The Consumer's Lost Sovereignty

The Consumer's Lost Sovereignty
By Haden Hoo

Let us face it. Malaysians are a difficult lot who are seldom happy with whatever befalls them.

When petrol prices increase, protests would be the name of the game. When the reverse happens, many go on tantrum outbursts demanding for the sun and the moon.

Selfishness, self-centeredness, and greed hinder development of ethical practices in pricing.

Whenever convenient, business folks play the blame game to the hilt with much reluctance to acquiesce to public pressure.

In response, consumers demand a reduction in the prices of food and drinks in tandem with current trends in fuel prices.

Our wallets are getting lighter because the cost of living has been escalating in the last few years.

Whenever a price increase hits any important item such as petrol, sugar, flour etc, almost all are ready to justify a price increase. Yet, with prices go down such as in the sudden reduction in fuel prices, retailers and food sellers are not lowering their prices. This trend has prevailed for decades and seems to be typically a Malaysian malaise.

This time round, both greed and genuine fears about the impact of the GST implementation seems to have robbed many of rational thinking.

Ignorance about the workings of GST has filled the hearts of many with fear. In an attempt to soften the impact of perceived drops in losses in the event GST triggers a contraction in market demand, many are going for short-term profits to reduce their losses.

Hence, consumers suffer, especially the unemployed, elderly, or pensioners who are on fixed income.

Whilst there are those who still shop as if there is no tomorrow, the truth remains – theoretically, consumers are sovereign but realistically, they are being held ransom by those who fix prices.

In a country which has so many ministries to govern more efficiently, the time has come for the authorities to really monitor businesses and pricing so that the ordinary rakyat do not lose out and those such as Ismail Sabri do not take the rap for speaking up sincerely, albeit with much exasperation at the impossible situation.

Businessmen must realize that price hikes in essentials, such as food and daily household items, have eaten up all the savings from petrol expenses.

If our Prime Minister Najib Razak could cut 2% from the 273.9 billion ringgit in 2015's budget, which was drafted based on an oil price of $100 per barrel, why can’t businesses, especially those who have experienced reductions in variable costs, pass on these savings to consumers in terms of lower prices? Such a noble move can go a long way in fending off inflationary effects of high prices and reduce the burden borne by ordinary folks.

One may question why Datuk Seri Ismail Sabri spoke so passionately in his recent Facebook posting; many could be unaware that he has served as Minister in three portfolios.

While in the cabinet under the leadership of Abdullah Badawi, he was the Minister for Youth and Sports. In April 2009, he became the Minister for Domestic Trade, Co-operatives, and Consumerism under new Prime Minister Najib Tun Razak. After the 2013 election, where he retained his parliamentary seat, he was appointed as the Minister for Agriculture and Agro-Based Industry.

Under such circumstances, it is understandable that he spoke up tersely albeit some chose to underscore the perceived racist overtones. With his vast experience, Datuk Seri has amassed in-depth practical experience with a good record of achievement in all the ministries he served. Perhaps now you can understand how, not only is the average layman frustrated, but also a very seasoned political leader – Datuk Seri Ismail Sabri. Yet, many are going for the jugular when criticizing him. Is it fair?

As it stands, our government is really trying their utmost to find the best solutions for this country. Are the rakyat ready to rally to support our government, especially when the going gets tough? What will it be in the months to come? We will see.

Also featured in The Malay Mail.

Statistics Don't Lie!

Moving Forward:  Statistics Do Not Lie

No matter how hard criticisms fly his way, the Prime Minister of Malaysia soldiers on for the good of the country and its citizens. Even though statistics speak volumes about the progress achieved by the PM’s policies, citizens continue their tirade against him. To be fair, it is timely to stop and take stock of the situation at this point, especially since the UMNO General Assembly will take place from Nov 27th to 29th this year.

For a start, consider the subsidy rationalization programme, which the PM initiated in July 2010 via a reduction in subsidies for fuel and sugar. Cuts in subsidies for these and other products were planned over a three- to five-year period in order to strengthen government finances and improve economic efficiency.

The rationale for the programme is to improve the government's balance sheet.  In 2009, the government spent RM24.5 billion on subsidies contributing to a large deficit amounting to 7% of GDP (Here). Subsidy rationalization will save about RM750 million in 2010. Then, the government projected that it would still spend RM7.82 billion on fuel and sugar subsidies the same year (here).

Following Bernama's statement that Malaysia's A3 Sovereign Credit Rating Stronger Through Global Crisis, on 17 June 2010, the annual sovereign report of Moody's Investors Service for June 2010 said that Malaysia's subsidy cuts were partially responsible for maintaining its standing in financial markets and that there is "upward pressure" on its bond rating. They also confirmed Malaysia's sovereign credit outlook was stable and adequately supported by favorable expectations for economic performance and policy management. The report observed that the country's strong external position, deep and liquid capital markets, and a well-managed financial system underpin its A3 sovereign credit rating.

Many have forgotten or chose to ignore that when the PM launched the subsidy rationalization programme, he emphasized that not all of the savings would go to deficit reduction. Then, he told reporters that the savings from expenditure would be used to fulfill other agenda such as the National Key Results Area (NKRA) and National Key Economic Areas, scholarships for excellent students and healthcare efforts such as the 1Malaysia Clinics. These changes would only minimally impact family budgets and have brought long-term benefits to the nation and four years down the road, indeed the PM’s efforts have borne fruit.

Whilst Malaysians are oblivious to Malaysia’s progress, the Economist Intelligence Unit forecasts that real GDP will grow by 5.7% in 2014 and at an average annual rate of 5.6% in 2015-18, compared with 4.3% a year on average in 2009-13. In fact, they also expect the exchange rate to average M$3.23: US$1 this year, compared with an average of M$3.15: US$1 in 2013. Bear in mind that as we are currently enjoying a rising trade surplus, the value of the ringgit will strengthen to M$2.80: US$1 by 2018.

According to the Department of Statistics, our industrial production increased by 6% year on year in May 2014, marking 14 consecutive months of expansion. The mining, manufacturing and electricity sectors all recorded gains. They also reported that Consumer prices rose by 3.3% year on year in June 2014 -a slightly faster pace of growth compared with May, when prices increased by 3.2%.

Under the leadership of Bank Negara governor, Zeti Akhtar Aziz, our Central Bank has acquired a reputation for the high quality of its monetary management. Recently, Bank Negara raised the OPR to 3.25% on July 10th, from 3% previously, in bid to combat rising price pressures stemming from a strengthening of domestic demand. However, given the central bank’s cautious approach, any future rate rises are likely to be modest.

