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Thread: Idris Jala: Malaysia will be bankrupt by 2019

  1. #1
    Join Date
    Oct 2008

    Idris Jala: Malaysia will be bankrupt by 2019

    Is that all UMNO/BN has in store for us? After 52 years of UMNO/BN rule - bankruptcy in another 9 years? In that case, we might as well get rid of them now.

    Before cutting subsidies, cut corruption, red tape, and nonsensical projects first.

    Sunday, May 30, 2010
    Malaysia Going Bankrupt in 9 Years?

    Minister Idris Jala had sounded the alarm bell by stating that this country could go to the dogs or ended up bankrupt in 9 years if nothing is being done to the subsidy system. At present, the government spends a large chunk of its annual revenue on various subsidies.

    Before we even start to debate the merit of dismantling these subsidies, we should look back at its historical background. Handing out subsidy was an easy way out to momentarily address issues of inefficiency, incompetence and inability to move up the higher value chain.

    The government should have helped to address the issues through various capacity building programmes. The nation could have been prepared to go on a higher value chain and to be more productive and competent.

    Unfortunately, for decades the government had lost various opportunities to revamp, reinvent and reenergize our socio-economic policy direction. The government never had the political will to implement any real reform. It looks like history is going to repeat itself again especially after the protest of 70 odd Malay NGOs against the NEM. Najib may yet again retreats from his policy like his predecessors.

    Policy flip-flops and inconsistencies had ruined many good and well thought out policy vision including the Vision 2020 and the effort to become a knowledge economy.

    Hence, dismantling the subsidy system which is sucking this country's resources dry must come with a steely political will to end mediocrity, cut wastage and adopt financial prudence. The government cannot expect the people to accept higher prices without first tackle its own financial mismanagement, wastage and internal corruption.

    With limited resources, this government should be ashamed of itself for trying to use the same resources to buy votes at the by-elections in Hulu Selangor an Sibu.

    Our workforce is suffering from a middle income trap. Our average income per capita has not grown that much since 1997 compared to other countries in the region. At USD7000, it has barely made a jump from USD5,600 more than a decade ago.

    Any increase in the essential items, oil & gas, toll rates, sugar and others will trigger higher inflation.

    What is the government plan to help boost per capita income of the people? What has the government done to create more higher paying jobs for the people?

    What has the government done to tighten its own financial management, cut wastage, combat corruption and leakage?

    It is important for Idris to realize that subsidy cut is not the only solution to avoid this country from becoming bankrupt. Barisan needs a total overhaul and we need more trustworthy people running the country.

    Give us some action on the PKFZ. Why the deafening silence?

    If Barisan cannot balance the book, perhaps others should be given a chance to try since we running out of time.

    Why must only the people suffer for the mismanagement? More…

  2. #2
    Join Date
    Oct 2008

    Re: Idris Jala: Malaysia will be bankrupt by 2019

    I agreed. A lot of wastage every where in our government rule today.

    Quote Originally Posted by pywong
    [size=14pt]Is that all UMNO/BN has in store for us? After 52 years of UMNO/BN rule - bankruptcy in another 9 years? In that case, we might as well get rid of them now.

    Before cutting subsidies, cut corruption, red tape, and nonsensical projects first.

    Sunday, May 30, 2010
    Malaysia Going Bankrupt in 9 Years?

  3. #3
    Join Date
    Oct 2008

    Re: Idris Jala: Malaysia will be bankrupt by 2019

    Quote Originally Posted by GoldChan
    I agreed. A lot of wastage every where in our government rule today.
    I am told that after RM 1B down the drain for that crooked bridge and Customs Immigration Complex in JB, Shahrir has managed to get the Federal Govt to rebuild another immigration Complex at the old site. This is UMNO-Boleh. Destroy a good building, then build a new one on it to do exactly the same thing.

  4. #4
    Join Date
    Oct 2008

    Re: Idris Jala: Malaysia will be bankrupt by 2019 - Tanjong Pagar and subsidies

    Tanjong Pagar and subsidies
    Author: Lee Wee Tak | Posted at: Friday, May 28, 2010 | Filed Under: Economy, Lee Wee Tak, livelihood of yours and mine, subsidy

    The past week has been an interesting one. Firstly Najib overruled Mahahir's objection to Daim Zainuddin's 1990 Point of Agreement with Lee Kuan Yew (and I wonder why the Dr did not shout at Najib the way he did when Badawi cancelled his bridge).


    Malaysia-Singapore Points of Agreement of 1990 (POA) is an agreement between two Southeast Asian countries on the issue of the future of railway land owned by the Malaysian government through Malayan Railways (Keretapi Tanah Melayu or KTM) in Singapore. This agreement has been an issue that makes relationship between the two countries less than warm. It was signed between former Prime Minister of Singapore Lee Kuan Yew and former Finance Minister of Malaysia Tun Daim Zanuddin on behalf of their respective countries on 27 November 1990.

