A whopping RM 12.59 billion for “Kementerian Idris Jala” in 2011-2012?

Media Statement by DAP MP for Bukit Bendera Liew Chin Tong on 19^th October 2010

A costly “new ministry” emerges from Budget 2011. Let’s for the moment call it “KIJa” or Kementerian Idris Jala which runs the various activities around Datuk Seri Idris Jala who is Minister in Prime Minister and also the CEO of Performance Management and Delivery Unit (PEMANDU).

The total cost of KIJa is approximately RM 6.19 billion for 2011 with an additional RM 6.4 billion for 2012. Of the amount, RM 11.86 billion are allocated for National Key Economic Areas (NKEA) projects over a two-year period of 2011-2012 under development budget while another RM 729.4 million for 2011 comes under operating budget, which has mostly been channelled to international consulting firms.

While PEMANDU has two drivers, namely Tan Sri Koh Tsu Koon and Datuk Seri Idris Jala himself, it is well known that the latter is firmly in the driver’s seat, with the help of numerous consulting firms.

KIJa or Idris’ outfits are responsible for the preparation of Government Transformation Plan (GTP), the Economic Transformation Plan (ETP) and various other Key Performance Indicators (KPI) for ministers, ministries and federal government agencies. The ETP has allegedly usurped the role of the National Economic Advisory Council (NEAC), which was tasked to prepare the New Economic Model.

Costing almost RM214 billion (the Prime Minister’s figure of RM212 billion is questionable), Budget 2011 is the most expensive budget ever in Malaysia’s history. The previous record was set in 2009 when the total amount was RM209 billion.

At RM 15.86 billion, the allocation for the Prime Minister's Department is also record-setting. The previous record was set in 2010 at RM 12 billion.

The various transformational programmes organised by Datuk Seri Idris Jala failed to curb the continuous rise in government expenditure. Rather, KIJa or Idris’ various outfits are themselves now big spenders, as shown in Budget 2011:-

· Officially, PEMANDU is given an allocation of RM 20, 67 million in 2011 (Item 310000, Pg 134).

· An additional item of RM 897,800 under “Dasar Baru” or new policy is given to PEMANDU (Item 320800, pg 135)

· There is also a “one-off payment” of RM18.43 million for PEMANDU (Item 331800, pg 136 ) and I suspect substantial amount under the label of “emolumen kakitangan kontrak” or emolument for contractual worker (Item 332000, pg 136) from the Prime Minister’s Department amounting RM136.87 million is utilised by KIJa or Idris’ outfits.

· National Key Result Areas (NKRAs) are indeed a group of costly alphabets. NKRA for crime fighting was allocated RM9.1 million, education, RM 22 million, and 1Malaysia, RM 38.42 million. (Items 331300, 331100 and 331200, pg 136).

· In addition to that, the delivery task force of NKRA for Low Income Household costs RM 265 million (Item 332200, pg 135). If only cash grant of RM1000 are distributed, 265,000 low income families would have been aided. Clearly, it is a move that is set to benefit the consultants.

· Meanwhile, the operation cost of NKEA is even costlier than NKRA, receiving a shocking amount of RM355.9 million! (Item 332100, pg 136)

· Under the development budget, NKEA will be allocated a total of RM 11.86 billion in 2011-2012 (Item 94000, pg 139), in which the estimate for 2011 is RM5.4 billion - more than 10 percent of the entire development budget for 2011.

So what do all these numbers mean? All I can say is that “KIJa” is indeed a very costly affair. It’s time for the KPI minister to disclose his own KPI score card to the people of Malaysia.

Liew Chin Tong

They who can give up essential liberty to obtain a little temporary safety, deserve neither liberty or safety.

Wednesday, 08 September 2010 Combat

By John Malott

“She may well turn out to be the fresh young voice of conscience and courage… at a time when Malaysia needs a gentle, clear voice.

