Economy Was, Is And Will Be Achilles Heel Of Malaysia As Long As New Economic Policy Is Not Officially Buried

 Adapted from Prof Murray's original article. Please click here

 

How Madani deals with poor economy will influence next elections
Madani has four ministers responsible for economy
instructed agencies for comprehensive plan to tackle rising living costs - nothing 
established special advisory board to help manage nation’s finances - nothing

Malaysia’s premier think tanks are silent 
Rafizi called on Mustafa Mohamed for expertise
Madani has even given Jakim role in economic policy
Madani called Jo Ghani and Khairy Jamaluddin to discuss economy
meetings, meetings, meetings - still nothing

Rafizi said Madani Economic Narrative to be launched in August  
to focus on creating sustainable high-value economy 
but it’s not plans the country needs, it’s action

key areas to be addressed immediately to rescue nation
Mounting public debt
M'sia public debt RM1.08 trillion, 60.4% of GDP
compounded by unprecedented RM94.6b budget deficit planned for 2023

• govt spending not targeted correctly
• how RM99b for development is spent, how much leakage
• RM45.94 billion in debt servicing costs
  
• RM174.56b revenue well short of RM385.44b expenditure (55% shortfall)
• 40% for bloated civil service wages

Spending must be drastically cut
Rampant government subsidies
Subsidies cost Malaysia RM66.3 billion in 2022
subsidies distort markets poorer groups bear brunt of knock-on effects
better reduce or eliminate subsidies

The ringgit’s fall, rise of interest rates
ringgit battered by rising global interest rates 

ringgit region’s 2nd worst performing currency 
falling ringgit possibly largest contributor to inflation
US Treasury’s pause on interest rate may bolster ringgit

High youth unemployment
Youth unemployment 11.76% according to World Bank
ISEAS attributes to (low) education quality, skills mismatch low-quality jobs
disconnect in graduates produced and jobs available for them
Widening income inequality and poverty
GINI Index (100=total income inequality) worsened from 0.399 in 2016 to 0.407 in 2019
July 2020, 5.6% M'sian households in absolute poverty (1.9m people)
Originally published in FMT 20th June 2023

My Comments: What is being described by Murray Hunter here is what has been going on in the country for well over 40 years. 

Malaysia had its golden years of rapid economic growth from 1988 until 1996.

 

The 90s (under Dr Mahathir) was the age of privatisation of government agencies, large scale infrastructure projects and more importantly 'deregulation' and more liberalisation of the economy.

Private education was boosted up (private schools, international schools, private universities, colleges) and more competition was introduced in private education. Private education has now become a major employer and a major industry by itself.

The airline industry was deregulated and competition allowed. In no time our airline industry became among the most competitive in the world. Private airlines have become major employers and an industry by themselves. There was (and still is) one casualty - our tax-payer funded GLC airline.

Private health care was also deregulated and liberalised (for a while). As a result Penang has become a major center for medical tourism. 

(But later that dunggu GLC got into the act with their OKU crutches and messed up the private health care industry),

Wherever industry was liberalised, deregulated, funded by private capital (aka risk capital) AND made to face market competition they have done well. Those industries have grown, they have created new jobs, contributed to that RM174 billion annual tax revenue for the gomen and other good things.

AND MOST IMPORTANT OF ALL THEY HAVE BENEFITED THE MALAYSIAN CONSUMER, THE MR AND MRS PAKCIK AND MAKCIK, WITH MORE PRODUCTS AND SERVICES, AT COMPETITIVE PRICING (AIRLINE TICKETS) MORE JOBS FOR THEIR CHILDREN, MORE GROWTH IN THE ECONOMY.

On the OKU side of the tracks (aka the NEP or the DEB) wherever industry has remained controlled, restricted, not liberalised, not deregulated, funded by taxpayers funds or sustained by licenses, permits, monopoly/oligopoly rental piracy AND fully shielded from market competition they have not done well at all.  The 35 year national car fiasco, the GLCs, that national airline, the screwed up banks,  that steel mill and so many other failures. Those industries have not only not grown much but many have gone bankrupt and have had to be bailed out again and again. They have not created many value added jobs, and they do not contribute as much to that RM174 billion annual tax revenue for the gomen. In fact according to Zafrul's budget, for this year that biggest GLC will make zero dividend contributions to the gomen. ZERO !! Can you imagine that? Their assets are over RM100 BILLION !!

