Commentary And Analysis . . . The perennial issue in the civil court and/or syariah court with the MyKad or Identity Card (IC) isn’t about leaving religion. It’s about having no religion in the MyKad issued by the National Registration Dept (NRD) under the National Registration Act 1959/1963. The Syariah court, which isn’t a court of law, has no jurisdiction over the 1959/1963 Act.

The MyKad, besides being proof of identity in law, remains proof of freedom of conscience as enshrined in the Constitution under Article 3 (religion of the Federation), Article 8 (no discrimination), Article 11 (freedom of religion) and Article 12 (right to education).

https://www.freemalaysiatoday.com/category/nation/2024/02/14/no-confusion-that-only-shariah-court-can-allow-renunciation-says-lawyer/

NRD

The civil court, the syariah court, and the NRD cannot get into leaving or entering religion.

The court and the Constitution, being colour-blind, cannot get into “race”, religion, theology, DNA, and geographical origin or pendatang (outsiders) and orang asing (foreigners). Orang Asal (original people) and Orang Asli (aboriginal people), those unfamiliar, are about ancestral and historical property rights protected by Adat and the Constitution.

Discrimination

In law, Article 8 in Malaysia, there can be no discrimination save as provided by law i.e. there must be a sunset clause with an expiry date. The sunset clause can be removed before the expiry date but there can be no discrimination. There can be no law on extending the sunset clause. No one was above the law, all are equal before the law.

It can be argued, taking the cue from the plight of former Prime Minister Datuk Seri Najib Tun Razak in jail under arbitrary detention since 23 August 2022, that Malaysia may not be upholding the rule of law. It risks degenerating completely into the letter of the law, by itself, as law.

The current state of affairs in the court system and/or judiciary probably reflects the lack of skills among the legal fraternity for law practice and courtroom skills as the mentor system no longer exists. The blind may be leading the blind. The court’s hands are tied on the lack of skills. It can only rule on what’s placed before it.

The law schools are no help. They have long cautioned students that they don’t impart skills. Besides, it isn’t possible in jurisprudence for anyone to know the law.

NRD No Discretion

The NRD has no discretion on religion in the MyKad. It’s an abuse of power if NRD does not remove, upon correction form being duly filled by the holder, any religion from the MyKad.

Those who file cases in court, civil or syariah, on leaving religion and/or entering religion, may be barking up the wrong tree. The lawyers should know better.

NRD may also be handing out Malay MyKad allegedly in violation of the Definition of Malay as a “form of identity” in Article 160(2).

Muslims, habitually speaking the Malay language and born or domiciled in Singapore or Malaya by Merdeka, 31 August 1957, are Malay by “form of identity”.

In short, the Malay Definition was about Constitutional Malay.

Their descendants are Malay and practising Islam which came from outside.

The MyKad, as proof of identity, may have in fact collapsed and imploded after the 12 year war (1948 to 1960) against communism terrorism in Malaya ended.

The MyKad or IC (identity card) was introduced by the British to identify and separate the communist terrorists from the general population. In law, the birth certificate, entry permit secured by foreigners, or police report lodged by illegal immigrants on their status are first “proof of identity”.

Ironically, even PTI (pendatang tanpa izin or illegal immigrants) in Sabah, for example, may be holding blue MyKad (citizen). The 2013 Royal Commission of Inquiry (RCI) Report on Projek IC Mahathir refers.

The news gets worse. Article 160(2) on the Definition of Malay as a “form of identity”, and the related Article 153, Article 3, and Article 152 have all been rendered redundant since 1972 when the sunset clause in Article 153 ended. The related Order 92, Rule 1, of the Rules of the High Court 2012 (national language) was also redundant as Bahasa Melayu hasn’t been in official use since Bahasa Malaysia emerged, but not only as a term, after 13 May 1969. More on this shortly.

In law, Article 4 in Malaysia, if invalid laws remain in the books, they are still valid unless removed by the court or Parliament.

Bahasa Indonesia Not Bahasa Melayu

https://www.malaymail.com/news/malaysia/2024/02/12/bahasa-melayu-or-bahasa-malaysia-as-putrajaya-tightens-reins-on-national-language-linguistic-experts-argue-why-it-should-be-the-former/112951

The 127K word Bahasa Indonesia was the elephant in the room on Article 152. It can’t be said that the 20K word Bahasa Melayu, the 40K word Bahasa Malaysia and the 127K word Bahasa Indonesia are all one and the same language.

Bahasa Indonesia isn’t Bahasa Melayu spoken differently as backdoor Prime Minister (August 2021 to November 2022) Datuk Seri Ismail Sabri claimed during his time.

Ismail Sabri wanted Bahasa Melayu as the 2nd official language of Asean. Indonesia rejected the idea. English was the 1st official language of Asean. Indonesia concedes that even Bahasa Indonesia can’t be the 2nd official language of Asean as probably no one elsewhere speaks the language.

The 127K word Bahasa Indonesia, based on the 20K word Bahasa Melayu, has 107K loan words from other local dialects and languages, Dutch and English. Dutch words make up quarter of Bahasa Indonesia.

Bahasa Melayu as habitually spoken in Johor, Rhio, and Lingga was the national language of Malaysia as implied in Article 152.

Bahasa Melayu may be back in the pasar from where it came. It appeared in the Archipelago as Khmer dialect with loan words from Tamil, Sanskrit and Pali. Later, some Arabic loan words crept into Bahasa Melayu when Islam entered the Archipelago.

In a sentence of 10 words in Malay, according to Google, six to seven words are Sanskrit.

Bahasa Malaysia has taken over from Bahasa Melayu, unofficially, for official purposes. Malaysia has national language, albeit on paper, in Article 152. The existence of vernacular schools shows that Malaysia has no national medium of instruction. The vernacular schools have since become national schools as well. The students, who also come from non-Tamil and non-Mandarin speaking background, assure the continued existence of these schools.

Bahasa Malaysia Not Bahasa Melayu

It’s wrong to call Bahasa Malaysia as Bahasa Melayu.

Universiti Malaya linguist Dr Asmah Omar frequently cautions in the media that “the “Malay people and/or race will lose their identity if Bahasa Melayu was called Bahasa Malaysia”.

The Definition of Malay in Article 160(2) as “form of identity” does not speak of Malay nation and/or “race”.

There’s case law on Definition of Malay as “form of identity” from the High Court of Malaya . . . Petmal Oil (Malaysia) Sdn Bhd v Che Mariah Mohd Tahir (Trading As Delta Mec Enterprise) [1994] 3 CLJ 638.

Other Muslim in Malaysia are not Malay by “form of identity”. It’s abuse of power that the NRD hands out Malay MyKad for virtually every Muslim Tom, Dick and Harry even if they habitually speak Malay. The 1st Prong (Merdeka) and 2nd Prong (language and religion) in Article 160(2) should be read together.

In short, Muslim in Sabah and Sarawak and converts after Merdeka in Malaya are allegedly holding bogus MyKad listing Malay as “form of identity”. They should be in the Lain Lain (Others) category or stated as Dayak Sabah, Dayak Sarawak, Filipino, Indonesian, among others, in the language category.

In law, the Malaysian people and nation arises from the nation-state concept based on the rule of law in the Constitution. Bahasa Malaysia remains the Malaysian language.

“Race” can be explained.

