National debts: more puzzling numbers tumblin'

Recently there is a claim in this video, MalaysiaYouth4Change that according to a report on 13th Jan 2011 by Thompson Reuters Eikon, the bonds sold by Malaysia national debt is USD179 billion which' at optimistic exchange rate of RM3 to USD1, is a whopping RM537 billion, very much higher than RM271 billion as at June 2010 as reported the finance ministry.

I have no idea how TRE derived the number and baffled by the huge gap between this number and the finance ministry figures, on which the Prime Minister had cheerfully advised Malaysians that national debts have decreased.

Then some curious person sent me the breakdown of TRE numbers hoping I could clarify the situation. I am amused by this because I am certainly not part of the federal finance ministry administration but I can just take a cursory look at the data and hope to point out a thing or 2.

Picture 1 shows the finance ministry number as at 30 June 2010




Picture 2 shows the Thompson Reuters Eikon numbers, very much higher





Picture 3 shows some more detailed information





Luckily there is an excel file which makes analysing easier


Base on a cursory review of the 2 sets of data, the discrepancies could be explained by

1) Finance Ministry only included bonds issued to Malaysia where as TRE included bonds issued to proxies such as Petronas, Khazanah, MISC etc

2) that still leaves a sizable difference between the TRE and finance ministry numbers - it could be different exchange rates applied and also classification differences between these 2. Statistic collection can be a dodgy business.

In any case, the Malaysian government should seek to clarify this with TRE urgently because its figure is giving a different impression from what the finance ministry is giving, hence confusing the business communities, foreign and local, as well as all tax payers.

Not to mention it cast doubt on the integrity and competence of the present administration.

The last time when a leading Malaysian official dismissed an analyst's report, the rebuttal from the foreign investor community harmed all Malaysians. (Remember the DPM and PERC issue?)

The graph below summarise the differences between the 2 sets of numbers.


The bonds carry some abstract description that looks like the name of borrower. I just did a "match, guess and hope for the best" and made a best guess hear: looks like about RM36 billion under Khazanah, RM48 billion under Petronas, RM5 billion under MISC, RM6 billion under KLIA.....

Note the huge jump in bonds issued since June 2010?

I blogged about this last year


"According to Singapore's Today, Dow Jones reported that 21 more government bonds auctions (really it means rakyat debts committed by temporary administrators on their behalf without getting rakyat's consent), 1/3 more than this year, to raise money to spend on 131 "key projects" (which should include the much objected Menara Warisan Merdeka).

Malaysians are expected to owe another RM90 billion from debts raised in 2011 alone; the years and years of accumulated debts as at 2008 alone was already RM213 billion.

In 2011, Najib's administration will almost double our debts and subject us to more foreign exchange risks. The loans are for infrastructure and property projects - not a whimper about healthcare, human capital development, education .... the soft skills so vital nowadays and Malaysians so lack of it nowadays
."


Also, the finance ministry must clarify their methodology of reporting national debt figures to the general public. At the moment, it seems to me that whenever "national debts" is discussed, it only involves bonds issued to Malaysian government, and it excludes Hutang Dalam Negeri Kerajaan Persekutuan (the bulk of it includes KWSP & all those sijils in your hands bought by your savings) and the burden carried "special purpose vehicles" which some accounts are not for public scrutiny, like Khazanah and Petronas.

Otherwise it looks like Off Balance Sheet finance/debts carried at somewhere else to me, a term that makes ex-Enron pension holders cringe with despair.

Kedai Rakyat 1Malaysia: substance over form

Part of politics is about creating the right impression (for oneself and for one’s enemy). Self advocate is necessary to let people know that you are doing your job well.

However focusing too much on impressions can lead to substance over form.

The current prime minister has taken a different path from the previous ones in that he is quick to make announcements pertaining to private sector investment decisions, a smart move I would say, to create an impression amongst the more media savvy Malaysians that he is an “investment-generating prime minister”.

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By Razak Ahmad

PUTRAJAYA, Malaysia, Jan 11 (Reuters) - Oil giants Exxon Mobil and Royal Dutch Shell Plc (RDSa.L) will invest 15 billion ringgit ($4.9 billion) in new oil, gas and energy assets in Malaysia, the government said on Tuesday, in a move that could help the Southeast Asian country reverse a decline in output.

Pime Minister Najib Razak who announced the projects said the investments were in line with the introduction of tax breaks in November to develop new oil and gas resources and enhance recovery from ageing fields.

The planned investments by the oil companies are part of the Malaysian government's initiative to attract $444 billion in investments by 2020 to drive economic growth.

Of the total, Exxon will spend 10 billion ringgit while Shell Plc will invest 5.1 billion ringgit to upgrade and build energy facilities, the authorities said, although Shell said some of its investments had already been announced.

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Meow, you remind me of someone lah.....


In the 1990’s when Malaysian economy was attracting many investors due to our novelty as an investment destination and absence of competitors like China, Vietnam and Cambodia for low cost manufacturing destination, I do not recall Dr Mahathir rushing to the podium and said so and so invested how much for such as such project.
Is there a peri bahasa sounding like “bertelor sebijih riuh sekampung”?


In fact, such stance give me the impression that only one man can generate business opportunities in Malaysia and the business community are not empowered enough to create opportunity and value on their own.
Did you ever see Clinton, Bush or Obama announcing planned investment projects in Silicon value or Sunshine Industrial Park, Arizona ?

