5 reasons why Penang won't go to the polls this year if Najib dissolves Parliament

As speculation rises whether Prime Minister Dato Seri Najib Tun Razak will call for snap elections on this auspicious date of 11 November 2011, there are 5 key reasons why Penang will not follow suit and hold concurrent elections with the federal parliamentary seats this year.

One, BN has still not fulfilled its promise to repeal the Internal Security Act and disbursed RM 500 to all households earning below RM3,000 per month.  Questions are raised as to whether BN will conduct a mere cosmetic exercise of repealing the ISA but replacing it with two ISA-like laws. resulting in Malaysians ending up with two ISAs instead of one.
The disbursement of RM100 to students this year when this measure is included in the budget is for 2012 and not 2011 raises questions of legality especially when the 2012 Budget has still not being passed in Parliament. Further if the RM100 is to be paid this year when it is not budgeted in this year 2011 budget, where is the Federal government getting the money from.

Lest we forget Malaysia recorded a budget deficit this year as has been a deficit for 15 years. The National Deficit for 2010 is RM43.27billion, for 2011 is RM45.51 billion whilst the 2012 projected deficit for is RM43billion. (4.7% out of RM918 billion nominal GDP projected). Where is the Federal government going to get the extra RM530 million for giving to school students RM100 this year when it is not budgeted for 2011 and will only increase the 2011 deficit further?

Two, holding general elections now would be unfair to those performing the haj as they will be denied their right to vote and determine the next government. The last batch of the Haj pilgrims are not expected back until Dec 11 and almost 30,000 Malaysians went to Mecca to perform their pilgrimage

Three, the failure and refusal by the BN government to explain the misappropriation of funds, gross irregularities and abuses of power as outlined in the 2010 Auditor-General’s Report. The 2010 Auditor-General Report reminds Malaysians of everything that is wrong in the BN Federal government. Night-vision marine binoculars costing only RM 1,940 are bought at a price of RM56,350, a TV LCD and DVD player bought with a contract price of RM16,100 was supplied with an inferior brand valued at only RM195; RM770,000 was spent to supply electricity to one house.

The Auditor-General's Report said nine ministries or departments had overspent their operating allocation for last year by a total of RM3.73 billion and even a Minister Datuk Shahrizat Abdul Jalil is involved when a RM73.6 million cattle-farming project is given to her family’s company. Her husband is the Executive Chairman while her son is the CEO. The rest of her children, meanwhile, are executive directors.

Many  questions remained unanswered about this National Feedlot Corporation project in Gemas, Negri Sembilan. Chief amongst its failures is its production of only 3,289 heads in 2010 or 41.1 per cent of its intended target of 8,000 heads. The AG's report also cites poor management as a key factor and points to other failings such as its failure to train enough farmers, a 5,000-acre farmland that is overgrown and poor maintenance of its facilities.
Naturally, Malaysians are concerned about public money which includes an additional soft loan of RM250 million being used to fund this "family business", especially when it is turning out to be a monumental failure. In addition, Sharizat has still to deny reports of how the funds were used on non-cow related purposes including an allegation by PKR that nearly RM10 million was spent to purchase a high-end condominium.

Four, the Parliamentary Select Committee of Electoral Reforms have still not completed its hearings to carry out reforms to ensure a free, fair and clean elections. Failure to do so would permit the dirtiest general elections in history with phantom voters and illegal immigrants being transformed magically to citizens and voters in a few hours. Would Malaysia’s destiny be determined by Malaysian citizens or phantom voters and illegal immigrants?

Five, the national agenda for the end of this year should be focused on flood prevention and mitigation. Malaysians should learn from the horrors of floods in Thailand that has caused tragic loss of life and huge financial losses. To hold general elections now during the rainy monsoon season when flood victims are more bothered about surviving than voting, would be not only be a denial of their democratic right of choice but cruel and inhumane.
If Najib insists on calling snap polls this year, then the Penang Pakatan Rakyat will hold a special convention where a recommendation will be made not to hold the state election together with the federal parliament.

Lim Guan Eng is the Penang Chief Minister and DAP secretary-general

Budget 2012: Too many goodies, not enough substance

After listening to Dato Seri Najib Tun Razak make his 2 hour budget announcement on TV1, it really appears that it is business as usual for middle Malaysia despite the goodies being poured out.

There are a couple of points which are of interest. Firstly, what hits you immediately is the sheer size the budget. RM232.8 billion is a lot of money, especially when we are looking at a 9.4% rise in expenditure. However, the country's deficit will be reduced to 4.7% from 5.4% of GDP. How this is going to be achieved is yet to be seen. However, the fact remains that in terms of amount, it would be the biggest deficit in Malaysian history.

Gravity defying growth

Economic growth expected at 5.0-5.5% for 2011 and growth of between 5-6% for 2012 despite tough economic conditions. Even if this is the case, there will be the fundamental question as to whether this would be enough to pay for our bills as a result of this budget?

