Butcher (or someone by the name of Tan Sri Idris Jala) scared the public into thinking that the country is heading for bankruptcy in 2019 like Greece.
That remark was an unethical act of influencing the public to fill-in his Pemudah survey to achieve his prefered result.
This is but a repeated old formula applied at the wrong place.
Scare or lie to the people, get their support even if it is from DAP, and slash the budget mercilessly without due consideration for the common people.
The difference this time is that it is not about company but merely an item of the national economy.
Butcher erred on his first major public announcement and in one swift move, he has lost credibility with the public. Rather than having the people lose confidence with the Government, Butcher must be discredited.
To understand why Butcher lost credibility in his reckless remark to claim Malaysia will go the path of Greece to turn bankrupt by 2019, it is because his understanding of economics is so f**ked up. Read Dr Norraesah's comment of Butcher below:
Norraesah: Malaysian Economy Too Strong To Fail
KUALA LUMPUR, May 31 - The conjecture that "Malaysia-will-go-bankrupt by 2019 like Greece if subsidies are not withdrawn", while terribly dramatic, overlooks the country's key pre-emptive strengths to prevent such financial catastrophe -- Malaysia's economic outlook, prudent financial management and tight monetary policies, says Umno supreme council member Datuk Dr Norraesah Mohamad, a Sorbonne University-trained economist.
In assessing Malaysia's economic position, she said it was "ridiculous to subscribe to a formula" that Malaysia will be condemned to bankruptcy.
"It's even more absurd to speculate that Malaysia will be another Greece," she asserted.
"More appropriately, Greece is but a cautionary reminder of how Malaysia should manage its spending, control its budget deficits and keep down her total national debt to GDP."
Norraesah supported her contention that Malaysia can keep bankruptcy at bay with the following policies already in place:
- Malaysia's most important saving grace is its economic outlook: Positive two-digit growth was registered for the first quarter of this year;
- Malaysia's budget situation will substantially improve over the next couple of years because the economy is growing;
- Malaysia's very prudent financial management and tight monetary policies do not allow for dubious cross country swaps like what happened in Greece that further aggravated its debt situation;
"We have our own money and therefore can deal and manage our costs and prices" said Dr Norraesah in analysing the declaration last week by Minister in the Prime Minister's Department Datuk Seri Idris Jala that Malaysia will go bankrupt in 2019 if subsidies are not reduced across-the-board over five years, a move which Idris described as the "most unpopular decision that the government has to make since independence".
- Malaysia is not caught in the euro capsule like Greece.
Idris, who is also chief executive officer of the Performance Management and Delivery Unit (Pemandu), said the cuts are aimed at saving up to RM103 billion to partially repay the nation's huge debt and address fiscal deficit.
The government now spends RM74 billion a year to subsidise various economic and social sectors. It currently owes various parties a total of RM362 billion while the fiscal deficit stands at RM47 billion.
In addition, Dr Norraesah said that:
- Malaysia enjoys a high saving rate, another saving grace (The Employees' Provident Fund has accumulated savings of RM360 billion as at Dec 31, 2009);
Dr Norraesah agreed that phasing out subsidies was a "pragmatic move and a sound economic decision" that must be made because it eats into Malaysia's fiscal position, misallocate resources and distort more effective use of available development funds.
- Malaysia's abundant resources and diversified economy are reinforcing factors that guarantees the country will not plunge into bankruptcy.
"Besides, the one-size-fits-all subsidy policy is unsustainable and socially unacceptable," she said.
"The opportunity cost lost is monumental and therefore must be phased out. No one can argue with this."
Nevertheless, Dr Norraesah described the prospect that Malaysia will be bankrupt in 2019 if subsidies are not withdrawn as a "terribly dramatic, albeit inappropriate way" to justify the burial of subsidies.
"Once we get beyond the crude look at budget deficits, a favourite attacking weapon of certain quarters, we immediately see that the parallel between Greece and Malaysia is not even close," she said.
Greece, Dr Norraesah pointed out, has all sorts of problems that are not found in Malaysia.
Her reasoning was based on the fact that:
- While Greece's budget deficit is an unacceptable 13.6 per cent in 2009, Malaysia's budget deficit has been brought down from 7.0 per cent to 5.6 per cent in last year's budget;
- Compared to Greece, Malaysia's deficit is respectable and is expected to shrink further in the 2011 budget; and,
"We have a strong current account surplus and big financial reserves," she pointed to the fundamental strengths of the Malaysian economy. -- BERNAMA
- Greece's total national debt is 113 per cent of its GDP, a level unimaginable in Malaysia.
Once credibility lost, it is difficult to regain.
This is the usual happening of people rising to the level of incompetence. They repeat the same way of doing things. They apply the same formula from one successful situation and experiance to even an entirely different situation. In their mind, they think that the same approach works in every situation.
Having got away with deceiving the public that he manage to turnaround MAS, Butcher must have thought his successful turnaround of Shell's Bintulu plant could be replicated for MAS and also on the nation's subsidy.
Same tactic was employed.
Scare them. Bullshit them about it is for general survival. When they pathetically gave their trust, the faithed butcher knife falls on their neck.
At Shell, it was wholesale sacking.
Then MAS, same wholesale sacking with bits of ethnic cleansing to fulfill the stereotype Melayu bodoh dan malas, and slash capacity of MAS so that this Melayu-infested Airline will never be among the Airline stars ever.
Now in Government at Pemandu, Butcher thinks the same style of lies will work. There is more watchdog. Not this time.
This is not a company run by autocratic CEO and using lazy template solution of turnaround manager fast with the trigger to slash jobs instead of looking at it as human resource.
Is he thinking that cutting subsidy is like kicking people out of company? Did he ever think that those people affected will remain within the country border? And they vote!
Alas this is yet another proof that corporate man are so myopic to within the task they are assigned. They can't see things beyond their scope of functionality.
Since they can't, they have no business to be in public office and deal with public policy with it's wide ranging implications.
In a public administration, there is no such thing as CEO style autocrasy.
Lastly don't get me wrong. I am not against slashing wasteful and low impact subsidies and particularly those given to corporations that end up lining the pockets of tycoons.
Hell man, do it sensibly, delicately, and responsibly!