Friday, March 13, 2009

Malaysia - Moving Forward

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.


CommonerNinetyNine said...

Teach them how to fish, not give them fish.

The above logic can be translated into providing ways/mechanism for the people to make a living, e.g. create job opportunities, instead of paying cash to the people.

RM6000? To cover how long of living expenses? 2 months? If the people have job, they will be able to make life through this recession period which may be months or even years to come.

Wei Liang Goh said...

That is right.

DAP enjoys giving money to the people in the short run but forget about the long run and the effects of short run policies.

justmy2SEN said...

One of many skills of PR Leaders are:


ps: They can;t even fulfill what they promised in the last election manifesto, stating excuses such as not affordable...then please check or approximate of you can give before promise the sky to rakyats

pps: and still most of rakyats oblivious to this lies

Wei Liang Goh said...

Pakatan will find it hard to swallow one day.

If they are voted in as Govt, they will perform like an Opposition all the way.

People will soon realise that the Opposition are becoming what they have been criticising BN for all the time.

Then, Pakatan will find it hard to digest that it will be the same way they get shooed out of Govt the way they were voted in.