I strongly urge my readers to spend time reading an article written by Gregore Lopez, a Malaysian currently pursuing a PhD in the Australian National University.
The article published on 12th January 2009, Malaysia-Moving Forward?, takes no side and touched on the economy involving Bank Negara Malaysia, Democratic Action Party (DAP) and Najib Tun Razak.
Since I have recently blasted Lim Guan Eng for his inconsistency of the RM 6000 he proudly announced and used to attack Najib Tun Razak, I shall continue here.
Below are excerpts of Gregore's article:
The opposition's proposal of RM50 billion (approximately US14.3 billion), led by the Democratic Action Party (DAP) is clearly a populist strategy. Among the recommendations were:
- RM 6,000 annual oil bonus to all families earning less than RM 6,000 a month or RM 3,000 annual bonus to bachelors earning less than RM 3,000 a month;
- Progressive reduction of corporate tax rate from the present 25% to 17%;
- Daily revision of petrol prices to take into account of changes in the international price of oil;
- Immediate reduction in gas prices as well as electricity tariffs; and
- An additional RM 2 billion wireless project to make all the major towns and cities in Malaysia wifi enabled.
While expansionary policies are a necessary response to the financial meltdown, the recommendations seem to focus on pleasing the public rather than sound economic deliberation. It is important to note that Malaysia has been running a fiscal deficit since 1998.