Thursday, February 19, 2009

Mini Budget and the 2nd Stimulus Package

The government will present the mini budget and the 2nd stimulus package soon. This is a difficult time that calls for difficult and bold decision. I will not talk about the amount of stimulus package. I would rather point out things that Ministry of Finance should do.

1) Transparency

a)   The government must reveal why such an amount is committed.

b)   How the money will be spent.

c)    The effect of the stimulus package and this should be revealed at regular intervals the achievement of stimulus package. Since the money spent from stimulus package comes from budget deficit, we are actually spending money from the future. Transparency will go down well with the rakyat.

2) Projects should increase productivity to restore economic confidence and growth. Hence, there is no room or PET project.

3) As part of Corporate Social Responsibility, the government should get companies to take collective responsibility to care for its employer so that it is time to invest back in their human resources. The government is there only to help.

It is said that an economic crisis is a confidence crisis. At this juncture of confidence crisis, it is said the economic policy that will define the political situation in the country.

The new Prime Minister in line must give the rakyat hope by doing the right thing, if possible, on a bi-partisan manner. This will show that the BN government will truly care and will inspire confidence towards his leadership.

The excessive politicking has made the rakyat dislike and disdain politicians and do not trust politicians. They think that most politicians are just self-serving personality.

The stimulus package should be directed at the following:

a)    Improving infrastructure – especially public transportation, building connectivity between different modes of public transport; between residential clusters and between towns.

b)    Improving education, vocational training – retrain teachers; increase study loans for upgrade to postgraduate education – let the banks administer these study loans – ptptn has been a big failure as it boost very high default rates – the government should not be in the business of disbursement of these loans; make sure the banking intermediaries are responsible in assessing risk and collect.

c)     Give incentives and support to local food production – encourage each state to specialize in one type of food crop or meat production – build linkages with advanced agri-business countries through partnership. Just by saving our food import bill that can generate billions worth of business. There is never a better time for the nation to refocus on food security. Malaysia still has plenty of land – small plots of land to do garden farming – and we need to achieve a balance between commercial crops and food crops.

Those who are able and willing to farm must be supported – this is for the interest of all Malaysians. Speed up the lease of all possible farmland and put money into acquiring expertise on agri-business and farn economics.

Food production is a ready market for Malaysia as we are currently a net importer.

d)    Put the money into environmental infrastructure – for example the drains and pipes that carries the nation’s sewage system have not undergone maintenance and repair – they were built decades ago.

This investment will go a long way towards improving the capacity to produce a better quality of life. Massive cleaning up of the nation’s environment will also help with the current dengue epidemic!

e)    Health care and low cost housing for the poor.

I would strongly object to see this money going into new development zones such as Iskandar. We should see money going into repairing and reviving old cities such as Ipoh, Melaka, Seremban, and connect them up with the main arteries of communication and transportation. The nation’s telecommunication service is also sub standard.

Now, if BN do the right thing, we still have a fighting chance to win back rakyat’s support. 

This letter was also sent to the Finance Minister Datuk Sri' Najib Razak.

21 comments:

tc88 said...

Well said. This economic crisis is a crisis of confidence. When every company in every country laid off workers, workers/citizens have less or inadequate moneys to spend and this in turn means manufacturers sell a lower amount of goods thereby laying off more workers. This is a vicious cycle and continues until someone breaks the chain.

Yes, the stimulus package should be about generating confidence and bringing back confidence to businesses and employees. Right now, confidence in the BN government is at an all time low. The Raykat do not have confidence in the ability, capability and more important the will to do much to generate confidence. There is perception of low transparency, governance, fairness and competency on the Government and the civil service.

Throughout our country's development, we have depended heavily on foreign investments, initially through electronics, electrical appliance and manufacturing. This time around, even the big multi-nationals are having problems, if not difficulties in keeping their workers. Toyota, GM, AIG, Citigroup, you name it are in difficulties and half of them may even faced liquidation. Time therefore to depend on ourselves, the rakyat.

The stimulus package should be kept simple, direct, fair to all irrespective of colour, religion, or nationality, available to all, easily accessible and comprehensible. Most of all the civil service and the "little napoleons" must not sit on it or have their own agenda or interpretation. This is the time for all - bumiputras, Chinese, Indians, Eurasians, Kadanzans, Dayak, Ibans, foreign companies, the civil service, political parties, politicians - to work together to bring back confidence. Hopefully no more party hopping, sex videos, blackmail, etc.