While we are in the midst of over exposure to and frankly abuse of 1Malaysia brand, it is worth recalling the much touted, all-encompassing, tear-jerking and hope-giving Wawasan 2020 slogan which Mahathir used to garner support, only later to be replaced by Idris Jala’s “we will be bankrupt by 2019” and Mahathir’s endorsement of Perkasa.


By next decade, I won't be surprise of this 1Malaysia thingy has the same fate as Wawasan 2020 today.

The latest Kedai Rakyat 1Malaysia is in substance, as this writer sees it, another branch of the Mydin chain of shops. Replace the 1Malaysia wrappers and change the signboard then it is just another Mydin outlet.

http://www.kedairakyat1malaysia.com.my/en/about-us


It is common for business community to make political donation and as businesses, entrepreneurs would talk about cost benefit analysis – there must be returns – so is there any favours returned? It is reasonable for a MP to request the government to disclose the details of the agreement, if any, signed between Mydin and Malaysia government for Mydin's "national service".

Is there a Plus style compensation arrangement somewhere?

Also, since the public paid for APCO’s creation, the government’s action of lending it to a private entrepreneur for commercial purposes is a bit weird. Imagine I open a fried chicken store and put KFC’s logo on my signboard. Surely I have to account to the trade mark owner?

Scroll further below and the website links clearly shows that this set up is in tandem with gearing up for a snap GE. The introduction of the store in the website also state it's stands very clear.

"About Kedai Rakyat 1Malaysia
‘Kedai Rakyat 1 Malaysia’ is a shop operating on a mini market format, which provides various basic necessities at low prices. This initiative was inspired by our beloved Prime Minister YAB Dato’ Sri Najib Tun Razak on his concerns for the low income citizens located in the urban areas.

This is also in line with the slogan “Rakyat Didahulukan” which has been mooted by YAB Prime Minister himself."





It is quite common for BN leaders to claim in controlled media that opposition politicalized every issues from death of Teoh Beng Hock, education, scholarship and whatever.

Now it is BN’s turn to politicalize a mere 2,000 square feet kedai runcit? While we are mesmerized by the savings of a ringgit here or there shopping in these outlets, let us not forget the insistence to push through RM5 billion Warisan Merdeka, €114 million (US$151.1 million) commission paid to a company called Perimekar, istana construction cost ballooned from RM400mil to RM800 million…and the list goes on and on….


On a more mundane level, our daily expenses bear the burden of excessive profits of privatised public functions like Plus, the IPPs, Padi Beras Nasional Berhad, Proton, Telekom, Tenaga etc. Read their annual audited accounts and check out their retained profits and dividends, i.e. exrta costs that you and I paid. There is no structural reform.

Another 1Malaysia sandiwara, if you ask me.

Water supply going to be cut off for 2 days but Press Release only comes in at 5pm just now

Of all the 60 people which I text-message just now, only 1 person caught the press release on Syabas' water ration of 48 hours. According to the Syabas website and The Star there will be major maintenance work which disrupts water supply from 8am to day till 8am Friday (22-24 June). Such a major event and Syabas releases the press statement this late. One wonders whether the maintenance is planned or is there something happening behind the scene.

Bersih 2.0- to protest or not?


Bersih 2.0- to go or not to go? That must the question popping in everyone's minds especially those who have not attended street demos of that kind before. It's daunting, especially when the Home Minister promises to use the ISA on the Bersih participants caught on 9th July 2011. Not to mention the water canons, smoke-grenades, riot shields and batons awaiting. Some say let the ballot box do the talking, and street protests are not the way.


Wangsa Maju had some fair experience in a street demo back in 2008. The demo was held at the DBKL HQ at Jalan Raja Laut and not in Wangsa Maju though. You see, somewhere in May 2008, after the 14th General Election, the DBKL saw fit to demolish about 8 major hawker areas in Desa Setapak and few other areas in Wangsa Maju. The reason for doing so was well, not a new reason- it was over a permit issue which spanned over more than a decade (I think). Yes, the hawkers, who had been operating a long time there, right on Government 'land', did not have the proper permits to build permanent structures. Some of the hawkers alleged that they had tried applying for permits for years but  DBKL never approved them. So on the fateful day of 21st May 2008, while the Wangsa Maju MP was still at a Parliament session, the DBKL came with heavyweight equipment and ran the stalls to the ground. The machinery was so heavy that it left potholes on the tarred road of Desa Setapak.



Such operations may be valid from the Town Council's viewpoint especially when it is a permit issue, but it causes more anguish when the demolishing of the illegal stalls are race-selected- ie Chinese stalls demolished but not the illegal stalls own by Malays sitting next to the Chinese-owned stalls. Many people were were saying- 'what the hell is this, DBKL?'




1st to 3rd pics above: Graffiti of protest from "THEY' the infamous underground graffiti artist, on the walls on the demolished hawker stalls


Above: The aftermath of the demolition.

There were various forms of protest- direct protest came from Wee Choo Keong, the hawkers, the blogs, the graffiti artists and indirect protests were from the Wangsa Maju community itself. The issue was more than a permit matter- it was a show of barbaric racism from DBKL.