All human beings — homo sapiens — have the same DNA separated from other species by genetic barrier of millions of years against procreation. Species, in short, implies procreation within itself. It’s misnomer that language, culture, and related areas are seen as “race”. There’s only one human race i.e. homo sapiens.

DNA was the warehouse for genes i.e. the instruction material for making the human being based on energy, intelligence and luck. There are no genes for blue, grey and green eyes and blonde hair.

The brown genes first disappeared in north India. That left the eyes exposed as blue, grey, green and the hair blonde.

Pigment cells are immune system phenomenon created by sunlight falling on the skin and causing stress. That creates more or less pigment cells. Pigment cells unleash melanin which prevents the eyes, hair and skin burning up in the sun.

Many people in the mountain valleys in north India have, until today, blue, grey and green eyes and blonde hair. They have fewer pigment cells.

Blue, grey and green eyes are not rare in other parts of India including in the south where people generally have more pigment cells. The people in the south came from the north.

Buddha for example, it’s often not known, had blue eyes, goldish hue complexion, and hair worn in small curls.

Article 8

The issue in Malaysia isn’t “race” and religion based on the MyKad. The issue arises from political personality cults promoting radicalisation based on religion, clannishness, tribalism and feudalism, under the guise of democracy, as euphemism.

The Constitution cannot go against itself.

In law, the majority means the number of lawmakers in Parliament voting for gov’t Bill.

If the number was less than 51 per cent of the lawmakers present in Parliament, the majority was clearly on the other side, being united on the Bill.

There’s no “race”, religion, colour, caste, gender or political parties in Parliament.

There are only lawmakers in Parliament elected by the majority in the constituency and pledged on serving all. If the lawmaker was elected by less than 51 per cent of the voters, there’s no consent of the governed, no legitimacy, and there has been loss of sovereignty.

In case where no one gets majority in a seat, based on practices in other democracies, there should be runoff between the top two contenders.

The seat belongs to the lawmaker. It comes under property rights protected by Article 13 (property rights), Article 5 (right to life), Article 8 (no discrimination) and Article 10 (free association).

In law, minority means the losing votes in a constituency.

In some democracies, the losing votes are tallied and given non-constituency seats in Parliament through parties which won no seats.

In law, Article 4 in Malaysia, an inferior law — read sunset clause, Sabah anti-hop law and 16 Kelantan syariah, among others — was null and void by the extent of inconsistency with the superior law.

Article 153 became redundant in 1972 when the 15 year sunset clause — it was removed after 13 May 1969 — ended.

Other Articles which have been rendered redundant are related and facilitating Articles viz. the Definition of Malay as “form of identity” in Article 160(2), aberration in law Article 3 (Islam), Article 152 (national language) and Order 92, Rule 1 (national language) of the Rules of the High Court 2012. — NMH

#malay #redundant #discrimination #identity #constitution #court #NRD #parliament #DNA #genes #MyKad #communist #police #foreigners

The post NRD Enabling Religious And Racial Discrimination first appeared on NMH.

MACC has announced the recovery of property and other assets from 1MDB, the state fund at the centre of a multibillion-dollar corruption scandal across multiple countries and jurisdictions.

The latest recoveries, which took place from 2023 until this month, are worth more than 23.9 million ringgits ($5m), the Malaysian Anti-Corruption Commission (MACC) said in a statement on Thursday.

They followed the trial and conviction of former Goldman Sachs banker Roger Ng who was jailed by a New York court last year for his role in the scandal.

KEEP READING

The scale of the corruption at the fund, which was established to boost economic development, fuelled a backlash against the government of then-Prime Minister Najib Razak that saw his party lose power for the first time in Malaysian history in elections held in 2018.

The MACC said the latest recoveries came from a former 1MDB employee as well as through voluntary surrender by five individuals, including 4.55 million ringgits ($954,679) from Amhari Effendi, a former special officer to Najib.

The authorities also seized three condominium units worth 7.05 million ringgits ($1.5m) from Mohammad Kamal Yahya, who was a foreign affairs adviser to Najib, as well as assets in Malaysia and Singapore worth 11.75 million ringgits ($2.5m) from associates of Jho Low, the Malaysian financier who is now a fugitive.

Ng was jailed for 10 years in the United States but was allowed to return to Malaysia to assist authorities in their investigations and to recover more of the money that was lost.

Investigators in the US and Malaysia estimate at least $4.5bn was stolen from 1MDB and instead used to finance luxury lifestyles and the production of the Hollywood movie The Wolf of Wall Street.

Najib was jailed in August 2022 in the first of multiple cases related to the scandal, becoming the first Malaysian prime minister ever to be put behind bars. However, it is to be noted, that this is not due to 1MDB but the SRC International case.

Last week, Malaysia’s pardons board announced that his 12-year sentence, for the SRC International case, had been halved and his fine slashed from 210.5 million ringgit ($44.2m) to 50 million ringgit ($10.5m), in a decision that was greeted with dismay by some Malaysians. It also brought hope to Najib’s supporters who believed that he was a victim of political persecution as there were high levels of discrepancies in the court processes including discounting pieces of evidence.

The post Malaysia has recovered $5m of stolen 1MDB assets over the last 13 months first appeared on NMH.

KUALA LUMPUR – Let’s admit it, are you as baffled about 1MDB as the rest of the world? The spillovers from this case, which traversed thousands of miles, have not only brought about a couple of books published about it, but movies too.

The trials that are part of the 1MDB case network have been going on for years, some as far back as five years ago. Suspects have been apprehended, some have been tried, others have been incarcerated – whether lawfully or otherwise, while a few others who were allegedly involved have been let loose to either remain in hiding or have fun with their ill-gotten gains.

More importantly, efforts have been made to recover the monies and assets purportedly stolen from 1MDB, while the debts associated with 1MDB (take note that these debts include the principal amount and exacerbated with high interest and the prevailing exchange rates) have reportedly been almost paid off.

1MDB Debt Almost Settled

According to Deputy Finance Minister 1, Datuk Seri Ahmad Maslan, the 1MDB issue is ‘almost resolved’, with RM5.15 bil outstanding debt.

Additionally, media reports have indicated that as of March this year, around 70% of stolen 1MDB assets and funds have been recovered.

Malaysian Anti-Corruption Commission (MACC) chief Azam Baki said that overall, the MACC has recovered RM28.93 billion (S$8.73 billion) worth of 1MDB assets and funds. 

“We estimate around 70 percent of the assets and funds have been recovered,” Azam Baki disclosed, as quoted by The Straits Times.

Let’s look at the 12 facts about 1MDB that hopefully will get you thinking about how this convoluted web of corporate shenanigans first started (part 1). In Part 2 we will take the 12 facts beyond the shores of Malaysia and traversed to other parts of the world where the mastermind, fugitive businessman Low Taek, or Jho Low, and his team, play a major part in.

The 12 Facts About 1MDB (Part 1):

1. Setting Up Of TIA (Terengganu Investment Authority): Initially established in 2009 as an entity owned by the Terengganu government, the Terengganu Investment Authority (TIA) was later renamed as 1MDB.
2. Jho Low Planned It For Two Years Before 1MDB Was Set Up: According to a witness in the 1MDB trial, Joanna Yu Ging Ping, a former relationship manager of AmBank, Jho Low had informed the bank that his team was looking to set up a sovereign wealth fund (the predecessor of 1MDB) to raise funds to develop Terengganu, two years before it was officially formed in 2009.
3. Focus On Development & CSR Activities: 1MDB’s new Mandate included donations for CSR (corporate social responsibility) activities, which made their way into Najib’s accounts who then thought the funds were for CSR and political donations, originating as donations from the Saudi King.

