DS Najib, Some Of Us Getting “Confused”… Care To Explain?


I believe some of us are getting “confused”, or should I say losing patience against DS Najib.

Why?

Simple.

DS Najib…

First, what had happened in Hulu Selangor whereby millions have been given to SJKC, but still chinese voters seems to be still reducing. Then in Sibu you tried to cut a deal. These are some of the contributions towards losing little bit confidence in you by some UMNO and Barisan faithful.

Secondly, a few days ago, one of your ministers brilliantly declared that Malaysia will be bankrupt by 2019. Quite suprising that a minister can declare such in public with that kind of news. Should not it be you, DS Najib? Even though perhaps it’s Datuk Idris Jala’s report, should it be you as Prime Minister cum Finance Minister I should declare such? I wonder how and why it was done in such manner. Perhaps new protocol under your management. Maybe…

The question is, can cutting subsidies can really help improving conditions? Care to explain how can it be? Can Datuk Idris Jala prove that with a lab research really can come up with such predictions? Have you or the researches really go up and down, in and out of urban and sub urban of Malaysia? Have you seen how really some Malaysians really living their lives? Or you just having too much time spending on Discovery Channel?

Or better, should not the lab being used to research a more soothing yet better news and outcome how to improve things for government and the people? What’s the use of a “lab”, if it only can telling the world that the world going to end but without proper cure? It is like the lab is the bearer of bad news but not having proper ways and means of how to resolve things. I do think that research on Economics still can bring better news that those labs researching for cure for cancer and AIDS for crying out loud. Come onlah!

The next funny thing is, you sir, DS Najib, could come up by saying that the cut is not final and awaiting for public to respond. How can your minister declared one and then you holding it? For  the moment, temporarily or for quite some time, I don’t know. Again sir, I don’t know what the protocol is or how your minister works.. but should the ministers should get some green light first especially bringing this kind of news? Or are you sleeping as much as Tun Abdullah Badawi was? Perhaps not caught sleeping in public, yet still something got to be improved fast and in better conditions.

And sir,

Are you kidding us, the Malaysians? Why do I say you are kidding us?

Few months ago, NEM is declared to the world and how Malaysia is going to be the for next few months and years. However, it was stated that the declared plan or model was just the first phase. Okay.. although even the model be in two phase, first phase should already a clear phase..but it was not. Hmmm…

In today’s news, you stated that Malaysia can Be A Developed Nation With Continuous 6 Per Cent Growth, but in the same time you said New Economic Model Not Finalised Yet. Are you joking? Can be a developed Nation with 6% growth but not havinf finalised plan or model? HAHAHAHA

Care to explain DS Najib? Do Datuk Idris Jala and DS Amirsham really working hard and smart to improve things? Do they working by protocol of doing things?

Question by OnDaStreet: The real deal of my question is.. you were quoted as saying that Malaysia can be a developed Nation with continuos 6% growth, but the NEM is not complete yet.. so, is actually the growth was and is based on NEM or NEP?

 

5 thoughts on “DS Najib, Some Of Us Getting “Confused”… Care To Explain?

  1. Oh ODS,

    you’re such a nice person….you hantam him with a soft pillow…..almost feel like foreplay..tak sakit ..sedapppp..
    Hantam him with bricks la…bcoz he deserves it…
    hehe..

    ODS: Trying to be nice while I can… before mountain of bricks hit him real hard.. really, really hard…

  2. Ondastreet,

    If you had believed the Government spin surrounding the NEM you would have been confused.

    Jala said the truth and a lie in the same breath.

    He said the truth when he mentioned about bankruptcy by 2019. It could probably be earlier.

    He said a lie when he mentioned that the subsidy to the rakyat e.g. Oil, Flour, Rice and Education is to be blamed.
    The reason is down
    a) The development budget.
    b) The subsidy for the IPPs ( err, I think the sleeping Prime Minister will never be so cruel to future generations to do tha. Maybe if the statesman slept a bit more, we would be ok)

    Reason for huge deficit.

