses we have to net off the GST we paid (to our suppliers) with the GST we collected from our customers. We only pay the difference.  

But that is OUR calculation.  It has nothing to do with you, the customer.  

As far  as the customers are concerned, they pay the 6% "compounded" as above.

What this has done is that it has destroyed 19% to 26% (or more) of the customers purchasing power.  

If someone had spending power of RM2000 a month, now they only have RM2000 minus 19% - 26%. They only have RM1480 to RM1620 to spend.  The shops have now lost that amount of sales per 'RM2000 income category' customer.

Not only that, all the shops in the economy have to accumulate RM520 to RM380 of UNSOLD STOCK per 'RM2000 disposable income' customer.  Because when people dont buy goods, the shops become stuck with UNSOLD GOODS.

Many cake shops closed down last year because they too deal in perishables (cake flour, raisins, cherries, butter, milk etc) that went unsold.

Then the wholesalers receive less orders, the factories cut production and it goes down the line. Workers get laid off. The economic growth also slows down - in quite a few sectors. (So who is buying all the condos in KL? Lain cerita sikit.)

But what has the gomen done with the 19% - 26% they collect from every consumer? Last year's GST collection was RM32 Billion.  Did the gomen use it for development?

Moron says that without GST he could not pay the civil servants salaries.  Just to pay salaries ? ?  So there were no new roads, new economic sectors, new industries or new grwoth  that was developed with that  "extra" RM32 billion. It went to pay salaries.

The gomen is broke. All the scandals and the scandalous spending has emptied the gomen's coffers. All the GST that is collected has not gone into growing the economy. 

So this means that while each RM2k income earner pays RM4560 to RM6240 in GST PER YEAR little or no new economic growth is being generated from the great sacrifice directly out of his pocket.  He will get less increments, less bonuses, less employment opportunities.  He may even lose his job.

This is what the GST has done to the country. Right now the GST has become a greater threat to our nation than the communist terrorists, the Indonesian Confrontation, the Japanese invasion, the Suluk incursion all combined.  The economy is just suffocating.

And it is affecting the Malays more than the others. We were fine with our previous tax regime. The poor did not pay tax. Now even children are taxed.

Two days ago I heard about someone trying to get a conract to supply CCTVs to schools. 16 cameras priced at RM64,000 PER SCHOOL !! With surat sokongan signed by Badawi.CCTV people say the 16 CCTV can be done at 1/3 the cost. Worst case at about RM30,000.  So we are paying twice or three times the amount.  Telescoped throughout the Budget I think we can manage the gomen with half the Budget allocations.

Lets just be rid of this gomen. Then we can sort things out quickly.