    The 1990 POA states that the KTM railway station would be moved either to Bukit Timah first, or directly to Kranji. In exchange, under the 1990 POA, three parcels of railway land — at Tanjong Pagar, Kranji, and Woodlands — would be jointly developed on a 60-40 basis with the Malaysian Government holding the larger share. However, three years later, Prime Minister Mahathir expressed his displeasure with the POA as it failed to include a piece of railway land in Bukit Timah for joint development.


    I just wonder how Daim felt after all his hard work came to nothing. And what made Najib reversed Mahathir's reaction to a signed agreement after 3 years. On the plus side, Mahathir's firm stand, and willingness to arrest the progress of a signed agreement, did give Malaysia some "holding gain".

    Secondly, the decision on withdrawal of subsidy, which Idris Jala claimed to have cost the country RM73 billion and will bankrupt Malaysia in a few years.

    I can't help but put together the 2 events and ponder:

    1) BN administration claims that it needs to cut subsidy, and part of the subsidy highlighted was RM394million for toll compensation. (who agreed to this kind of stupid arrangement?) while at the same time, it was announced that


    Cheaper toll soon

    Both leaders also announced that Malaysia and Singapore have agreed to reduce the toll charges for the Second Link to increase the road connectivity.

    The toll charges at both sides of the Second Link, connecting Tuas here and Tanjung Kupang in Johor, would be reduced significantly, both the leaders said at a joint press conference after the retreat.

    The new toll charges would be announced within a month.


    er....are the tax payers of Malaysia going to bear more compensation or subsidy as a result? Perhaps a Parliament question should be raised.

    2) With regards to the proposed M-S Pte Ltd, I just wonder:

    2.1 who will represent Malaysia as the 60% shareholder of this Joint Venture?

    2.2 how is the capital for this joint venture be raised and how much Malaysia has to invest in?

    Investing in Singapore is not cheap, given the exchange rate situation, and Malaysia's external borrowings is already at unprecedent high and will CIMB again be appointed as one of the arranger of syndicated financing?

    How would this affect the actual expenditure vs the 2010 budget which hope to address the decade long deficits?

    2.3 what is the expected return on this joint venture; if and how the return of this joint venture will flow through to Malaysians?

    Looking at the trend established by privatisation, most Malaysians do not get any direct benefit from GLCs. Do Ali, Chong and Muthu get anything from Indah Water Konsortium, Pos Malaysia, Tenaga, Telekom apart from paid services and increasing tariff?

    Let's see what our 40% partner has for their citizens:-


    Growth Dividends

    All adult Singaporeans aged 21 and above will receive Growth Dividends as part of the Government’s move to share the nation’s surpluses with Singaporeans. Lower- and middle- income groups will receive more. Older Singaporeans will receive additional Growth Dividends. NSmen, ex–NSmen and NSFs (including those below the age of 21) will also receive an additional $100 of Growth Dividends to recognise their contributions to national security.


    Growth Dividends will benefit about 2.4 million Singaporeans and cost the Government $865 million.

    --> about S$360 / RM836 per person
    --> The phase "sharing the nation's surpluses with Singaporeans" a damn alien concept to us...but perhaps this will be a new propoganda term around Malaysia not before long?

    Baby Bonus Scheme
    ....... A cash gift of up to SGD 4000 for the first and second child and up to SGD 6000 for the third and fourth child is provided by the Government.

    ......Government contributions in the form of a dollar-to-dollar matching for the amount of savings you contribute to your child's Children Development Account (CDA). ....for your first and second child is up to a cap of SGD 6000 and up to SGD 12000 for the third and fourth child.

    --> something like that Tawas Scheme going about in Selangor

    I personally feel that the terms of the joint venture agreement should be disclosed, debated and weighted in Parliament.

    Malaysians have the right to know how our money is being spent; in addition, the annual financial results should be released to the public, just like any listed company or licensed financial institution

    But I can almost hear someone telling me this should not be for public information due to either 1) sensitivity of the subject matter 2) necessary to keep "commercial terms" secret 3) for national security reasons blah blah blah ....

    If there is so much necessity to keep things secretive then I rather stick with the existing Tanjong Pagar station with that newspaper stand selling Hooters and Maxim at S$11.90 per copy than to pay a lot for something that taxpayers are kept in the dark. Not another PKFTZ, Putrajaya, Matrade please or the country will go pokai.