Analysts such as EIU have forecasted that the economy will remain on a steady growth path in 2014-18. GDP expansion to accelerate to 5.7% this year, from 4.7% in 2013. Domestic demand will continue to be the main driver of overall growth. Gross fixed investment will expand rapidly as more infrastructure projects get under way. Analysts forecast that private consumption will also grow at a rapid pace, aided by a relatively strong labour market. Expansion in exports of goods and services should also pick up amid a sluggish recovery in the euro zone, but will lag behind import growth.

The EIU also forecast that real GDP growth will average 5.6% a year in 2015-18. An expected strengthening of the labour market will boost private consumption, while the continued implementation of the 10MP in 2015 and the commencement of the 11MP will carry on supporting investment growth.

It has been four years since our PM launched the subsidy rationalization programme.  In June this year, the World Bank lauded Malaysia in its subsidy rationalization programme especially on the targeted groups for the new fuel subsidy programme. World Bank country director Ulrich Zachau said the bank was supportive of the approach and the shift from untargeted focus to a targeted one.

“The important thing is the support from the government t is targeted for those who needed it the most, especially the poor, that is good economy policy making and one we support across the world.
The timing is right to address fiscal consolidation as it represents a time when exports are recovering and the economy is growing well,” he said.

The World Bank expects the Malaysian economy to record a 5 per cent growth annually till 2016. That is something that should gladden our hearts.

At that event, Minister in the PM’s Department Datuk Seri Abdul Wahid Omar explained that there would be significant savings to the government from the move. He clarified that he government spent some RM23.5 billion in fuel subsidy, bringing the cumulative total to RM136 billion over the past 14 years.

“With spending of RM68.5 billion last three years alone, it has been huge. We cannot continue with the current arrangement of blanket subsidy.It must be contained and one of the ways is the targeted approach and we are exploring various possibilities in our discussions with various focus groups.”

Since then, a lot of work has already been done in terms of enhancing the skills of graduates and the National Education Blueprint marks one of the many initiatives to boost Malaysia’s trade competitiveness.

Looking forward, it is heartening to note that in the upcoming 11th Malaysia Plan, the government intends to look into design and development (D & D) to develop the area of value add manufacturing activities in the country. Such a move will improve our export competitiveness, which should go a long way in boosting our trade figures. Of course, effort to develop and train local talent, especially graduates, must be stepped up to match the demand for skilled professionals.

Despite such positive signs that our country is moving in the right direction economically, many refuse to acknowledge these facts preferring to carry on slamming the PM as though he has done nothing, amongst other unfair accusations. No collective benefit can be enjoyed if citizens persist in negativism, be it in comments for online portals or general perception. The time has come for Malaysians to be proud of our country and to do something positive to move the country forward. The government, under the leadership of PM Najib, is doing just that. Let us support our government as they steer the country forward.

Malaysia’s unemployment rate 2.80% vs. 3.10% forecast

According to Investing.com:

The unemployment rate in Malaysia fell unexpectedly last month, official data showed on Monday.

In a report, Department of Statistics Malaysia said that Malaysian Unemployment Rate fell to a seasonally adjusted 2.80%, from 2.90% in the preceding month.

Analysts had expected Malaysian Unemployment Rate to rise to 3.10% last month.

Source: Investing.com

Malaysia Booms as Najib Beats Growth Goal with Investment

Chua Ma Yu, a Malaysian billionaire who made his fortune in the stock market, had big ambitions in 2008, when his CMY Capital Sdn. agreed with partners to build the 48-story St. Regis Kuala Lumpur.

The country’s first six-star hotel would feature 208 rooms and 160 apartments with housekeepers, butler service and a chef-in-residence. Two years later, the tycoon was still struggling with paperwork to start construction, Bloomberg Markets magazine will report in its September issue.

CLICK HERE for the rest of the post by Bloomberg.

Malaysia's Economy Heading Into Safe Zone

KUALA LUMPUR: Malaysia's economy is doing quite well as the current debt service ratio continues to be moderate and sustainable at 10.7 per cent and it is also heading into a safe zone, Minister in the PrimeMinister's Department Datuk Seri Idris Jala said.

He was responding to William Pesek's June 5 article titled 'Is Malaysia Asia's Weakest Link' in Bloomberg View, an editorial division of Bloomberg, in which the columnist wondered whether Malaysia's economy will crumble after Oxford Economics ranked Malaysia as the riskiest country in Asia in a survey.

"Over the last four years, with our public debt as a percentage of the GDP maintained below the legislated debt ceiling of 55 per cent and having met with fiscal deficit reduction targets, in 2013 Malaysia took its first step into the Safe Zone," he said.

The minister pointed out that the Boston Consulting Group has developed a matrix to determine a fiscal 'Safe Zone' for countries, with one axis featuring public debt as a percentage of gross domestic product (GDP) and another featuring fiscal surplus or deficit as a percentage of GDP.

The safe zone is achieved if as a percentage of GDP, public debt is below 75 per cent and deficit is at four per cent or below, with the danger zone characterised by public debt equalling or exceeding the GDP and deficit of eight per cent and above.

Many other countries have much higher debt profiles as a percentage of GDP such as Singapore (115.1 per cent), Japan (195.8 per cent), the UK (102.6 per cent) and the United States (93.8 per cent), Idris said, pointing out that what is more important is whether countries are able to service their loans.

Idris said Malaysia is well on track to meet the 3.5 per cent target this year after surpassing the 4.0 per cent target to achieve a 3.9 per cent deficit in 2013.

"In the last four years we have systematically reduced our deficit -- in 2010 by 5.6 per cent, followed by 4.8 per cent in 2001 and 4.5 per cent in 2012," he said.

Malaysia's fiscal deficit was at 6.6 per cent in 2009 and Prime Minister Datuk Seri Najib Razak is determined for the country to be budget neutral by 2020.

Idris said the government will broaden its tax base and diversify revenue streams by announcing the planned implementation of the Goods and Services Tax (GST) at six per cent from April 2015.
"Just imagine the positive impact the GST will have on the fiscal positioneventually, when we increase the rates to the international benchmark.

“Moving on, at RM40 billion a year, Malaysia's subsidy bill is simply untenable," Idris said.

The government has rationalised subsidies on fuel and sugar as well as put in place the reforms necessary for a targeted subsidy system to benefit the deserving via social safety nets, he noted.

