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Fearing backlash, PM backs away from reforms


Monday, 15 March 2010 Super Admin
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Elections do not have to be held until 2013, but it is increasingly likely that they could be held either in conjunction with state polls in Sarawak, expected in the first quarter of 2011, or shortly afterwards.

By David Chance & Razak Ahmad, Free Malaysia Today

Buoyed by strong oil prices and the prospect of five percent economic growth this year, Malaysia's government has backed off unpopular reforms, fearing a backlash that could end its 52-year monopoly on power.

At the weekend the government abandoned plans to introduce a Goods and Services Tax just weeks after it halted implementation of petrol price hikes aimed at cutting its subsidy bill and electricity price rises.

In all three cases it cited the need to "engage with the public", a message that may derail Malaysia's bid to reverse investment outflows and tackle a budget deficit that has overshot its targets since 2007 to hit a more than 20-year high of 7.4 percent of gross domestic product in 2009.

"They have obviously got a huge deficit building up and so the fact that they're delaying fiscal management at the expense of looking at the elections will obviously not be taken that well by the markets," said Anthony Nafte, senior economist at CLSA.

Longer term, failure to implement fiscal reform leaves Malaysia, Asia's third-most trade dependent economy, vulnerable to external economic and commodity price shocks.

When Datuk Seri Najib Tun Razak became Prime Minister last April, replacing the man who in 2008 led the Barisan Nasional government to its worst ever election results, he pledged to soothe battered relations between Malaysia's races and to speed economic reform.

A year on and amid vocal complaints by Malay Muslims, who account for 55 percent of this Southeast Asian country's 28 million population, over issues like Christians' use of the word "Allah", that message has been diluted.

"What Najib is now doing is backing away from reforms to consolidate his power base," said Bridget Welsh, a Malaysia expert at Singapore Management University.

Najib's Umno faces a growing challenge from the opposition Islamic party PAS.

Elections do not have to be held until 2013, but it is increasingly likely that they could be held either in conjunction with state polls in Sarawak, expected in the first quarter of 2011, or shortly afterwards.

Sarawak provides the Barisan Nasional with 30 of its 137 MPs in a Parliament where the government lost its two-thirds majority and thus its ability to change the constitution and to redraw electoral boundaries for the first time in 2008.

Independent political analyst Ong Kian Ming calculates that Umno won 58 percent of the Malay vote in mainland Malaysia in 2008. That is too narrow a margin to risk in any new elections and Najib will need to ensure that he is seen as a clear winner in mainland Malaysia, not just a winner in Sarawak.

"I don't think Najib will call for elections too early. As it is, he has the upper hand and... by attrition and harassment he can win a lot of ground against the opposition," said Ooi Kee Beng, fellow at Singapore's Institute of Southeast Asian Studies.

READ MORE HERE

 


Comments (8)Add Comment
...
written by semangat63, March 17, 2010 07:53:49
Let's conquer Sarawak.. PR, u have my full support smilies/wink.gif
...
written by Better My, March 17, 2010 01:32:09
Circulated email on the type of :"reform that Malaysia urgently needs to beautify the whole country to attract top tourism dollars This is an important precoursor to a successful tourism industry to earn billons for Malaysia.

(To Australian volunteers)
" Thank you for supporting Clean Up Australia Day March 2010
Thank you for supporting the 20th Anniversary of Clean Up Australia Day. We estimate that over 588,000 volunteers took to their streets, parks, beaches and waterways, removing more than 15,560 tonnes of rubbish from 7,073 registered sites across the country.

Thank you for helping make Clean Up Australia Day 2010 such a huge success!

State Based Results
QLD: 1340 sites, 97,486 volunteers, 2948 tonnes of rubbish
NSW: 2771 sites, 236,100 volunteers, 6097 tonnes of rubbish
VIC: 1353 sites, 111,448 volunteers, 2977 tonnes of rubbish
SA: 593 sites, 61,510 volunteers, 1304 tonnes of rubbish
WA: 536 sites, 42,462 volunteers, 1179 tonnes of rubbish
TAS: 274 sites, 22,432 volunteers, 602 tonnes of rubbish
ACT: 125 sites, 9,376 volunteers, 275 tonnes of rubbish
NT: 81 sites, 7552 volunteers, 178 tonnes of rubbish

Your Clean Up Australia Day Team"


Ng Yen Yen, tourism minister, ex Aussie, who shouted "rape" 2 days ago.
You dont have the slightest chance of achieving the same of part of the success, as Australia has done.