The Wangsa Maju hawkers, various Wangsa Maju folk and Wee Choo Keong organized a street protest right in front of the DBKL building at Jalan Raja Laut. The street protest was supported by the 11 freshly-elected Kuala Lumpur MPs. Yes, election was held at March 2008 remember? Just couple of months after the GE, DBKL 'show power dee?'

Wee Choo Keong was very hands on- he taught the hawkers how to protest, how to organize it and even taught the protesters how to write the place cards, as most of the protesters then were first-timers. Without his mentorship, the protest would have never succeeded. The believe was, if something was wrong, we had to speak up.





Above: Wee Choo Keong teaching the protesters how to write place cards.
The Bersih 2.0 walk on July 9th, is about fair and free elections- core pillars of Malaysia's democratic foundation.  The ballot box, through the people, may do its talking every four years. However, many things happen between elections. Many of those 'happenings' have been threats to democracy and the right to have a fair election. It is the peoples' action in between the four years that makes sure the country stays its democratic course.

On with Bersih 2.0.

Part II shadow national debts and other obligations

Last week, after pointing out the relatively obvious Hutang Dalam Negeri Kerajaan Persekutuan that was not commented in PM’s trumpet blowing, the trick is to identify where else our liabilities are hidden.

Firstly, some economics 101:

Public goods – goods and services that should preferably be provided by public sector rather than private entrepreneurs at no profit. It is a social responsibility to ensure equity (fairness) in a free economy market. Traditionally these items are provided by the state from tax payers’ contribution for the common good where the rich subsidise the poor and not at a profit. Examples of such goods and services are public roads, utilities, postal services, health and education services.


Another reason is that it is not practical for private sector to provide such services e.g. police and security forces. (Although Malaysian defense contracts have famous ways – all the way to France - of going about such things)

In Malaysia, Mahathir administration started an irreversible tsunami of privatization like Indah Water, Tenaga, Telekon, Alam Flora etc. One argument is that corporate taxes is lowered by such privatization because the government is relieved of its duty to provide them.

Fine, then how come successive Badawi and Najib administrations have tried so hard to widen tax collection via GST, raised the service tax percentages and introduced credit card taxes?

I have taken a cursory examination of hidden national debts as a result of the above mentioned privatization trend. If a good or service was and still can be provided by the state at no profit, and this function has been taken over by private sector, then borrowings incurred by these companies are repaid by consumers who have no choice but continue to purchase these goods and services.

Base on the limited research I could do with published audited accounts and common knowledge, I have identified some well known private companies who took over various state functions at a profit and incurred borrowings.

Some of them are self explanatory and obvious like Pos Malaysia, Tenaga and Telekom. Proton is something that Mahathir should never tried in the first place but we have to pay for it while Ahmad Zaki Berhad gets most of their revenue from JKR projects, Faber Group are steep in health care, facilities management of LRT while KUB’s role is revealed further below.

Base on my previous articles, PAAB and MyEG are probably going to increase their borrowings very significantly to RM20 billion and RM100 million respectively.



My very crude calculation is that every Malaysian is saddled with RM1,750 worth of national debt hosted by private companies which are basically more costly government function. This debt can increase up to RM2,228 per person, excluding interest and related professional charges associated with huge syndicated borrowings such as legal fees, consultancy fees and bank charges.

I have barely scratched the surface. Further hidden from the public are examples like Indah Water Konsortium, Puspakom (which is consolidated under MRCB), Pharmaniaga etc as well as those sendirian berhads functioning as custodian of UMNO’s business interest like Temasek Padu Sdn Bhd.

Maybe readers out there can add onto the list like UEM, Peremba, Gamuda, Prasana, Alam Flora etc. It is endless and quite frightening to think about it.

Without a change of federal government, there is no way to get most of the picture out for public scrutiny and examination.

Price of goods and services the man and woman in the street have to pay for needs to cover the fat executive salaries*, principal and interest of the hidden nation debts, compliance cost of a listed company, market-base salaries with no retrenchment, advertisement costs, rent seekers (like the IPPs) so that the companies will have enough money to pay dividends and re-invest.

* example of Tenaga's director remuneration (click on the pix for a better view & see how much a director can get and see how many directors they have...do we need so many of them?) :



Privatisation also means the profits of the companies are taxed so in fact Malaysians are actually being taxed at a higher level as these companies have to factor in corporate taxes in their pricing structure.

All the above would actually more than offset cost of the previous structure where civil servants who are entitled to pensions but considerably less salaried and there is no profit and no corporate tax.

To illustrate what I am trying to say, see below:



In the extreme case of Plus, in 2009, the dividend it paid shareholders amounted to some RM800 million, equal to the amount of “compensation” paid by the Barisan Nasional administration on our behalf.

Take a look at the level of retained earnings kept in the fat pockets of my selected samples and the level of retained profits/fats in Proton make my stomach churn.


Below: why do we need to pay so that these chaps below can have such a big piggy bank? (the numbers are in RM'000)



And in cases of non-listed privatization, the general public will never know the true extend of the amounts involved.

I am not against private entities taking a risk, make a profit and provide job opportunities but I am against excessive profits derived from sheltered crony dominated environment. Lee Kuan Yew told the chief of Singapore Airline upon commencement of operations that he either make profit within 3 years or get shut down hence SIA become an internationally reputed airline...the same can not be said about MAS.

Being a listed company with shares also means it can be bought and sold unlimited times and every time when some one purchased a company with multi million deals, such investments (and interest on borrowings) would have to be repaid, hence the cost of goods and services would have to be raised, again.