4. Sharol Was CEO OF 1MDB: Then CEO, Sharol Azral, managed 1MDB. Najib was the chairman of the board by purview of his Finance Minister role and WAS NOT privy to day-to-day operations. Shahrol was virtually taking orders from international fund manager Jho Low, now fugitive, who allegedly name-dropped Najib’s name all over the place. During questioning at the trial, Shahrol said he had not briefed Najib or anyone from the Ministry of Finance at the time on the finer details of the joint-venture proposal with 1MDB by Aabar BVI.

5. The Role Of Goldman Sachs: US investment bank, Goldman Sachs raised unverified billions in 1MDB bond monies. DoJ discovered US$4.5b was diverted for probably nefarious purposes. In May and October 2012, it helped 1MDB sell bonds worth $3.5bn to raise money to buy power assets, while in March 2013, it helped raise a further $3bn in an additional bond sale, this time to cover “new strategic economic initiatives” between Malaysia and Abu Dhabi.

6. 1MDB’S Failure: Rival politicians manipulated 1MDB news and Najib was made the scapegoat. Facts were twisted suggesting that 1MDB’s failure was due to Najib when in actuality, rogue elements allegedly diverted monies into various dubious accounts.

7. The IPO Failure: Although 1MDB had more assets than liabilities, due to bad press, the IPO failed. Today, its biggest asset, the TRX Exchange, has proven to be a major success and an income generator. It is set to become KL’s most dynamic lifestyle destination.

8. The Detention of Najib: RM42M SRC International case (not 1MDB), which is full of irregularities, was used to convict Najib. Indeed, it was a black day for justice in Malaysia.

9. Discharge & Acquittal: Federal Court Review Panel Head Judge ruled DNA (discharge and acquittal) for Najib. He held that it was unfair for the former prime minister to pay the price for the mistakes made by his counsel in the SRC International Sdn Bhd appeal hearing. In his decision, Justice Abdul Rahman said that the previous bench should have let the applicant (Najib) address the bench first before the prosecution made its submissions.

10. Johor Sultan: The Sultan of Johor (Malaysia’s next King), has publicly expressed that Najib should be released if more people don’t join him. He had decreed that either Najib should be released or more people should join him in jail. The Sultan implied that dictatorial former Prime Minister Tun Mahathir Mohamad — “someone who was in power for 24 years” — should be in jail as well.

11. Harbeas Corpus/Pardon: Former COA Judge Hamid Sultan Abu Backer, expressing dismay in a recent op-ed on the SRC case, advised that the Najib family file an Application for habeas corpus and/or Petition for Pardon with the Conference of Rulers.

12. United Nations Review: Najib awaits UN Review by Christmas on arbitrary detention. The UN would find the SRC case incomplete and can only call for 2nd Review. The high-powered UN Review Panel would discover — read based on self-evident facts — that there was no closure on Najib’s RM42m SRC International case.

Look out for Part 2 where we give you more facts to blow your mind. – NMH

The post 12 Facts About 1MDB That May Blow Your Mind (Part 1) first appeared on NMH.

KUALA LUMPUR — In San Francisco last week, Malaysian Prime Minister Anwar Ibrahim was eagerly promoting his country, known as a Southeast Asian manufacturing hub and major commodity exporter.

“Malaysia and ASEAN are the most stable and vibrant places to invest, and I look forward to meeting you individually in Malaysia,” he said at the APEC CEO Summit. “I think we are on the right track to propel the economy of our country in the next few years.”

But as his government marks its first anniversary this week, political observers say mounting challenges may pose hurdles for Anwar to achieve economic and fiscal reforms that are necessary to create a more robust environment for the country’s future growth.

Meeting with representatives from tech giants such as Google, Microsoft and TikTok during the U.S. trip, he expressed Malaysia’s commitment to providing a speedy approval process for all investors.

“Hopefully, the meeting with all these giant companies can bring benefits to the country and the people as a whole, God willing,” he wrote on Facebook.

However, the domestic economy faces headwinds. The July-September gross domestic product data released last Friday showed that exports declined 12% from a year earlier, weighing on overall growth. Rising food prices and the falling ringgit currency, which hit a 25-year low last month, have also affected many businesses and households.

Anwar, a longtime opposition symbol who is now 76 years old, became Malaysia’s 10th prime minister on Nov. 24 last year after his Pakatan Harapan coalition won the general election that month. Forming a ruling coalition that he calls the “unity government,” he promised institutional and economic reforms.

Anwar 5th PM in less than five years

Malaysia had been politically unstable for years. Anwar is the fifth prime minister in less than five years, after Najib Razak (2009-2018), Mahathir Mohamad (2018-2020), Muhyiddin Yassin (2020-2021) and Ismail Sabri Yaakob (2021-2022). As such, Anwar’s victory raised hopes for a period of stability and progress at a time when Malaysia was recovering from the pandemic.

“For the first time I see a prime minister that Malaysia can be proud of when he goes overseas. He raises the name of the country,” said Kishan Buxani, a 26-year-old voter from Penang.

Indeed, there was a sense of a breath of fresh air when Anwar first took office. The stock market rallied in the first few months, and the ringgit strengthened to 4.24 per dollar in February. According to the local pollster Merdeka Center, Anwar enjoyed a high approval rating of 68% in that month.

However, Anwar’s first year has been a balancing act, with the prime minister grappling with economic woes, political tensions and the lingering effects of the pandemic while striving to deliver on his ambitious reform agenda.

The government has introduced the New Industrial Master Plan 2030, which includes a target of boosting the manufacturing sector’s GDP by 6.5% annually through 2030, and the National Energy Transition Roadmap, which seeks to restructure the economy, achieve sustainable growth and ensure an equitable distribution of wealth.

Statistics show some positive developments in his first year. The government received 132 billion ringgit ($28 billion) of direct investment in the first half of 2023, achieving 60% of this year’s target of 220 billion ringgit. According to the local think tank MIDF Research, the unemployment rate maintained a post-pandemic low of 3.4% in September, with the youth unemployment rate falling to 10.6%.

Global Economic Downturn

But Anwar’s government was not spared from the global economic downturn. The World Bank in October downgraded Malaysia’s economic growth for this year to 3.9% from an earlier projection of 4.3%, compared to 8.7% in 2022 and the pre-pandemic years’ 4% to 5%, citing a significant slowdown in external demand.

The ringgit is the worst-performing currency in the region this year, falling by more than 5% against the greenback and hitting its lowest value in 25 years, at 4.792 per dollar, on Oct. 23. About 4.19 billion ringgit flew out of the Malaysian equity market during the first half of 2023, according to MIDF Research.

“As an oil exporting country, exposure to oil price shocks and vulnerability to sudden and sizable capital outflows are the main factors that likely explain why the Malaysian ringgit stands apart” compared with other Asian currencies, the World Bank said in the October report. Economists say a widening interest rate gap with the U.S. and the slowing economy of its key trading partner, China, are also among the factors in the ringgit’s depreciation.