"More must be done certainly. We are not shying away from the difficult policy decisions, we are pushing ahead full steam.

"We have also gradually reduced dependence on oil and gas revenue from 35.8 per cent in 2011 to 33.7 per cent in 2012. In 2013, we expect a further reduction to 30.6 per cent," he said.

Idris said approved pipeline investment has been increasing year-on-year since 2010, surpassing the government's annual investment target of RM148 billion under the 10th Malaysia Plan.

In 2011, approved investment stood at RM154.6 billion; in 2012, RM167.8 billion; and in 2013, RM216.5 billion.

He said offshore borrowing stands at RM324 billion making up 32.9 per cent of GDP with only 46.7 per cent of external debt stock in Malaysia coming from offshore borrowings.

"Of this amount, almost all were borrowed by profit-driven and revenue maximising institutions including private sector and public enterprises and only five per cent is attributed to the Federal Government," he said.
On the Federal Government's borrowings, Idris said the external debt is at RM158.4 billion of which only RM16.8 billion are in foreign currencies.

"This simply means that we are less susceptible to fluctuations in the global economy," he said.

Meanwhile, Malaysia has climbed steadily from 23rd in 2010 and 18th in 2012 to 6th in 2014, and has been in the top 10 in the world for the last two years under the World Bank's Doing Business survey.

The country climbed three notches from last year to capture 12th spot in the recent IMD World Competitiveness Yearbook 2014, and placed 15th compared to 25th in 2013 under AT Kearney's FDI Confidence Index 2014.

"So, if we are being told that our economy is in trouble, the writer and Oxford Economics should, at the very least, present a more factually compelling story," Idris said.-- Bernama

The BN Journey to Economic Development

Of late, there have been many reports slamming our government for not doing enough to develop our economy. My previous post touched on how hard data shows that despite whatever negative lies spread by enemies, our government has actually done pretty well. In this post, I will consider how our country has grown because of the right policies and economic decisions made by BN in relation to our resources and exports.

In the early years after independence, Malaysia enjoyed high growth rates because it adopted the import substitution industrialization strategy (ISI).  Our country developed economically due to the unprecedented growth of the manufacturing sector largely dominated by foreign capital. This led to a change in the nature of exports.

A country's pattern of economic development can largely be influenced by structural changes in exports and increased export diversification. In fact, many Malaysians be be unaware that our country's export growth strategy has helped to spearhead our nation's industrial success. The Penang Free Trade Zone was a forerunner in triggering the development of export oriented industries.

Malaysia has also specialized in exporting high-technology as opposed to traditional or low- technology goods thereby enjoying rapid growth in key areas. Huge MNCs such as Intel, Fairchild, Solectron, NS Electronics and many other important hi-tech companies chose to set up manufacturing plants here. Consequently, the share of manufacturing in GDP increased from 9.4% (1960) to 12% (1970). During the same period,  the share of industry grew even faster from 19.4% to 27.4%. However, the primary commodities sector did not grow as much because it was too capital intensive then.

Thus it can be seen that the 1970s was a significant crossroad for Malaysia because our government switched from the ISI to Export Oriented Industrialization (EOI) following the establishment of the New Economic Policy (NEP), which identified the manufacturing sector as the main engine for growth for the next 20 years.

We all know the NEP is aimed at improving the economic position of the Bumiputeras and this has been a sore point with some quarters. However, what many do not know is that via the NEP, Malaysia successfully developed its export manufacturing sector while not neglecting other sectors such as agriculture. It was in this period that Malaysia began its transformation from the traditional export base to manufactured exports.

Hence, while many are criticizing the NEP, they are deliberately being oblivious to how the implementation of the EOI actually spiked FDI to spearhead growth in the manufacturing sector.

Following that success, Malaysia embarked on a second round of ISI. This time, the government targettted developing domestic entrepreneurs, with the hope that they could link or network with those foreign companies that had already set up bases here.

However, the timing was bad because economic recession started in the mid 1980s so the heavy industries initiative did not achieve much progress because of its high capital outlay and poor implementation. As a result, Malaysia reverted to the EOI structure again.

Fortunately, economic transformation was already taking place within the manufacturing sector during this downturn in the economy so by 1990s, most of our exports were manufactured goods. By 2010, high-technology products comprised about 50 percent of its manufactured exports. 

These developments could occur because our government made the right economic decisions and implemented the correct policies to spark the increase in trade, structure and plan for a change in export composition and economic growth in a liberalized environment for the good of Malaysia.

Looking back, we must give credit to our government for being consistent in achieving a very commendable decade average growth rate of approximately between 5.8 percent and 7.8 percent from 1960 to 2000.

What the Opposition chooses NOT to disclose is that our country's  impressive growth rate was accompanied by structural transformation and also by a dramatic increase in GDP per capita which grew from USD 300 in 1960 to USD 7029 in 2009 accompanied by a significant reduction in poverty.

Take a look at our economic data from CIA. Note how the GDP per capita and Gross National Saving figures have been improving for the past three consecutive years.

While some traitors go around painting such a negative picture of our country - a move which is totally uncalled for- how many loyal citizens would really consider a macro view of how we have moved FORWARD despite whatever weaknesses - real or perceived?

Do you think the Opposition leaders would stand in front of international and local media to acknowledge how through the years, thanks to the effort of our government, Malaysia is an export driven economy spurred by industries that are knowledge based, capital intensive and hi-tech? 

Where would we be today if not for our government's capable economic advisors?

This site says that the Gross Domestic Product (GDP) in Malaysia was worth 303.53 billion US dollars in 2012. The GDP value of Malaysia represents 0.49 percent of the world economy. 

GDP in Malaysia averaged 65.56 USD Billion from 1960 until 2012, reaching an all time high of 303.53 USD Billion in 2012 and a record low of 2.42 USD Billion in 1961. 

(GDP in Malaysia is reported by the World Bank Group.)

From 1960 to 2010, records indicate that Malaysia’s trade in both goods and services increased dramatically from 89 percent of GDP to 177 percent of GDP. That is truly an amazing development in a time frame of 50 years. 

Malaysians should be waxing lyrical about our achievements instead of being conned by half-past six naysayers, quack economists and failed accountants  from the other side of the political divide who only know how to boast about their amassing 52% of the popular votes. 

What other figures can they be proud of? Nothing! I forgot - they do boast about how many times their elected leaders have been arrested or charged for misdemeanours.