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http://wangsamajuformalaysia.blogspot.com/2010/11/tradewinds-m-berhad-your-rice-and-sugar.html

2. Material Contracts Involving Directors and Major Shareholders

(a) a Share Sale agreement dated 28 august 2009 between Tradewinds (M) Berhad (“TWS” or the “Company”) and Wang Tak Company Limited (“WT”) for the acquisition of 148,281,100 ordinary shares of RM1.00 each in padiberas Nasional Berhad (“Bernas”), representing 31.52% of the total issued and paid-up share capital of Bernas from WT for a total purchase consideration of RM308,424,688.00. The said acquisition was completed on 2 November 2009.


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Why can’t we tax payers just pay some dedicated civil servants to be at their station and retire at their jobs, avoid paying for all the above? If the civil servants love their country, they should be able to provide adequate service and negate the nonsense about a profit crazy private entity always do better than civil servants.

Then again, if we talk about the civil servants' attitude moulded by more than 50 years of Alliance /BN administration, then it is another can of worms.

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http://www.themalaysianinsider.com/malaysia/article/civil-service-inept-and-pro-umno-us-envoys-told

“Govindan sees Malaysia’s huge and largely ethnic Malay civil service, completely loyal to Umno, but increasingly incompetent, as PM Najib’s largest obstacle.

“He commented that the civil service has a very narrow worldview and will oppose, even refuse to implement, reforms perceived as damaging ethnic Malay interests, even if convinced of the long-run gains for Malaysia,” it said.

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And base on this exclusive here about KUB, dividends and further burden on rakyat do come hand in hand:
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http://www.merdekareview.com/bm/news.php?n=11954

Polisi dividen: Petanda UMNO-BN semakin kesempitan wang?
Neo Chee Hua Jun 16, 2011 05:36:13 pm

KUB Malaysia Bhd yang mempunyai hubungan rapat dengan UMNO dan Kementerian Kewangan memaklumkan pada 14 Jun 2011, bahawa syarikatnya merancang untuk melaksanakan polisi dividen mulai tahun 2013 - ….

….., dua pemegang saham terbesar KUB Malaysia Bhd adalah Gaya Edisi Sdn Bhd (29.62%) dan Kementerian Kewangan (22.55%). ….. pemegang saham terbesar Gaya Edisi Sdn Bhd adalah Temasek Padu Sdn Bhd, dan Temasek Padu kini adalah pemegang harta parti pemerintah terbesar, UMNO.

Najib Razak telah menstruktur semula harta parti UMNO setelah mengambil alih tampuk pimpinan. Harta UMNO telah dimasukkan ke bawah Temasek Padu, dan syarikat ini dikuasai oleh orang rapatnya, Zulkifly Rafique, pengasas firma guaman Zul Rafique & Partners, dan seorang lagi peguam dari firma guaman ini, Tunku Alizan Raja Muhammad Alia.

Seandainya KUB Malaysia Bhd melaksanakan polisi dividen pada tahun 2013, ….. UMNO dan Kementerian Kewangan akan mendapat dividen pada kadar yang tetap dari KUB Malaysia Bhd setiap tahun.

….. KUB Malaysia dijangka bakal mendapat satu projek hospital kepakaran kanak-kanak yang bernilai RM3 bilion bersama IJM Corporation Bhd. Di bawah kontrak yang sama, KUB Malaysia bersama IJM bakal mendapat kontrak konsesi untuk mengendalikan hospital tersebut selama 30 tahun.

…. KUB Malaysia juga berniat untuk mendapatkan projek pembinaan lapangan terbang antarabangsa Kuala Lumpur kedua, yang bernilai RM250 juta, termasuk pembinaan landasan kapal terbang ketiga dan landasan teksi.

.... syarikat joint venture antara KUB Malaysia Bhd dengan Malaysia Steel Works (KL) Bhd juga berjaya mendapat satu projek inter-city commuter train bernilai RM1.23 bilion di bawah Wilayah Pembangunan Iskandar Malaysia.

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Another interesting example is found within Ahmad Zaki Berhad. Take a look at the notes to accounts no 44 for year ended 31 December 2010.


We all know about the hoo haa about no open tender and non-competitive bidding and bail outs waste of public fund,

Point a) and point c) quite clearly indicate the performance of the Company is not satisfactory and yet point b) clearly also shows a direct award of further project funded by tax payers to this company. Surely there are other more competitive bumi contractors around?




We will never ever know, the true extent of how much we tax payers really owe.

National debts: the big shadow behind

Najib reported a decline in hutang negara/national debts.

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http://thestar.com.my/news/story.asp?file=/2010/6/9/parliament/6429068&sec=parliament

National debt is down

THE national debt has dropped from RM236.18bil in 2008 to RM233.92bil last year, Datuk Seri Najib Tun Razak said.
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Great, wonderful.

So I went to the Finance Ministry to confirm the good news

http://www.treasury.gov.my/pdf/ekonomi/le/1011/jp4_9.pdf

Yes, the numbers reported in the Star is right down there alright.



Ok, there is a 5% drop from RM233,136 million to RM221,741million. This represents Malaysia’s borrowings from foreign source, I believe. The reduction is mainly due to huge repayments made in 2009 i.e. RM42,545 million, as compared to RM20,019 million in 2008 (possibly due to windfall petroleum revenue), as well as strengthening RM against USD, which will mean we owe less in RM terms when we borrow in US$.

