Kedai Rakyat 1Malaysia: House brand, sales puff or sub-standard goods

I was personally very flattered to read that my first article as a columnist for the Malaysia Chronicle, "Who is the one short-changing Malaysians - BN or Pakatan", had garnered a response from Mohd Zain, the Secretary-General of the Ministry of Domestic Trade, Co-operatives and Consumerism. This is the fastest I've seen the civil service react to anything I've put out, so once again let me express my gratitude.

What the Secretary-General has completely missed is the entire context of my comments about Kedai 1Malaysia (KR1M). First of all, for the Minister Ismail Zabri to mention that some items were "up to 50%" cheaper, is misleading in itself. This is a common ploy used by supermarkets and video stores. You can go up to a pile of DVDs which say "up to 70% off" but find the ones actually worth watching only 10% off.

Again, the penchant for public relations or sales puff

When the Minister and the Prime Minister had announced the entire KR1M concept which would aggressively combat against rising costs, and mentioned that they would have 250 products available, naturally one would assume that we would be able to save a couple of bucks. However, by coming out and trying to 'clarify' the nature of the comments, I would submit that the Minister has misled the public with his "up to 50%" comment.

Furthermore, the statement failed to actually cite examples as to the products which were actually 50% off! What is more puzzling is that there was no attempt to establish what the benchmark prices are in the first place. Could it be that discounts are based on Recommend Retail Prices (RRP) of certain products? Is the Minister unaware that hypermarkets and supermarkets offer discounts of RRP items on a daily basis? If so, how are the 'discounted' prices found in KR1M any different?

Must be comparable to other house brands

Let's talk about his claim that KR1M products have to be compared against similar branded products, but not house brands. So then, what's the point? I can buy Dettol if I could afford it rather than house brand disinfectant. Or I could buy Coca-cola rather than Tesco cola. This is on the basis that I have a choice as a consumer to purchase items as according to my budget.

But isn't the point of KR1M to save money? How then can your KR1M brand, which is obviously a house brand, not be compared to other house brands? This in itself defies logic. Who defines 'similar branded items' anyway? Is there any assurance that the quality of the KR1M brand is better or exceeded the other so-called 'similar branded items'?

Don't stuff the public with sub-standard poor quality goods

It has just been reported that items found in KR1M are suspect for quality. Tony Pua, who was one of those responsible for uncovering the scandal in the first place, today announced that fresh milk had been sold at the stores contained E. Coli, and was backed up by Dzulkefly Ahmad. Furthermore 8 items out of the 250 had been found to contravene the Food Act 1983 and the Food Regulations 1985. How can the Minister defend this, especially as the Ministry is supposed to overlook the operations of KR1M directly?

Lastly, the RM40 million subsidy paid for CAPEX purposes for refurbishment and upgrade of the premises. Let's look at the numbers. According to their website, there are currently six KR1M stores in operation, with the latest one opening in Melaka.

With an announcement of 22 more stores on the way, this brings it up to 28 stores. With a RM40 million subsidy, the cost of renovation for each store would be RM1.4 million worth of renovation for each store. I'm sure the crony-contractors would be rubbing their hands with glee. Having been to the KR1M located at the Kelana Jaya LRT station, I can confidently say that the renovation would certainly not cost that much. This is the Ministry, once again, pulling a fast one on us.

Other matters including Khairy Jamaluddin

Since I have the government's attention, and they are so keen to read my columns, can the Defence ministry explain about the Skudai land deal? Can the MACC let us know why they are so keen to investigate Petronas but not the National Feedlot Centre? Or get the right people from the Port Klang Free Zone? Can the Ministries give explanations about the sheer incompetence in procurement, as the MACC has declared there was no corruption involved?

Khairy Jamaluddin has fed us with a true cock-and-bull story today, by saying that the Rakyat's money is well spent when invested into a RM10 million condominium. If it was such a good investment, why didn't they proudly shout about it before?

Stop being so bitter about the opposition holding press conferences to talk about their achievements when it is clear that Barisan Nasional is doing very little to do things right. While you're at it, stop trying to feed us lame excuses by calling them clarifications.

Douglas Tan is a DAP member and a Malaysia Chronicle columnist

Muhyiddin and The Bankruptcy Years

Deputy Prime Minister Muhyiddin Yassin’s stand of “Malay First, Malaysian Second” has already blackballed him in the eyes of many Malaysians, although he and his advisers do not believe this to be so.

Instead of desisting, they are pushing forward on the premise that Malay racism can still win the day in Malaysia - a country that is almost 40 per cent populated by non-Malays including the indigenous people, Chinese, Indians, Bengalis, Pakistanis, Eurasians and many other small minority groups. This may be the right tack in helping him wrest the Umno presidency from incumbent, Prime Minister Najib Razak, when party polls are held next year.