AND MOST  DAMAGING OF ALL THEY HAVE NOT BENEFITED THE MALAYSIAN CONSUMER, THE MR AND MRS PAKCIK AND MAKCIK, WITH MORE PRODUCTS AND SERVICES, OR WITH MORE JOBS FOR THEIR CHILDREN, OR MORE GROWTH IN THE ECONOMY. THEY HAVE FAILED. THIS IS THE DASAR EKONOMI BARU OR NEW ECONOMIC POLICY WHICH IS STILL SET IN STONE AND CONCRETE. 

These are the suicidal, fratricidal, regicidal and all sorts of dasar ekonomi bunuh diri that have been afflicted upon the poor Malaysian people for the past 53 years.

This is the Achilles Heel of not just the Madani gomen but of theBN gomen for 48 years since 1970, of the Dr M 2.0 / PH gomen for 22 months, the Muhyiddin gomen for 17 months, the Sabri for 15 months and now the Madani gomen. 

The suicidal economic policies have not changed for 53 years since 1970. This is the Achilles Heel that has not only weakened and crippled our economic growth from realising its full potential but much worse it has made the Malays poorer.

That Gini coefficient is worsening FOR THE MALAYS.
The education system is failing the Malays.
Job opportunities are becoming more difficult for the Malays.
EPF contributions are disappearing for the Malays.
Home ownership is becoming more difficult for the Malays.

What does this mean for the political parties vying for the Malay vote?

It means that the Malay voter does not see any benefit or improvement in their lives or in the lives of their children whether they vote for  Bersatu, UMNO, BN, PH, pas-pis-pus, PKR, Amanah, Petai, Getah, Pintu or Attap.  It makes no difference. The Malays are largely screwed.

The Achilles Heel is the Dasar Ekonomi Baru that has not been dropped, abolished or changed.

On the contrary with each temporary gomen after UMNO-BN (Dr M 2,0, TSMY, Sabri, Madani) the crutches based economic management of the DEB (or NEP) is getting worse. That is why the Ringgit is now dancing close to RM4.65 to the US Dollar. That is why the national debt (hutang gomen ok, bukan hutang private sector) is over RM1.08 Trillion and getting worse.

The gomen revenue (RM174 billion) is less than half of the gomen Budget of RM385 billion. Revenue is only 45% of the Budget.

So where are they going to find the balance RM211 billion or 55%? They are going to borrow.

Didnt UMNO-BN do the same? Yes.
Didnt Dr M 2.0 do the same? Yes.
Didnt Muhyiddin do the same? Yes.
Didnt Sabri do the same? Yes.
Didnt Madani do the same? Yes.

Under UMNO-BN the Malay people were already in bad shape.

Under Dr M 2,0 they were in bad shape. No change. Under Muhyiddin they were in bad shape. No change. Under Sabri they were in bad shape. Under Madani they are in bad shape. No change.

Except for the orang kaya Malays. 

Except for the kaum elite Melayus. 

Except for the Melayu Datos and Tan Sris who have monopoly licenses, who control oligopolies, who hold licenses, who have APs, who get projects and contracts, who get cheap, cheap gomen land and then sell to the developers for huge profits (skim cepat kaya) - these groups of the elit kaum Melayu are doing very well.

Lets not forget the corrupted civil servants either. An office boy or junior worker at the Jabatan Imigresen drives an RM4.0 million Rolls Royce.

These are all the results of the Dasar Ekonomi Baru. To benefit the elites. 

The rakyet marhaen, the rakyat terbanyak can go to hell.

The rice import monopoly has been renewed by Madani. No change.
The pharmacy monopoly has been renewed by Madani. No change.
The intra-city tolls have been extended by Madani. No change.
The toll roads will continue says Madani. No change. 
Import APs for cars will remain under Madani. No change. 

No change. 

Negara penipu
Tanah jaguh penyeluk saku
Rakyat mampos, berpokai dan layu
Rahmat dibahagi,

gomen saja kasi.
Orang kaya

Selamat sapu semua

These are the lyrics. You know the tune.

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