However, when I look at the other side, “Hutang Dalam Negeri Kerajaan Persekutuan” (HDNKP), the domestic debt is much larger than the foreign source debts and it is on increasing trend.

http://www.treasury.gov.my/pdf/ekonomi/le/1011/jp4_8.pdf



How come when we had a windfall with raising petroleum revenue in 2009, HDNKP/domestic borrowings increased by 22%? No handbags can cost that much money! The increasing trend shows no sign of decreasing. By June 2010, another 6% is added onto the already hugely increased 2009 base.



Disturbingly, when I look at per capita basis, while we added 5.5% of the total population over the years from 2006 till June 2010, the national debt per capita increased by 40%! (see the 2 graphs below)





On average Malaysians population grew by 1.3% over these years, while total national debt (domestic + foreign) and total national debt per person increased on average 10.2% and 8.8% respectively.

Bear in mind that the increase in population are mostly babies hence non-tax payers so in Rich Dad Poor Dad 1Malaysia Rakyat Diutamakan version, a new born in your family in 2010 means an additional RM21,250 debt for your household, up from RM15,150in 2006.

No amount of love making can reverse this trend.



How does our earning capability fare against our debts accumulation appetite? Well, between 2006 to June 2010, our gross domestic product grew at an average of 6.6% while the total debts grew at an average of 10.2%. Total debts to GDP have increased recklessly from 64% to 73%.




We are borrowing faster than we are producing income (& babies). No educated, intelligent, prudent and responsible adult would put oneself and the family members through such reckless financial (mis)management but we are talking about a more than 50 years old administration who keep saying that only they can bring development.

And who does the Fed borrow from? From the breakdown, Sijil Pelaburan, Institusi Bank, Syarikat Insurance and KWSP represent between 63% to 73% of total HDNKP for the years 2006 till 2010.

Sijil Pelaburan? No wonder there is so much Wawasan, 1Malaysia and what not unit trusts being issued. The amount of sijils sitting as HDNKP has ballooned from RM19,600 million in 2006 to RM74,500 million (3.8 times) within the space of 3.5 years. I wonder how these sijil can service their dividends and interests? By borrowing more and more? I hope there is no gargantuan pyramid around.

http://en.wikipedia.org/wiki/Permodalan_Nasional_Berhad

Amanah Saham Malaysia (ASM)Amanah Saham Malaysia (ASM) was launched on 20 April 2000 with a fund size of two billion units which was fully subscribed in 21 days. On July 18, 2007, PNB is offering 500 million new units.

Amanah Saham Didik (ASD)Amanah Saham Didik (ASD) is the fourth unit trust schemes was launched on 20 April 2001.


Amanah Saham Gemilang (ASG)Amanah Saham Gemilang (ASG) was launched in 2003

Amanah Saham 1Malaysia (AS1M)Amanah Saham 1Malaysia was launched on 31 July 2009 by sixth Malaysian Prime Minister, Najib Tun Razak.


http://1-million-dollar-blog.com/comparison-between-amanah-saham-nasional-berhad-funds/



Institusi Bank? Asians have always been called high saving citizens by economist but there is always a way to get their money spent. I wonder if the much discussed leakages do contribute to the low deposit rates available to financially responsible people and retirees.

Syarikat Insurans? We pay premiums to pool our resources to share risk. God help us if it is used for white elephants, bail outs, letters of support and write offs.

KWSP? I suppose together with Petronas, these 2 are the favoured piggy banks. Notice KWSP accounts are never made known to public like Institusi-Institusi Bank and JPA scholarship awardees (deserved or otherwise).

And if you think that is the full extent of all of our debts, stay tune for next week.

Of competence, scholarship and your new neighbor with a funny accent

When we vote for candidates to form a government, we really should be looking at their capability in leading the nation, degree of diligence in discharging their official duties, prudence with tax payers’ money, ability to form and implement sensible policies to bring the nation forward.

And it really does not have much to do with some dubious asshole of a dubious person or some dodgy black and white Thai pornography or colour-blindness of issue-focused individuals.

Which bring me to the 2 current issues: JPA scholarship and “purification” of illegal foreign workers.

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http://thestar.com.my/news/story.asp?file=/2011/6/6/nation/8844841&sec=nation
Monday June 6, 2011

Comprehensive exercise soon to legalise and send illegal immigrants home

SEREMBAN: A large-scale legalisation and amnesty exercise is expected to be held next month to reduce the number of illegal immigrants in Malaysia, estimated at about two million.

The programme, which will take three weeks, will be codenamed “6P” pendaftaran (registration), pemutihan (legalisation), pengampunan (amnesty), pemantauan (supervision), penguatkuasaan (enforcement) and pengusiran (deportation).

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1 immediate striking point is that capable and bona-fide Malaysians are denied what they are qualified for and entitled to, since their tax paying family members would have paid into the scholarship fund; contrast with those foreigners who broke our country's laws, and yet get rewarded with amnesty for illegal entry and exemption from persecution, provided it is paid for.

What kind of encouragement are we sending out to the potential illegal immigrants as well as those who smuggled and employed them?

Would the Pendatang-focused right wingers, who screamed for scholarships to be denied to rightful Malaysians, would also scream against such privileges awarded to bona fide Pendatangs diluting the percentages of their pool?


