Screenshots: It's a 'Cling-on to Power' budget

It's a handyplast budget to stop instant bleeding while fundamental wounds worsen.

He triggered the high-flying inflation by implementing reckless strategies in fuel pricing and subsidy withdrawal schedule. Now he thinks by increasing the budget to an unprecedented budget of RM207.9 billion for 2009, the economy will be all right and the people happy. Foolish.

He is even a copy cat. When Selangor gave free water to the lower income group, Umno MPs and state assemblymen called it 'membazir'. Now, he announced that electricity charges for those using RM20 and below per month would be waived. Imitation must be Umno's sincerest form of flattery.

Crunch the numbers

Drilling down the numbers, Development Expenditure for Budget 2009 is set at RM53.7 billion, up 20.2% from 2008, while Operating Expenses detailed at RM154.2 billion.

This also translates into an estimated fiscal deficit of 3.6% for 2009. But hold on. Wasn't the same Abdullah who last year projected a fiscal deficit of 3.1% of GDP for 2008 but it was revised -- in Parliament today -- that the estimate has gone up to 4.8% of GDP?

What's worrying is the increased expenditure is being provided to benefit the major contractors who are given public sector projects. How much of these pump-priming will trickle down to the commoners, not withstanding the usual gravy trains that Umno has come to associate with over the last 30 years of NEP?

Now, the 50 million ringgit of new subsidies in estate dwelling for plantation workers' families that Abdullah planned to give to the 'private sector' under the 'Roundtable for Sustainable Palm Oil' (RSPO) under Budget 2009 -- are they meant to shore up Sime Darby and Felda in the midst of plummeting palm oil prices? Why can't the private players in the mature agro-based sector finance the basic amenities for their labour force?

One sore point is that this is the 12th consecutive year the BN government gives Malaysia a consistent deficit budget.

It's a budget that's aimed to address immediate term burden of the lower-income group, while the middle-class -- those earning RM35,000 to RM250,000 per annum, a social class created during the boom 1980's -- are left in the economic doldrum. There are no clear policies and strategies to expand international trade and increase local production of food supplies. Hence the handyplast budgetting -- to stop instant bleeding while the patient rots away.

Desperate times call for desperate acts. It's a typical Abdullah budget, using taxpayers' money, to shore up his dwindling popularity. It's his last ditch bid to cling on to power.

I will talk more about this. These are just my initial thoughts about Budget 2009.

Comments

Jeff

Keep watch on the kinds of projects that get started very quickly after this. Especially those relating to transport. Just see how much of it is given to Scomi and related companies.

Also see how quickly contracts are dished out. Somehow I get this funny feeling they want to try and start up all the major projects so that crony and UMNO related companies will get everything. What if by next GE PR takes over? So better get it all started.

I am only surprised that they did not get the crooked bridge started as well.

Posted by: Observer | August 30, 2008 08:34 PM

"He triggered the high-flying inflation by implementing reckless strategies in fuel pricing and subsidy withdrawal schedule."

This is untrue.

JEFF OOI says: You sound like a BN apologist but I can live with that. You are not alone.

The whole world is experiencing troubles with inflation not only Malaysia due to high oil prices and it is not due to the government's fault. Although I admit the government has its faults however I find it disappointing that the opposition ignores this and instead promises even more subsidies. This is clearly unsustainable in the future and is a waste of resources. Just like giving out free water in Selangor.

I also find it hypocritical that you bash the government for giving out free electricity when you don't complain about the obvious waste of giving out free water.

Posted by: Capz | August 31, 2008 10:52 PM

Jeff, the problem is, the cost of living does not hit the lower income group as hard as it hits the middle income group.

The current administration just doesn't get that. The middle income group is just suffering from poor decision making and faulty policies.

Although, it is important to care for the lower income group, they do not have expensive needs or lifestyles like the middle income urban consumers.

What choice do people have left but to migrate?

JEFF OOI says: Migrating is a defeatist action. There is yet an alternative. Change the present BN government by 2012. But first make yourself a voter.

Posted by: regularguy | September 1, 2008 10:52 AM

Oh, one more point. Every time the budget comes out, EVERY hypocritic company (MNCs and GLCs) will come out to praise and laud the government for a superb effort. This is part of the PR message to "support the government policy". (I am a PR consultant, by the way). I wonder who will be the first to break the mold, and speak the truth. Our country needs truth to be spoken!

Posted by: regularguy | September 1, 2008 10:56 AM

Dear Jeff,

I love Abdullah...!
I love Barisan Nasional...!
I love Najib...!
I love Said Hamid...!
I love MCA...!
I love Gerakan...!
I love MIC...!
I love PLUS highway...!
I love Kepong bridge...!
I love Saiful...!

If not because all of them, how all of us (the RAKYAT) can grow up together...?

Fight for the Truth, Fight for Malaysian, and also, fight for Altantuya...!!

Posted by: Jovis Low | September 2, 2008 01:50 PM

Coming up with a budget is only the second half of the chain. Just match departmental requests against allocations based on projected income streams and prioritize to achieve maximum image and party interests.

