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Friday, February 28, 2020

Malaysia's economic stimulus package of RM20bil to mitigate Covid-19 impact

Economic Stimulus Package 2020: Government To Assist Businesses ...

https://www.thestar.com.my/news/nation/2020/02/28/gdp-target-within-reach?jwsource=cl

Minimum EPF contribution by employees to be reduced by 4% from 11% to 7%, with effect from Apr 1 to Dec 31, 2020. This will potentially unlock up to RM10 billion worth of private consumption. Malaysian workers have the option to opt out from the scheme and maintain their contribution rate

Based on three strategies: counter Covid-19 impact, boost people-based growth, encourage quality investments

• Bank Simpanan Nasional provides RM200mil micro credit at 4% interest rate

• MAHB to cut rental for tenants, landing charges and parking fees at airports

• Postponement of income tax monthly payment for tourism-related companies

• Bank Negara provides RM2bil guaranteed financial aid for SMES at 3.75% interest rate

• All banks required to reduce monetary burden in the form of postponement of payments or rescheduling of loans

• Temporary six months discount of as much as 15% for electricity bills for hotels, tourism agencies, airlines, and shopping centres

• Hotels to get service tax breaks from next month to august

• Economic growth for 2020 expected to be between 3.2% and 4.2%

• Minimum EPF contribution by employees to be reduced from 11% to 7%, with effect from april 1 to dec 31. This could unlock up to RM10bil worth of private consumption. Malaysian contributors have the choice to opt out from the scheme and maintain their contribution rate

• A payment of RM200 to all bantuan Sara Hidup (BSH) recipients scheduled for May will be brought forward to March. an additional RM100 will be paid into the bank accounts of all BSH recipients in May. Subsequently, an additional rM50 will be channelled in the form of e-tunai

• As a result of the stimulus package, fiscal deficit estimated to increase to 3.4% of GDP from targeted 3.2%

• Grants of RM1,000 to RM10,000 for entrepreneurs to promote the sale of their products on e-commerce platforms

• Securities Commission and bursa Malaysia will waive listing fees for one year, for companies seeking listing on Leading entrepreneur accelerator Platform (LEAP) or Access, Certainty, Efficiency (ACE) markets, as well as companies with market capitalisation of less than RM500mil seeking listing on the main market

• Import duty and sales tax exemption on importation or local purchase of machinery and equipment used in port operations for three years commencing april 1

• Enough source of money for now, no issuance of bonds needed

• Stimulus package to be funded by RM2 trillion savings from bank Negara, Tabung Haji, EPF

• Bureaucratic procedures will be expedited to disburse stimulus

A plague on both your coalitions!

The euphoria among Malaysians following the May 2018 polls has now turned to despair and disgust after the political machinations that are afoot. On March 7, 2016, I warned the “Save Malaysia” campaign that putting Mahathir as the head of the supposedly “Reform Movement” was bare-faced opportunism.

Some have said it was like putting the fox in the hen house! The erstwhile “progressives” scoffed at my “idealism” using trite clichés including: “there are no permanent enemies in politics…”

While those in the Anwar Ibrahim/DAP camp are licking their wounds, what is transpiring now borders on extreme opportunism that former “progressives” could be part of a coalition with Umno and led by the same Dr Mahathir Mohamad, who I pointed out in 2016 had not shown a shred of remorse for his authoritarian rule from 1981 to 2003.

After the record of the last two years of PH government, such politicians will be laughed out of hand if they even try to pretend to have a reform agenda.

I warned in 2016 that Mahathir’s main objective was to get rid of Najib and to ensure that his own economic and political agenda was implemented. This he has successfully done and will pursue even more firmly now he can dispense with all the pretence of reform promises made in GE14.

Opportunism in its crudest form can be seen when politicians target an individual (namely, Najib Razak) rather than the political regime and political economic system that oppresses, divides and exploits the people. As is now revealed to all, Mahathir’s “Save Malaysia” campaign in GE14 was mainly aimed at expelling Najib while maintaining the same racist and exploitative rule.

Azmin and his crew can make all the politically correct noises about “Reformasi” but they have lost credibility through the last two years of bickering and Azmin Ali’s sex video file is now in the hands of Machiavelli, who now has him by the metaphorical balls.

Both factions in PKR have failed to show the people what they are fighting about and they have not even pretended to champion any concrete reforms except to pay lip service to “Reformasi”. That is why the people have had enough of their interminable bickering.

PH was already morphing into BN 2.0

As events have unfolded, PH has become more and more like BN 2.0 especially with the assimilation of Umno into PPBM. Even Anwar was considering accepting the former BN minister Salleh Said Keruak into his party.

The most revealing and distressing initiative of all was the so-called “Malay Dignity Congress” with its racist resolutions and which the prime minister patronised and the continuation of the New Economic Policy in the new “Shared Prosperity Vision”.