The package must be explained to any one who is interested and keen to participate, be it the farmers, occupants of a TOL land, a housewife, a clerk or a MBA holder or a professional or a foreigner. Like datuk seri eloquently stated, even the housewife can plant some vegetables in the small 20 sf of land outside her home or along the shoulders of the road or underneath high tension cables. Bring back bumi hijau. Teach the people how to grow their own fruits, food and vegetables, generate compost from kitchen wastes. Enable them. Help them. Train them. Give them all the help. And most of all FAST and without resevations. If a retrenched worker want to go into vegetable farming, or aqua culture or learn a new trade or set up a pasar malam stall, help him or her. Don't frustrate him or put obstacles before him. IT'S TIME FOR THE GOVERNMENT AND THE LITTLE NAPOLEONS TO CHANGE or we will perish under this Great Depression.

TC88

bantiek said...

UMNO will remain UMNO. So will BN. I don't expect or foresee any change.

chchoo said...

a few small but highly positive steps toward recovery and nation building. hope those who are tasked to execute them are of high calibre and capable to deliver result.

Mike said...

首相拿督斯里阿都拉以一團糟與荒謬,如此形容霹州政局,說明政權變天已演變成政治危機,必須盡快解決,還霹州真正的民主政治天空。

要解決霹州政治危機,解散州議會,還政于民,讓人民選出心目中的州政府,是最可行的方法,這也可終止朝野陣營沒完沒了的拉鋸戰。

選民都希望以手中一票,選出屬意的州政府,以便他們委託的州政府,可真正協助解決州內民生問題;如果州政權危機問題不解決,州政府將無法有效執行工作,民生問題也無法處理,最終令人民覺得所託非人。

What ever Mini budget / supplementary budget is useless if the political situation in Malaysia is not stable.

Pearls said...

Let's get real here for 1 minute!

Will all these mini budget, stimulus and stimuli plans or packages get to people like me?? I dont think so.. When I go out to do my grocery shopping, I noticed that most of the stuff has increased in price by at least
RM2 right after the CNY festival!! Food is just a small part of essential in daily life. Dont even go near the other parts. I have not seen any effect from such package at all!

So, stimulus, stimuli and mini, where are you helping?

As for BN's fighting chance to win the people's support and trust, I got news for you. IT AINT HAPPENING!! After what has happened in Perak, BN is viewed as EVIL.. Very evil.

呉 和豪 said...

YB Dato Seri Dr.Chua SOI Lek

I am very agree with the following ,this is particulary good for the rular folks

Give incentives and support to local food production – encourage each state to specialize in one type of food crop or meat production – build linkages with advanced agri-business countries through partnership. Just by saving our food import bill that can generate billions worth of business. There is never a better time for the nation to refocus on food security. Malaysia still has plenty of land – small plots of land to do garden farming – and we need to achieve a balance between commercial crops and food crops.

Those who are able and willing to farm must be supported – this is for the interest of all Malaysians. Speed up the lease of all possible farmland and put money into acquiring expertise on agri-business and farn economics.

Food production is a ready market for Malaysia as we are currently a net importer.

windcool said...

Well said Dr. Chua. I always admire your ability to work and sound solution to problems. Too bad some ppl just fall a deaf ear and you are working with a whole bunch of useless partners.

Malaccan view said...

Dear DS,
To me,stimulus package is an excuse for BN(UMNO) government to dish out our tax payers money for their own benefits.Billion if not millions worth of stimulus package annoucned by gov since late last year,has anyone of us feel,smell or touch it???where did all the money gone to???definitely to either PM/DPM/Cabinet members cronies.So,in these difficult time,we will create more millionaires.
I will suggest that gov benefit directly to individual thru whatever stimulus package.Example,if gov to give every family in Malaysia RM100K,what will be our country economic???

笑看风云 said...

Dear DR. chua Soi Lek

during my primary education, i remember reading a " story"

"..... The Wolf is coming..."

Stimulus or no stimulus package , my primary concern
is the governmenrt must

1) establish its credibility.
--- we mean what we say , we say what we means . and we do what we say.


2)Cut down government , administative expenses .increase productivity.
--- faster time to complete a job is not necessary higher productivity, it might due to automnation, computerisation ... higher production cost. Someone ponted out , malaysia may has world class facility, but the operation, maintaince and atitute is also . the government is employing more and more civil servant. you call it nonproductivity, they call it social responsibilty, more department ,more pe0ple to serve the people better.

" world class"
i must admit i have seen improvement in governmnet services
a small step forward.

3)up to date regulation
eg. transport industry.

the "approve pay load of lorry" is far below neighbour country , which has cause
a)' illegal overloading'
b) high court case,
c) loss of income for government-- higher road tax?
d) loss of income for insurance company--- higher prenium?

e) " high sulpur content diesel" air pollution,not comply with EURO 3 ??? specification, summon by environemtal law .

