1. KLCI Drops 10 Points, Chinese People Coming To Their Senses? 2. Exactly How Tough was The Call? 3. So The Dasar-Dasar Zaman Mahazalim Are Not Going To Change?

 1. KLCI Drops 10 Points, Chinese People Coming To their Senses?

Soon after the general elections the Ringgit strengthened (now at RM4.37 to the USD). The Bursa also jumped about 50 points. The jump in the Bursa would have helped boost the Ringgit because of all the money kept overseas flowing back into the Bursa. You must change your Singapore Dollars and US Dollars into Ringgit.

Many of the syiok sendiri folks (many of whom are Chinese) said it was due to the election results.

Hmm..well. Here are some KLCI highs and lows over the past six months:

June 8      1523
Aug 17      1518
Nov 21      1447
Nov 24      1472
Dec 5        1472

So what does this mean? It means that the KLCI is actually lower today (1472 on Dec 5th) compared to a high of 1,523 on June 8th, 2022.  Thats 51 points lower. And in June 2022 the PM was Ismail Sabri.

And today, the first day of trading after the Cabinet was announced on Friday, the Bursa has dropped 10 points.

The market is showing its displeasure at the Cabinet appointments. 

The euphoria (largely among the Chinese people) over the general election results is obviously wearing off.  Roses will smell like roses and bullshit will smell like bullshit. Euphoria may cause some confusion between the two but not for too long.  

First that fellow facing corruption charges in Court has been given the No.2 spot. Then the other fellow went back on their pledge to deny the Finance Ministry to the PM. So today the Bursa dropped 10 points. 

2. Exactly How Tough was The Call? 

Now here is some b.s. from Rafizi Ramli - our newly minted Minister of Economic Affairs - about the same Cabinet appointments.

https://www.malaymail.com/news/malaysia/2022/12/05/taking-up-finance-portfolio-likely-a-tough-call-for-anwar-says-rafizi/43512

Rafizi said party president's decision to head Ministry of Finance was borne out of ‘extraordinary’ circumstances because no coalition had the majority to form a government. — Bernama 

Monday, 05 Dec 2022

• Rafizi rebutted allegations PH reneged pledge to limit PM's power
• decision to head MoF borne out of “extraordinary” circumstances 
• because no coalition had majority to form govt
• Ideally yes we should separate PM from finance portfolio 
• and that position hasn’t changed
• situation is extraordinary
• no party can form govt and has to coalesce
• we need strong economic leadership

coalition heavily criticised after he announced he would also head finance ministry
PH's pledge to circumvent PM's control over Finance, to beef up accountability

• anti-corruption platform targeting BN leaders facing graft charges
• now coalition govt comprises some of these BN leaders 
• including Umno president who is on trial for corruption
• insisted his coalition govt would not compromise anti-corruption agenda

decision made to prevent infighting among coalition partners
strong economic leadership needed as main thrust of this govt 

my opinion it was a tough call that had to be made Rafizi said 

govt of different coalitions, of course many want finance minister post

 

My Comments :

 

Really? Ok if that is the case then why not the PM take the Ministry of Agriculture? Or Ministry of Education? Or Ministry of Tourism? 

 

What is so special about the Ministry of Finance? 

 

"we need strong economic leadership"

 

Well the Ministry of Finance has little to do with the real economy of this country. 

 

Manufacturing which makes up about 25% of our GDP is NOT under the purview of the MoF. Oil and gas which makes up about 20% of our GDP is NOT under the purview of the MoF. That is already 45% of our GDP. 

However the MoF controls TWO very important and big-money things. 

 

Firstly in a country where the political patronage system will never go away for a long time, the MoF determines the annual government Budget (now running over RM330 Billion per year). And how that money is going to be spent. That is a lot of moolas.

Then the MoF lords it over the very tightly controlled and oligopolistic banking and financial system, especially the licensing and approvals part. Again big, big money people involved.

 

That is why there is so much fighting over who shall be Minister of Finance. He who is Minister of Finance can have his butt kissed many, many times.  

IT HAS NOTHING TO DO WITH STRONG ECONOMIC LEADERSHIP.

 

Folks, what does it really mean? It means we come to the next topic for this post:

 

3. So The Dasar-Dasar Zaman Mahazalim Are Not Going To Change? 

It means the leftover baggage, the unworkable and failed policies from the Mahazalim Era (Dasar-Dasar Zaman Mahazalim) are not going to change.

For starters there will be no level playing field in the banking and financial system. 

Banking and finance will see no light of free markets and legitimate open market competition. 

Banking and finance will remain a closed and tightly controlled oligopoly. Only the few and the chosen will be allowed to have a banking license.  

The same unworkable and failed policies from the Mahazalim Era (Dasar-Dasar Zaman Mahazalim) shall remain. That is what it really means.

Ultimately, "my nigger is better than your nigger". Thats what it is going to boil down to. Other than that not much is going to change.

The views expressed are those of the writer and do not necessarily reflect those of MMKtT.