Buku Jingga: The Malaysian Economic Hitman manifesto

Dato Seri Anwar Ibrahim had once claimed that he can bring in investment from abroad, specifically the Middle East, in the tune of RM3 trillion. Off course, it will not come in one go but in stages.

On December 20th, 2010, Pakatan Rakyat launched the Buku Jingga or the Orange Book.

The Buku Jingga is the outline of their short-term and long-term plan if the manage to takeover the country's administration in the next general election or earlier should 39 Barisan Nasional MPs jump to Anwar's side earlier on September 16th, 2009.

The worrying part of the Buku Jingga is that the goodies or spending pledges will raise budget deficit by RM199 - RM253.8 billion in the first year. By the second year, another additional budget deficit of RM139.6 billion.

Without any specific proposal on additional revenue to finance the budget other than the impossible rhetorics of zero corruption and wastage, the country should bankrupt by the second year of Pakatan administration.

This is faster than Dato Idris Jala's 5 year fear factor projection to shock the public that the country would bankrupt like Greece in 5 years time should it refuse to cut it's subsidy expenditure.

The country is projected to rake in a total 5-year deficit of RM700 billion throughout Pakatan Rakyat's administration.

That RM3 trillion will surely come in handy. Malaysia will effortlessly succumb to the hands of the global Economic Hitman.

Confession of An Economic Hitman

John Perkins, a former employee of the American National Securities Agency, wrote a book "Confessions of an Economic Hit Man" in the 1980s.

Perkins' role as described in Wikipedia was "to convince the political and financial leadership of underdeveloped countries to accept enormous development loans from institutions like the World Bank and USAID. Saddled with debts they could not hope to pay, those countries were forced to acquiesce to political pressure from the United States on a variety of issues.

Perkins argues in his book that developing nations were effectively neutralized politically, had their wealth gaps driven wider and economies crippled in the long run."


In the book, Perkins described the Economic Hitmen (EHM) role as below:

"Economic hit men (EHMs) are highly-paid professionals who cheat countries around the globe out of trillions of dollars. They funnel money from the World Bank, the U.S. Agency for International Development (USAID), and other foreign "aid" organizations into the coffers of huge corporations and the pockets of a few wealthy families who control the planet's natural resources. Their tools included fraudulent financial reports, rigged elections, payoffs, extortion, sex, and murder. They play a game as old as empire, but one that has taken on new and terrifying dimensions during this time of globalization."

When a country is indebted, it is dependent and subject to the whims and fancies of the various International lender and essentially loses authority over it's own affair. That's recolonisation and loss of independence.

Malaysia had escaped the last neo-colonisation wave through the International Monetary Fund (IMF) during the currency crisis and reformasi era of 1998-2000.


Indonesia was not lucky. They had to submit to IMF and the whole world saw President Suharto signing his country and his Presidency on the loan agreement with IMF Managing Director, Michael Camdesus watching with folded arms.

During that era, Anwar Ibrahim was the Finance Minister and he willingly through his policies submit the country into the arms of the IMF.

He cut fiscal spending drastically, raised interest rates in line with the wishes of the financial market vultures down south, slash borrowing and doing the unheard of policy to seek Banks to recall loans.

Today he refute himself as working for IMF interest and blame Tun Dr Mahathir using the tired excuse of conspiracy. He accused others of practising corruption, cronyism and nepotism which he was a party to and a ground breaking practitioner.

Anwar and his political boys were involved in taking kickback as project brokers, and dishing projects for cronies. Cronyism was partly tolerated by business people as long as one delivers and fairly priced. Non business public only wish to see some redistribution mechanism in place and benefits plowed back to society.

Anwar and his crony had none of that. He was only building political war chest to widen his political influence and finance his future plans. He makes no bone of using money to gain political influence.

It was Anwar that made money politics in UMNO from a mere child play to a serious multibillion dollar power play when he ousted Ghaffar Baba and set his sight on Tun Dr Mahathir.


Anwar wants Buku Jingga to be his cause celebre. He liked others to think Buku Jingga is bigger then himself.

But if it is the answer to allegations on homosexual and sexual transgressions, then his thinking remains centred on himself as though it is a ground breaking document that has to be stopped at all cost and slander be used if necessary.

Is the Buku Jingga a political manifesto of a sensible Government?

Buku Jingga


Buku Jingga is still about Anwar himself and his agenda to achieve the highest position in Government at all cost, irrespective of his changing principles and values.

It contains ten 100 days promises and 39 common policy platforms. The 100 days promises are:

1. Reform main Government institutions.
   
2. Abolish ISA.
   
3. Abolish highway tolls.
   
4. Reduce corporate sector subsidies.
   
5. Increase teachers' allowances by RM500.
   
6. Cancel all private water concessions.
   
7. Deploy free Wi-Fi.
   
8. Dissolve Felda Plantations.
   
9. Increase oil royaltries to Sabah, Sarawak, Terengganu and Kelantan.
   
10. Resolve illegal immigration in Sabah.

The promises are in essence more of political popularity contest to make political in-road into BN's fixed deposits than genuine economic feasibility and reform.