Several business owners and small traders in Kuala Lumpur told Nikkei Asia that the weak ringgit has affected their supply of food items and other goods and increased overhead costs due to their dependence on imported goods, equipment and services, adding to the global inflation that has in turn affected Malaysia.

Small Businesses Affected

Wong Mee Fang, a 70-year-old owner of a vegetarian food stall in the city of Petaling Jaya, west of Kuala Lumpur, says the rising costs of rice and other materials have severely affected her business, forcing her to raise prices. The retail price of imported rice was raised 36% in September, reflecting a global price surge.

“Business has been rather uncertain. It is more difficult for vegetarian food stalls like mine,” Wong told Nikkei Asia. “I know the government is trying [to address food inflation], but the rising food prices over the past year have affected many of us, especially small businesses like ours. I’m not sure how long I can continue.”

While these economic issues have caused dissatisfaction among Malaysians, Anwar is also feeling pressure on the political front.

Currently, he enjoys support from two-thirds of the members of the 222-seat House of Representatives, including 147 from the ruling coalition and four opposition lawmakers who recently announced they will support his government.

But local elections held in six of the country’s 13 states in August resulted in a blow to the prime minister, with the ruling coalition losing about 30% of its state assembly seats. The Islamist and right-leaning opposition party Perikatan Nasional increased its inroads into his coalition’s strongholds.

Bridget Welsh, an honorary research associate at the University of Nottingham Asia Research Institute Malaysia, explained that the outcome of the state elections highlighted his weakness among Malay voters and placed his government at risk of losing its non-Muslim base that voted for tolerance and moderation.

“Few recognize him as a reformer, and even fewer see a commitment to reform in his first year,” Welsh said, adding that the current political stability was achieved at the cost of any meaningful reform and a betrayal of trust. In September, the country’s authorities dropped corruption charges against Deputy Prime Minister Ahmad Zahid Hamidi, the leader of a key partner in the ruling coalition, which raised questions over Anwar’s pledge to fight corruption.

“Anwar was supported for what people believed to be statesmanlike leadership and the hope for a clear vision of governance for the country. Neither have yet to materialize. A focus on trying to look good personally rather than actually laying out a clear program and governing has hurt Anwar’s government performance,” Welsh added.

Anwar’s government did introduce several reforms, including the repeal of the mandatory death penalty, decriminalization of suicide attempts, and rationalization of government agencies and departments to improve efficiency.

Anwar, who doubles as the finance minister, last month vowed his commitment to fiscal reforms. “Hence, reforms need to be implemented, notwithstanding that it may be an arduous and challenging process,” he said in his speech for the 2024 draft budget, referring to expanding the revenue base, implementing targeted subsidies and eradicating corruption and malpractice.

As his government enters its second year, Anwar must start delivering on his promises more, according to James Chin, a professor in Asia studies at the University of Tasmania.

“A lot of people don’t believe that he can do it, and that is why you can see the fall of the ringgit and you see the stock market is restless,” he argued. “He has to put in policies that will pay off in one or two years’ time. So time is running out for him.” – Nikkei Asia

Editor’s Note: This article was originally published in Nikkei Asia on November 21 2023.

The post Anwar Struggles To Boost Malaysian Economy A Year After Victory first appeared on NMH.

The resignation of UK Prime Minister Liz Truss on Thursday, 20 Oct, just six weeks after having been sworn in has given emphasis that for Malaysia’s GE15, it is imperative that the winning coalition or party be capable of stabilising the economy.

Liz Truss took her pledge of office on 06 Sept after Boris Johnson was forced to resign in July. Prior to taking office as the PM, she was the Secretary of State for Foreign, Commonwealth and Development Affairs of the United Kingdom (2021 – 2022).

Her credentials are no less impressive, yet she failed, bringing down the Conservative Party with her for being the shortest-serving PM in the history of the United Kingdom. In the six weeks she was in office, as much as she tried, she was getting nowhere. In fact, things were getting from bad to worse.

Where is the Hope?

For me, this is like deja vu like when we just came back to Malaysia in 2018, weeks after the Pakatan Harapan (PH) government came into being. It was like coming back to a disaster zone, and I was thinking: Where is the ‘Harapan’ (hope)?

Apart from the massive job layoffs, dragging opposition politicians to court to prosecute them without following the rule of law, lies unto lies about our national debt and spendings by the previous administration, the PH government also took on what everyone was calling as The Great Malaysian Sale. Scores of government assets were sold off en bloc, mostly to foreign entities. These assets were actually making profits, thus the government was going to lose out on the potential earnings.

Apparently, PH sold off almost RM30b worth of national assets within 500 days of taking power as the chart below has listed.

That is why I was so surprised when I came across this article in FMT recently quoting Professor Geoffrey Williams who said, among other things that a PH win will appear more stable as they have a clear, united prime minister and finance minister team.

To tell you the truth, I was gobsmacked when I read this and wondered where the learned professor was during the 22 months of PH rule. I was then inspired to seek the comments of a Professor of Economics, Dr Wong Chin Yoong from Universiti Tunku Abdul Rahman (UTAR).

A Unique GE15

According to Prof Wong, GE15 is going to be unique on several fronts.

“For the very first time we have all the major contending alliances (I mean BN, PH and PN) with administrative experiences, and the electoral atmosphere is apparently different from GE14. Enthusiasm for PH is lesser, and criticism of BN is less intense.

“While the electoral outcome is hard to be judged a priority, it seems more likely, at least at this point of time, that no alliance is going to win a strong majority, and that post-election political bargaining and coalition becomes more likely,” Wong said.

He added that this brings to some important implications on policy making: Don’t expect political and policy stability from a strong ruling alliance. The era of strong majority/strong government/strong man politics is over.

Policy Arrogance

“This is probably good for the economy, as political monopoly typically ends with policy arrogance and mistakes with less ability for self-correction.

“That doesn’t mean we can’t have a good policy in such a political reality. As a matter of fact, a more balanced distribution of political powers means policy made by post-election political coalition will better reflect the needs of different segments of society. It also means that we are going to have a more decent opposition with stronger voices for check and balance in policy formulation and implementation,” he added.

In short, Prof Wong opines that power-sharing among alliances with effective checks and balances from the opposition, rather than a strong government/strong man politics, shall be the road to stability and prosperity ahead for Malaysia.

We shall learn from the mistakes of Truss’s government, but carefully. It is not about engaging in budget deficit. One shall not cry wolf on government debt, claiming that the financial market chaos is all about government debt. Because it is not.

Lessons to be Learnt

He pointed out two core lessons from Truss’s mistake:

1. Never forget about being and showing fiscal sustainability. The market reaction was neither about the temporary spending on energy-saving bills nor tax cut, but a tax cut without being serious about its financing. All the plan miraculously hopes for is the growth that follows tax cuts. The market just didn’t buy it.
2. Ignoring economic reality at its political perils. The interest rate is on rising cycle, and ordinary people are suffering from soaring energy prices. And yet, the plan pledges more tax cuts for the rich, funded by more borrowing on the rising cost. It doesn’t make any political sense.

NMH‘s feature writer on finance and economy, Zam Yahaya chipped in with his opinions too.

“It’s simple, really. On things that you are not certain of, look at the track record. In this case, look at Najib Razak’s track record both during the crisis as well as during other times.