Don't forget our government also implemented the Industrial Master Plan to steer the manufacturing sector from the dependence on the electronics and textile sectors which accounted for 65 percent of manufactured exports by 1983. The Plan resulted in a huge influx of foreign firms to Malaysia which invested in the

manufacturing sector in line with their overall industrial master plan for the economy.

As a result of that policy, 12 subsectors were identified as high priority status including seven resource based industries and five non resource based industries to be developed over the ten year period. 

Apart from these initiatives to restructure our economy, our government also froze wages for three years in a bid to attract foreign firms which might think Malaysia had high start-up costs. We must also remember the role of the Malaysia Industrial Development Authority which helped maximize the incentives given to guide foreign direct investments to add value to their economic decision.

Another thing is this. When the Malaysian currency weakened in comparison to other Asian currencies, we enjoyed FDI from mainly Taiwan, Hong Kong and Japan which relocated to Malaysia which became a cheaper location for doing business.

Did the Opposition EVER give credit to the government for all this?

More importantly, WHAT has the Opposition done for Malaysia?

Shaming the nation both in and out of the contry - a move that has probably cost the government a lot of money in terms of investments, FDI and even tourism revenue.

Showing gross disrespect to the PM and the coalition government

Making baseless accusations which are readily accepted by naive Malaysians to be the gospel truth!

The next time any Opposition leader or supporter criticizes the government's economic policies, please do not join the mob to condemn our leaders. Instead, ask those Opposition leaders such as the Pakatan Rakyat leaders:

• what have they done for this country in concrete terms
• how much FDI have they brought into the country
• how have they helped the GDP of this country to improve
• what plans do they have on the drawing board to show us

No plan? Zip up!

No clue? Think again before they criticize for the sake of criticizing to create nothing but hot air!

Ubah? Then show us HOW.

Take a look at Penang. Has it developed for the better? FYI, Penang has had FOUR consecutive years of budget deficits. 

On the other hand, kudos to PM Najib and his team of economic advisers and departments which have carried us thus far. Thanks to BN for being persistent in their journey to the economic development of Malaysia!

Dear Malaysians, let us really love Malaysia by honoring her, respecting our leaders and putting to rest the lies spun by the Opposition.

The figures speak for themselves.

You be the judge.

Thank you.

Stop the Lies about Malaysia and PM Najib!

You know there is anarchy in cyberspace when a former editor has the cheek to suggest that “Prime Minister Datuk Seri Najib Razak should step down from his finance portfolio for his questionable management of the country’s  finances.

To add salt to the wound, Malaysiakini had to feature Kadir’s article with a mischievous article headlined 'Cabinet reshuffle, PM drops Najib'.

Why is it NOW that people are complaining about the absence of a process of separation of power between the premiership and the finance portfolio when this has been a practice from 1969-1970, 1998-1999 and 2001 to the present?

Look at the following record:

Personally, I believe PM Najib is right on track in his efforts to spur economic growth for our country.  

Here’s a summary of his record of achievements. Kudos to PM Najib and his team.

1.  First Quarter of 2014 = 6.2% growth

According to the latest report from the Ministry of Finance,  growth of the Malaysian economy gained traction to record 6.2% during the first quarter of 2014 (Q4 2013: 5.1%) amid improving global economic conditions and strong domestic  activity. This was the highest growth since the fourth quarter of 2012.

2.  The Economist Business Environment Rankings

Malaysia has been ranked among the top 20 investor-friendly countries for the period between 2014 and 2018, according to The Economist Intelligence Unit (EIU)’s latest Business Environment Rankings (BER).
The report, released in May, ranked Malaysia 19th out of 82 countries as the best places to do business in.
Malaysia came in ahead of countries like the United Kingdom, France, South Korea, and Japan, showing an improvement of five places after ranking 24th for the 2009-2013 period.
The country’s regional ranking was unchanged at sixth place, out of 17 countries measured.
(The Star, June 17th 2014)

3. Even the World Bank has acknowledged Malaysia’s economic growth so why do some claim that Malaysia’s economic growth has stagnated around 5% since PM Najib took over in 2009?

Malaysia is an upper-middle income, highly open economy. Malaysia was one of 13 countries identified by the Commission on Growth and Development in its 2008 Growth Report to have recorded average growth of more than 7 percent per year for 25 years or more. Malaysia achieved this spectacular performance from 1967 to 1997. Malaysia has also succeeded in reducing poverty: the share of households living below the national poverty line (USD 8.50 per day in 2012) fell from over 50 percent in the 1960s to less than 2 percent currently.
(World Bank)

4.  Federal Government’s Financial Position has been improving steadily.

You can access the data AT THE MINISTRY OF FINANCE LINK HERE.

5.  Our key economic indicators have healthy figures.

Gross Domestic Product 6.2% chenge in 1st quarter of 2014

Unemployment Rate        3.2% change (February 2014)

Exports                           8.4% change in March 2014

Balance of Trade             96.8% in March 2014

Consumer Price Index     3.4% in March 2014

Industrial Production Index 4.3% in March 2014

Production Price Index       3.6% in March 2014

6. Malaysia's FDI is improving steadily.

7. Critics are unfair in criticizing PM. Two days ago, Treasury secretary-general Tan Sri Mohd Irwan Serigar Abdullah said Malaysia is on track to trim its fiscal deficit to 3.5% this year. These are the achievements so far:

• Malaysia trimmed its fiscal deficit to 3.9% of GDP last year.
• The country was also on track to hit a 4.5-5.5% GDP growth this year.
• Private investments were showing a record double-digit growth with robust movement in construction Exports are also improving. 

8. While it is true that Malaysia has run a fiscal deficit since 1998, critics refuse to recognize that it reduced the shortfall to 3.9% of gross domestic product last year, the least since 2007. This is according to the central bank’s annual report on March 19. The government aims to cut the gap to 3.5% this year, Bank Negara said in the report which you can read at this link in the website.

Besides, the report also said Malaysia’s economy expanded at the fastest pace in four quarters in the three months ended December as a recovery in advanced nations including the U.S. boosted demand for the country’s goods. GDP climbed 5.1 percent in the period from a year earlier.

The Executive Summary for Bank Negara’s 2013 report on Malaysia can be accessed HERE. 

The financial position of Bank Negara Malaysia, as audited and certified by the Auditor General, remained strong in 2013. The total assets of Bank Negara Malaysia amounted to RM474.2 billion, with a net profit of RM5.5 billion for the financial year ending 31 December 2013. Bank Negara Malaysia declared a dividend of RM1.5 billion to the Government for the year 2013.

