Tun Dr Mahathir has lost track of the economic realities
Salleh Said Keruak
Today, after remaining quiet for some months, Tun Dr Mahathir Mohamad launched another broadside against Prime Minister Najib Tun Razak. One of the criticisms against the Prime Minister is the country’s alleged over-dependence on imports.
Over the last 12 months, Malaysia’s imports ranged from RM48-59 billion while its exports ranged from RM61-67 billion. For years, Malaysia’s exports have exceeded its imports. How is this translated into over-dependence on imports?
One thing we have to accept is we cannot expect other countries to buy from us if we do not also buy from them. There is not a country in the world that exports without importing. We need to just make sure that we sell more than we buy. And this is what Malaysia is doing.
How do we reduce imports? By increasing the tax on imports? If we increase the tax on imports then other countries will reciprocate by increasing the tax on imports of Malaysian goods into their country as well. And this will make Malaysian goods uncompetitive.
Furthermore, won’t this increase in import tax burden the Malaysian consumer even more and probably cause a backlash on the government? How can Barisan Nasional be expected to perform better in the next general election if all the voters are angry about this increase in tax of imported goods and services?
One of the major grouses of the taxpayers is tolled highways, especially in Selangor, which is an opposition stronghold. So let us talk about that, an issue the opposition has managed to exploit to its advantage.
Malaysians do not want to pay toll on the highways they use. They want the highways to be free like, say, in the UK, where you can drive from Dover to the tip of Scotland without paying a single penny.
Is this what Najib should do, abolish toll charges on the highways? Who, then, is going to pay for the cost to build and maintain those highways? Who then is going to reimburse the private companies that spent billions building those highways? The government?
If the government compensates those highway concessionaires for allowing the public to drive on those highways free-of-charge, would this not just mean the government is going to spend more money? And is this not what Dr Mahathir is upset about, the money the government is spending?
Anyway, the privatisation of highways and allowing private companies to build highways and collect toll was an idea that Dr Mahathir himself mooted. And the reason for this is to avoid the government having to spend the money and make those who want to use the highways pay for it.
So is Dr Mahathir now saying he was wrong?