“Not even Mahathir can match it. The latter failed at least three times during his 22-year rule to manage the impact of the economic crisis. Not to mention the domestic mess created during his time such as BMF, Maminco, FOREX scandal losses to name a few which directly, and indirectly, had a serious negative impact on the national economy then.”

Zam added that different alliances that ruled before did bring both good and damage to the economy. At the end, it is the policy and institution that matter to the economy, not the party.

Marked Differences

As for me, I would like to say this: if you take 22 months of PH rule and any 22 months of BN rule, we can tell the marked differences.

Even if they claim that PH had to inherit massive debts and service the 1MDB loans, we must always remember that PH themselves destroyed any potential of 1MDB recovering any losses via an IPO which they sabotaged.

They were sabotaging the country’s economy prior to GE14, and when they took over they were clueless about what to do and dug a bigger hole. Should we trust such people ever again? After all, our national debt has really reached over 1 trillion now (see poster).

What are PH lawmakers going to do about it if they were to take over the country again? Sell more assets until the country is left with just skin and bones?

Vote wisely, people of Malaysia. So much is at stake right now. – NMH

About the writer: Carole Raymond Abdullah is a freelance writer who used to domicile in Hongkong for many years. She is now back in Malaysia, totally surprised at the turn of events in the country lately.

The points expressed in this article are that of the writer and do not necessarily reflect the stand of the New Malaysia Herald.

The post GE15: Who Can Really Stabilise The Malaysian Economy? first appeared on NMH.

KUALA LUMPUR — Two million youths aged 18 to 20, and full-time students aged 21 and above, will receive the benefits of the E-Pemula, an e-wallet credit programme, as its one-off credit will be increased to RM200 next year.

When tabling the Supply Bill 2023 in the Dewan Rakyat today, Finance Minister Tengku Zafrul Abdul Aziz stated that the programme will continue, involving RM400 million in allocation, an increase from the original amount of RM150, as part of improvement efforts.

Reactions to the announcement have been mixed, as some on Twitter have praised the increased but prefer a wage increase or basic income over an e-Pemula increase.

Furthermore, he stated that the Social Security Organisation (Socso) employment initiative will be provided to employers who hired youths aged 18 to 30, who had been looking for work for more than three months.

This initiative is also extended to employers who hire graduates of Technical and Vocational Education and Training (TVET).

“To encourage more young people to do business, a total of RM305 million will be provided as special loan facilities for youths through SME Bank, Tekun (National Entrepreneur Group Economic Fund), Mara (Majlis Amanah Rakyat), BSN (Bank Simpanan Nasional) and Agrobank,” he said.

Furthermore, the Finance Minister stated that RM50 million will be provided through BSN for the Skim Penjaja Muda Keluarga Malaysia, which provides loans of up to RM50,000 to ten thousand young people to generate their own income, such as operating a food truck business.

Tengku Zafrul stated that the government agreed to bear the licence fee under the MyPSV programme, as well as the B2 class motorcycle driving licence fee, to assist B40 youth who generate income through services such as taxis, buses, and e-hailing.

“To encourage youths to work, the Tekun Youth Mobilepreneur Scheme continues, with an RM10 million fund to finance the capital of young individuals involved in delivery services using motorcycles,” he said.

Meanwhile, he also announced that the Malaysian Family Youth Package, which helps youths get a pre-paid internet data plan subscription package for RM30 for a period of three months, has been extended until April 2023. — Bernama

More to come …

The post Budget 2023: E-Pemula Credit Increased, Gov’t To Pay E-Hailing Licence Fee first appeared on NMH.

The ongoing Debate in cyberspace, sparked inadvertently by Joseph Pairin Kitingan’s supporters on the Governor of Sabah, and Sarawak as well, has somewhat degenerated into rhetoric and polemics between lawyers and non-lawyers on only one issue . . . the appointment of the regional head of state based on the unwritten discretion of the heads of governments in Sabah, Sarawak, and Malaysia and the Agong as head of state.

Discretion may be a double-edged sword. If it can be used to appoint a Muslim as Governor, it can also cover non-Muslim as Governor.

The Orang Asal have a right to be head of state in their own land. In Adat, customary practices which have force of law, only those who have NCR (native customary rights) land, i.e. ancestral and historical property rights, are Orang Asal. Article 5 (right to life) and Article 13 (property rights) refer.

In law, and on ethical and moral grounds, the Agong cannot delegate his role and functions as spiritual head of the local ummah to the Governors in Sabah, Sarawak, Penang and Malacca. Any such delegation would be a violation of the rule of law, the basis of the Constitution. Spiritual power and temporal power — i.e. worldly power — are not one and the same.

In Malaysia, there’s separation of Church and State in the Constitution, Federal and state.

There can be no law against non-Muslim being Governor in the non-sultanates and there can be no law making Muslim Governor mandatory. In fact, as during British days, sultan should not be head of state as well, but confine themselves to the original role recognised by Arab and Islamic history and the English Monarch.

Pairin Proposed To Be New Governor

Former Sabah Chief Minister (1985 to 1994) Joseph Pairin Kitingan has been proposed unanimously by the court of public opinion — it’s all about cases in court or what should be there — and the social media and various political personalities as the next Governor of the Territory.

In Sarawak, former Federal Minister Leo Moggie Anak Irok and local traditional strongman Leonard Linggi Jugah, have both been mentioned as possible candidates for the Governorship. Linggi is the son of Paramount Chief Temenggong Jugah Anak Barieng who, in hindsight, threw cold water on Malaysia in 1963 but went along anyway. He cautioned that Malaysia would probably turn out to be like sugar cane, “sweet in the beginning, less sweet towards the end” . . . Jangan Malaysia seperti tebu, manis di pangkal, tawar di hujung.

It may be politically inadvisable, and incorrect, if non-Muslim continue to be denied the Governor’s post after so much water has passed under the Bridge since Malaysia Day on 16 Sept 1963 i.e. after more than half a century.

Unlawful

It’s unlawful to literally force a non-Muslim to become Muslim to be Governor. It happened in the case of Donald Stephens in Sabah and Luis Barieng in Sarawak. The argument has been made that a non-Muslim can convert to become Governor, although there’s no law on it, and return to the original religion after leaving office. That’s hypocrisy of the highest order. The talk in Sarawak is that Luis Barieng remained a staunch Roman Catholic all his life. It’s said that he used to go to the garden house far from his home in the village to recite the Holy Rosary of the Blessed Virgin Mary in solitude.

After Stephen Kalong Ningkan was ousted in 1966 as Chief Minister, under Emergency Declaration, no non-Muslim except for Penghulu Tawi Sli briefly, has been Chief Minister. In fact, the people have lost their sovereignty under international law, as the Sarawak government remains unchanged since Ningkan and Tawi Sli. In adding insult to injury, in the absence of runoffs, the majority of election results in Sarawak have never been perfected in law. Many candidates were declared winners although they came in with less than 51 per cent of the votes counted. Unlike in the United Kingdom for example, the First Past the Post System (FPtPS) fell on undemocratic soil in Sarawak, Malaysia and Singapore since elections in these Territories have generally not been on a one to one basis.

Chinese Moneybags

In Sabah, no non-Muslim has been Chief Minister since Pairin was ousted in 1994 by three defections to the other side. It was engineered by Chinese money bags (names withheld) in Sarawak and Labuan, within about a month after the territorial election in Feb 1994, in cahoots with Mahathir Mohamad and Anwar Ibrahim.