“The timely implementation of fiscal and structural reforms will boost investors’ confidence and enhance private-sector investment,” Lee Heng Guie, an economist at CIMB Group Holdings Bhd., said in a report today. “We believe the government is on track to meet its fiscal-deficit targets.” (Bloomberg)

Malaysians must test for themselves what critics say or write about the government. Why are they portraying the PM and the country so negatively? What is their real motive and that of news portals that seem to be on a secret mission to put the country in bad light? Is this true patriotism?

If those critics cannot come up with concrete solutions or proposals to counter their perceived weaknesses of the economy, they should just ZIP UP!

No sane father would shame his own children publicly. The same goes for citizens. It is time Malaysians learn to have more wisdom and discernment in what they choose to read, write or remember. In the mean time, I salute PM Najib and his staff for their perseverance in standing up against the flak and steering the country in the right direction. Syabas!

Minister: Malaysia’s audit report thicker, so better than Singapore’s

KUALA LUMPUR, June 17 — Malaysia’s audit of federal agencies demonstrates exceeding accountability vis-a-vis Singapore, whose national audit report was “only 70 pages” long, a federal minister asserted today.

Datuk Paul Low, the minister in the Prime Minister’s Department in charge of integrity, said the Auditor-General’s Reports in Malaysia that consisted of thick volumes, were very detailed in comparison.

“Look at Singapore’s audit report, it’s only 70 pages, so in that sense, the practice we have today exceeds the norm of accountability for the public sector,” Low told a press briefing on the AG 2013 Report (second series) here today.

He also pleaded with the media not to bring politics into the mix, pointing out that today’s press briefing allowed them to question the secretaries-general of the various ministries on the government audit report.

“The media and the government are partners and we’re here together to make changes for the betterment of the country,” said Low.


Chief Secretary to the Government Tan Sri Dr Ali Hamsa, who was also at the briefing, similarly praised the length of the AG reports.

“We go into the nuts and bolts,” he said.

When asked why financial mismanagement and procurement problems kept plaguing government ministries over the years, Ali said that total perfection was impossible.

“We can’t be perfect 100 per cent. There’ll be glitches, but we are trying to be perfect,” said Ali.

Parliament’s Public Accounts Committee (PAC) has said it would call up five ministries over mismanagement problems highlighted by the AG’s 2013 report (second series) that was released yesterday.

The departments in question are the Education Ministry, the Finance Ministry, the Federal Territories Ministry, the Communications and Multimedia Ministry, and the Home Ministry.

PAC chairman Datuk Nur Jazlan Mohamed said yesterday the police force had incurred the biggest losses in the report, due to the 16-month delay in the construction of the Sentul district police headquarters that had cost the Home Ministry RM73,512 in rent for six months.

- The Malay Mail -

Daim: Malays don’t know how to do business anymore

KUALA LUMPUR, June 13 — The Malays have been stripped of their business sense by centuries of colonisation, said Tun Daim Zainuddin who also blamed Datuk Seri Anwar Ibrahim for his policies when the latter was finance minister.



In an interview with Malay daily Berita Harian, Daim, who was Anwar’s predecessor in the Finance Ministry, accused the latter of using the approach of giving away company shares, which he said had enriched the former deputy prime minister’s allies.

“So Malays at that time thought it was easy to get rich and that they didn’t have to get into business,” Daim was quoted as saying in the interview published today.

“You support Anwar, you support the finance minister, you get shares. Then you sell them and you become rich. The Malays no longer had business management skills. That mentality came about then and it still exists till today,” added the former finance minister.

Daim also blamed historical events for the inability of Malays to become businessmen, noting that the East India Company had first colonised the region four centuries ago in the 17th century, and that the British discouraged the Malays from engaging in business and told them to remain farmers and fishermen.

“After a long time of being uneducated, then only the Rural Industrial Development Authority (RIDA) came about in 1951, but even then, it only managed businesses in the rural areas. How many people actually become rich as a result of running businesses in rural areas? The wealthy live in Kuala Lumpur, and that’s the same in other big cities around the world,” said the 76-year-old.



RIDA has since been replaced by the Indigenous People's Trust Council (MARA).

The then senior minister in the Mahathir administration pointed out that all of Malaysia’s 10 billionaires live in the city, while the Malays still generally reside in the countryside.

“Only one per cent of Malays have commercial land in the city,” said Daim.

“This is very worrying. In fact, Malays now can’t afford to buy land in the city. We give it to UDA, and they sell it to Chinese businessmen. Under MRCB, which is developing KL Sentral, almost no Malays have bought property there,” he added.

Daim then said Malaysia would eventually become like Singapore.

“Look at the Iskandar development, Penang and a few other places. Don’t talk about the Chinese, even Malaysians as a whole can’t afford to buy property because they cost millions of ringgit,” he said.

The former finance minister also said there were now too many government agencies pushing the interests of pro-Bumiputera businesses.

“The government is not good at doing business. The government just knows how to rule. So why are they giving money for this and that? What does the government know about business?” Daim questioned.

“To me, we should be taking Malay businessmen who are successful in the private sector and asking them for ideas on how to create more successful Malay entrepreneurs,” he added.

Malaysia practises a pro-Bumiputera affirmative action policy that began with the now-defunct New Economic Policy (NEP) that critics say has harmed the country and the Malay community’s competitiveness through a culture of rent seeking.

Daim also said the prime minister should not hold the finance portfolio because running the country’s economy was a complex and time-consuming job.

“The prime minister should be ruling the country and giving a vision, while the finance minister does the work. If there are lots of problems and if we slip up even just a little, the country will be ruined. Look at Argentina. It used to be rich, but look at it now,” he said.

Historically, the Malaysian prime minister did not used to hold the finance portfolio, but Tun Dr Mahathir Mohamad took up the post in 1998 after sacking Anwar, after which his successors Tun Abdullah Ahmad Badawi and Datuk Seri Najib Razak, the current prime minister, continued the trend of being finance minister.

The Malay Mail

Najib confident economic growth momentum will continue in 2nd quarter

KUALA LUMPUR: Prime Minister Datuk Seri Najib Abdul Razak (pix) is confident the nation's economic growth will be maintained in the second quarter of the year driven by political stability and investors' confidence towards government policies.