But it certainly will not help change the direction of Malaysia's long-term decline that coincidentally began when Najib's dad, Abdul Razak Hussein, took over as the second prime minister in 1970. It was then that an affirmative action policy named the New Economic Policy was implemented but it was soon twisted to betray its original purpose of distributing the nation's wealth to the poor, and used instead to benefit the most powerful Umno chieftains, their families and cronies.

How long can Muhyiddin last?

Through the years instead of becoming fully satiated and slinking off to rest like a python stuffed full with the best goodies, the greed got worse. What used to be taken in hundreds of thousands just jumped exponentially to hundreds of millions. And now, if you don't have an extra billion or two, you don't even qualify to be called one of the Umno elite.

Muhyiddin too had his day when he was chief minister in Johor. There he was accused of massive corruption, but because of his grip on Johor divisions, he was promoted to the federal Cabinet rather than for a nice grilling session by the anti-graft agencies. This is the how the game is played in Umno and BN since 1957, when independence was won from the British colonialists.

And this also explains why Muhyiddin feels his best chances still lie in reviving the nationalist fervor amongst the Malays in the country, rather than open up the community and convince them to become more inclusive. Sorry to say but his analysis is out.

It is one thing to refuse to acknowledge that the coffers have been run almost to the ground because that may signify that he also wants to tap the riches that absolute power brings. But refusing to learn the bitter lessons of 5th premier Abdullah Badawi and 6th premier Najib Razak, who both ended up looking like clowns because they chose not to battle the extremist but powerful minority within Umno is sheer stupidity.

How long can Muhyiddin last? Najib may have agreed to give way to him but if Najib had to U-turn after less than a year of trying to liberalize the economy and society, does Muhyiddin think he can succeed with refusing to acknowledge the rights of the non-Malays? Does he think that by merely continuing to out-champion all the other ultras, he will be able to maintain his lead as the defender of the Malays?

If he does, for sure Malaysia will bankrupt before 2019. Do envision a capital flight - no less - should Muhyiddin and his right-wing gang take over. These guys still live in a world where they think no body can tell when they are lying through their teeth and when they are just bluffing. That's right not an iota of credibility left.

MLM Umno

Umno-BN is like a gigantic multilevel marketing scam. The best and the longest was creamed by Mahathir. Badawi managed to get quite a nice slice too, Najib as well. But Muhyddin will be left with the baby! And he deserves it.

In March 2010, he waded into controversy by stating he was "Malay" first rather than "Malaysian first". He defended his statement by stating that there was nothing wrong for other races to do the same i.e. the Chinese could claim themselves to be "Chinese first, Malaysian second" and same for the Indians.

Those who think there is nothing so awful with such a statement must consider that for every action, there is a reaction. Already there are millions of non-Malay chauvinists in town. If you use fire to fight your fellow citizens, surely they will use fire to fight you back. Then, Muhyiddin's next line of thought might be - doesn't matter, we will still win because we outnumber them and the keris or sword of righteousness is on our side. Now, do you see why investors will flee if Muhyiddin becomes PM of Malaysia, although they won't care much if he is just president of Umno!

What about letting Najib continue, did you say? Are you nuts? Or perhaps it is fairer to to put it this way - how do Malaysians want to die?. A slower, more torturous but sure-as-the-sun-will-set death, aka the Najib and Rosmah way? Or quickly and less painfully like a massive heart attack, which is the Muhyiddin way? Hobson's choice? There is Pakatan Rakyat, and Umno has only itself and its false heroes like Muhyiddin and Mahathir to blame for painting the party into a corner. Watch out, but floor space has just run out!

Even to the point of endorsing corruption?

Make no mistake, Muhyidden Yassin is biding his time. He distances himself from the shenanigans affecting Najib and Rosmah. He picks and chooses issue to comment about and he makes sure he stays firmly on the right. As already said, this is fine for the president of the United Malays Nationalist Organization, but not for the prime minister of a Malaysia where nearly 40% of the people are non-Malay.

Muhyiddin's one big Malay flip-flop has been the PPSMI issue, where he was held back by biggest boss - Mahathir. To wobble and allow Mathematics and Science to be taught in English after vowing there would be no concession shows him to be as less a leader as Najib. It has exposed Muhyiddin's Achilles heel. Without the racial cloak, he has nothing - as little if not even lesser talent and intellect than Najib.

But the DPM is not giving up. Already he is calling for audits on the use of Bahasa Malaysia and we can be sure he will support the re-writing of History, the demonization of the LGBT and even come as close to an inch of endorsing corruption so as to win the sweetheart nominations of the greedy Umno warlords.