    The economy is uncompetitive and requires huge public deficit to chugg along. The debt increase until it is too high. At that point….go to Phillipines and work for San Miguel. After all, we will never know how many billions was spent to help Mirzan. I asked Tun but he refused to tell me.

    I had explained clearly the workings of our economy in

    here,

    here

    and

    here

    as a service to UMNO and BN but was attacked by Parpu Kari and Big Dog. So I go fed up and retired.

    Now you know what I had been talking about for the past 2 years.

    ODS: It has been quite a while since you last showed up.

    However, even though it has been quite some time, your views seems to be influenced by same hatred to Tun Dr Mahathir.

    First and foremost sir,
    Care to explain total expenditure during Tun Abdullah’s premiership compared to what spent in Tun Mahathir’s premiership? This, sir, have not being answered too since you questioned about Tun Dr Mahathir.

    Care to explain what happened to Jambatan Bengkok which was said to be not agreed by Johorian by Tun Abdullah’s administration (but actually it is welcomed by Johorian)?

    And sir,
    You have not been in my blog for quite some time, or else you should not said that I believe in government’s spin. I have commented DS Najib’s speech on the day he launched the NEM. Have you read it sir? Have you read how I questioned the NEM? I believe you do not read them yet.

    Whatever it is, thank you for your comment.🙂

  3. ODS,
    ODS so you don’t believe the Government?
    That’s good because 1Malaysia’s economic model is pure hype and rubbish. The NEM did not address the critical drivers of the economy as it was produced by a bunch of neophytes.

    The issue is not down to the actual ringgit spent in any one year, as it is controlled by the deficit incurred. For example – Tun Lah may spend RM 160 billion in one year, but the contribution to deficit is perhaps additional RM 10 billion as there are RM 150 billion in revenues.

    Because Tun Lah did not engage in long term take or pay contracts, the number ends in that particular year.

    Tun Mahathir was much smarter. He focussed on long term year in year out expenditure for a single contract. All privatization contracts hatched by him bear that hallmark.

    So take for example the expenditure Tun Lah had to incur in 2008. A big bulk was required to subsidize the price of fuel. Additionally, Petronas had to subsidize gas to the IPPs. Additionally, the tolls had to be subsidized. Additionally all the long term supply contracts to folk like Pharmaniaga , Radicare, and the like had to be fulfilled. Additionally all Tun M’s grandiose mega project loans needed to be paid off.

    This is the same issue facing Najib. Govt will spend RM 136 billion this year on op budget (they will later increase this number to RM 146 after the supplementary budget is passed). Of this number RM 18 billion alone is required to pay interest on debt outstanding.

    The debt outstanding is at RM 360 billion. When Tun M left the country, he saddled Malaysia with RM 186 billion. On top of that he had engineered all those long term contracts which are not included in debt. This is similar to an off balance sheet liability – i.e the country needs to pay RM 10 billion a year to IPPs , so its akin to interest but it does not appear as debt on the country.

    If we capitalize this number, like what any well trained financial analyst is supposed to do, the number Tun left Malaysia looks more like RM 300 billion.

    My hatred for Tun is because he practically destroyed the country.
    Nothing more, nothing less. I can see it because I studied finance (even though I started out with an engineering background, but thats another story. Exam this weekend, wish me luck ha ha ha).

    However, I understand there are “other” factors why people like Tun. Its not for me to decided whether one factor is more important than another. But on the balance, since this posting is about the economy, I would share my understanding of the economic aspect of Tun’s legacy which is nothing short of disaster.

    PS: I have been reading your blog frequently but needed the right post to comment.

    Have a good day, sir

    From the desk of
    Wenger J. Khairy

    ODS: Thank you for your comment sir.

    It seems you’ve taken a broader interpretation of my words. I don’t believe in the NEM, not the government, because there are some who are working, while others not really are.

    So, by your words (and for the past comments), it seems you are implying that what Tun Dr Mahathir has done is like a time bomb.. is it?

    So, Tun Abdullah and DS Najib has nothing to do with such mess up? Has nothing to do of funds that being used by government since Tun Mahathir stepped down?

