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Sakmongkol ak 47

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Tuesday 14 October 2014

Najib's 'The People Economy' 2015 Budget.



The 2015 budget?

This chap likes nothing better than to read blindly and behaving the part on certain sections he gets excited with. Then arms will flail, voice becomes pitched all of which are dysfunctional and out of sync. 
But he is the FM and PM and the UMNO mental gnomes will aye at every possible moments.

Well, many people are of the opinion, that our FM is clueless. This time he simply reads from the teleprompter. Point 7 for instance- from agriculture economy to high income phase to service based economy. The high income phase is what? There’s no continuity in the thinking about the description of the economy- the beginning and the end are correct- the middle is muddled. Agriculture economy is a type of economy- service based is a type- high income phase? What is this? What type? Who the hell wrote this for the FM?

As usual, Najib masks the budget- which ought to be a factual presentation of our revenue and the application of the revenue- with the usual histrionics. 
Just say how much you collected and how does your government wish to apply the consolidated fund?

Our duty- the duty of opposition MPs is to see the funds are properly appointed and point out what can work and not work.

Remember this is a government which was voted in by 48% of the voters. He should be mindful of this as should all the arrogant ministers, government officers and so forth. You are a government voted in by the minority. Big enough but still the minority. You are government as a result of unfair representation density and gerrymandering.

The FM being the politician that he is, will never tire at making political points whenever he gets an opportunity like relating the story about his biggest difficulty in administering Malaysia. Which is to balance between policies that are populist in nature and policies based on economic and financial imperatives? 
What a la-di-da.

Will anyone believe what Najib said on point 18- consolidating fiscal deficit is a moral responsibility of our generation towards the future generation. Wow!
The morality of the BN government is the morality of the 20%, by the 20% and for the 20%.
Mention CGT- capital gains tax and the chief gnome of BN- Ahmad Maslan says, this will scare away investors. Yes of course- tax the people, they cannot run away.  Tax those who receive income by way of dividends, shares, tax those CEO who gets gargantuan salaries.They wont run away too.

Public debt is more than 55% of the GDP if we , indeed must include the contingent liabilities which are more than RM150 billion.  He speaks oblivious to the fact that public debt is high and household debt is among the highest in Asia. That’s because he allows the banks to go on a predatory lending binge.

Let us take him on on this.

Why has his polices on the Bumi agenda failed? Because he operated from the wrong and fundamentally flawed economic principle. Prosperity is a function of productivity not of rent seeking. Can the Bumi mandarins even fathom this concept?

All this while, since 1970 up till now, the solution to bumiputra economic advance has always been decidedly on rent seeking. Government officers got rich because they are rent seekers- they owned their positions temporarily but have sufficient time to make hay while it shines. Because allocations and budget pass through them, the allocations and budgets are interacted on. They provide opportunities for profession-rent seekers to put their hands in the kitty,

I am jumping the gun a bit- bumiputera economic agenda. Since 1970 this has been the preoccupation. Despite that, the bottom feeders earn RM1600 per month, while the 20% penthouse dwellers earn RM11, 000.

And how did the 20% get to the penthouses? By being a rent seeker basically.

Owning something. KSUs and TKSU own their posts temporarily from which they milk the cow. CEOs of GLS own their posts for a while and make hay while it shines. As long as money passes through intermediaries without stringent scrutiny, these people will whack our money.

That’s just the introduction folks.

5 comments:

Anonymous,  14 October 2014 at 13:59  

Dato, heard this and in full agreement. Hike on petrol prices while global oil prices are declining makes no sense. Something is seriously wrong and would like to know if this hike is to subsidise another brainless grandiose scheme like the 1mDB??
The gap between the have-nots and haves is truly growing, who will look after the rakyat? Budget 2015 is mere window dressing.
For the layman 1+1 = 2. Given the choice to pick a corrupt regime or something else, it will always be the something else.

Anonymous,  14 October 2014 at 14:50  

True YB those days implemeting projects were decided by the departments but nowdays KSU lead Tender Board at ministrial level. Who is going to look after policy when the ministry is doing the implementation.
Even PM who writes a bill is now a finance minister who writes a receipt. One pocket one man who gives and takes. Unable to record except being FM. Accountablity and transparency?

bruno 14 October 2014 at 20:18  

Dato,every gomen budgets are just numbers and cents.Every gomen agencies cook their books,from the developed to under developed nations.Even the countries like Somalia with no economy have budgets.

Talk about becoming a developed nation of high incomes come 2020.How can a country become a developed nation when it had a dozen crony multi billionaires,hundreds or a couple thousands of millionaires,20-30% middle or upper middle class and the rest doing just well enough to put some some mini savings for a rainy day.And the last 25-35% poor or living in proverty.

The difference in income gap between the super rich,middle class and poor is to far apart.In developed countries they have majority of people or families in middle class than the poor or those living in proverty.

And not to forget about the brain drain.Fifty percent of those migrating are in the blue collar or service sectors.About 25-35% are the smart professionals and business minded.The rest are semi retired or retired people joining their children or extended families abroad.

Whatever reasons for those migrating,whenever the smart brains are leaving is always a lost and concern to every nation.Those ketuahnan Melayu types better pay very very much attention.Because one day there will not be any sugar daddies or mummies left to throw them leftover crumbs.

Anonymous,  14 October 2014 at 21:27  

Dato', Najib is actually presenting "his" spending Budget (most of the budget goes to his PM's Dept).

The poor Rakyat get the crumbs and interestingly, his yes men were happily thumping their tables.

Have you noticed that the budget leftovers are meant to get votes from the 47% cheapos? So little money allocated but so many items!

When his budget speech is over, his "govt positions loving" ministers will all say "Good Budget for the Rakyat!






Anonymous,  15 October 2014 at 19:40  

Thank you Datuk, finally a sane and cool, rational analysis of this country's economy.

I witnessed up close and personal the financial and economic meltdown afflicting UAE in 2008-2009. Relocating to KL soon afterwards, I was astounded to see that Malaysia, instead of drawing its own lessons from this crisis, in fact copied the - blatantly failed! - speculative Gulf model to a T.

So here we have it: Worldwide, the era of fiat money coming to an end - intelligent schoolchildren can see that. Segments based on speculation like stocks and property imploding left and right. Not only that - Islamic economics dictating an emphasis on REAL assets and REAL value. Even Dr. M's legacy of low costs which are a powerful enabler of social justice. And this is the time our leaders decide that "Nah, we want to gamble and speculate! Forget food safety and water conservation and affordable housing and other such old fashioned industries - we want bonds and mega-banks and empty highrises at every corner!"

A prosperous country turned into a rat race. And rakyat who used to enjoy their rumah teres, regardless of the income bracket, now struggling to have a roof over their head.

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