If they can come up with gems like this:

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http://www.malaysia-today.net/mtcolumns/newscommentaries/40881-stop-scholarships-to-students-from-vernacular-schools

Free Malaysia Today) - Malay rights group, Perkasa has suggested that the government limit its Public Service Department (PSD) scholarships ‘strictly’ to non-Malay students who have completed their education ‘exclusively in national school’s.

In making this call Perkasa secretary general, Syed Hassan Syed Ali said it would be unfair to award scholarships to students whose parents have no faith in the national education system.
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Bodoh, they pay taxes too and probably more than you ever do.

Go on, what are you going to say about that?


According to “my brother did not do it/I don’t know my brother very well” minister, a fee of RM400 (RM300 for a penalty and RM100 for processing fee) is collectable from an estimated 2,000,000 illegal foreign workers.

He failed to explain 1) the cause for gross incompetence of Malaysian authorities in letting in so many illegal workers; and 2) how would the additional RM800 million were to be used.

How can Malaysians benefit from this additional revenue? What real benefit these additional revenue means for Malaysians, really……

On one hand,

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http://www.malaysianmirror.com/media-buzz-detail/6-nation/53586-aim-of-subsidy-rationalisation-is-to-improve-peoples-living-standard-says-pm

Aim Of Subsidy Rationalisation Is To Improve People's Living Standard, Says PM


Sunday, 05 June 2011 07:16

KUALA LUMPUR – The government’s subsidy rationalisation is not a measure to eliminate subsidies but to provide reasonable amounts of subsidy to the eligible and needy target groups and sectors, Najib Tun Razak said on Saturday.

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then on the other:

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http://www.mmail.com.my/content/52747-najib-defends-100storey-warisan-merdeka-tower-plan
Tuesday, October 19th, 2010 20:39:00

Najib defends 100-storey Warisan Merdeka tower plan




Nice huh?

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The annual JPA scholarship debacle is costing the nation current dollars and talent as well as future well-being and prospect. God knows how many capable doctors, scientists, engineers and other professionals has the nation lost over the decades, simply due to positively incompetent and possibly racist little napoleons who I find tempting to question their own academic qualification as well as their sanity to judge and award in the first place.

In my SPM batch of a very long time ago, the 3 all A-s students did not get even a reject letter from JPA. 1 of the top scorer was the male head perfect cum leader of police cadet who went onto to be awarded with Lee Kuan Yew’s Asean scholarship and last I know, is a surgeon in U.S. while the female head perfect went on to score all As in her STPM examinations and obtained a scholarship from a local bank and have a career in banking.

I have yet to see JPA coming out with a rebuttal that they are race-base in judgment and award or prove their credentials to decide the academic future and livelihood prospect of young hopeful Malaysians who are probably academically and intellectually superior than them.

JPA department overseeing scholarship is little like 19th century Africa. Its details are mysterious to the general public although we know it is there; populated by not well known tribes whose logic and ways of life are unfamiliar to the general civil society. It promises untold riches and yet getting to the reward, depends on luck, adventure but no certainty of what are standard required criteria.






The question is, how hard is it for JPA to publish the criteria and number of places available for each course before the announcement of examination results; as well as the names and track records of both successful and unsuccessful applicants to be accountable to the public and applicants specifically?




If Americans can put a man on the moon and Badawi can put a good looking tourist to space so why can’t the JPA office put up an annual listing when all the relevant data is fed to them by the applicants?

A fundamental question is, why studying overseas is so much sought after by our best and brightest? Do we see top scoring Australians, Britons, Yankies, Singaporeans crying their eyeballs out because they can’t get a scholarship to study in 1Malaysia?


Why can’t we make the ringgit stronger to improve Malaysians’ purchase power parity by stopping outflow of ringgit by making studying abroad less attractive?

Is Malaysia such a lousy place for living, studying and learning that our young, energetic and ambitious can’t wait to escape from?





We have unique students who do not like to be too competitive, I wonder how would this make our education institution move up the world rankings.

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http://blog.limkitsiang.com/2010/01/30/khalid-%E2%80%93-hands-off-respect-and-uphold-university-of-malaya-vice-chancellor-ghauth-jasmon%E2%80%99s-decision-on-moratorium-and-suspension-of-campus-polls/

The campus e-voting system is most unsatisfactory and even undemocratic as the students are not given the chance to observe the whole voting process and the e-counting of votes cannot be done.

……, students need to log in into the voting system using their matrix number and this will cause the worried amongst the students to vote some particular candidates.

…… condemn the entering of FRU into UKM and the arrest of two students who took part in the student demonstration; and the disqualification by the UPM administration of the winning status of 7 student representatives which is ridiculous and unacceptable, just because they had made some campaign statements in Facebook.


….. once again prove that they are not mature or professional in the management of the public universities to restore academic freedom and excellence so that they can become top-ranking universities recognized worldwide as leading institutions of higher learning.

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Is Malaysia a place where employment opportunity and career prospect are not good enough that young people with ambition feels that they need to go abroad and study, so that they can get into countries where their prospect of earning a decent living and fulfilling their potential is so much better?

The need and gimmick in establishing Talent Corp to entice, plead and beg while Singaporeans resented the high inflow of non-Singaporean professionals probably give an answer the above question.

Are Malaysians still trapped by colonial mentality where everything is better on the other side?