He said the momentum would also be spurred by vibrant domestic activities coupled with a competitive export sector in the first quarter.

"Godwilling, this encouraging development will help the economy reach the target growth of more than five per cent this year.

"This target is in tandem with the 5.2 per cent forecast by the International Monetary Fund for 2014," he said in Parliament today.

Najib was replying to a question from Datuk Shamsul Anuar Nasarah (BN-Lenggong) who asked about Malaysia's current economic performance and how the country was fairing against its neighbours.

Najib, who is also Finance Minister, said the economy showed an encouraging trend in the first quarter with real Gross Domestic Product registering a growth of 6.2 per cent.

He said this was the highest GDP growth recorded since the fourth quarter of 2012.

"In fact, this growth was better than that recorded by the Philippines (5.7 per cent), Indonesia (5.2 per cent), Singapore (5.1 per cent) and Thailand (-0.6 per cent).

"This performance was supported by robust domestic activities and favourable external factors," he added.

Najib also said the sterling performance was a result of the Government Transformation Programme, high level of domestic savings, strong international reserves, resilient banking system, low unemployment and inflow of rapid foreign investments. – Bernama

Be Grateful to the Government

Former finance minister Tun Daim Zainuddin reminded businessmen that they owed their success to all the aid the government has provided them and should be grateful for it, Utusan Malaysia reported today.

The Umno-owned daily quoted Daim as saying they were in no position to be arrogant and tarnish the government’s image, given all the riches they had reaped from the country.

“These successful companies should not smear the country and government because they received a lot of help. Instead, they should repent and be grateful,” Utusan quoted Daim as saying.



Daim was responding to tycoon Tan Sri Francis Yeoh’s (pic) comments that Malaysia should be free from crony capitalism, racism and religious rhetoric if it wished to remain competitive globally.
The managing director of YTL Corporation Bhd had also claimed his company had never practised graft, and that 85% of his firm’s businesses were abroad.

“This practice (of tarnishing the government) should be stopped. It is not right for us to become successful by raking in the country’s riches and end up insulting the government,” Daim was quoted as saying.

Meanwhile, Malay right-wing group Perkasa today claimed Yeoh was a government crony whose success relied on the special privileges he received.

“If he hates cronyism, Perkasa is urging him to return all the opportunities his firm received through direct negotiations," said its secretary-general, Syed Hassan Syed Ali.

Syed Hassan also reminded the tycoon not to forget how he had come to amass such wealth.

“He is proud his firm is given so many opportunities overseas and says this means there is no cronyism involved.

“But does he think foreign countries would give him a chance if he had no brilliant track record?

“Where did his firm start and where was it first recognised to the point that he is now listed among the richest? Was it not from this country?”

Yeoh, however, has claimed that his statements were twisted by the media. He said he has defended the present administration's efforts to introduce more open competition and encourage greater transparency in business.

He said that he wanted to dispel the “misconception that successful businesses in Malaysia are a result of crony capitalism".

In a Global Malaysia Series talks organised by Pemandu on Tuesday, Yeoh was reported as saying that 85% of YTL’s business were in Britain, Singapore and Australia because these countries did not tolerate corruption, practised meritocracy and stood for the rule of law.

 “For example, in Singapore, we own a third of Singapore’s electricity. There is no subsidy of any kind. There is no cronyism of any type. The good thing about these three territories, I don’t have to kowtow to the prime minister before I do deal(s), I don’t have to see them even, even after I’ve won the deal," he was quoted as saying by a news portal – June 7, 2014.

- The Malaysian Insider -

AKPK: Get A Second Job!

The Credit Counseling and Debt Management Agency (AKPK) has urged Malaysians to take a second job to help them tackle the high rate of household debt.

Chief executive officer Koid Swee Lian (pic) said those in the teaching line, for example, could give extra classes to earn more money.

"Teachers could earn more money by giving tuition to students in the evening. By doing that, they could help their spouses in handling the household debt and also the rising cost of living.

"I also urge the breadwinner, who is the person who earns money to support their family, to share his or her financial problems with the family members so that they will be reminded not to overspend," she told the media after announcing the winners of the Visa Financial Football Malaysia 2014 competition in Kuala Lumpur today.

The grand prize is a trip to the FIFA World Cup 2014 in Brazil this June and July.

In her speech, Koid said people must have proper financial planning, urging them to save for life's surprises or emergencies and to provide for their retirement as well.

She said AKPK encounters on a daily basis financially distressed consumers who are clueless about their cash flow, having overspent and lived beyond their means.

The agency has been helping people through its Debt Management Programme (DMP), and expects to assist more this year.

"We are hoping to get around 17,000 people enrolled to our programme for this year, compared to 16,769 in 2013," she said, adding that AKPK will be adding two to three more outlets this year.

It was reported that the growth in household debt in 2013 has slowed down to 11.7 per cent compared to the 13.5 per cent increase seen in 2012. – Bernama, April 23, 2014.

Malaysia, Turkey Sign Free Trade Agreement

On Thursday, Malaysia and Turkey concluded a Free Trade Agreement (FTA) between the two countries in Ankara. The agreement was signed by Malaysia’s Minister for International Trade and Industry Datuk Seri Mustapa Mohamed and Turkish Economic Minister Nihat Zekbejci, witnessed by Malaysian Prime Minister Najib Tun Razak and Turkish Prime Minister Recep Tayyip Erdogan.

The agreement comes after the two countries began exploring the feasibility of establishing an FTA between them in late 2009. Initial negotiations between the two countries were held in early 2010.

According to Bernama, Malaysia’s national news agency, the FTA is expected to boost bilateral trade to $5 billion by 2018. Currently, bilateral trade between Malaysia and Turkey stands at $1.1 billion. Over the past year, bilateral trade increased 86 percent, highlighting burgeoning economic ties between the two countries. The agreement is Malaysia’s seventh bilateral FTA following its agreements with Japan, Pakistan, New Zealand, Chile, India and Australia.

The Malaysia-Turkey FTA will allow for preferential market access for Turkish goods in the Malaysian market and vice-versa. Furthermore, it will facilitate trade in other ways including reducing customs barriers, and red-tape. The agreement also allows Malaysia to lock-in tariff preferences “that were either on par with, or better than, those previously granted under Turkey’s Generalised System of Preferences (GSP), which were no longer available for Malaysia, beginning Jan 1, 2014,” according to Bernama.