A very different version of reforms

Under Muhyiddin, racial, religious and sexual politicking are likely to continue to be the Umno-BN's modus operandi. A true and tried method of scaring the Malay vote into maintaining Umno’s grip on power. This is Muhyiddin’s playground, one where he excels as the master opportunist. Tactics to topple and put down political rivals are nothing new to this man. After all. it was how he moved up the political ranks.

He attacked Abdullah Ahmad Badawi's original 2010 transition plan as "too long". During the 2008 general election, the DPM managed to keep his seat, but he was shocked by the election results. He then called for reforms but what he meant as reforms are very different form the Anwar Ibrahim and Pakatan Rakyat reforms. Muhyiddin's reforms do not mean greater democracy but much lesser. His reforms do not mean social justice or racial equality but much greater injustice and inequality.

Now, because there is no one else in the minds of Umno members, Muhyiddin is the obvious choice to replace Najib or to oust Najib. It remains to be seen if the everyday Malays in Umno will wake up in time to save themselves from the brink. For if Malaysia goes down, the ones who suffer the most will be the Malays. They not only form the biggest portion of the population but by insulating themselves with unnecessary racism and religious bigotry, they have become the least professionally mobile in the country.

No, Muhyiddin is no different from his peers. As the last player in the Umno MLM game started by Najib's dad and turned into major big-business by Mahathir and Co, Muhyiddin - if he makes it as PM - sits on the cusp of a new chapter in Malaysian history - The Bankruptcy Years.

Malaysia Chronicle

Will Parliament be dissolved on Monday?

There is talk that come Monday, October 10, Parliament may be dissolved and snap general elections called.
Such a move would follow Prime Minister Najib Razak's tabling of the Budget 2012, a spending plan that many say will be designed to prime the electorate into keeping his BN coalition in power. And of course, to give the much needed public mandate to Najib himself to continue as the country's 6th premier.
Frankly, the guessing game about the timing of the 13th general election has been red-hot since the start of this year. Many had expected March, July, November and even March 2012. But although the tide may currently be on the side of those who predicted March next year, there is still heavy expectation that Najib will go for the kill next month.
If this is indeed so, then he 'must' dissolve Parliament by Monday. Of course, he can do it after tabling the budget this afternoon or even over the weekend, but many politicians say it is Monday if GE-13 is to be in November.

Why Monday
The reasons are simple, if Najib didn't dissolve Parliament by then, the Budget 2012 would have to be debated on Monday itself, which would be a waste of time with election just a month ahead.
Secondly, why risk the opposition poking all sorts of holes into his grand plan which will surely be praised to the skies by the country's mainstream media, radio and TV networks, which are all government-controlled.
Yes, such a move allows the BN to push through ‘sweeteners’ while leaving the Pakatan Rakyat parliamentarians less time to find areas of contention. It is a quick means to shut out public scrutiny. And when the Budget is later re-tabled, provided of course the BN wins, Najib can always find ways to 'gracefully' climb down from his grandiose promises!

Two camps
Within Umno, it has become so obvious there are two camps that even the staunchest supporter can no longer deny the split. Najib's camp wants early snap polls before the party's annual assembly in December to ward off an attempt to make him announce a succession plan in favour of his deputy Muhyiddin Yassin.
Obviously Muhyiddin, and more significantly Mahathir Mohamad, the influential former premier, want GE-13 next year.They are worried Najib's personal scandals will weaken the BN's chances and want to go into GE-13 with the question mark over his lackluster leadership fully resolved, so that the people can feel comfortable voting the BN once again.
Yes, GE-13 will be very much determined by the coming Umno general assembly. There are many ominous signs of warlordism taking precedence and the clamoring for the Umno supreme council to name a successor is growing. Much like how Abdullah Badawi was treated in 2008.
This has been the rationale put forward by the November GE-13 forecasters. They are betting Najib will try to forestall the Umno intrigue by getting his own mandate, and should he be able to maintain the status quo or even wrest Selangor back from the Pakatan, then he would have guaranteed himself another term.
And in Najib's second term, he and wife Rosmah Mansor won't be wearing kids' gloves anymore. And this is something Mahathir and Muhyiddin would be wise to take note of.

The Anwar factor
There is also the issue of Anwar Ibrahim, who is currently entangled in Sodomy II prosecution. The trial is on-going and by calling snap elections now, Anwar will find it tough to whole-heartedly campaign.
This would be another plus in Najib’s game plan, where he wants to remove Anwar permanently from the political landscape and win brownie points from the Umno warlords who do not want Pakatan Rakyat hanging around and interfering in their business schemes.
Dissolving Parliament right after tabling the budget could also be a case of ‘lets get it done and over with’. Swayed by the his own positive public relations and secure in the delusion that rural Malaysia might still vote BN come what may, Najib might just press the button on November.