Goodies galore across the board, from patients above 60 being exempted from outpatient registration fees, RM15 million for 150 futsal courts, RM200 vouchers for school children and the abolishment of school fees. A proposal taken from the Pakatan Rakyat "Buku Jingga" was a RM500 relief for families earning a household income of under RM3000. Apart from the futsal courts, these are welcomed steps taken by the BN government.

One part that I find particularly exciting is the tax exemption for donations to mission schools and houses of worship which is a big step in respecting the practice of other religions. However, in their sincerity, licenses for building places of worship should be dropped as well.

Good news for foreign investors includes the liberalising of 17 services sub-sectors which would allow 100% foreign equity. This is not good news for local investors who are still subject to 40% bumi equity, which would have companies such as Genting and YTL taking money out of the country. Why are we giving incentives to foreigners at the expense of our own citizens?

Apart from the lifting of duties for hybrids until 2013, there is a complete absence in the mention of Green Technology. After the Prime Minister's vision of Putrajaya and Cyberjaya as green technology centres, RM1.5 billion in soft loans for green technology companies and a pledge to reduce Malaysia's carbon footprint by 40% by 2025, why suddenly shelve it?

We just had a massive Green Technology exhibition in September called IGEM hosted by the Ministry of Energy, Green Technology and Water (KeTTHA). The minister Datuk Peter Chin was around for the entire duration of the event over 4 days, but in the end, was it all lip service to the environment?

The losers

The other losers are the middle income earners, and incentives for business. Although there are substantial allocations for entrepreneurs starting out new businesses, liberalising business by dropping taxes such as import taxes on cars or eliminating the controversial APs would have been a very popular move. No allocation for improving public transport and access would also disappoint the daily commuter.

What was extremely disappointing is the announcement of more mega projects such as the Coastal Highway JB-Nusa and the Taiping Heritage Tourism Project at a cost of RM978 million. These would certainly go into cost over-runs, be subject to closed tenders and cronyism. No change from the past.

The big winners are the civil servants, who will be getting their half month bonuses, pay rises from 7-13% per annum, and a time based pay scheme for civil servants to climb pay grades faster. With 1.3 million civil servants, that is a massive number of voters which would be affected by this measure.

No reforms in the way economy is managed

With all these goodies, it is certainly shaping up as an election budget. Our Prime Minister was careful to mention that the RM33.2 billion subsidies package would not be removed as a gesture of putting the "people first", but many still question why RON 95 is still RM1.90 despite oil prices falling.

There are many quick fixes and incentives, but the fundamental infrastructure of the nation has been ignored. Handouts cannot eradicate hardcore poverty, nor combat rising costs. There are no moves to make our economy more competitive or additional incentives to bring our overseas talent home.

To the Prime Minister's credit, it is not a bad budget. But given the fact that the money spent is merely aesthetic, and does not change the divisive, corrupt and oppressive system it is built on, Pakatan Rakyat is looking increasingly capable of being an effective government.

Given the fact that the alternative budget was well received, and with the promise of accountable and graft free government, we may yet uncover billions more which Barisan Nasional has been concealing from the Rakyat. Do your duty at GE-13 for your country!

Douglas Tan is a reader of Malaysia Chronicle and a member of DAP

Najib goes after voters with fistfuls of cash in populist elections Budget

As expected, Prime Minister Najib Razak unveiled a Budget 2012 stashed with cash goodies aimed to lure voters back to the BN fold, but it was immediately shot down not just by opposition but also by financial experts who gawked at his overly rosy economic projections.

In Budget 2012, Najib forecast GDP growth of 5 to 6% while the deficit was to drop to 4.7% from a projected 5.4% in 2011.

“That’s a pretty bullish outlook relative to the street and relative to ourselves as well. We’re looking at 4 per cent this year and 4.2 per cent next year. Second-half growth has to turn up to 5.5 per cent to average even 5 per cent. So that looks a bit optimistic from my view,” Hak Bin Chua from Merrill Lynch Bank of America told Reuters.

Faking it with overblown growth projections, no details on where money to come from

But Najib, who is also Finance minister, may have no choice. If he did not 'fake' his projections, there may not be enough to finance the plans he unveiled. There were no details as to where the money would come from other than the plucked-from-the-air increase in GDP growth that was noted and panned by banking and financial experts.

"Perhaps the most worrying is that Malaysians are like the proverbial frog in the hot soup, where the frog does not realise the soup is slowly but surely reaching the boiling point," Tony Pua, the DAP MP for Petaling Jaya Utara, said in an immediate reaction.

"We may not yet be facing the crisis of Greek proportions, but Budget 2012 is doing very little to avert such eventuality, leaving the Malaysian economy nakedly exposed to the inevitability."

Buttering up Felda settlers and the civil service

On Friday, the scandal-tained 58-year-old Najib presented a RM232 billion budget, with RM181.6bil for management and RM51.2bil for development. He also announced the much-anticipated listing of Felda Global Ventures, promising a 'windfall' for all settlers - who now number some 2 million in total, including their children and grandchildren. Obviously, the Felda folk will form  a crucial and core voting bloc for his Umno party.

There were no individual or corporate tax cuts as speculated, despite plans to launch an unpopular and hefty Goods and Services Tax or GST after the 13th General Election.