The religion of the holder has nothing to do with various public posts in Malaysia . . . Attorney General of Malaysia, Chief Justice, Chief Judge of Sabah and Sarawak, Attorney General of Sabah, Attorney General of Sarawak, Prime Minister, Chief Minister of Sabah, Premier of Sarawak and Agong i.e. if elected by the people.

It has been argued that the Prime Minister will not advise the Agong that non-Muslim be appointed as Governor of Sabah or Sarawak. It’s widely believed that the Agong will not appoint non-Muslim as head of state in the Borneo Territories. In law, that’s not true. Again, the Agong is the spiritual head of Islam for the local ummah in Malaysian Borneo, Penang and Malacca.

The Agong, as sultan, is the spiritual head of the local ummah in his sultanate but not in Malaysia. The other sultan are the spiritual head of the local ummah but only in their own sultanate.

British Administration

During the British Administration of Malaya, the sultan was recognised by the English Monarch as the spiritual head of the local ummah, presiding also over Malay language, culture, customs and traditions. Interestingly, Article 160(2) of the Constitution contradicts itself on Malay. The 1st Prong implies the local ummah. The 2nd Prong, the greater clause which must be read together with the 1st Prong to issue Malay MyKad, implies Malay as “form of identity”. There’s case law on this . . . Read Petmal Oil (Malaysia) Sdn Bhd v. Che Mariah Mohd Tahir (Trading As Delta Mec Enterprise) [1994] 3 CLJ 638. Mahathir, for example is Malay by form of identity, but Indian (Malayalee) by language and culture. In jurisprudence and constitutional law, the Constitution of a nation-state is colour-blind.

Besides the English Monarch, there’s no proof that any other head of state — whether non-Muslim or Muslim — recognised the sultan in Malaya. The British controlled defence, internal security and foreign affairs as well besides Internal Administration.

It was the British who stopped toll collection along the main waterways in Malaya and created the sultanate as territorial states. The British could not comprehend a situation where the Ruler did not have Territory to rule. The sultanate, before the British intervention in Malaya, were kerajaan sungai — riverine “kingdoms” — confined to collecting toll at the rivermouth of main waterways. The British compensated the newly-elevated sultan with annual purses after toll collection was abolished by them and roads and rail built.

European Arbitration

In digressing a little, the Attorney General should cite the rivermouth kingdoms in Malaya, before European Arbitration, to demolish territorial claims by the Sulu Heirs. European Arbitrators, like the British colonialists, probably cannot envisage a situation where a Ruler does not rule over Territory. In 1939, the High Court of Borneo in Sandakan dismissed territorial and sovereignty claims by nine heirs of the last Sultan of Sulu. The High Court recognised compensation claims, 5300K Spanish dollars every year, for loss of toll collection along the main waterways along the eastern seaboard. The 1939 Ruling was based on the 1878 Deed between the Sulu Sultan and the British North Borneo Standard Chartered Company (BNBSCC). The BNBSCC had a Charter from the English Monarch to rule North Borneo on his/her behalf.

Parliamentary Oath

The Parliamentary Oath is proof that non-Muslim can be Sabah Governor and Sarawak Governor. Besides the Constitution, there’s no reason why the Oath cannot be taken on any other document or even one’s own Mother, provided it’s about upholding the rule of law. In the UK for example, the Oath need not be taken on the Holy Bible. There’s no written/codified Constitution in the United Kingdom of Great Britain and Northern Ireland.

It cannot be said that the Governor, whether in Borneo or Malaya, is the spiritual head of the local ummah. Again, it’s only the sultan that plays that role and function in Islamic and Arab history.

The Oath in the legislature is about upholding the rule of law, the basis of the Constitution. It’s a bundle of contradictions if the Sabah Oath taken by the Governor mentions defending Islam and the rule of law in the same breath.

Islam does not accept the rule of law, freedom of conscience, free speech, free thought, free association, free assembly, free press, free women, human rights, and the universality and commonality of citizenship. The list goes on and on.

Law cannot be read in isolation but must be read together in conjunction with many other Articles, written, implied, inherent or permeating through the Constitution, Federal and Territorial.

In the rule of law, no one is above the law, all are equal under the law, there can be no discrimination, and where there are rights, there must be remedies.

Spirit of the Law

In the rule of law, there’s greater emphasis on the spirit of the law, albeit read with the letter of the law. The letter of the law, by itself, isn’t law at all. It’s dictatorship. There’s no democracy, no legitimacy. The letter of the law, by itself, is rule BY Man, the law of the jungle as in China where anything goes. In China, under rule BY law, they make up things as they go along.

Discretion as Excuse

Discretion, on the part of the Chief Minister, Prime Minister and Agong, should not be used to prevent Joseph Pairin Kitingan from being the next Governor of Sabah. Again, in reiterating, the same discretion can be cited in appointing him.

Discretion isn’t law. The court has no jurisdiction on discretion i.e. it’s not a matter for judicial consideration and resolution.

The court of law is only about law.

Under the Malaysia Agreement 1963 (MA’63), 20 Points (Sabah) and 18 Points), Sabah and Sarawak have no religion.

Batu Sumpah, the constitutional document in stone, in Keningau, Sabah, also says that Sabah has no religion.

Muslim always being Governor of Sabah and Sarawak isn’t Convention — the working of the Constitution — but an aberration in law.

The Governors of Sabah and Sarawak before Malaysia Day, 16 Sept 1963, were non-Muslim. – NMH

About the writer: Longtime Borneo watcher Joe Fernandez keeps a keen eye on Malaysia as a legal scholar (jurist). He was formerly Chief Editor of Sabah Times. He is not to be mistaken for a namesake previously with Daily Express. References to his blog articles can be found here.

The points expressed in this article are that of the writer and do not necessarily reflect the stand of NMH.

The post Joseph Pairin Kitingan Poised In Historic Take As Sabah Governor first appeared on NMH.

Although there may have been no volatility in ringgit Malaysia (RM) since Russian President Vladimir Putin
resolved, on Thurs 24 Feb 2022, to end the civil war in eastern Ukraine, the Malaysian currency continues to fall steadily. The Bank Negara Governor must be SACKED, like Finance Minister Anwar Ibrahim in 1998, if the ringgit declines from USD1 to RM5. The excessive speculation in RM, even if there’s no volatility, must be discouraged so that morale remains high and USD1 to RM5 can be avoided!

We need the brightest and best, from around the world, to lead the way for all. The times have changed since the Pandemic came in late 2019. The riff-raff can no longer use the politics of their sheer numbers and voting for a living — and probably not paying taxes — to squat on the brightest and best working for a living and paying taxes. Read here.

Paper money is intrinsically worthless i.e. it can’t be eaten on its own. It’s the idea behind it, i.e. public confidence, that gives it value. For example, if a seller accepts RM10 for goods and services provided, it’s in the belief that a third person will accept the same RM10 in exchange for other goods and services. The number of times the same RM10 circulates, i.e. exchanging and going from one hand to another, shows the velocity of circulation. It’s the velocity that makes up the amount of money in circulation.

If there’s too much money in circulation, and the demand for goods and services exceeds supply, there will be inflation. The government must focus on supply side economics to bring about a balance in the economy i.e. supply and demand being at an equilibrium.