4)cancel certain spending
a) national services
--- my friend kid just attent it
someone feel is a waste of $$$, sleep , play ,eat.plus pocket $$$
and create inconvience for those
2 nd. 3rd batch those who go for futher study and look for job.

b) cancel the air space project
--- we can't even " manufacture " a world class car.i wish we just shift to "assembly" car look at thailand a huge sucess.

5) inteligent worksble policy
-- singapore government just throw out 2 paper( casino licence open tender) -- look at the ecomomic effect.

6) efficient mass transit public system
--- my friend who works in singapore for 30 years , recently come back -- he tell me he can't drive even with valid licence.
reasons you don't have to drive in singapore.

7)look at complain of.


a)fishery industy--
no diesel/subsidise??, pilot?, regulation???
b) padi farmer complain
-- low selling price?, high fetilizer price ?-- monopolize of import??
c)platation small holder--
-- windfall tax?owner get jail tapping own eatate??

e) construction industry-- steel cement,aboadon housing projectbuyer suffer for years.

f) high electricity---
IPO ?? bad managenent swap loan for US?? YEN??, miss judge the rising cost of "coal"???or improper control of "house project"

g) Bakun project
-- ekran ? sime darby? TNB?
who ? why? how?
h) double track rail
-- UE? drb?... 2 year? 4 year? 6 year?why so slow train 80 kph?? why not 180kph?

8) social security
-- burglar beaten by people , chase by people, then people charge by police? illegal take law in own hand/

WHY???

---- motorbike , speeding in gang,
rush to police blok??

why? how ?? when??

--- take course? training?, test?
university studtent? money ,money money.

--- election in trenganu ---
RM 15 million.



--- look at klse the no. of co brakrupt, change name, up down.
is a joke?

you tell me chua.

hahaha

Darick said...

Hey....Dr,
b4 MCA election, OTK lantang against ISA.
tapi bila dia dah jadi President... senyap je dia, y huh?

Gerakan is consistant, b4 & after election, KTK still lantang against ISA !!!

go tell OTK don cheat MCA or MCA don cheat d nation! Rakyat is not fool any longer.

look at SJKC D'sara re-open, OTK & his running dogs go around d country & so proud to claim credit ! memang tak faham malu.

if not Rakyat topple corrupted regime racist umno in 308 GE, SJKC D'sara masih TUTUP !

when SOS D'sara campaign >8years to save & funded SJKC D'sara, where is MCA, huh?

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Hope you will enjoy it, Thank you.

anil said...

Dr. Chua,

You have sent this letter to Najib. You think he has time to read it? Probably he is busy in planning for a few more coup d'etat......... (this time, probably in Kedah, Selangor?)

呉 和豪 said...

YB Dato SeDr.Chua Soi Lek

I would strongly object to see this money going into new development zones such as Iskandar. We should see money going into repairing and reviving old cities such as Ipoh, Melaka, Seremban, and connect them up with the main arteries of communication and transportation. The nation’s telecommunication service is also sub standard.


搁置伊斯干达计划是否明智? 外资已经在该地区注入大笔的资金。据报道海外的著名大
学包括了中国大学也有意再此设立大学,如果是事实将是好事。应为这有助于马来西亚经济之转
型。如果政府能够更开明也应该鼓励南大校友再此设立南洋大学以保护文化遗产

Mike said...

What are all the talk of mini budget, minor budget ….. I said if the government is really sincere in helping the citizen just do the following;

1) Put money back into people pocket. Simple and easy tax rebate and relief. Obama is now expediting the tax relief and return to the American by April 09. This the easiest and most effective way. Why knock you head against the wall by hiring those so called experts and economists to come out with ton and ton of paper. After all these people also don’t know what they propose will actually work.

2) Increase the tax rebate on child relief, parent support, medical relief… Let face it is Rm 1000 a year it is sufficient to raise a child (May be in 1957 but definitely not 50 years later). Our tax officers must be realistic on all these relief figures.

3) Reduce corporate tax - I know many don’t like the idea. But let’s face it otherwise how are you going to attract direct foreign investment. Just compare our corporate tax with Singapore and Hong Kong. The answer is bloody clear.

4) Reduce petrol price immediately and not piece meal fashion. At world crude price of < US 40, our actual pump price should be < Rm 1.40 per liter. Period. No more talk about RON 92, 95 and 97 crap to fool / confuse the public period.

5) Electricity tariff to be immediate & significantly adjusted to reflect actual markets situation. Otherwise these corporate still keeping all the cards to their chest & how the manufacturing industry is going to survive. How can one shot increase >30% when come to reduction a pitiful <3%. Even beggars also have pride.

