Thursday, January 16, 2014
Inflation: Told you so but you wouldn't listen
There is so many cautions or reminders were told to the PM, but many former leaders, elder politicians and distinguished people have grown frustrated. He just wouldn't listen.
Lucky for us, we have heard some of them grumbled. As one more experienced, they can see the negative impact coming from some of his intended or announced plans. Some see a better way of addressing it.
In this blog, we have raised many issues with regard inflation and other impending problems. Quite sure there are people in the authority are reading and monitoring this blog.
If opposition members of Parliament read and tried to get in touch with us on certain issues, it is only ego that is holding back members of the cabinet or Prime Minister's staff from appreciating the issues raised.
The "kangkung" predicament the Prime Minister is in now should not be blamed on the market or opposition. He should have anticipated it when he made all his big ideas and transformation plan in to create his legacy.
Not sure which University he taught before to earn him instant Professorship. And we are not to comfortable to call him Haji upon knowing his inclination tend to be in sync with COMANGO.
Since it first became economically viable as a nation, Malaysia had survived on an economic model of cheap labour and government suppliment the rakyat's livelihood by keeping inflation low through various means including price control and subsidy.
After a while, it is untenable to maintain the cheap labour model. Thus government wish to embark on a new economic model which essentially was to go for more economically efficient sectors. Planning the change is one thing but managing the change is a bigger task.
New economic model entail three major characteratics i.e. high income, inclusiveness and sustainability. What happened to NEM?
Currently, the government seemed dead set to only pursue for high income. Groups like Perkasa are asking and pursuing as to what happened to inclusiveness?
Why the need to take in Chinese Managers from outside into Petronas just for the sake of taking in Chinese while the Malays already giving long years of dedication to the company are being systematically thrown out?
Where is the inclusiveness when only Chinese dominate the economy while other races are to feed on the bread crumbs?
The state of economy, education, property ownership, and employment of the Malays are in bad shape as so-called laisser faire or market economy, reverse discrimination, no political will on the government and power at be, and opportunism including organised crime are marginalising the majority of the population.
While Malay is still taking charge of government, they are being systematically discriminated to the interest of capitalism and international MNC interests. Imagine the plight of the minority races and Pribumiof Sabah and Sarawak?
Where is the inclusiveness of the new economy being bandied around as the solution to our economic woes?
Talk of sustainability, we have reminded of the need to identify new economic sector that will provide leading sector to carry the economy. It is not sustainable to keep relying on domestic spending. Household debt is at a scary height of almost 85%.
Agriculture growth rate is capped by acreage and type of crops. Land is increasingly become scarce.
We talked about services economy and property but on what underlying platform is the economy relying on? See the video below and ask yourself can we be comfortable with financial and financial related services:
It makes no sense for an economic development in which it is to sell these product to foreigners as what is happening rampantly in Iskandar Malaysia, Penang and Klang Valley.
While foreigners investment are welcome with red carpet, property prices sky rocketed to beyond the affordability of the locals or at least the majority of the population. On the other hands, it is puzzling and mind boggling that we week foreigners to but our properties and our investment houses and corporations are channeling money abroad in London properties.
It is pointless to pursue high income when our economic growth is at a paltry 5% for over a decade in which a sharp rise in inflation will wipe out the growth. More so with an economy dependent on domestic spending.
Shocking the System
If Idris had learned economics, or at least basic economics, he would have learned that one should avoid trying to creatie shock to the system.
Creating shock is easy in the manner he claimed Malaysia will be bankrupt in 2019 is easy but knowing the extent of it's impact and later addressing it is difficult. The devaluation in ringgit in 1998-200 and the ensuing economic crisis should have openned his eyes and heart.
For us to dream of high income, one should have high growth first before the benefit can be distributed as income.
Creating KPI and all those mumbo jumbo seemed to improve the top lot as their salary spiked into 5 to 6 digits a month, while the lower to middle class has to struggle with the inflationary effect of trying to slash subsidy in one go.
Not only owning basic homes is beginning to be beyond the means of normal Malaysians, living is a struggle to. The middle class may be spending as usual with their credit cards and packing fast food joints, but soon reality will bite.
Now that we just realised that the government budget is 83% opex, not the usual 40:60 proportion of development:management, it shows too much government wastages.
Late than never
After the election manifesto and one after another of price hikes, it is rather late but still cost of living need to be addressed.
Tan Sri Muhyiddin has made an announcement yesterday and all Ministers will go down to the ground to understand the rakyat's problem with the perspective Ministries.
Surely the JPM Minister on Ugama and the Foreign Minister have to be exempted.
It should have been Najib to announce and show he is sincerity but he didn't. Is Najib too afraid of another Kangkung again?
Shouldn't all this be explored and thought through first before embarking on those lofty ideas and policies? Shouldn't the Finance Minister understand all the impact of his policies before embarking on it?
There are many more "I told you" we wish to repeat but this one is important to be repeated.
We have written before that the PM cannot be hold the voluminous task of Prime Minister and Finance Minister. Dato Najib must give away the Finance Minister to a suitable economically trained and knowledgeable in finance and business.
If he continues to be stubborn, he could lose the PM post and his party will not have a replacement for him. He will be remembered as the N in RAHMAN and cursed for making the majority lose the stewardship in a country of their heritage.
If he does not buck and become decisive, some rakyat wants him out in six months. To some it is too late as there will be a system breakdown. For start, listen to right advise and good ideas.
He should have sacked his advisers and incompetent officers after the election but he was too stubborn. If he survived the six months, the challenge is still in winning GE14.
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