I tell you why - your bad muslim UMNO mob is TOO BUSY/TOO CORRUPT trying to retain power at all cost. To hell with any of your tourism objectives in name only, and any other objectives.

If you really want to do a good tourism job for Malaysia,
fisrt, you must UNITE the people without racial discrimination, make every person in Malaysia feel the most important person to the country
second, make every person richer in a much bigger pie - then each person dont have to be in survival mode every minute of the day
thirdly, listen to what the rakyat have to say or critisize to improve the cleaniness and tourism, & improve Malaysia
fourth, apply for a tourism job with PR Federal government

THEN you may get this kind of patriot volunteers to do a fantastic job in the whole country.

Only a more open PR government has the chance of reaching the same success/clean up reform as Australia, in equivalent Clean Up Malaysia.

So we really dont care a damn what you said before/ what you are saying now about the rape and or anything you have to say under the bad muslim UMNO mob. You are an idiot woman to think you can make a difference to tourism under the present mob.

ISA tortures detainees.. We'll remember them.
We have stopped listening to you. For Malaysia.
...
written by popuri, March 17, 2010 00:57:03
Speaking of the Subsidized petrol. They are just taking the already cheap Ron 95 and claimed that they already subsidized it. Now the people actually have to pay higher prices for Ron 95 since the subsidies are abolished.

Like the common trick used by supermarkets, first they increase the price of the goods, and then claimed that it is on special offer, but the customers are actually paying the same price as usual. But in this case, people have to pay higher price.
...
written by ctlyn, March 17, 2010 00:34:23
there is still a year before the next GE.
...
written by Better My, March 17, 2010 00:31:40
There is reform that ought ot be implemented now on a reform that no know about before?
From an email circulation

Cross The Border? Just imagine....
Crossing The Border

If You Cross The North Korean Border Illegally
You get 12 years Hard Labour.

If You Cross The Iranian Border Illegally
You Are Detained Indefinitely.

If You Cross The Afghan Border Illegally
You Get Shot.

If You Cross The Saudi Arabian Border Illegally
You Will Be Jailed.

If You Cross The Chinese Border Illegally
You May Never Be Heard Off Again.

If You Cross The Venezuelan Border Illegally
You Will Be Branded A Spy And Your Fate Will Be Sealed.

If You Cross The Cuban Border Illegally
You Will Be Thrown Into Political Prison To Rot.

If You Enter Britain Illegally
You Will be Arrested, Prosecuted And Sent To Prison And Deported

But If You Are An Indonesian And
ILLEGALLY CROSS THE MALAYSIAN BORDER

YOU GET:

- MyPR (Permanent Residence / Pemastautin Tetap),
- A Driving License,
- Voting Rights
- Job Reservation,
- Special Privilege to be Consider as Bumi,
- Credit Cards,
- Subsidized Rent Or A Loan To Buy A House,
- Free Education,
- Free Health Care,

Oh Malaysia, what a great country.
Malaysia Boleh!!!

A reform to another reform by steath which allows this madness into our country so that the bad muslim UMNO can buy votes. The PR Federal team can't come soon enough.

ISA victims, include many malay. We'll remember them.
We have stopped listening to you. For malaysia.
...
written by Catharsis, March 16, 2010 23:22:09
There are two types of Economists- one that SPINS (and makes believe he knows what he is doing) and one who is PRAGMATIC (one who certainly knows what he is doing) - WHICH OF THESE TWO TYPES are you YB Najib?
...
written by Pegasus, March 16, 2010 22:29:16
Sorry ...the public need another five for bn....they did a lot hell...so many scandals, brutal murder, missing engines, perak power grab, manipulation facts and lies ...and many more...
...
written by educationist, March 16, 2010 17:44:00
Never mind, the PR will implement those much needed reforms!!

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