Increasing teachers' allowance is to win the hearts of traditional BN's supporters.

Dissolving Felda Plantation and redistribute to the second and third generations will make political in-road into Felda areas. Felda Plantation is a key source of revenue for the Felda welfare program and organisation. By dissolving it, Pakatan can abolish the whole Felda scheme and leave the farmers to the whims of market forces.

Promising oil royalties to 20% as compared to current 5% is obviously a populist move to make in-road into Sabah and Sarawak. It serves to regain Terengganu, which was saddled with oil royalty issues. And to entrench themselves in Kelantan in the midst of issues related to improprietary by Nik Aziz, family and his exco members.


Most of items in his 100 day reform plan involves increasing expenditure. That in itself is in conflict with Anwar's Malaysian Economic Agenda for 2008 which seek for market driven economy, reduce dependence on subsidy and heighten competitiveness.

Political populism

Buku Jingga is about political populism and not about reforms and freedom.

Reforming the main Government institutions in Anwar's perspective is more for his political expediency than genuine reform.

He has always subscribe to the believe that institutions like police, judiciary, army, and many agencies are being abused to preserve Barisan Nasional. In place, he has no specific program but merely politically laden rhetorics.

The reality is BN Government have undertaken various reforms like Royal Commission on Police, EAIC, MACC, Corruption NKRA, etc.

As far as Anwar's abolishment of ISA, does the population favours it? The likelihood is the people want such preventive law remain for sake of national security but ensure it is not abuse for political purpose.

Government is reviewing it and it is believed that the new procedure in determining ISA detention is not left to individual but to a Committee.

Anwar fear of ISA is more for it's obstacle to opposition's plan to invoke sensitive issues to provoke the voters.

Read my lips. Pakatan will NOT abolish ISA. DAP never questioned Singapore for not abolishing ISA and it's more draconian practise. Anwar did not questioned the Americans for the Patriot Act and various new law similar and more draconian than ISA.

During the expose of the Christian Malaysia pledge, they were demanding ISA on blogger Big Dog and editor of Utusan Malaysia.

Rising Expenditure


The obvious impact of Buku Jingga is that Government expenditure will swell up drastically within 100 days.

Instead of reducing the role of Government to increase competitiveness and for a market driven economy that Anwar used to preach, he has went on the reverse for populist increase in Government spending and increased Government role in the economy.

By abolishing highway tolls and going nationalisation, it will cost taxpayers at least RM50 billion. A cheaper and more sustainable alternative which BN Government is already looking into is to have a GLIC takeover PLUS' asset.

Cancelling water privatisation will stiffle effort to upgrade and modernise the water system. It is beyond affordability of state government to own, operate and modernise the water asset.

For instance, the Selangor Government is faced with massive budget deficit and reserve drainage due to the free water election promise.

With reserve of about RM400 million left, Selangor is asking for SYABAS, ABASS and Puncak Niaga at RM6 billion without any financing in hand and still is short to the RM15 billion asking price. Capital investment is not in the picture yet.

PAAB is looking into this proposal already.

Anwar's promise to teachers will immediately inflate teachers' salary bill by RM2.4 billion without concern for other aspect of the education budget. Eventually all civil servants will demand salary increase and it could cost as much as RM7.2 billion a year.

If Anwar's promise to increase oil royalties to the states is fulfilled, it will reduce federal budget by RM12.5 billion and yet he proposed to increase spending.

Buku Jingga proposed cutting corporate subsidiy but have no specifics in reducing overall Government subsidy bill which Anwar preached before election 2008.

In all, the most outrageous proposal of the Buku Jingga was to promise a minimum RM4,000 income to all household in 5 years. This will cost Goverment RM93.9 billion per annum and is unrealistic.

Some 67.1% household are earning below RM4,000 a month. To achieve that income level, it means Malaysia has to achieve an annual compuanded growth rate (CAGR) of 21.7%. That is higher than China's 10% and their robust economy.

The road ahead will be bleak with Pakatan can only promise additional revenue from zero corruption and leakage dream of RM28 billion per annum and restructuring IPP can reduce subsidy by RM19 billion.


How will that cover for the first year's deficit of RM199 billion to RM253 billion as estimated by Ministry of Finance?


Assuming the annual increase in deficit of RM139.6 billion, the country budget deficit will exceed 10% of GDP and public debts will have exceeded 100% GDP. The country will go bankrpt in Year 2 of Pakatan administration.

With global economy uncertain and volatile, where is Malaysia expected to get the money to finance the deficit? Will it come from Anwar's RM3 trillion promise? Who are the lenders? Will it be institutions recommended by the Economic Hitman?


Now that's "Harapan Baru untuk Malaysia" down the narrow path of impoverishment and recolonised through Anwar's new Economic Hitman program.

The Malay Studies graduate in classics didn't become World Bank Adviser and Adjunct Professors of reknown American Universities for nothing.

If his economic management will be disastrous, how is Anwar to achieve those 39 common policy platform promises based on his unpragmatic erotic infactuation with liberalism and neo-liberalism philosophical ideals.