Ku Li and Daim’s advice
Former finance minister Tun Daim Zainuddin’s advice was even more crude. He predicted that Pakatan Rakyat would win more seats in the next general elections if BN fails to implement reforms against a backdrop of public yearning for good governance and reduced corruption and wastage.
Lim Sue Goan, Sin Chew Daily
Umno veteran leaders Tengku Razaleigh and Tun Daim Zainuddin recently voiced up on the state of the country’s economy and politics, urging the Umno leadership to take their advice in order not to plunge the country into a dilemma.
Ku Li was adequately concerned about the government’s enormous expenses and escalating debts. He was right. The government’s fiscal expenses have been excessively large, including the BR1M and excessive allocations for the public services sector, which are not going to be sustainable.
Administrative expenditure has taken up an irrationally high 81.6% of the government’s total expenditure, while RM19 billion, about a quarter of the remaining RM50.5 billion for development, has been allocated to the Prime Minister’s Department.
Another of the government’s “invisible expenditure” also warrants some serious attention, namely government-linked companies (GLCs). Politically inspired patronage is no longer economically viable. In its stead, it will only jeopardise the country’s interests.
For instance, the government has provided RM250 million in loans to the National Feedlot Corporation (NFC) but the company only paid back RM34.98 million over the last two years.
Despite the fact that 1Malaysia Development Berhad (1MDB) has been awarded countless of government projects, the company registered a hefty RM665.36 million net loss for the fiscal year ended March 31, 2014.
Wholly owned by the Malaysian government, 1MDB sustained more than RM37.8 billion in debts over its five years of operation. Malaysians could not help but worry whether it would end up like the national airline.
MAS shareholders have okayed the privatization program, but it is yet to be seen whether the RM6 billion bailout plan would work eventually.
Umno’s MP for Kinabatangan, Datuk Bung Mokhtar Radin has recently urged the government to stop producing “Malaysian built cars with a Japanese soul.” The government has offered assistance to Proton for the past three decades, and for how long more will it continue doing the same?
In addition, the construction cost of klia2 doubled from the original RM2 billion to RM4 billion, resulting in a drastic y-o-y 98.6% plunge in MAHB’s Q3 2014 net profit. To make things worse, the airport’s parking apron was said to be sinking.
Poor management of GLCs and frequent irregularities on the part of government project contractors have further aggravated the government’s debt level.
If consumer sentiment is further depressed when GST comes into effect next April, complicated by the bursting of real estate bubble, government and domestic debt crisis will be sparked off. This is what the government must be wary of and what Ku Li was worried about.
Former finance minister Tun Daim Zainuddin’s advice was even more crude. He predicted that Pakatan Rakyat would win more seats in the next general elections if BN fails to implement reforms against a backdrop of public yearning for good governance and reduced corruption and wastage.
Indeed, Najib attempted to introduce some reforms prior to last year’s general elections, including the 1Malaysia concept, government and economic transformation program, legal reforms, etc., but none of these has been effectively put into implementation.
On the contrary, conservative voices gained ground after the election, forcing the government’s moderation approach into a dead corner.
The government has condoned extremist remarks, and this will cost Umno dearly as young urban voters exercise their voting rights in favor of the opposition pact.
It is equally unwise for the government to oppress freedom of expression through moves like prosecuting UM law professor Dr Azmi Sharom under the Sedition Act and tightening grips on university students’ freedom of expression, culminating in the students’ protest rally.
Umno leaders have reiterated their support of the four core principles in the Federal Constitution, mainly the defense of Malay privileges, the Malay language, Islam and the country’s constitutional monarchy. Instead, Umno should try to move ahead from here in leading the country to a higher level.
Umno should seriously take Daim’s advice to completely discard conservatism in the general assembly slated for end-November, or give up urban young voters once and for all.
We have wasted more than one year on racial and religious controversies, and this will have a toll on the government’s approval rating and the national economy as well.
Ku Li and Daim’s advice should serve as a timely wake-up call for the government.