Mahathir is still the linchpin
However, given the latest signs which have grown stronger after the unveiling of the Pakatan's Prosperity For All alternative Budget 2012, chances are much slimmer now for a GE this years. It will not be easy for Najib, who is also Finance minister, to trump the Pakatan's plan and he is expected to copy extensively from it.
With the recent Bukit Kepong incident and even the hudud law issue boomeranging, as Malaysians see through the stale scaremongering tactics, it is now much more likely that Najib will defer to Mahathir as he has always done and postpone his election plans.
Even so, for the final confirmation and until Najib himself denies GE-13 will be this year, all eyes will be on him after he unveils Budget 2012 today. And if he keeps mum, then Monday will tell for sure when GE-13 will be.
Of course, this will then lead to the 2012 guessing game, and by the way, GE13 does not necessarily have to be in March/April 2012!

Malaysia Chronicle

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

BN will be decimated by its own corruption

Never in the path of our nation's history has corruption been as unbridled as it has been for the past three decades. Corruption has become a scourge that would ultimately ruin the nation and we should thank Barisan National opportunism for this knack and  flamboyance.

Interesting media highlights on alleged corruption and abuse of power
To the incumbent regime, it’s always the denial syndrome that would tint their rhetoric whenever the issue of corruption is raised by the public and this would in turn be handily backed and spun by the pro-government media. Nevertheless, let’s recap some of the interesting media highlights in the past years on corruption-related issues in the country.

“Nine Japanese shipping companies that transport lumber from Sarawak, Malaysia, allegedly failed to report some 1.1 billion yen of income in total during a period of up to seven years alleging the money constituted kickbacks to Sarawak officials via a Hong Kong agent.”

“Serious allegations of integrity involving a minister in defence contracts such as US$100 million for Sukhoi jets from Russia and US$120 million for submarines from France.”

“A hefty commission in millions of Euros being paid to the submarine broker.”

“Customs officers found about 600 boxes of frozen beef worth about RM80,000 among its cargo. In the export documents, the meat was declared as fruits. ACA officers have questioned a dozen people, including customs officers, forwarding agents, trawler crew members and port officials.”

“Alcohol smugglers are short-changing the government to the tune of about RM800 million in taxes annually and adversely affecting the beer industry in the process. The loss in taxes was due to loopholes in enforcement, specifically in Malaysia's territorial waters, said a Minister. He urged the department to take firm action to rout smuggling activities by upgrading surveillance in areas which were identified as smugglers' routes.”
“The man who is supposed to lead the clean-up, has himself been accused of illicit enrichment by a former underling.”

“The contractor claimed that the government project in the tune of RM500 million was subcontracted  to his firm for RM430 million.”

“In a separate case, a minister is accused of taking bribes to set criminal suspects free.”

“A survey this month by PERC, a Hong Kong-based consultancy, shows that corruption is perceived to have worsened in Malaysia.”
“A spendthrift government that will retard economic stimulus, leading to a bankrupt nation.”
“Billions of ringgit is lost  in the name of kickbacks or corruption and this is going to make the country go bankrupt.”
“Police constable jailed for accepting bribe.”
“Several high-ranking customs officer detained to be investigated for bribery allegations.”
“Immigration officers detained under ISA.”
“Minister’s alleged involvement in money politics.”
“It was alleged that a prominent lawyer wrote the judgment for a judge.”
“Politicians accused of money politics.”
“UMNO aspirant disqualified because of money politics.”
“Billions of ringgit lost in forex trading.”
“Malaysia: Billions of ringgit lost in corruption annually due to corruption and illegal money transactions.”
“Billions of ringgit was siphoned out of the country through wily money changers.”
“Former chief minister in court accused of corruption.”
“Former minister acquitted of corruption charges.”
“Former Perwaja boss acquitted of corrupt charges against him.”
“Millions of dollars used to build up the image of  Malaysian politicians overseas.”
“ Millions of ringgit spent on residential renovations.”
“Millions of ringgit spent on travelling expenses of politicians.”
These were but just a few of the innumerable headlines laid bare by the media that have brought utter disgust to the taxpayers. A former prime minister denied the many allegations that appeared in the media on corruption involving those in power and claimed that only about 15 percent of those reported were genuine.
Be that as it may, the educated electorate are questioning this: When would our politicians learn about competence, transparency and accountability in managing the country’s wealth? The people at large feel that the billions of ringgit lost and secured through kickbacks and bribery for the past 30 years could have brought splendid development to the country.
The money lost could have been used to perk up people’s livelihood such as building schools and providing better health facilities for the people. A prominent accountant attached to an established public firm in the city has this to say:  “RM2 ringgit out of every RM10 spent by the government is pure wastage due to lack of transparent standard procedures in the management of taxpayers’ money.  Only the Opposition-held states have shown some rigour in conforming to these procedures.”