And as this short rule has ambled along, it has failed to meet manifesto promises and voter expectations in numerous ways. We have witnessed a number of the flip flops over the PH promise to abolish toxic institutions and laws, such as the Security Offences (Special Measures) Act 2012 (Sosma) and other detention-without-trial laws in the country.

Nor do their promises focus on the most urgent and comprehensive reforms that civil society has long argued are of high priority. On top of all that, we have seen a disturbing trend of autocratic decision making and policies symptomatic of the old Mahathir 1.0 era.

Malaysian politics now means never having to keep election promises

While the PH manifesto prohibits the PM from also taking on the Finance portfolio, Mahathir has in the first 100 days succeeded in taking over the choicest companies, namely Khazanah, PNB and Petronas under his Prime Minister’s Office. It is the return to the old Mahathirist autocracy.

Was the Cabinet consulted on the decision to start Proton 2, privatise Khazanah, Malaysia Incorporated and the revival of the failed F1 circuit?

The appointments of Mahathir and economic affairs minister Mohd Azmin Ali to the board of Khazanah Nasional Berhad also go against the PH manifesto promise of keeping politicians out of publicly-funded investments since it leads to poor accountability.

Only by insisting that boards be comprised of professionals and on rigorous parliamentary checks and balances for bodies such as Khazanah can we ensure a high level of transparency and accountability.

The excuse of the government debt to delay local government elections, which have been suspended in our country since 1965 is not acceptable. It is a simple matter of abolishing a provision under the Local Government Act 1976 and reviving the Local Government Election Act in order to introduce local government elections.

It is equally absurd to tell Malaysian Independent Chinese Secondary School graduates that their Unified Examination Certificate (UEC) certificate can only be recognised in five years’ time. This is a serious breach of promise in the PH GE14 manifesto since more than 80% of Chinese voters voted for PH because of this promised reform.

Time to build a progressive Third Force

Reforms that do not challenge the neoliberal economic policies that were set in fast motion by Mahathir in the early Eighties are not serious reforms. Income disparities will continue to widen while the environment, indigenous and working people will continue to bear the burden of so-called development.

Najib merely made more extreme the structures created by Mahathir to entrench the powers of the Executive, emasculate the democratic institutions and provide the means for private enrichment of the elite in this country.

Racist and racial discriminatory policies were also entrenched by Mahathir in the early 1980s and further manipulated by Najib.

In hindsight, perhaps we had to go through the betrayal of the last two years of PH rule, the arrogant disregard for the promised reforms and the interminable bickering between the parties in the PH coalition. If we had not gone through this process, the people would not have experienced the opportunism and hollow reforms mouthed by these politicians all these years.

More than ten years ago, I raised the urgent need for a Third Force in Malaysian politics when it was clear that the PH “profits before people” and race/religion agenda was no different from that of BN’s. I said that we needed a Third Force if we are not to be disappointed with the return to BN rule in GE15 again. I was wrong – Mahathir didn’t need another general election, did he?

It is time for all who have hoped for real reforms in Malaysia to build a “Third Progressive Force” for a truly just, democratic and sustainable future that BN and PH have failed to provide. In the light of the worst treachery in Malaysian politics we have yet seen, professed progressive politicians should leave both coalitions to help build the progressive Third Force.

And if there are enough “good men and women” among them, they might actually succeed in scuppering Machiavelli’s plan by denying him the number he needs for a majority in the House … but that is just wishful thinking.

Kua Kia Soong is the adviser to Suaram.

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Interim premier Dr Mahathir back at work in Perdana Putra; fight cronyvirus?

Tuesday, February 25, 2020

Interim premier Dr Mahathir back at work in Perdana Putra; fight cronyvirus?

Dr Mahathir officially moves in to Prime Minister's Office

https://youtu.be/pV_JzmSFdKs

PUTRAJAYA: Tun Dr Mahathir Mohamad has returned to his office at Perdana Putra amidst the political storm raging over the last two days.

The vehicle ferrying him was seen approaching the protocol gate here at 9.29am on Tuesday (Feb 25).

This comes a day after the 94-year-old Dr Mahathir resigned as Prime Minister, when the Yang di-Pertuan Agong accepted his resignation.

However, the King has consented for Dr Mahathir to continue running the country as interim Prime Minister until a new premier has been appointed and a new Cabinet formed.

Dr Mahathir is the only one from the Pakatan Harapan administration who is left after the Yang di-Pertuan Agong cancelled the appointments of all Cabinet members.

Aside from ministers, the duties of other members the administration including the deputy prime minister, deputy ministers and political secretaries ceased, effective Feb 24.

It is learnt that ministers have packed their belongings and left with them on Monday (Feb 24) night, following the announcement that the King had accepted Dr Mahathir's resignation.

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