Najib also increased employers’ contribution for the Employees Provident Fund from 12% to 13% for those earning RM5,000 and below.This obviously is good for the employee but puts more money into the EPF, which has come under fire for questionable loans to government-linked firms and agencies, such as the recent and unannounced RM6billion loan to Felda.

He also announced an additional half-month salary bonus, with a minimum of RM500 for government pensioners, to be paid together with the December 2011 salary. So, for the whole of 2011, including previously declared bonuses, a total RM1,000 minimum has been announced for civil servants and government pensioners. This will benefit some 1.3 million civil servants, 618,000 pensioners and will cost the government RM4 billion.

“Najib has promised everything on earth but he doesn’t talk about increasing revenues or transparency. It is unrealistic. It is clearly an election ploy. In the last 10 years, growth, deficit and foreign investment figures have always been proven to be wrong,” Opposition Leader Anwar Ibrahim said in an immediate response to reporters.

Wooing back lower income group hit by subsidy cuts

For the lower-income groups, who have been upset at his slashing of subsidies for consumer essentials including petrol, cooking gas and sugar, rather than touch the RM19 billion gas subsidies given to crony-Independent Power Producers, Najib unabashedly courted them fistfuls of cash.

He announced a one-off RM500 cash assistance for households earning 3,000 per month and below, which will set the government back RM1.8 billion to benefit 3.4 milliion households, a one-off RM100 schooling assistance for primary and secondary school students from age 6 to 16, up to Form 5, which will cost taxpayers RM530 million, and a one-off RM200 book vouchers for students of private and public tertiary institution for Form 6 students, costing RM260 million.

EPF would also be allowed to ring fence RM1,300 from Account 2 of contributors for the purpose of pilgrimage to Mecca. The money will stay with the contributors, while they register for the Haj, which can a very long waiting list.

"It is very simple to tell whether or not it is an election ploy - just look at the number of one-off cash assistance. Najib is looking to buy GE-13 but my feeling is Malaysians are smarter. They should take the money, which actually comes from the tax that they or their parents pay, and then make sure the BN is booted out once and for all before they bankrupt Malaysia," PKR vice president Tian Chua told Malaysia Chronicle.

Main projects in 2012

Total revenue for 2012 was forecast to increase 1.9% to RM186.9bil and the deficit to decrease to 4.7% of GDP from 5.4% in 2011. Najib also set aside RM29.8bil for investment in infrastructure, industrial and rural development and RM13.6bil for the social sector, including education and training, welfare, housing and community development.

The PM, who had to put on hold his New Economic Model after heated protest from hardliners in his Umno party, also announced plans to "focus on accelerating investment and further liberalise 17 services sub-sectors, in places enabling 100% foreign equity." However, given that he did not immediately detail the sectors, these are expected to be non-critical and little-demanded sectors.

Among main projects to be implemented in 2012 are the East Coast from Jabor to Terengganu and road upgrades from Kota Marudu to Ranau. RM18bil of the RM20bil PPP Facilitation Fund will be used for high impact projects, with RM2 billion for bumiputera entrepreneurs. The government will also allocate RM978mil to accelerate the development in five regional corridors namely, Coastal Highway JB-Nusa Jaya,Taiping Heritage tourism project, Besut agropolitan project, Lahad Datu palm oil cluster project and water supply in Samalaju.

The Treasury Management Centre will be established and offer incentives to develop M'sia as a competitive financial centre. The Kuala Lumpur International Financial District will also kick off, with incentives including income tax exemptions for firms.

Property tax up, school fees abiolished

Real property gains tax was also raised from 5% to 10% if sold within 2 years; if sold between 2-5 years, it would stay at 5%; if sold after 5 years, it would be zero. RPGT was set at a 5% flat rate for properties disposed of within five years of purchase since April 1, 2007.

All primary and secondary school fees were to be abolished beginning with 2012 school term. This will cost the government RM150 million. Education would be allocated RM50.2 billion, of which RM1.9 billion for all schools, including mission and vernacular schools, RM1 billion for upgrade of schools premises (RM500 million for SRK, RM100 million for SRJK (Chinese), RM100 mil SRJK (Tamil), RM10 million for mission schools, RM100 million for Sekolah Agama Bantuan, RM100 million to MRSM - Mara secondary schools).

For the rural sector, Felda again walked away with the biggest goodies. Najib promised a RM400 million upgrade of water supply system in Pahang, Kedah, Kelantan and Terengganu.

He also set aside RM150 million for rural public transportation via SME bank for bus companies in low interest loans of 4% interest, and RM90 million for the Orang Asli for basic needs, including treated water and income generation, RM20 million for the community affected by Cameron Highlands landslide.

The civil service were not left out, with teachers receining the lion's share. Teachers will now get 'time-based pay rise schemes', so teachers can go up the ladder faster. Effectively, it was an annual pay rise from RM80 to RM320 according to grade, or up 7-13%.

Senior citizens won't have to pay outpatient fees at all government hospitals and clinics. 50% discount on LRT and monorail.

Malaysia Chronicle