Business, politics and corruption have become inseparable
Corruption seems to have become a way of life in many sectors – public and private. According to a retired private sector executive, “Business is so corrupt these days and the dye is cast. Business, politics and corruption have become inseparable.” On the other hand, the people’s general perception is that the incumbent government lacks the political will to curb corruption. They have the notion that many high-profile cases have been swept under the carpet as many prominent personalities were allegedly involved and rocking the boat would affect support for the political parties. Some high profile leaders have not been netted by the MACC and charged for abuse of power and for corruption.
This elegant silence on the government’s part is disturbing the voters more. When the people see that corrupt leaders are still hanging on to power, their pure conjecture would be that no green light has been given by those higher up to take action to this effect. The view that there would be a backlash from among party members is a petty excuse and analysis of the real situation on the ground.
For this reason, the incumbent government would face an uphill task in convincing the critics in the next general election. The Cyber war and political campaigns on the ground would see the issue of corruption in the country used to the hilt to win votes. The urban electorate are already well aware of this scourge affecting the nation. The Opposition would contrive to sway the voters’ sentiments by using corruption as the instrumental tool and gizmo to win them over. Analysis has it that this is going to be effective approach by the Opposition to convince the people to vote for a change.

Endemic corruption started in the 80s
Corruption as perceived by the people has gone beyond the hum and haw mores of our society. It is now being strongly rooted in the nation’s culture. Endemic corruption in the country started from the 80s’ onwards. A very senior UMNO politician was once quoted as saying, “Corruption is a form of lubricant. It makes work get done faster.” Of late, the same politician was quoted as saying, ”Never mind if there is a little corruption here and there as long as the people are helped.”
When statements of this nature - immoral and  irreligious to God-fearing laypeople - come from a politician the omen is going to be bad for the country. This is tantamount to promoting and breeding the culture of corruption more among politicians and those with authority. Corruption, as every Malaysian is aware of, goes against the religious and moral values of any civilised society. There, no doubt, could be a short-term material gain to corruption, but if this blight goes unbridled would end up becoming a threat to the social fabric of our future generations.
Less the voters forget, the media in the past have highlighted allegations of corruption involving politicians, middle-men, government agencies, enforcement officers and the public in general. There were allegations, among others, that money had been paid to lubricate the process of acquiring government projects, palms were greased to make sure that politicians were elected into office in what is popularly known as money politics, millions of ringgit was spent to secure votes during elections, high commissions were paid in weapon dealings, millions of ringgit was paid to get projects approved by local and foreign businessmen.
The people have also come to perceive that there are the  “touchable” and the “untouchable” when it comes to punitive actions against those alleged to be corrupt. These are some of the calamitous social symptoms facing the nation today. From politics to the securing of a driving license it has been touted that corruption is involved. The irony is that the pro-government media have been so earnest in their dutiful sermons on integrity and a corrupt-free society to veil the truth from the people.

Bribe Payers Index
The next general election would see the Opposition campaigning to the hilt on this sensational issue that is scorching the nation. The revulsion and detestation could already be observed in the urban constituencies as the Corruption Perception Index (CPI) of the urbanites has risen to 4.5 on a scale of 1 to 5 among the educated populace. To them the incumbent government has failed to rein in corruption that has cost the nation billions of ringgit annually.
In the Transparency International’s (TI) 2008 Bribe Payers Index (BPI) it was found that corrupt practices in the country has been on the rise. Political parties were singled out as one of the most corrupt institutions in the country with a BPI of 3.6. The police force was indicated as the most corrupt institutions in the country with a BPI of 4. The business communities also were not convinced of the government’s efforts to fight corruption, compared with some other Asia Pacific nations. These are some of the figures noted by TI:

Bribery to high ranking officials to or political parties: Malaysia - 42% of 92 respondents.
Bribery to low level public officials to speed things up: Malaysia - 38% of 94 respondents.
Use of personal and familiar relationships on public contracting: Malaysia - 44% of 93 respondents.

Assessment of government action in the fight against corruption in Malaysia (100 respondents):
Very Ineffective – 27%
Ineffective – 46%
Neither – 9%
Effective – 12%
Very Effective – 6%

Sectors in Malaysia perceived to be affected by corruption (1: not all corrupt, 5: extremely corrupt):
Police – 4
Political Parties – 3.8
Registry and Permit Services – 3.6
Parliament/Legislature – 3.3
Customs – 3.3