Without question, racial tensions in Malaysia are higher today than at any time since the 1969 riots. A high school principal makes racist remarks to her young students but goes unpunished by the government. A Chinese Malaysian rapper makes an offensive video claiming that Malaysia's wealth is thanks to the Chinese, insulting not only Malays but also Indian workers who have toiled on Malaysian plantations for generations.

A right-wing Utusan Malaysia columnist writes that those who disagree with his extremist views on the unwritten social contract can “go home” to China and India. When some Malays parade the severed head of a cow to protest against a Hindu temple, they are greeted as heroes by the home minister.

Fearful of losing political support, the government's actions have been selective - criticising statements coming from the opposition, while remaining silent when the racism comes from their own quarters. The prime minister's failure to provide leadership to deal with this growing racial and religious crisis and his inability to go beyond the sloganeering of 1Malaysia do not portend well for Malaysia's future.

Against this backdrop, Nurul Izzah Anwar, the MP for Lembah Pantai, has written a courageous and fascinating two-part article, 'Malaysia or Malaysaja?', calling for a constructive dialogue with Perkasa to discuss how to interpret Article 153 of the Constitution. She has said that she is willing to engage with other concerned Malaysians as well.

Perkasa chief Ibrahim Ali dismissed Nurul Izzah's challenge to a debate, calling her 'small fry'. And in a snub, he said that if she wants to debate, she can talk to the head of Wiranita, the Perkasa women's organisation.

For reasons that most people understand, the publicity-seeking Ibrahim does not want to share a microphone with anyone, let alone Nurul Izzah, who clearly is his intellectual superior.

As expected, Perkasa and its allies responded in typical fashion – not by countering Nurul Izzah's well-considered arguments, but by engaging in bluster, name-calling, and threats, filing a police report against her.

Nurul Izzah, not one to be intimidated by bullying, responded by writing another article, even more forceful and detailed than the first.

What Izzah has called for

Let us consider what Nurul Izzah said and did not say – and why her proposal for a constructive debate on the meaning of Article 153, and how it has been implemented over the years, has merit.

First, Nurul Izzah did not call for the repeal or amendment of Article 153. So the hot heads of Perkasa, as well as Home Minister Hishammuddin Onn, should back off. There is no element of sedition here. She also did not challenge Malaysia's unwritten social contract.

Nurul Izzah correctly pointed out that Ibrahim Ali and Perkasa are wrong when they insist that the words “Malay rights” appear in Article 153. They do not. The Constitution refers to the “special position” of the Malays and other bumiputera, but not to any inalienable rights.

Pardon me for talking briefly about my own country to make a point. Soon to be 223 years old, the US Constitution is the oldest written constitution in the world. Over the years, the US Supreme Court has been called upon countless times - now between 75 and 100 times each year - to interpret the meaning of the Constitution and whether specific actions and laws of the government conform to it.

So as an American, I think that debating the meaning and implementation of specific articles in the Constitution is a legitimate part of the political and governing process in a democracy. Even after two centuries, we still have that debate. For example, the question of placing an Islamic Centre near Ground Zero in New York raises constitutional issues of freedom of speech and freedom of religion.

Nurul Izzah is doing the same. She says, let's have a constructive debate about what Malaysia's constitution means in practice when it talks about the “special position” of the Malays.

Discounts on fancy homes a 'right'?

For example, nowhere in the Constitution does it say that bumiputera citizens should be given discounts when they buy fancy condominiums. Those are policies enacted by the government of the day, which are not enshrined in the Constitution.

While the civil service, scholarships, and business permits are mentioned in Article 153, housing is not. But when DAP MP Tony Pua recently suggested that the Selangor state government should abolish the bumiputera discount for purchase of houses costing more than RM500,000 (in a state where the average cost of housing in 2009 was RM267,000), an Umno Youth leader filed a police report and said that Pua's suggestion not only challenged Article 153, it was an offence under the Sedition Act. Of course, it is not.