How come after more than 50 years of Independence, Malaysia has not achieved a semblance of the economic and social development of its former colonial masters so that Malaysians feel proud and happy to get educated and find a living within its own country?

So what the hell are we paying our taxes for? What kind of competence are we getting from the externally elected political coalition to run the country?

My vote is cast. Have yours?

7 sins of addiction

Najib has pin-pointed the cause of decades of budget deficits – Malaysia has a bunch of irresponsible addicts that consume petrol subsidy like as if there is no tomorrow and the solution is really market forces efficiency.




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http://wargamarhaen.blogspot.com/2011/05/fuel-susbsidies-are-like-opium-to.html

Fuel susbsidies are like "opium" to M'sians: Najib tells Oxford ...really..!!!

……

He said his government had budgeted for fuel subsidies to cost the economy RM11 billion this year but that the estimate had soared to around RM18 billion because of high international crude oil prices.

“Subsidies as a whole are like opium. Once you take opium it’s hard to kick the bad habit; once you provide subsidies it’s hard to take them away without some political cost,” he told an audience at Oxford University’s Centre for Islamic Studies
.

In March, Najib said he was committed to cutting subsidies long term, adding that the savings should be targeted to help lower- and middle-income people.

“Good economic and macro-management entails you reduce subsidies on a gradual basis. Then you will allow market forces to allocate resources efficiently

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Yeah, like Proton “another 10 years please”, IPP “sign here or go, Ayob” and NEP which deviated from its original purpose beyond recognition*. All within the reaches of middle and low income groups.

(If Najib’s dad bothered to speak to me, I would just like to point out NEP’s corner stone should be 1) building up resilience and positive work ethic 2) have a deadline to avoid complacent mindset being cemented3) avoid the pitfall of making the target groups think it’s source of easy comfort (the poorer you are, the harder you should work)


Anyway, since we are on the subject of opium and addiction, this is my personal list of top 7 opium and addiction in Malaysia:

1. Addiction to no competition
Some Malaysians are too nice and don’t like competition. For example, Proton does not like competition from abroad.

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http://www.themalaysianinsider.com/business/article/proton-wants-investments-protected-in-liberalised-market/

Proton wants investments protected in liberalised market

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Some students are also willing to forgone academic competition to remain in a calm state, not even by a mere 10% .

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UiTM student protest spreads to Permatang Pauh campus

BUKIT MERTAJAM (Aug 15, 2008): About 5,000 students from the Permatang Pauh campus of Universiti Teknologi Mara (UiTM) held a peaceful protest against the suggestion by Selangor Mentri Besar Tan Sri Abdul Khalid Ibrahim that the university open its doors to non-bumiputeras


Source: sun2surf website
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As a result, it is ok to produce non-competitive, non-employable graduates who end up in the only silo/refuge they can seek.

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http://www.malaysia-today.net/mtcolumns/guest-columnists/35843-best-bloated-bureaucracy-to-bleed-bolehland-to-bankruptcy

With 1.3 million civil servants to a population of 26 million, Malaysia has one of the highest civil servants-to-population ratio in the world by the Organisation for Economic Cooperation and Development standards.

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1.3 mil civil servants have to be remunerated by 15% of the population who pay taxes and 15% of 26 million is 3.9 million and gosh, the ratio of civil servants to tax paying Malaysians is a whopping 33%!

And if you think that 15% include persons who are both a civil servant and a tax payer then the ratio of civil servants to private sector tax payers is much higher than 33%! It turns my stomach to see the quality of public service in Malaysia, having sampled first hand the public services of Hong Kong and Singapore.

It gets worse because the daddy/mommy who grew up in a competition adverse environment, will pass on "tak apa" mentality to their offspring. There will be no end to this.





Hence I fully agree with the gentleman below:

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http://www.thesundaily.com/article.cfm?id=61180

Not so in the public sector. Come rain or shine, you are guaranteed month-end pay regardless of your performance. So the survival mentality is quite a remote concept for civil servants. There’s no need to work your heart out. In fact, it’s better to go with the flow than dare to be different. Politicians and top leaders can urge transformation in various areas, but if you let little napoleons rule, nothing much will be achieved. The sad part is, these little napoleons are getting younger and younger.

Maybe all positions in the civil service need to be on contractual basis. Do away with perma-nent jobs. That way, non-performers can lose their jobs if they continue to not perform in their tasks. Performers can be rewarded with continuation of contract of service and good increments and bonuses. But what wishful thinking
.


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2. Addicted to Corruption

What is there to write about this? From the Bank Rakyat scandal in the 1970’s to the Bank Bumiputra scandal cum murder in Hong Kong in the 1980’s, the gargantuan Perwaja mess in the 1990’s which was dwarfed by PKFTZ in the 2000’s…in each decade, the top leadership have their finest moments and the best is probably yet to come.

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http://www.malaysiakini.com/news/113340

Bakun dam to be much worse than PKFZ scandal
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Despite the lack of big fish convictions, it is not to say that BPR or MACC did not do their job properly….after all, according to them, there is a corrupted political aid who, after subject to some degree of pressure from MACC, strangled himself then jumped out of MACC office window after realizing that he is suppose to get married the following day with the woman bearing his child.