Criminals, businessmen and politicians
Corruption has in actuality caused more damaging effects to the society than what meets the eye. It has been alleged that criminals oftentimes collude with prominent businessmen and politicians.  This would unquestionably be damaging to the nation’s security. The collusion between criminals and some enforcers would blemish the whole process of law enforcement. Studies on corruption have shown that wealthy and poor countries have attracted criminal gangs and corrupt officials. In some countries criminal organisations have influenced law enforcement and politics. Some countries are now in major chaos as a result of this collusion and it has become almost impossible to put right the problems. Is Malaysia moving towards this direction?
In many countries, the conviction of notorious gangs have led to the break up of mobs and disturbances. Law enforcers and their families have been harassed and some assassinated. Studies on corruption have also shown that organised crime syndicates are able to protect themselves through many devious means – corruption of law-enforcement officers, physical violence against informants, threats against prosecutors, lawyers and judges, use of lawyers to circumvent the legal system and monetary contributions to political candidates. In some countries, mob activities are so gainful that organised crime could afford to keep in its payroll government officials at various levels, including politicians and law enforcers, to influence the legal system in its favour. Is Malaysia moving towards this direction?

Impede the country’s economic growth
In some situations, criminals are also able to establish supportive enforcement officers who pass information to them about investigations and intended raids and by making intentional mistakes in prosecutions – technical errors resulting in cases in courts being thrown out. Corruption of enforcement officers is made easier by the fact that they are modestly paid and subject to temptation and as a consequence crime and bribery would remain unchecked. When enforcement officers are corrupt they would make efforts to ensure that their equals are also corrupt. An honest officer would unfortunately come under harsh pressures from them. Is Malaysia also moving towards this direction?
Why is the increase in smuggling, peddling and abuse of drugs and the number of addicts in the country gone unabated? Why is there a perpetual increase in illegal immigrants in the country? Apparently, these pains in the neck are just impossible to be done away with because of alleged corruption involving some of those with authority in the country. At the rate it is going, each year about 25 000 of the country’s inhabitants would measure off as drug addicts and quietly thaw into the society – an irritant to all peace loving Malaysians. This number almost equals one-third of the number of students graduating from our universities annually. If this trend continues, by the year 2020 instead of achieving developed status the country is expected to graduate with more than 1.5 million drug addicts - a terrifying figure indeed! They would bring about many more other social ills that could undoubtedly impede the country’s economic growth.

Is Malaysia moving towards destruction?
About RM60 million is now spent yearly to rehabilitate the estimated 60 000 drug addicts that we know of, and just imagine how much of the tax payers’ money is going to be spent in 2020 to do the same. The vast number of illegal immigrants – a projection of more than 3 to 4 million by 2020 – who would contribute their shares of nuisance to the society would compound to this menace. The colossal costs for deportations and maintenance of detention centres in the country would again be at the expense of the taxpayers. Could corruption – monetary lure too lucrative and tempting for those with a greedy mind - in the society attribute to some of these social problems? And is Malaysia moving towards destruction?
When politicians have limited accountability and when personal political interests are prioritised, the duty and responsibility of individuals in authority could not be wholly fulfilled.  This is wretchedly going to weigh down the country’s progress.  Corruption at any level of the society is an amoral activity that would only help encourage indescribable and unlawful activities. Corruption is an unscrupulous action against our moral duty and obligation.  It is a symptom of deep problem in society that could cause many conflicts in society and indirectly affects the economy, investments, enforcements, the legal processes and even ethnic divisions – resulting in low civic consciousness among people and thus would ultimately debase the whole society. Surprisingly, with all these effects of corruption on human values we have politicians who still would consider corruption as a lubricant to promote business and help people.
If graft is seen as a normal practice in life, or as a lubricant in our daily chores to get legal or illegal things done speedily, in the long run it is going to devastate the fabric of our relatively peaceful society. The society thus needs better politicians  with better thoughts and a morally sturdier frame of mind that could help develop a better Malaysia. We need politicians whose conscience would tell them that corruption in any form is against the edicts of all major religions.  If corruption is left to flourish by some self-seeking politicians it would certainly undermine our civil society. Politicians who have the moral courage to say no to corruption are those who would eventually get the nod from the people.

The exemplar of governance in Opposition-held states
The people should vote for a government that could instil the patriotic fervour in the masses to safeguard the country from being blackmailed by criminals and corrupters. Short-term monetary gain people make through crime and corruption should not be condoned and politicians should never be part of these deals.
Critics and auditors have commented that the Opposition-led states are displaying exemplary governance and are very concerned about the importance of having a corrupt-free system of management. These states have thus far shown tremendous economic success and have undeniably convinced the people to stay with them.   Numerous reports – local and foreign - have been written on how effective is the management of these states without using corruption as a lubricant to bring in investors. Corruption in these states is nipped in the bud before it continues to flourish to become a major threat to the administration. Profit margins on government projects are set very low as contractors do not have to bribe their way to get those contracts. Contractors do not have to pay bribes to politicians for being given a project or pay for a politician’s wife and children to go on vacation overseas. The notorious “Mr 10% politicians” are not heard of in these Opposition governed states. Only capable contractors are given projects and there is no abuse of these contracts as they are not subcontracted to others for quick profits. The exemplar of governance shown by the states under the Opposition are worth emulating for a better Malaysia.