Question: Should bumiputera residents be given discounts when they buy housing? If so, what should the percentage be? Do you have a “right” to a 10 percent discount as opposed to 5 percent?

Should there be a means test – that the discount is only given to people whose incomes are below a certain level, or when the value of the housing is below a certain level? If poor Malays are to be given housing discounts or subsidies, then should they not also be given to poor Indians and others? These are all legitimate questions to discuss.

If in the future the government decides that bumiputera may receive a 30 percent discount when they buy a Proton, but others may not, isn't it only fair to discuss this? If the government decides that 100 percent of the civil service has to be Malay, or that only Malays may head corporations in Malaysia, isn't that something that should be debated?

If others want to question such policies, they should not be told that they are violating Article 153 and are subject to arrest for sedition.

Bumi equity target has failed

Let's consider the policy of bumiputera ownership of 30 percent of the equity on the Bursa Malaysia. Article 153 talks about making special provision for bumiputeras to acquire licences and permits to engage in trade and business. But it does not talk about setting aside a special allocation of new stock issues for Malays and others, let alone how the value of the stock should be measured.

If the goal of the NEP is to raise the economic status and living standards of the Malay people, then how does this specific programme – setting aside 30 percent of stock issues – do that? If it were an effective programme, then why after all these years do so many Malays - and especially those in the rural areas - still live in poverty?

Why, as the New Economic Model (NEM) report pointed out, has the gap between rich and poor widened? Why has income for the bottom 40 percent of Malaysian households grown the most slowly over the past three decades?

Judged by these results, clearly the 30 percent equity policy has failed to do the job. Are there not better and more effective policies to raise the economic levels of the Malays and people of Sabah and Sarawak? And as others have pointed out, who decided what individuals could buy these shares? Where was the transparency? Why were the recipients not required to keep the shares, rather than sell them to others for a quick buck?

When MCA head Dr Chua Soi Lek called for ending the 30 percent quota, Perkasa's economic bureau director called for Chua to be arrested under the Internal Security Act (ISA) for “disregarding national interests.”

In 2006, Asian Strategy and Leadership Institute (Asli) issued a report that said when the actual market value of stocks is used (the way that all of us determine our current wealth), rather than the artificially-determined par value, then the 30 percent target already has been reached. But under pressure, Asli withdrew the report.

'A fresh young voice'

In summary, even without challenging Article 153, it is perfectly legitimate to have a discussion of:

1) how that article has been implemented and should be implemented through government policies and actions;

2) how successful past and current policies have been in meeting the goals of Article 153; and

3) how success should be measured.

In a democracy, none of these topics should be "off limits."

On a personal note, I have known Nurul Izzah for 12 years, and it has been a pleasure to watch her grow into the remarkable woman that she is today. No one should underestimate her. Everyone sees her beauty, but I can attest that she also has brains, determination, and courage. And all of those characteristics are on display right now.

Perhaps an anonymous comment on the Internet, in response to her article, says it best: “She may well turn out to be the fresh young voice of conscience and courage… at a time when Malaysia needs a gentle, clear voice.” - Malaysiakini

(John Malott is the former US ambassador to Malaysia)

Some of you are supporting the proposal to cut govt subsidies.... some of you are not sure... so, please read the following......

PEMANDU and Idris Jala are actually right to say that cutting subsidies could lower Malaysia ’s debts, but the cuts will ONLY BE successful if leakages from corruption are plugged first.

For example, govt. subsidies are being given to Independent Power Producers (IPP), so that they can supply electricity to TNB and earn profits. The govt subsidies to the IPPs are worth RM13 billion every year. These include cheaper Petronas gas supplied to them.

There is a 20-year interest free loan of RM 320 million given to SYABAS, the Selangor water company. SYABAS is also a privatized company, why does the govt subsidise it by giving it 20 years of loan, free of interest?