    On the subject matter of subsidy, I came across this great post by Dato Ariff Sabri

    According to Dato's post:-

    10 b went to debt servicing ^
    10b went to subsidize the price of fuels.*
    Pension payments 5.12b,
    3,10b went to dividend payments (paid to who? if it's for PNB bond then Malaysians contribute a loan to the government hence can't be called subsidy)
    2.3b went to MARA#
    2 billion went to federal roads achieving minimum standards,
    1.5b went to UITM#
    1.38 billion went to human capital development
    KLIA got 1 billion (why KLIA needs financial aid?)
    906million went to makanan asrama (is there an open tender process?)
    541m went to UPM#
    515m to USM#
    497m went to MU#
    382m to UTM#
    Toll subsidies- 394m

    # about RM5.7 billion for the 6 universities and we get sliding international rankings, unemployable graduates and stifling environment where simple straight forward campus election can get "complicated"

    ^ Why blame and penalise the average Malaysians on the debts incurred by BN administration and what the hell the loans were taken for? Until now, no one can tell us.

    *The Malaysian public is described as being addicted to cheap petrol that consumed hell lot of subsidy but then again these are the very same people forced to purchase cars at much higher than necessarily price and paying hire purchase interest on inflated prices to boot, no thanks to Mahathir's ego-boosting and horribly implemented Proton project, no less a national embarrassment as after decades of protectionism, has not delivered respectable value or quality in our own backyard.

    And not forgetting the AP holders who until now, I struggle to suggest any constructive role they have played in making Malaysia a better place to live and play.

    Remember when Pak Lah raised the petrol price to unprecedented RM2.80 per litre? Najib's answer was "change your lifestyle"; which brings my attention to this old issue featured in the Sun (Fri, 12 Dec 200 :

    Two interesting disclosures were made during this week’s meeting. On Wednesday, the prime minister in his written reply to Liew Chin Tong (DAP-Bukit Bendera) said the government spends RM6 million a month on rental and maintenance on his official residence in Putrajaya. The money is paid to Putrajaya Holdings.

    On Thursday, Foreign Minister Datuk Seri Syed Hamid Albar said the government owned about RM3.6 billion worth of properties overseas, mainly buildings housing the country’s foreign missions abroad.

    In order to fulfil his pledge to Utamakan Rakyat, Najib administration should consider selling off the properties and pay off the debts and reviewing if any outpost can be scrapped. Our money is better off being used to look after the urban poor in Kuala Lumpur or the much deprived in rural areas on both side of the South China Sea rather than some privilege civil servants in some exotic places so please review and cut the budget for foreign affairs.

    The socialist democratic (not commie) in me understand that taxes and subsidy is an economic tool for re-distribution of income (I hope my tingkatan enam Ekon teacher, Puan Chokalingam, is reading this...I still remember what you said, cikgu) and I see nothing wrong when a rich dato businessman or a high earning professional paying their 20% to 27% and the money is used to share some of cost of living of the poor and all.
    If the BN administration wants to remove the subsidy, fine, start with the following:

    1) the IPPs;

    2) the AP holders;

    3) the government suppliers who got their contracts without going through proper open tender process;

    4) the traitors who sold our subsidised petrol to foreigners;

    5) civil servants who live well beyond their means;

    6) that sad excuse for a car manufacturer who cling onto protective policies longer than all the soap drama series put together;

    7) the rent seekers ... no prize for naming who they are...and I am just quoting from the NEM

    After that, please review and if there are any wasteful, unnecessary project like advertisement on first lady, the space tourist, some nice advertisement about 1Malaysia, ad hoc by-election splurge a.k.a dead man ang pow etc.....

    And then round up all department heads in civil service and tell them to cut the department budget by 10%, and it can be simple things. If the Penang state government can convert a deficit position to a surplus with sufficient reserve to give RM100 to warga emas then I am sure the BN administration with more than 50 years running a country can match that hardly 2 year old toddler. .

    Then and only then we talk about taking subsidy off the people who actually paid to subsidise themselves.

  5. #5
    Join Date
    Oct 2008

    Re: Idris Jala: Malaysia will be bankrupt by 2019 - Dr. Rafick's rebuttal

    Subsidy: Dr Rafick addressing Idris Jala argument

    03/06/2010 by drrafick
    In the NST today, Idris Jala responded to the various reaction from all quarters of the society. Like he said in his presentation, he repeated it that it is painful but it has to be done otherwise the country may go bankrupt. I am one of the thousands of people who participated in the SMS survey that he talks about as well as the online survey that appears on the various online media. As mentioned the questions are not very fair. It has been done in such a manner where it is difficult for respondent to say NO.

    Having said that, I would like to address some of the issues raised by Idris Jala in his press release which appeared in the NST. I reproduce below his argument as well as my reaction to his statement which is part of the press release.Rights2write.

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