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Wednesday, September 3, 2008

Malaysian Budget 2009: A Budget for UMNO Elections

It's the time of year for our National Budget .

I have actually refrained myself from writing about the economy as I have been getting very negative response from readers of Malaysiawaves. Apparently, the subject of economy is a subject not considered as interesting by the majority of Malaysians.

So, with regards to the recently tabled budget, I promise to write something about is in the most layman term possible. Another year, another budget and the budget for 2009 has already been tabled in Parliament by our Prime Minister. Among the points that sticks out like a sore thumb is a spike in government’s expenditure. Refer to the table below:

It seems that ever since the 1997 Asian Financial crisis, the Malaysian/BN government has been relying on “Operational Spending” to float the Malaysian economy. In economic terms it is called “pump priming”. Without it, our economy might fall into the recession or even worse depression.

Although such move is advocated by the Keynesian school of economics, the fact that it has been going on for the last 13 years makes every Keynesian economists very uncomfortable. By right, after 2 or 3 years, the government does not need to spend anymore to push the Malaysian economy back to health.

The fact that we are recording deficits 13 years in a row is also a very telling sign that all our spending is not helping the economy very much.

To make matters worse, the rate of spending increases exponentially year by year as the chart above shows. In short, money is being thrown out by the Malaysian government, but very little is being shown in terms of returns. The fact that our economy still relies on pump priming after 13 years shows that our economy is sickly.

Why isn’t the Pump Priming Working

Simple. The money being spent does not go to the right people. They go to cronies and UMNOPUTRA. These UMNOPUTRA contractors does not use the money to run a legitimate business. They use the contract and then award them again to another contractor but a lower price. They pocket the difference and then they move on to the next contract.

The money these UMNOPUTRA pockets are not circulated in the Malaysian economy as it remains in their bank accounts. If it had been in the hands of legitimate businessman, the money would have been recycled back into circulation in the form of salaries, capital expenditures and not to mention employment.

So, for the coming UMNO General Assembly, Pak Lah and Khairy is moving towards another round of Delegate buying as most of these “leeches” are also UMNO rank and files. With contracts at the disposal of Khairy Jamaluddin, he’s able to snap up as many number of delegates as he wishes. Even Khir Toyo has confirm Khairy’s recent movement pointing towards his intention to snap the Ketua Pemuda position in the report “Khir fears not Khairy or Mukhriz”.

It is also not a wonder if the 2009 budget is not seen as a “business friendly” budget. Quoting from Anwar Ibrahim’s “budget policy brief”:

“While the 2009 National Budget has been touted in the mainstream government press as a “business friendly budget”( Star, 30 Aug.), experts have already contradicted that notion. This can be seen in the two page coverage of responses by leading tax experts (from Ernst & Young, PricewaterhouseCoopers, Deloitte and KPMG) acting on behalf of the country’s top businesses and corporate clients. Their verdict was that this is a budget that whilst not penalizing business is going to do practically nothing to encourage business . The plan has not substantive initiatives to encourage business big or small, and no compelling proposals to improve Malaysia’s competitiveness in the context of the global economic slowdown.”

How can the budget be business friendly when money is being spent on blood suckers and leeches in the form of UMNOPUTRA, which also happens to be UMNO rank and file members and not to mention “delegates”.

UMNO has not changed and will never change. It is our job to change their role from being a government into opposition. Like what we did to Dr Khir Toyo.

Spending on Islamic Activities is not a Waste

I’d like to take this opportunity to negate some very negative comments on government funds being spent on Islamic activities. The argument that is being floated is that such spending results in wastage and does not result in the desired multiplying effects.

This is of course, not true at all. First of all, with a high rate of Islamic fervour or devotion, the rate of Muslims paying “Az Zakah”( compulsory alms) and “As Sadaqah” (optional alms)increases. A study has shown that the more a Muslim society adheres to Islam, the higher the rate of zakah and sadaqah being paid is.

With high rate of “zakah” and “sadaqah”, the collection by various “BaitulMal” increases also. In order to handle such “beareaucracy”, it creates more jobs in the society. That alone will contribute to the reduction of unemployment in the society.

As for the collection, more money can be distributed among

a.the dejected (fuqara),

b.the poor (masakin)

c.Those heavily burdened with paying their debts

d.Travelers who find themselves in difficult circumstances

e.Those involved in advancing the causes of Islam

f.The newly converted into Islam

In any case, the obligation of Zakah is explained clearly in Al Quran and As Sunnah for all Muslims to follow.

The money being distributed among the poor and needy as stated above will then help to increase aggregate spending which will then help to increase the country’s GNP and GDP.

In other words, the Islamic activities is actually self financing and actually has it’s own economic model.

Unless of course the Article 11 people have their way and will result in the eradication of the Islamic system altogether as opined by the then CAJ in Kamariah bte Ali v Kerajaan Negeri Kelantan, Malaysia opined that in allowing Article 11 to be construed so liberally would entail making invalid entire bodies of Islamic law; e.g. Zakat laws, marriage laws, et cetera. (In short, all Islamic laws would be rendered null and void.)

That alone will destroy the Islamic financing system and will also effect the our country’s GDP. So much for liberalism. They do more damage than good for the human kind.


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  1. This Scribe was curious as to why the BN/Umno leadership were so afraid to take action against Ahmad Ismail for his seditious remark. After doing a Sherlock Holmes, this Scribe begin to get the big picture. It appears that Ahmad Ismail is a big time Umno warlord in Penang. Ahmad Ismail was cleared of bankruptcy by the Insolvency Department in 2006. Ahmad Ismail is the figure linked to the controversial PORR project in Penang. He is the director of Peninsular Metroworks Sdn. Bhd., the concessionaire for the project. Ahmad is an influential Umno divisional leader and former Penang Chief Minister Koh Tsu Koon was beholden to him for support. That was why Koh was powerless when Ahmad Ismail a mere Umno division leader could wield so much influence over him and accused him of not paying attention to the Malays in Penang.The CM’s former constituency of Tanjong Bungah happens to be in the Bukit Bendera division.

    It gets more interesting here, The Scribe discovered that PM Abdullah Badawi was named as a director of Yayasan Bumiputra Pulau Pinang, who owns 34% of the PMW share via two wholly-owned companies, Kumpulan Pinang and Kumpulan Perhubungan. Prime Minister Abdullah Badawi is linked to the Penang Outer Ring Road (PORR) project’s concessionaire company, Peninsular Metroworks Sdn. Bhd. (PMW) According to corporate information obtained from the Companies Commission of Malaysia, Abdullah (I.C. No.391126-07-5077) was first appointed director of the Yayasan Bumiputra Pulau Pinang Sdn. Bhd. His name is still listed as a director.Yayasan Bumiputra now controls 34.78 percent of PMW through its two subsidiary companies; Kumpulan Pinang Holding Sdn. Bhd. and Kumpulan Perhubungan Sdn. Bhd...More

  2. aah,waiting for some malays mp to cross over.

  3. DSAI's 2009 budgets manifesto made AAB's 2008 budget look like a big joke LOL.

  4. muhammadeen bukan ismi makrifah. muhammadoon pun bukan ismi makrifah.

    hee hee hee. hee hee hee.


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