3. Addicted to shiok sendiri

I have lost count of how much tax payers’ money been wasted on shiok sendiri campaigns. Do you remember those Malaysian tourism banners featuring a smiling Badawi and Azalina hanging all over KL a few years ago? Since when did the tortoise and Orang Utan were retrenched as the mascot of Malaysia tourism?

Self praise is no praise, read this extract from 2010’s Government Transformation Programme report prepared by the Prime Minister’s department:-

"In pushing the envelope and challenging ourselves to do better, the
GTP yielded quick and big wins like never before, making a positive impact on
the lives of millions."





Yet in the entire 250++ pages of a well presented self-praise, I do not see a single honest feedback from one of the millions to verify the impact which is described as “positive”.The application of “big win” in numerous paragraphs, on instances such as building roads and supplying utilities to rural areas suggests a desperate sales pitch or self delusion….there is no glory in catching up with past inefficiency and backlog.



4. Addicted to Race Base Politics
Perhaps this is not fair to label the present administration as addicted to racism because the constitution of the dominant 3 parties, the fibre and nature of their members are race orientated. Perhaps, for a lack of better terms with apologies, a creature manifestering itself in the truest form.

Onn Jaafar pre-dated DAP by more than 10 years by ditching mono-racial representation of UMNO in favour of a non-race base approach. The reaction of UMNO members rejecting his principles then is inherited and thriving brilliantly until today.


Yet if a creator of his own invention realised that it was inappropriate and prepare to undo what he had sacrificed so much to built it up, surely this point to something hugely wrong ..hence why the need for addiction?


Post GE12, instead of seriously looking at the real cause of voters’ dissatisfaction, one of the BN’s prominent party increased the tempo of race base politics.







I do not think the above 2 scenarios will solve our national debt, leakages, low purchase power parity, poor public service delivery, declining international competitiveness, inflation, safety and crime prevention and other livelihood issues.



5. Addicted to the bogeyman


When I was a little boy, my parents would say, “ if you are naughty, police will catch you.” Not unlike a big voice who repeat the saying, “DAP is a communist/Chinese chauvinist party/initiator of May 13 riot….vote them and you are finished”.

If DAP is indeed the mastermind of May 13, why would they want to start a riot when they were suppose to celebrate the biggest electoral gain in their history up to then? And the communists took up arms and fought from the shadows of the jungle while DAP fought in open general elections with speeches, writings and banners.

The voice has graduated in its stupidity to believe that a mere 10% of the population can change a provision in the Constitution which requires 2/3 majority in Parliament that enable changing the official religion of the country from Islam to Christian.


Yeah thriving on the fear of the unknown by the unenlightened while trying to tell the nation that we are suppose to be heading towards a high income nation with a population who subscribes to such kiddie’s “naughty and police will catch you” lecture.


6. Addicted to unfair election practices.

From Bersih Rally prior to GE12, with gerrymandering, vote buying, disruption and violence during campaigning, wasted indelible ink and doctored electoral roles to Najib’s legendary “I help you, you help me” recorded speech in Sibu 2010, and structural distortions like this

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http://mt.m2day.org/2008/content/view/19609/84/

THE NEW ROLE OF THE SPR

Tuesday, 24 March 2009 10:43
By Khalid Samad (The Malaysian Insider)

MARCH 24 - Heard about the new role being played by the SPR in Selangor?

They have now become part of a committee formed under the PM's Department responsible for the implementation of a program called 'people centric'.

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Get yourself educated here:

http://bersih.org/


No wonder, one is driven to do this:

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http://www.google.com.my/search?q=former+election+commission+chairman+house+paint&rls=com.microsoft:en-us&ie=UTF-8&oe=UTF-8&startIndex=&startPage=1&rlz=1I7SKPB_en&redir_esc=&ei=iwzdTeeTH8bjrAeu0NHYDg


Red Paint Splashed Onto EC Chairman's House


KUALA LUMPUR, March 6 (Bernama) -- Election Commission (EC) chairman Tan Sri Abdul Rashid Abdul Rahman today found red paint splashed onto his house, suspected to have been the work of three men who had come there in a car at about 12.30am.

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7. Addicted to keeping a lid on things that matter

In addition to a long list of silencers such as OSA, ISA, Printing Press Act etc, it is already older than time in memorial that the newspapers and TVs are controlled; from just plainly denying dissenting voices a platform to be heard, the controlled media have graduated to doing the barking and slandering on behalf of its political masters.

Winning a proper debate with facts and arguments is too much work, or is it beyond the intellect abilities of the twisted minds of Bocor Mokhthar and Bloody Racist Nazri ?http://www.youtube.com/watch?v=rwM1WXXCaRI


The Speakers of the Parliament usually deny the oppositions’ motion for debate, hindering the voice of the people in such instances and this contrast sharply with the Freedom of Information Act passed recently in the Selangor state assembly.



While Malaysians are being accused of being opium addicts, the administration responsible for the environment and well being of the nation should be subject to scrutiny as well. If fuel subsidy is deemed to be a problem, fine, remove it with genuine solution.

Freeing Malaysians from other market distortions should be holistic and not selective (like a certain well known doctor's amnesia such as compensation to the already profitable toll concessionaires, competitive open tenders to reduce tax money wasted on unqualified and inefficient contractors, doing away with unnecessary projects, excess fats in supply chain such as IPPs, AP permits and rent seekers thriving in shadows etc.

The all powerful administration should be enlightened enough to remove such addictions as well.