BN would in all probability lose more votes
The people in general thus are looking forward for a change in government at the national level to ensure that the ill-effects of corruption could be erased from politics, business and the social fabrics of our society. The Opposition would sanguinely hinge on this issue to capture votes in the next general election. The urban electorate are already awaken by this unease when they see corruption rearing its ugly head in our society; the rural electorate would soon be stirred as well. The people’s perception today is that nothing much has been done by the incumbent regime to rein in corrupt practices in the country. Corruption is rife and has become entrenched in the country’s  political psyche.  For this reason, BN would in all probability lose more votes than they could ever imagine in the next general election.





Malaysia Chronicle

GE13: Only one chance to boot out BN!

Despite the popularity of Pakatan Rakyat the 13th general election is still a David vs. Goliah contest on an unlevel playing field where the incumbent has colossal advantages in media, money and machinery. BN controls all the levers of power including the most crucial one, the Election Commission and is not ashamed to use whatever means - fair or foul - to beat off the PR challenge, mostly foul.

Given the unevenness of the contest I venture to say that the 13th G.E. will be more of a contest on whether BN can regain its two-thirds majority rather than a frenzied fight for Putrajaya. The two most crucial states to the campaign, namely Sarawak and Sabah which together contribute 25% of the parliamentary seats still remain BN’s fixed deposit to a large degree. In Sabah the illegal immigrants absorbed into the electoral rolls have undermined the right to self-determination of native Sabahans.

However all is not doom and gloom and there still remains a thin wedge of chance that PR can overcome the odds to unseat the juggernaut BN. It all hinges on that ever recurring political event in Umno – a power struggle – coupled with a serious underestimation of civil society by the corridors of power.

Pakatan’s Last Stand

But first of all, let us consider what happens if PR fails to unseat BN from Federal power. The signs are already clear that BN will take certain steps to ensure it will never have to face the threat of losing power again. This will be achieved not by increasing BN’s popularity but by underhanded methods to compromise the electoral process so that BN can rule without fear of losing power, short of a street revolution.

Already the Election Commission is in collusion with an enthusiastic BN to implement an opaque biometric verification system which will allow BN greater scope to cheat using phantom voters and illegal immigrants issued with MyKads. Co-incidentally or maybe not, the biometric data of 2 million foreign workers are being collected. This expensive system which is largely useless for preventing multiple voting is favoured instead of the much cheaper and simpler indelible ink which would put the brakes on phantom voters.

Even more ominous, the government is establishing Territorial Army companies in all 222 parliamentary constituencies and there are rumblings that they will eventually be given postal votes. When army companies are established by parliamentary constituencies instead of more appropriate criteria one can infer that their main purpose is not the defence of the country.

Both the biometric system and the Territorial army companies are not expected to be implemented in time for the 13th G.E. but will be firmly in place for the 14th G.E. We should also not forget that gerrymandering will be another BN weapon in the 14th G.E. as the present delineation of electoral boundaries is not expected to be completed in time for the 13th G.E.

What this means is that the 13th G.E. may well be the last window of opportunity left for the people to choose their government before the regime entrench itself through a severely compromised electoral system. The 13th G.E. will be Pakatan's last stand before Malaysia becomes a full-fledged dictatorship with false trappings of democracy.

Najib’s Last Stand

But if the 13th GE is Pakatan’s last stand it is also Najib’s last stand. The writing on the wall is clear. Get back BN’s two-third majority or be pulled down.

Throughout most of Najib’s troubled premiership he has been dogged with odd acts of sabotage by his subordinates especially with regards to his 1Malaysia concept. Things have come to a head now and it is no longer possible to ignore the rumblings of a power struggle in Umno.

Recent events point to this tumult in the corridors of power. The police’s heavy oppression of the Bersih rally bordering on the ludicrous as if to enrage civil society, the flip-flop by Najib on the stadium offer to Bersih (probably forced by hardliners), the leakage to the media of Rosmah’s RM24 million diamond ring, the formation of Amanah and Najib’s cutting short his family holiday to rush back to Malaysia are symptoms of this struggle.

The unjust and illogical detention of the PSM-6 for frivolous reasons can only be intended to weaken Najib politically. Although they have released the damage has already been done. When a deputy Minister starts criticizing the handling of the Bersih rally the fight has shifted to the public arena.

The anti-Najib faction cannot allow him to win two-thirds majority in the next general election or his job will be safe. The conspirators have to weaken him politically and limit the extent of cheating in the polls to give PR a chance.

But they walk a fine line as there is a danger of overdoing things. The 13th G.E. is a David vs. Goliath battle but when two giants battle David may sneak in and run away with the crown.