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Economist: Five Per Cent Growth for Malaysia

KUALA LUMPUR, March 12 (Bernama) -- Malaysia's economy is expected to expand by five per cent this year as last year's second-half upward momentum is likely to be sustained, said Allianz Group Chief Economist, Michael Heise.

Heise said the anticipation of higher private investment, coupled with stronger exports, would support the growth for this year.

"We expect stable growth for Malaysia which would benefit from the improvement in exports, especially to the European countries following their economic recoveries," he told a media briefing on 'The global economic outlook, emerging markets and Malaysia', here today.

He said the commodity prices would help the economy, with oil palm and others commodities to trade higher due to the Ukraine crisis.

"The prices would stay elevated for some time. "The recovery in the exports will then trigger strong investments moving into the country," he said.

In 2013, the country's real gross domestic product expanded by 4.7 per cent, he said.

The economist said Malaysia would experience less dynamic private consumption this year as it would be slightly affected by the implementation of the goods and services tax.

However, it would be offset by the likely reduction in personal savings, he said.

Going forward, Heise said, Malaysia's fiscal consolidation, as well as the possible second round effects of inflation, would be among the challenges for the country.

He said the ringgit was expected to experience a five per cent devaluation by year-end in the course of further tapering in the US' stimulative quantitative easing policy.

"A lot depends on the action of the European Central Bank, which is so far still on the "easing-bias" ... I could foresee some changes to its policy in the year.

"Together with the US Federal Reserve's action, it may again create some noise in financial markets, and that may put some pressure on the emerging markets.

"However, it would not be a major or aggressive (changes) because the markets are expecting these monetary policies," he said.

The Malaysian Middle-Income Trap

I hope readers can share their views to respond to this article. Thank you.

Malaysia is said to be caught in the middle-income trap. With per capita gross national income (GNI) of US$9,820 (RM30,000) in 2012, Malaysia is in the upper middle-income range of US$4,086 and US$12,615 category of the World Bank.

By 2020, the Malaysian government wants to breach the US$12,615 threshold to be classified as high-income nation.

When Prime Minister Datuk Seri Najib Razak came to office in 2009, moving up towards high-income nation status topped his agenda.



But where are we now with just six years left to reach the high-income status?

The salaries and wages survey report of Malaysia for 2012 shows that 9.09 million Malaysian workers out of a 12 million workforce receive an average salary of RM1,881 per month (US$6,700 per annum).

In other words, 75% of our workers are earning below the middle of the middle-income range (US$8,350) even though the national average falls in the upper middle-income range.

It’s a known fact that Malaysia has high income inequality, which pushes the average to near the upper threshold of the middle-income range.

The Human Resources Ministry's surveys highlight the average wage increases are at the rate of 2.4% per annum. At this rate, wages will take about 33 years to reach Malaysian target of US$15,000.

So is high-income nation status by 2020 possible?

With about four million legal and illegal foreign workers depressing unskilled workers' salary and the pro-foreign workers' policies of businesses and government, any hope of wages increase is remote and far-fetched.

Besides, only about 28% of Malaysian workers are considered skilled for higher value-added jobs.

The never-ending racial preferential policy has driven off two million skilled Malaysian workers overseas for better prospects elsewhere.

High wage-earning Malaysians are developing other countries and helping them achieve high-income status.

The shortage of skilled workers and the mismatches and deficiencies in the education system coupled with abundant low wage migrant workers indicate the policy paralysis in transforming the nation into a high-income nation.

The Malaysian workforce includes 47% foreign workers, who act as financial steroid, has numbed policy-makers from moving into automation and high-end skilled work to earn higher salaries.

The education policy-makers know that industries needs students with strong analytical and problem-solving capabilities, a good command of English and effective social networking skills.

But parochial and bigoted policies stands in the way to allow private sector to play a more direct role in education policy matters.

Only 10% of students enrolled in upper level secondary technical and vocational education, much lower than the average enrolment rate of 44% in OECD countries (Economic Planning Unit, 2010).

The government must have been busy politicking while others equipped themselves with technical skills.

In 2012, the teaching of Mathematics and Science in English was dropped after spending RM7 billion and nine years.

Whereas in 2014, after spending RM6 billion and three years, the school-based assessment (SBA) system is now in ICU for serious surgery.

With frequent flip-flops in education ministry policies producing high order thinking graduates remains a dream.

The Economic Transformation Programme (ETP) was launched in 2009 to attract major investments that will drive GDP growth above 6% every year to cross the GNI of US$15,000 by 2020.

But the economy has been struggling to post an average growth rate of 5% in the past decade which is below the required 6% to take the country into fully developed and high-income status by 2020.

Post-2014 looks somewhat promising for an export-dependent Malaysia, given the improvement in the global economy.

But domestic consumption, investment and government spending is expected to be on a lower scale, taking into consideration the measures to reduce subsidies, narrow the current account deficit and reduce the 55% public debt against GDP.

This year is expected to be an inflationary year as the rollback of subsidies is likely to push the cost of living higher because food, electricity, fuel and transport, among others, will cost more.

This will be further compounded by the introduction of the goods and services tax in 2015.

All these will put pressure on wage increases, causing another round of cost push inflation. Malaysian households are already burdened with high debts which will reduce the growth in household spending.

Under the current scenario, the Malaysian government does not have much fiscal option to redress and stimulate the growth above the required 6%.

Given this prospect, the government needs to undertake painful and radical structural reforms that are long overdue to hasten the process to reach the 2020 target. Is it possible?

Improving the skills and competencies of workers, improving technical skills of graduates, improving the quality of the teaching profession, reducing the brain drain and last, but not least, treating Malaysians as Malaysians and not segregating and segmenting into race and religion, are the sure ways to lift Malaysia from the middle-income trap to high-income status.

But one public objection from one obscure hard-line group can paralyse and derail the entire government’s effort to restructure bureaucracy.

Does the government under the leadership of Najib have the iron will to make the much-touted and talked-about structural reforms?

The ETP and Government Transformation Programme initiatives were initiated with much pomp and splendour but the outcome is higher debt and nothing to celebrate yet.

All attempts to reform have been hijacked by self-serving hard-liners. The government needs to detox and cleanse these parochial bigots and self-serving hard-liners to achieve the high-income status by 2020. Until then, it remains an elusive goal. – March 4, 2014.

* S. Ramakrishnan is a former senator who blogs here.
Source: The Malaysian Insider

BR1M: The Views of a Sensible Malaysian

Here is a sincere write-up by a young Malaysian on the benefits and justification of Bantuan Rakyat 1 Malaysia (BR1M).

