Don’t gamble on the wrong move
However, since gambling per see has been generally perceived as a social evil, the proposed move to legalize sport-gambling has met with fierce opposition from the general public and ferocious objection from politicians of all shades, especially those in the opposition.
By LIM SUE GOAN, Sin Chew Daily
The proposed legalization of sport-gambling, the controversy over the ruling on a special licence for trading in price-controlled items, and the Israeli attack on the Gaza aid flotilla are the three major hot topics in the news over the last two weeks.
Although the outrageous Gaza assault on the aid ship has aroused much indignation among many people in Malaysia, what caused more widespread outcry are surely the two local issues of the legalization of sport-gambling and the special trading licence for price-controlled items. Both the local issue are related to the nation’s economy.
The proposal to legalize sport-gambling is purportedly a move to curb the black economic racket which had been flourishing underground for years, and to allow the government earn hundreds of millions of ringgit in tax revenue if sport-gambling is legalized.
In view of the federal government’s increasing debt problem, the collection of tax revenue from legalized sport-gambling would contribute to beef up its coffer, and relieve its financial burden.
However, since gambling per see has been generally perceived as a social evil, the proposed move to legalize sport-gambling has met with fierce opposition from the general public and ferocious objection from politicians of all shades, especially those in the opposition.
As the dissent gathered momentum, Prime Minister Datuk Seri Najib Razak made a surprising disclosure in Parliament this week that, contrary to what is general believed, no sport-betting licence has yet been issued to Syarikat Ascot Sports Sdn Bhd, a firm linked to tycoon Tan Sri Vincent Tan’s Berjaya Corporation Bhd.
Najib, answering questions from four MPs in his capacity as Finance Minister, said the government was still collecting feedback and views from various quarters on the proposal.
But Tan, the Berjaya chairman and CEO, has insisted that a sport-gambling licence has been obtained and the operation would be launched in September, using 220 Sports Toto outlets throughout the country.
What is the actual situation now? Got licence, or no licence? Deal or no deal? Who is fibbing?
Meanwhile, on the matter of a special licence to sell price-controlled items, the traders’ objection and the public disapproval, accompanied by an apparent shortage of sugar, are increasingly causing much gloom in the community.
What is the Domestic Trade, Cooperative and Consumerism Ministry doing about the matter? How is it going to pacify the traders and quell the public anger?
The two major issues – legalized sport-gambling and special trading licence for price-controlled items – need to be resolved fast, to everyone’s satisfaction if possible, of course. But it is apparently a rather tall order!
Home Minister Datuk Seri Hishammuddin Hussein had explained that the federal government had to consider issuing a sport-betting licence as it was unable to control the flourishing illegal gambling.
“Legalising sport-betting can help to tackle black economy involving RM10 billion, which is related to crimes like triads, ah long, prostitution, drugs and human trafficking,” Hishammuddin said.
The so-called solution to curb and control gambling by legalizing it proposed by the federal government is perhaps a sort of passive resignation to accept the undesirable but inevitable fact that gambling is here to stay. And, if we cannot beat them, then join them!
Moreover, legalized gambling activities can bring in huge tax revenue to the government. It is estimated that the daily revenue for legal betting could be as much as RM100 million and it could even reach RM3.4 billion a day during such occasions as the FIFA World Cup tournament.
According to Vincent Tan, the turnover of illegal gambling could be between RM20 billion and RM30 billion, and the government is actually losing RM1 billion to RM3 billion of tax revenue a year.
For the government then, its financial burden would be lightened if could earn tax revenue from legal gambling, which it could use to subsidise rice, sugar and other price-controlled items.
Unfortunately, gambling is not something acceptable and welcome among the people, especially when Malaysia is a Muslim-majority country. And the political cost to the government would be enormous.
The government has blamed the black economy, namely underground transactions, including smuggling, hoarding and fraud, for the loss of subsidies for basic goods.
But the irony is that the Domestic Trade, Cooperative and Consumerism Ministry, in a knee-jerk reaction to the impending boycott of the sale of price-controlled items by retailers, has said it would issue licences to petrol stations and convenience stores when the retailers start their action.
There are many petrol stations in border areas. And the proposed move by the ministry may result in the increased smuggling of the price-control items. Obviously, the ministry could not station enforcement officers at these border petrol stations round-the-clock.
The 10th Malaysia Plan (10Plan), scheduled to be unveiled on Thursday 10 June 2010, is anticipated to be the launching pad to propel the nation into a new era of growth and prosperity.
But the people in general are more concerned and affected by the immediate, here and now, trivial things of daily living then by any long-term profound economic thesis.
Najib’s grand plan for the nation may not register in the hearts and minds of the people. Only the down-to-earth bread and butter and common trivialized issues matter to them.
So, the licence for sport-betting and the special licence on the sales of price-controlled items are the political ammunition Najib must shield himself from. Any wrong decision and action on these issues may cause a political catastrophe.