Civil Society Strikes Back

Azlan Zamhari/Malaysiakini

On his first day as Prime Minister, Najib Razak said: “Economic progress and better education have directly resulted in the birth of a class of voters who are better informed, very demanding and highly critical. If we do not heed this message, their seething anger will become hatred and in the end this may cause them to abandon us altogether.”

Unfortunately Najib did not follow his own advice nor did he impose this on his subordinates or the instruments of government. The intelligence of Malaysians is being insulted on an almost daily basis as if our society exists in the time warp of the 1970s when access to information was limited and the word of the government was trusted. Whether it is the imaginative reasons manufactured to demonize the Bersih rally, Anwar’s shaky sodomy trial held together by a compliant judge or the speculative suicide verdict of the Teoh RCI, Malaysians are being treated as gullible simpletons.

Civil society is frustrated and infuriated at the government’s lack of respect for them. The government is behaving like a dictatorship and not a democracy. They have taken their frustration to cyberspace and the social media and will find an outlet in the next general election. BN has completely lost the urban middle class. They have also lost the Chinese, the Indians, Christian, the fence sitters and the young voters.

But the people who talk down to others are themselves not smart enough to realize the effect they are causing. There is a sharp disconnect between state and society fostered no doubt by a sycophantic press which deprives the government of valuable feedback. The stage is set for a swing of anti-BN votes to PR by those who want an alternative to an abusive and corrupt government, any alternative as long as it is not BN.

Pakatan’s Strategies

Photo by Asmawi Yusof

However PR should not celebrate yet because it takes a lot to displace BN. It is not enough to be a little more popular than BN, it takes overwhelming support to overwhelm BN’s cheating.

To level the playing field a little PR should push for implementation of at least three essential election reforms, namely proper conduct of postal votes, use of indelible ink and allowing all overseas Malaysians to vote.

There should not be any more public dissent within the group. PR must present a united front and a cohesive group. All arguments should be behind closed doors and no party or individual should go to the press to settle any argument.

For the first time ever the opposition front can claim to be able to displace BN with a high degree of credibility. This changes the dynamics completely from merely trying to be a strong opposition to being a government in waiting. PR is now able to make wide sweeping promises of what it intends to do it if it wins the election.

Promises such as reducing the price of oil and electricity to relieve the burden of the people can be made with good effect. Even BN traditional strongholds like Felda can be breached by promising a better deal for them. However populist measures such as distributing cash should not be made. The intelligence of Malaysians should be respected and the public knows what is sustainable and what is not.

The later the election is held the more favourable for PR with more young voters joining the rolls, more BN scandals emerging and the economy biting deeper. If it is to be held this year it will probably be November and we should know by October when Najib presents the budget. If an election budget is presented and should the Election Commission be as stubborn as it is now, Bersih 3.0 should be called and this time it should be held in every major town. The EC may still not act but it will deal BN a few body blows or even buy more time for PR if the election is postponed to next year.

The People’s Last Stand



The 13th G.E. may be the one and only time that Malaysians have any chance of replacing BN with another government. Such a chance may never come again as the goalposts will be moved after the 13th G.E. It should be noted that the present level of cheating will not work if Malaysians come out in large numbers and vote against BN.

We should not waste any votes on so-called third force parties like MCLM, HRM and KITA. Such split voting will only help to BN retain its power. There is no such thing as a third force unless there is a two party system in place. Although the level of support for PR is high enough to be considered a two party system in theory this is only true if both parties respect the rules of democracy. If the ruling party continues to oppress the opposition, abuse its power and corrupts all the institutions of democracy to perpetuate its rule while depending on a compromised election system to win, it is still a one party totalitarian rule in practice. A two party a system will only be in place if BN loses power at least once.

There are some who do not like BN but think that PR is not good enough to get their votes. They are missing the point because it is not about voting angels to parliament but creating a two party system. What can angels do in Parliament if BN is still the Federal power? MCLM which prides itself on selecting sterling candidates should answer this question. If PR does not perform we can easily vote them out but the same cannot be said of BN.

Another type of voters fear change and prefer to maintain the status quo. “Better the devil you know than the devil you don’t” is their adage. But they fail to understand that the status quo cannot be maintained if BN continues to rule. There is only so much economic plunder and uncompetitive racial policies that one country can take. Economic decline has a way of accelerating exponentially. When we become a maid exporting country everybody will suffer except the Umnoputras.

The 13th general election represents a nexus of conducive factors which may just work together to push out BN. A united opposition, a power struggle in Umno, an alienated civil society and most important of all, an election system which isn’t totally corrupted yet. This is not only Pakatan’s last stand but also the People’s last stand against tyranny and economic mismanagement. The chance may never come again. 

Written by  Kenny Gan,

Malaysia Chronicle