Excerpt:

[1]   BR1M 2014 was launched yesterday, 22 February 2014 to some fanfare. According to reports, RM4.5 billion has been allocated for BR1M 2014 which would benefit some 7 million people.

[2]   Personally, I am a fan of the initiative, as I believe targeted subsidies are the way to go – let those truly deserving get government assistance, and for people like me, we can take care of ourselves.

[3]   Personally, I stand to lose from BR1M. I am not entitled to it, and any reduction in subsidy will mean I pay more for certain goods (and being in the middle income bracket, I’m not rich enough to the point that it wont matter *Sad face*).

[4]   Nevertheless, I feel that the benefit to those who really need the targeted subsidy outweighs my personal (and financial) interest.

[5]   And yes yes, if the Government plugged leakages and wastages, strengthened the economy etc. etc. we’d be in a much better position, financially and purchase power-wise, but hey, that’s a grouse for another day (and don’t worry, I won’t let that go. Just waiting for the next Auditor-General report).

[6]   In this article, I want to look at BR1M and write about the 4 reasons why BR1M is good an necessary. I do not think it is political candy (and my staunch-opposition economist friends say that it’s in fact a good idea – but PR cant say that). So, here’s a preview of the 4 reasons:

a. A web of benefits;
b. Targeted subsidies are the future;
c. Right time;
d. Br1M is more sophisticated than it looks.

 A little about BR1M

[7]   Anyway, BR1M, short for Bantuan Rakyat 1 Malaysia or 1 Malaysia Peoples Aid, was introduced in 2012 by the Malaysian Government. According to some website (which might belong to cyber-troopers), it was introduced: (a) To assist low-income households manage rising costs of living; and (b) As part of a long-term plan to reduce Government subsidies on essential goods.

[8]   BR1M’s overarching objective is to ensure that only Malaysians who need the assistance, regardless of race and religion, are able to enjoy financial assistance from the Government.

[9]   In 2012 and 2013, RM500 was given to households earning less than RM3000 a month. In 2014, the amount is being increased to RM700 (650 + 50 for insurance) for households earning less than RM3000 a month and to households with an income range between RM3000 and RM4000 per month. An additional RM50 for Takaful (insurance) will be provided for every household recipient, giving access to vital insurance coverage which includes medical coverage. Individuals earning below RM2000 will receive RM300.

[10]     In 2013, there were 6.8 million recipients of BR1M. In 2014, there will be about 7 million (and increase of 1.2 million). It’s important to note that this isn’t because Malaysians are earning less or becoming poorer, but because the BR1M net has been cast wider, and more Malaysians will benefit.

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Malaysia's Economy Turns The Corner

What a month it’s been for Malaysia’s economy. Fourth quarter GDP growth was stronger than expected (4th quarter GDP - 5.1%, and GDP for 2013 - 4.7%).  Foreign Direct Investment for 2013 is the highest on record.  The budget deficit has been reduced to 3.9%, exceeding the government`s target of 4%. Strong growth, low unemployment, poverty reduction, and manageable inflation has international markets, ratings agencies and commentators from near and far praising Malaysia’s government’s economic competence.

Prime Minister Najib Razak’s economic reforms – such as reducing subsidies on fuel and sugar, along with the planned introduction of a GST next year – while unpopular in some quarters, nevertheless appear to be working.

This is just as well. If Malaysia had continued down the path we were on last year, spending too much money on general subsidies and with inadequate long-term tax revenues, the country could have been headed for default, credit-rating downgrades or a run on the ringgit - or perhaps all three.

This would have had a devastating impact on the rakyat: unemployment would have increased as investors pulled money out of Malaysia, the government might have been forced into drastic cost-cutting measures, and the country might have had to pay more interest on its loans. All of this would have hurt the bank balance of each and every Malaysian.

Before Budget 2014, international markets, ratings agencies, and commentators were warning that Malaysia could be headed for economic trouble.  Since 1997 Malaysia has been running fiscal deficits, which has meant that the government has had to borrow money in order to pay its bills.  But since Prime Minister Najib took the initiative and introduced subsidy reform, the long term prospects for the Malaysia economy look bright. 

For example, this month CIMB Group Holdings said, “The timely implementation of fiscal and structural reforms will boost investors’ confidence and enhance private-sector investment… we believe the government is on track to meet its fiscal-deficit targets”.  Barclays Capital said, “Malaysia’s underlying industrial performance is improving, in line with exports… we expect growth to remain resilient.”  Nomura, meanwhile, is positive on the ringgit because of the nation’s improving current-account position and prospects for fiscal consolidation. 

The PM’s reforms may not have been popular – but they were necessary. And in implementing them, the PM has proven his economic credentials, unlike the opposition, which appears to have borrowed its economic policy from Santa Claus – free gifts for everyone, with no thoughts of the consequences.  While campaigning a few days ago Anwar said, “I admit that a government cannot control all, but petrol and sugar prices should not be increased.”  The classic used car salesman:  tell them whatever they want to hear, as long as it gets you what you want.  

The PM’s reforms have not only upset the opposition. Even within the ruling coalition, there are those who follow Anwar and subscribe to the ``Father Christmas School of Economics``, demanding that the PM spends money the country doesn’t have on general subsidies the country doesn’t need. The PM has wisely resisted the siren voices that would dash our economy on the rocks.

He has cut wasteful subsidies, such as sugar, that not only makes the population unhealthier but also tends to benefit the middle class and wealthy Malaysians. Instead, the PM has focused on expanding measures such as BR1M – which gives cash directly to those poorer families in need.  BR1M also serves as a clever way to boost growth, because poorer households tend to spend their cash hand-outs, whereas  richer households tend to save extra income.

Sadly, those within BN who share Anwar’s reckless economic instincts also appear to share his penchant for destabilising politics. Taking their cue from Thailand’s hapless protest leader Suthep, there are a minority of people within BN who are trying to undermine the treasured stability of our political system.

Though unpopular, Najib’s economic policies are producing important results.  Credit Suisse has said that Malaysia’s credit rating is dependent on whether PM Najib has the resolve to see his reforms through.  Fortunately for Malaysia    he has shown he has the backbone, despite all the backdoor political shenanigans.  Achieving developed nation status and improving living standards for the rakyat depends on it.

Written by

Datuk Huan Cheng Guan

President

Centre for Political Awareness Malaysia

*This article has been featured in the Letters section of Malaysiakini.