Sanctions Hit RM Hard

Washington’s imposition of sanctions against Russia, particularly in the use of the US$, has affected Malaysia in more ways than one. It has disrupted the global supply chain and international logistics, already reeling from the effects of the two-year-long Pandemic brought by the novel Coronavirus.

If there’s no need to peg the ringgit to ensure no volatility, the steady fall in the currency must be addressed. In the present forex market, there’s a case for pegging the ringgit within a narrow range . . . US$1 to RM4.40 and US$1 to RM4.60 to discourage further speculation. This will help prevent the RM from falling further from USD1 to RM5 unless Bank Negara isn’t against continued speculation and depreciation. In that case, the gov’t must be prepared to double annual subsidies to RM140b from the present RM70b and announce COLA (cost of living allowance) for all workers. It has been said that even RM70b is unsustainable.

The USD falls as speculators unwind positions, rises as they build up positions. Very few probably make money since speculation may be all about gambling. Many may even lose by not speculating in the forex market or stock exchange.

The return of tourism to the pre-pandemic levels and foreign investments in the stock market — i.e. if they can make capital gains — will see the ringgit gain against the USD and SGD. FDI (Foreign Direct Investment) inflows will also help with the exchange rate.

Bring Back Assets Abroad

GLCs and GLICs must be encouraged to bring back assets abroad and invest in the local stock market. The act of bringing back assets abroad will increase demand for the ringgit and help strengthen against the USD. Shares in the local market are already at rock bottom. This has affected companies which pledged their shares as collateral for loans. These companies should consider buying back their own shares and even delisting and going private before listing again. Short-term money flows into the local market, also called hot money, should be levied tax if they exit within three months.

The M’sia My 2nd Home Programme and M’sia Global Centre of Educational Excellence Policy could also help bring in valuable foreign exchange on a long-term basis.

Malaysia needs renewed emphasis on the English language. It’s counter-productive to play politics with Bahasa Melayu as the national language. Prime Minister Ismail Sabri’s decision to speak in Bahasa Melayu at the UN shows that he’s stubborn, recalcitrant, incorrigible and hardcore. Even Tamil-speaking Indian Foreign Minister Subrahmanyan Jaishankar, for example, spoke in English at the UN although 650m people in India speak Hindi as their mother tongue. Hindi and English are official languages in India. India has the largest number of English speakers in the world.

Indonesia has already rejected the adoption of the 20K Bahasa Melayu as the 2nd official language for Asean i.e. after English. In Malaysia itself, Bahasa Melayu fell into official disuse by 1969 when the 40K Bahasa Malaysia emerged. Indonesia has also declared that Bahasa Malaysia and Bahasa Indonesia are not Bahasa Melayu — Johor Lingga Rhio version — and vice versa. Indonesian Ministers, including President Joko Widodo, speak far better English than Ministers in Malaysia.

Singapore Gov’t

The status of the RM in the forex mart also depends on the S’pore gov’t which doesn’t want the M’sian currency to be too far from the SGD. Otherwise, the S’pore economy would be affected. When the ringgit started dropping from SGD1 to RM1, the media used to openly blame S’pore. Already, the RM continues to drop against the USD but by not so much or appreciates against the SGD, Sterling and other currencies.

S’pore is an international financial centre and also holds the Asian dollar market. The Euro dollar market was started by the old KGB in the USSR.

The 25m Chinese diasporas in Southeast Asia invest in S’pore as a safe haven. Much of the property in S’pore is held by the Chinese diaspora in Southeast Asia. It has contributed to GDP growth and maintained prices and values.

The exchange rate and the stock market are not the real economy i.e. creating wealth through the production of goods and services. They are speculative activities.

Outdated Methods

Bank Negara can take the cue from former Harvard University Economics Professor Dr Subramaniam Swamy. He has interesting YouTube videos on economics and economies. He sees India as pacing the US, not China, in the race to the top. Most of the innovation in the US, according to Dr Subramaniam, comes from Indian-American and Indians from India.

He argues that savings, investment, cheap labour and FDI were outdated methods of managing the economy. He points out that 60 per cent of the growth in US GDP comes from innovations i.e. new ways of doing old things.

He advocates the Indian gov’t printing more money and giving it directly to the people to eradicate the 26 per cent still living below the poverty line in India. New money in the people’s pockets will not result in inflation, argues Dr Subramaniam. “There will be increased demand which can be matched by supply. The supply side should be managed.”

(The Tamil-speaking Dr Subramaniam, a China expert, represents a seat in North India in the Rajya Sabha, the upper house of Parliament. He speaks fluent Hindi besides English and Tamil and some Mandarin).

Again, the exchange rate doesn’t matter as long as there’s no volatility of the currency. Currency stability is important so that employers, professionals, exporters and importers can work with the RM.

Again, if there’s no volatility of circulation but the ringgit continues to fall towards USD1 to RM5, the currency can even be pegged within a narrow range against the USD. For example, USD1 to RM5 and USD1 to RM4.80.

Who are the speculators? The widespread belief in social media has focussed on Mahathir Mohamad and former Finance Minister Daim Zainuddin. They may have learnt from currency speculator George Soros in 1997 during the Asian Currency Crisis which saw Finance Minister Anwar Ibrahim being summarily sacked in 1998. Others who have come under public scrutiny include Gua Musang MP Tengku Razaleigh, local exporters and importers, and S’pore, among others. Both Mahathir and Razaleigh have hypocritically called for the ringgit to be pegged.

Before the pandemic, AirAsia used to hedge in the USD and the oil market.

Zero Inflation

According to econometrists — they deal in a combination of economics, mathematics and statistics — it’s not advisable to have zero inflation. There must be at least two per cent inflation per annum. Otherwise, there’s a risk of deflation as in Japan during the last 15 years. Bankruptcies will increase exponentially. The economy may collapse and implode. See here.

Generally, it’s unlikely that locals would be affected by the exchange rate unless they go overseas. Malaysians must be encouraged to holiday in the country and attend local institutions of higher learning. Those who still want to holiday and study abroad may proceed after paying an exit tax.

Exporters and importers have long kept their revenue and income in USD accounts including locally. So, they are unlikely to worry about the exchange rate.

Exporters would see their revenue increase.

In fact, imports sold locally should not see any increase in prices. Also, the gov’t is subsidising goods and services at RM70b a year and has placed price controls on the basket of goods used to calculate the CPI (consumer price index).

Importers should pay in the currency of the source countries.

Likewise, exporters should demand payment in RM.

USD can be used only when buying from the US. The US, for example, should pay in RM when buying from M’sia.

Likewise, S’pore, China and India should pay in RM when buying from M’sia.

Then, the RM would go up against the US$ as well. – NMH

About the writer: Longtime Borneo watcher Joe Fernandez keeps a keen eye on Malaysia as a legal scholar (jurist). He was formerly Chief Editor of Sabah Times. He is not to be mistaken for a namesake previously with Daily Express. References to his blog articles can be found here.

The points expressed in this article are that of the writer and do not necessarily reflect the stand of NMH.

The post If RM Declines Further, Bank Negara Chief Must Be Sacked, Like Anwar first appeared on NMH.