The first half is completely missing. If the govt presents how it is going to spend next year, shouldn't the rakyat first know how it was all spent last year?

So they put up the Auditor-General's report. But why isn't that debated before the budget is presented?

Every year you see the rakyat queue up to pay their taxes. Companies work their backs off and remit large sums of taxes. People are told to save and change their lifestyles. Roofs fall down, roads peel off, pipes burst, and longhouses burn to the ground.

Then after the RM7,500 car jacks of last year, you have just a statement that it was due to mismanagement that we have lost RM500 million from a venture to try and make light planes.

One would think that after the Sabah papermill loss of RM1 Billion, the Perwaja-Nippon Steel loss of a few more billion, the Proton-Sauber-Lotus-Augusta losses, the Bakun Dam price escalation by RM4 Billion and so on until you reach the InventqJaya fiasco, the Lumut patrol boats bombshells and the Scopene RM100 commission, someone would stand up and stop everything in Parliament where laptops can also go missing - and call for a thorough investigation into ALL existing and planned investments by this Government of Malaysia, especially those involving technologies.

When you think of it, come a byelection, they whose forefathers are immigrants from Palembang smile and promise a million here, a green packet there to wizened rakyat trying to save their schools, while back in the capital billions have been squandered or lost or re-channeled. Year after year this happens and no one raises hell? Just as the shareholders are miffed by the cost of trying to buy foreign banks and telcos, they are bleeding the country dry.

If they say the second half is a caring budget, what does that make the first half - a caring loss?

And if you let them say the ACA or backbenchers will look into it, ask first who are their puppet masters?

We are talking about billions blown and the best the media can do is line up people to praise the sagacity of this government.

Are we all suffering from myopia or mad cow disease or what?

Posted by: Neil | September 2, 2008 06:02 PM

The information on the internet in what i have read seems to indicate that the operating expenses for budget 2009 will be double of that for the 2004 term.

that is from about RM80 in 2004 billion to RM154.2 billion

jeff, could you shed some light on where and what the increases have been for and whether it is readily justifiable.

Posted by: CY | September 2, 2008 08:15 PM

Your response to my post makes me extremely disappointed. Instead of trying to defend your views with strong rational arguments you resort to childish name calling by calling me a "BN apologist".

JEFF OOI says: Don't be naive. I have articulated my views about Malaysia's nation building in the online world since 1999 -- research, competitive studies, rationale and whatnot. It matters not if you were disappointed but it matters more when the whole nation's citizenry are disappointed with the present BN-Umno regime. So I don't give a damn if there's a new BN apologist in town. You are not alone when the denial mode is pressed. This country should move forward with or without you.

Why can't a normal Malaysian citizen question their politicians?

JEFF OOI says" Flip the coin the other side. Why can't a blogger question you citizen? If you think politics can help Malaysia, get into the ring and run for a seat in the Parliament. Like me.

Why must everyone be either supporting the opposition or the BN? Can't I just ask just because I feel that it is not right? I am just trying to start a mature, sensible and rational discussion on this, is that wrong?

JEFF OOI says: Absolutely. We can't do the growing up for you when the rest of Malaysia has decided to move forward, discading race-based politics like plague.

Posted by: Capz | September 4, 2008 01:33 AM

Capz: I am not in denial mode it is just that you can't accept the fact that not one politician in Malaysia can shield Malaysia from global economic realities. You have not even given one valid point as to why it is the government's fault that caused the inflation. Take a look around you, it is not only Malaysia that is suffering, Thailand, Indonesia, Taiwan, EU and even US have posted record inflation rates. I can accept your criticism if you have strong evidence for it. Furthermore, I can accept your complaints if you start saying that the government didn't do enough to stamp out corruption, inefficiencies and etc and this has made life harder for normal Malaysians. However pinning the current inflation problems solely on the current government is unproductive and a waste of time and worst it is untrue. Lastly, it would not matter if you have the best vision for Malaysia if you are unable to accept the realities out there and take them into account.

Capz: That is a mistake that many people make. Not everyone should be a politician just as not everyone should be a doctor or lawyer or engineer. It requires commitment, responsiblity and etc that are specific to getting a seat in parliament. I for one am not up for it as I have my own life goals and things that I like better than politics. It is important yes but that does not mean I have to "get into the ring". Does this exclude me and the many million Malaysians from asking good tough questions? Does it exclude us from giving our opinions?

Capz: I think you got the wrong idea here. What I am trying to say here is: The issues that I brought up are purely economic questions and has nothing to do with BN or the opposition or politics for that matter. So if you have anything contructive to add to my criticism in my first post other than calling me a "BN apologist", "naive", immature ("we can't do the grwoing up for you") than do so because the original reason that I posted here in the comments is to get an intellectual answer and not bring the whole discussion down to the level of name calling.

JEFF OOI says: I agree to disagree. RIP.

Posted by: Capz | September 6, 2008 10:58 PM

INTERNET does not operate in a legal vacuum.
Read this before you post a comment in this blog!

Screenshots

Thinking Allowed. Thinking Aloud.

It's a 'Cling-on to Power' budget

TrackBack

Comments

Post a comment