Leadership and the Malaysian eCONomy- Part 2 of 3

Second Najib is not a man of action. In fact he is more known as the man who does nothing. He has taken up Musa Hitam’s elegant silence to a ridiculous level.

If one particular strategy has failed or show indications of failure, he doesn’t act to change course.  Isn’t that the message contained in Blue Ocean Strategy which the PM is very fond of quoting?

A man of action changes course if after analysing the situation, the original course chosen is faulty. We all know where the money invested in 1MDB will end up, but he doesn’t stop the rot. The sovereign fund is around RM36billion in debt and when the figures for 2014 are revealed; most likely the debt has shot over RM40billon. 

The fund is bleeding Malaysia; one because of the handling charges. Two, because of the secrecy surrounding the application of the fund and the narrowness to which the fund is applied.  It has gone into the energy sector ( buying up used IPPs) and real property.

Already the coupon rates are higher than the market rates offered on dividends- we need to know whether this spread is taken up by some people. Why are we paying above market rates?

We know what is happening to FGV when even the current share price has never overshot the initial price offering, yet Najib doesn’t reverse course by making changes.

He knows enriching Malays through rent seeking isn’t the answer to address Malay economic issues; he does not act to correct it.

Our country is like a runaway freight train. There is no one to steer it. PM Najib has been a big disappointment. He is no leader. He has been long on slogans but short in substance. He has, as the title of a book written by Milton Friedman says-issued bright promises, but has produced dismal performance.

The system of government is out of control. The country’s finances are frightening. Public debt has definitely overshot the 55% of GDP debt ceiling if we also and must include all the contingent liabilities which the government gave out but hides from us. 

Once again, for example what is so secretive and sacrosanct about the debt accumulated by 1MDB in the offshore accounts? The people managing our money have extraordinary brain power than the rest of us that their identities must be shielded from us? That’s RM36billion of taxpayer’s money in 1MDB that can get incinerated if the secretive investments and applications go bust.

Public debt service is very high. Public debt is also tied to our ability to pay. It’s paid from revenues collected by the government. If this country’s earnings are reduced, how are we going to pay off his debt?

Najib can eloquently say in parliament we have a moral duty not to bequeath succeeding generations with debt, but his government has shown the most ravenous appetite for accumulating public debt.

This government has the knack to introduce supplementary budgets in the ensuing financial year making a mockery for the fine detailing on the principal budget presented on each Friday in the selected parliamentary session.

Household debt is about 80% of the GDP. We have young people unable to get decent paying jobs they dream of, and the dreams massaged by unconscionable promises by the government and for-profit learning institutions, finding themselves saddled with debts. They can be insolvent at the age of 25.

What about the social cohesiveness of this country? The weak PM allows hate groups and other bigots to challenge the harmony of this country. He allows people like Ibrahim Ali and those from Malay hate groups to destroy the social glue that has bound us- and the social glue needs reinforcing always, not weakened. He should have acted harshly on people like Ibrahim Ali throwing them into jail.

If a Chinese were to do the same like Ibrahim does, apply the same laws on him or her.

This shows how weak and intellectually porous our PM is. Nothing seems to stay in his mind. He can learn from all over the world, the best practices in managing a modern state, but he hasn’t done so.  Whatever problems this country faces, they must have been sorted out in some countries very efficiently. But he is too deep in his worthless blue ocean strategy as though reading and talking about it, is a panacea for all the ills in this country.  He is mentally lazy.

Lets amplify his flavor of the month playing around with the so called Islamic agenda. If I were him, I will ignore the way Islamic countries are managed (doing so does not mean he is not a Muslim). No country governed by Muslims in modern history has achieved anything of significance. Pakistan- they have nuclear bombs but they kill one another on the flimsiest of excuses. Saudi Arabia- they treat women like sex slaves but when they go to other countries they behave like heathens of Jahiliyah era.

Indeed most of the counties ruled by Muslims are economically backward, corrupt, decadent, dictatorial, repressive and oppressive. Why is it difficult for any sensible fellow to come to the conclusion, that the way Islamic countries are managed should be dismissed.