According to the Department Of Statistics Malaysia, the inflation in June was 3.4% compared to 2.8% in May. On a monthly basis, the CPI rose only 0.6% from May to June 2022. Using these figures, the government boasted that our inflation rate is still among the lowest in the region.

However, logic dictates that the CPI (Consumer Price Index) is not an adequate measure of inflation. It is akin to looking at Google map from a few thousand feet above the ground. It tells certain things accurately of course such as distance and density, but it does not tell the terrain and other things.

If an army commander uses such information to plan an attack on his enemy in that area, they will surely face a lot of uncertainties and surprises and chances are, they will fumble.

If we look slightly deeper, we will find out that the increase in food items is 6.1% and 130 food items recorded an increase of more than 10%. Price of chicken increased by 17.2% in June compared to an increase of 13.4% in May. But we know that based on past experience, in such scenario, food on the table at restaurants and even hawker stalls will not increase by 10 to 15% but between 20 and 25%!

PTPTN Recipients Worst Hit

In dollars and cents, it means even a simple meal (probably with smaller chicken or fish) at university cafeterias or its surrounding eateries have been increasing from RM7 to RM8.50 or RM9.00. That is about RM2 per meal and assuming students need three meals a day, that will be extra RM6 a day or about RM200.00 a month.

I have spoken to a few students from a couple of universities over the weekend and they said the food prices at cafeteria and surrounding eateries have increased slowly & steadily the past few months. Responding to my enquiries, different students react differently.

Those who depend solely on PTPTN loans are the worst hit, having to cut down on their meals by taking lesser full meals, substituting with instant noodles, bread or cook on their own. Those who depend on PTPTN loans and additional support from parents means they have to ask for more pocket money now.

Those who have part time jobs or doing “small business” to earn a few hundred ringgit a month, have no problem coping with the higher cost of living.

Increase In Rent

As I mentioned in my last article, not only the business sector will be passing down the higher cost of business operation down to consumers, even consumers will pass it down to other consumers. For example, the price of room or apartment rental for students will definitely increase.

What has that got to do with a rise in food prices? Properties do not consume food, some will argue but house owners or the landlords do consume chicken and fish dont they? So when their costs of living increase, naturally they will pass it down to their tenants. In such scenario, the fixed income earner will be at the end of the chain having to absorb everything.

The government has a few resources on its own to manipulate the CPI, well, at least if they want to. The raw data used to calculate the CPI is not widely available to the public and as such make it almost impossible for the public to “audit” their findings.

Furthermore governments are known to add and change the components of the items in the “basket of goods” as well as changing the method of calculation from time to time, reason given is to arrive with more accurate results. It will be good for the public if government is more transparent and publishes the changes in price of all the items in the “CPI basket” every month. At the same time, the public at large will be able to provide beneficial real time inputs to government.

Not A True Picture

Again as I mentioned in my last article, government made policies on assumption that people are rational. In this case government always make assumption that consumer spending habit change as the price of goods rise. But what if price of certain goods in the “basket of CPI goods” rise and consumer substitute the products they have been using to another product that is not in the “basket”? It will not give the true picture on the ground, right?

The fact is, different country measures inflation differently as well as having different items on its CPI basket. In fact various segments of society measure inflation differently, not to mention differing demographics.

Take university students for example. To them if one meal was RM6 then but now is RM8, it means inflation is 25%. For those who are renting houses, an increase of rental from RM1,000.00 to RM1,200.00 per month means an inflation of 20% to them. Worst still if they are fixed income earners with an average salary hike of 7% per year.

And we want to tell them that our inflation rate is the lowest in the region? Tell them to be more resourceful, that’s more practical, isnt it? But politicians wont do that because such advice will be seen as “politically incorrect”.

So how will it be in the coming months? As everyone already knows by now that the high rate of inflation especially on food items was due to supply chain disruption resulting from the war in Ukraine which begins in late February this year.

External Factors

The situation doesn’t look good the last few days since Russia is talking about another cut in oil & gas supply to Europe. Barely hours upon signing the agreement with Ukraine brokered by Turkey to free the Odessa port for the very much needed grain export to Africa, Russia bombed the port with few missiles. Hopefully it will not affect the agreement.

Our Prime Minister announced a few allocations this week such as RM124 million to 590,000 families in Kelantan and an investment of RM2.3 billion to generate 4,200 jobs. According to the Prime Minister’s speech in Kelantan last Saturday, the government has provided additional subsidies of RM 77 million to
control price on essential items.

Is it enough? Obviously not, but it is better than nothing. But subsidies are just short to medium term solution. Government has to generate more revenue to provide more subsidies from time to time. But certainly cutting the salary of cabinet ministers is just a political suggestion or gimmick that is not going to change anything.

Unlike countries in Europe that are facing serious inflation due to political decision made by their respective government to impose sanctions on Russia which is now backfired, inflation in Malaysia is not a result of a wrong decision made by the government.

While it make senses for the people of UK, Spain, Italy, France & Germany to go on the streets to protest against the decision made by their respective governments, a protest here for the same reason will not be going to change anything, economically.

As the bulk of inflation was due to a rise in food items, the long-term solution is still a better food security plan than what we have now. We will talk about that in the coming week. – New Malaysia Herald

The post No, CPI Is Not The Ultimate Tool To Measure Inflation first appeared on NMH.

Pasir Salak Member of Parliament Tajuddin Abdul Rahman was again in the limelight when he was told leave the Dewan Rakyat for uttering p*k***k, an offensive word during a heated argument with several Opposition MPs today.

Although the microphones were muted by deputy speaker Rashid Hasnon, several MPs stood up and cautioned him that Tajuddin had uttered the word, that is linked to the female genitals.

After being given the first warning by Rashid, Tajuddin left the House.

Tajuddin had earlier stood up in the House, citing the parliamentary Standing Order 36(6) which had to do with uttering rude remarks.

The former deputy minister had initially asked opposition MPs to state a reason why they had accused him of disrespecting women in previously.

“You don’t know how we treated women, yet you said I disrespect women. Ask Wanita Umno (if they are being mistreated).

“The problem is actually with some women DAP members. ‘Perangai tak senonoh (uncouth), mulut cabul (disrespectful),” Tajuddin said.

This caused opposition MPs to stand up, demanding Tajuddin to apologise and retract his statement.

“Well, it’s true anyway. Not all of you, of course, but some are. ‘Batu api, kaki hasut’ (inciters). Always challenging other people,” Tajuddin added.

Degrading Remarks By Tajuddin

Opposition MPs including Hannah Yeoh (Pakatan Harapan-Segambut) however said Tajuddin had mentioned the word “p*****k” when the microphone was switched off.

Yeoh then asked Rashid why Tajuddin could get away with making such degrading remark in the Dewan Rakyat.

Rashid then reminded the MPs that he had issued a warning to Tajuddin.

“But, the warning didn’t work. This has happened many times and if you don’t do anything about it, this is going to keep happening,” Kasthuri Patto (PH-Batu Kawan) said.

On Monday, Isnaraissah Munirah Majlis (Warisan-Kota Belud) was suspended from the Dewan Rakyat for two days after she insisted that the House debate the Sulu Sultana claims.

Dewan Rakyat Speakeri Azhar Azizan Harun was later accused by MPs for being unfair, as male MPs who were more provocative seemed to be let off easily.

The post Tajuddin Ejected From Dewan Rakyat For Uttering Offensive Word first appeared on NMH.