The real situation in the world is this recession is going to last longer than anyone can anticipated. If Citibank share today is trading at US <2.00 compare to US 55 about a year ago, what do you think the outlook of the world is like. Scary isn’t it.

The government must get real on the solutions and not more running around try and errors. We just cannot afford this any more.

One more thing, the crap thing is happening in Perak. Can’t we have an immediate solution to out put an end to this. Just call off the whole assembly and have a fresh election once and for all. All these you sue me I sue you kind of things, is not going to help the state / country a bit at all.

What is that to be scare / afraid off ? Win must win with pride and lost must lost with dignity. That is how everyone should live including all the political leaders.

For once Dr Chua did the right thing by resigning the post after the scandal and still come back to win the deputy post of MCA. You see life is a very fair game.

l藍海 said...

蔡细历先生,
良禽也会择木而栖,
聪明和机智的蔡先生应该更加了解到今时不同往日。
人与人之间的关系建立在利益之上,
这点我很清楚。
:)饮水思源也是我一向以来为人之道。
因为某些地方需要到蔡先生的帮忙,所以恳求蔡先生出售圆事。
蔡先生随后所得到的好处不就只有单单在马华中受上下同志尊重的首要地位而令郎也能够不再遭受排斥地位稳固,
更重要的是你可以一洗雪耻。
期待你这位出色的领袖参与我们即将要开始的失色不少。

l藍海 said...

当日拍摄你的幕后主使者并非真的是黄氏兄弟虽然他们又参与其中,
螳螂捕蝉黄雀在后,
才是你想知道的事情。
有份参与这件事情的包括有巫统的领袖,
你还记得肯经出言的罪过谁了吗?

Prachai said...

In a mature democracy, when the budget is tabled, feedback from all parties including the opposition must be deliberated seriously. This is not only the correct thing to do but a responsibility of the government.

In Malaysia, it seems that the government is too arrogant. It views the tabling as merely a formality, and ignores feedbacks from the public, no matter how sincere. They have been doing this for a long time and I shall not be surprised if they go ahead as usual.

Without proper deliberation the money is likely to be misspent and Malaysia will go into a serious recession. Perhaps the latter is what is needed so that voters who are still with BN will finally say enough is enough too. At the end of the day, BN will be buried but at what social cost? Go tell them to wake up or else don't waste your time with leaders who are clueless about how to manage a country.

Tuanku said...

Dear Dato Seri Dr Chua,

Malaysians have lost trust and faith in BN leaders on their flowerly words and broken promises to the Rakyat today.

Malaysians will never believed that the 1st economy stimulus package of RM7 billion or any mini budget or the 2nd stimulus package under the corrupt UMNO lead BN government will able to benefit the Rakyat today.

Former Tun Dr M says in HardTalk interview confirmed "The government (under UMNO lead BN) is corrupt". His statement to the world has caused severe damaged to the credibilities and credential of the waiting PM, Najib. Furthermore, the suspect of using bribes or corrupt practices on PR'frogs to grab power in Perak proven BN leaders are very desperate to abuse power.

Similar billions ringgit for all stimulus packages will never reach the needy poor people and the retrenched workers and the entire rakyat but eventually the taxpayers' monies will be evaporated into thin air and will enter into the greedy politicians and cronies'swiss accounts sooner or later. Magic Touch by BN ! Ripley's Believe it or Not !

Malaysia Boleh ! He! He ! He!

Regards,

ZENYIN
Neutral and Non-Political Observer

l藍海 said...

我的信息刊登出来后的后果我早已预料到。
对于我来说是无恐无愁:)
因为早在我决定发出第一封邮件给你开始,
我就准备好会面对的事情。
:)
你不是他们的对手,
你应该知道,
欢迎你参与我们一起玩一个“游戏”。
游戏失败了,你没有损失。
游戏成功了,
你就是新的一任“马华总会长”。
你要归田享福,
不阻碍你。
但请你开个方便之门让路。
;)
忘了告诉你我的名字,真没礼貌:p抱歉。
我叫俐

呉 和豪 said...

YB Dato Seri DR.Chua Soi Lek


大型计划如伊斯干达计划的进行能够提供多少个工作机会,这些计划的进行如何能帮助我国抵消

全球经济不景所带来的影响。这也是我们在推行经济刺激配套是应该考虑到的因素。

呉 和豪 said...

YB Dato Seri Chua Soi LEk


我相信民间团体也能够把帮助国家振兴经济,各地的 新村发展委员会,合作社, 睦邻计划中心
可以积极参与一村一产品的计划, 以推动国内旅游。

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