    By the way sir, if really Tun Abdullah spent RM160 billion to generate RM150 billion.. how can we are reported to be bankrupted by 2019? If the RM10 billion is on one person, perhaps (even you can be a bankrupt for small amount).. but Malaysia? Wow.. amazing!!!

    On a second thought sir, can you provide where does the RM150 billion revenue came up from and where to it has gone???🙂

    1. ODS,
      Well off the top of my head, Govt revenues for this year and last is around RM 158 billion.
      The breakdown
      Petroleum Income Tax – No 1 Contributor ~ 60 B
      GLC ROI – 30 b
      Company Income Tax – 30 b
      Individual Income Tax – 10 b
      Others – 20 b

      As to the where the money has gone – really its to fund Govt operations. Take 2010 budget, emoluments amount to RM 44 billion, payment on debt interest RM 18 billion, payment on pensions RM 10 billion, payment on subsidy (oil and other stuff such as PTPN loan) RM 14 billion, direct payments to Unis – RM 6 billion .

      That sum amounts to Rm 92 billion. The remaining RM 30 billion or so is the supply budget. Additionally we will spend RM 60 billion on Govt projects this year alone.

      Thats how the money gets spent

      I am not saying that Pak Lah spent RM 160 billion to generate RM 150 billion in revenues. What I am saying the spending for that year matched the revenue for that year. Its like if you earn RM 5,000 you spend maybe RM 5,500 and take 500 as a additional debt. For Tun’s system he enters into long term contract.
      Take IPP for example – the spending alone amounts to RM 10-15 billion a year. This is done every year. In finance we say its akin to a “debt” – fixed payments every year. But this number does not appear as debt.

      If lets say Tun told every body, “look here guys. I am going to create this IPP, its gonna cost RM 100 billion, we actually don’t need it, but I feel its good to give some money to AK, Francis and some other folk, and this decision is made by me and me alone” I think perhaps your perception of the situation may change.

      Who knows, he may actually say it one day …

      Warm Regards,

      Wenger J Khairy

      ODS: Sounds fine sir.. so, RM150 billion is used for such.. how about the previous years? How do they get the money to spend such with similar expenditure? Because you see sir, your explaination is as if that’s the good of having RM150 billion revenue to be spend on “normal expenditures”.. and sounds as if that’s a one time expenditures…

      The actual fact is sir, those contributors are the likely the same contributors for the past years and years to come.🙂

  4. The time bomb analogy is quite correct. Pak Lah actually cut the development budget in 06 and 07 and was met with huge howls of protest led by Tun saying that KJ had taken everything. So govt is reluctant to trim the dev budget as this is the lifeblood of the Malaysian political economy.

    Seriously, if one were to consider how perilously close Malaysia was to bankruptcy when Dr Mahathir left one would be amazed at how Pak Lah managed to steer the ship. How did he do that?

    Well he did nothing. Exactly.

    Many theorize that the free market is the best approach. When we tinker we can create many problems. So in this case Pak Lah’s hands off model was quite good. Our reserves rose from RM 90 b to RM 400 b at its peak. We will not face a similar crisis in 1998 which was looming at around 2003.

    So I cannot blame Pak Lah for the mess.
    Now Najib when he came into power took the RM 280 b debt and transmongified into a RM 360 b in 1 year. This was due to the huge RM 60 billion stimulus program. But I think the problem is the economy seems to continuously need stimulating. Somebody should buy it power root

    ODS: Hmm.. interesting…but according to Datuk Idris Jala’s presentation, we recorded RM5 billion deficit… but risen up in 2009 to RM47 billion. RM189 billion debt in 2003, rise up since up to RM407 billion in 2010.

    Is it logical, for 22 years of Tun Dr Mahathir’s premiership with 2 economic crisis along the way, the debt was carefully managed and suddenly when the next two PMs cannot do so (with just one economic crisis)?

    Well, I’m not protecting Tun Dr Mahathir.. but my question is based on the findings.. and my questions sir, is basic logic.. that’s all.

    Perhaps, your economic knowledge can help us to understand such logic.🙂

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