The total deficit the government need to cover amount to RM47 billion. The total subsidy is about RM74 million. Removing the subsidies will NOT help reducing the deficits a lot, but a lot of poor and middle-class Malaysians will be affected.... Details of subsidies are Social (RM42.8 billion), fuel (RM23.5 billion), Infrastructure (RM4.8 billion) and essential food (RM3.4 billion). If this amount includes subsidies for health services, then PEMANDU must review the market price of medicine and pharmaceuticals and compare that with the price the Ministry of Health is buying.

In 2008, global price for crude is about USD140 per barrel, and the fuel subsidy the government have to bear was RM17 million. Today the global price for crude is about USD70 per barrel, yet the govt. fuel subsidy is RM23.5 billion. Why? Have we forgotten that recently the govt has spent RM8 billion on purchasing armoured vehicles and tanks? And another RM3.4 billion for the submarine that could not dive? Idris Jala claimed Malaysia consume more fuel per capita than many countries. That is correct. But, has the government made serious effort to combat the fuel subsidy leakage? Take fishing fuel subsidy in Sabah as example. There are 1,200 trawlers registered with the Fisheries’ department. However, there are only 200 real trawlers (physically present), this means there are 1,000 phantom trawlers enjoying fuel subsidies. How sure is Idris Jala that similar phantom trawlers do not exist in Lembaga Kemajuan Ikan Malaysia (LKIM) registry throughout the country?

And the govt is telling you that it is subsidising RM12,900 per household per year! Have we also forgotten the Auditor-General's Report that revealed the govt. actually spent RM500 to purchase 1 unit of screwdriver, or the same govt car being pumped to full tank twice in just 1 minute apart, or Port Klang Free Zone's project that has ballooned to over RM4.6 billion from original budget of RM1.1 billion?

Today, when you drive thru Damansara-Puchong Highway (LDP), you pay RM 1.60. The govt said that you get 50 sen subsidy, else it should be RM 2.10. But, LDP was built with RM 1.42 billion, with a concession period of 1996-2030. And, the govt. is paying out RM 2.6 billion every year in subsidy to the highway company. So, if the govt subsidy is removed, you will pay RM2.10 each time you pass thru LDP. So the question is, who approved and signed the contract with the highway company? Who agreed with such toll rates?

In the UK , British students paid subsidised university fees. International students there paid fees between 8000-10,000 pounds per year. In Malaysia , local students took PTPTN loans of about RM21,000 for 3-year undergraduate studies. Foreign students paid only about RM15,000-RM17,000 for the entire 3 year of studies. The govt. is subsidising foreign students so that we can become the education hub. Why use taxpayer's money to subsidise foreign students? Why foreigners can get subsidised medical care at govt hospitals?

And, it's not just govt is proposing to reduce our subsidies, we are actually already subsidising govt projects! Let's take ERL (express train from KL Sentral to KLIA) for example. Did you know that each time you use LCCT in Sepang, RM5 of your airport tax actually goes to subsidising the ERL?LCCT passengers like yourself who don't use ERL are subsidising the ERL train service! I am not bluffing you, this has been confirmed by the Finance Ministry. Why are you paying subsidy to something that you don't use?

The govt spent RM1 billion in sugar subsidy in 2009. But let's don't forget, Malaysia 's sugar is now controlled by govt's BERNAS after Robert Kuok sold off his entire sugar monopoly. So, that RM1 billion subsidy is actually for BERNAS's profits, which of course means "come out from left pocket, go to the right pocket". But remove the sugar subsidy means most food prices will go up. Our sugar price may be lower in the region, but our fresh graduates salary is also among the lowest in the region! And our food prices is already among the highest in the region. Just ask any tourist in KL if they find Malaysian foods are cheap or not.

According to Idris Jala, the government debt stands at RM362 billion and rising and may reachRM1.158 trillion by 2019 and the possibility that Malaysia may go bankrupt after the Greece footsteps. Actually this is against the statement made by Najib recently where he assures the nation that Malaysia is not affected by the Greece contagion. Why the contrast?

Actually, it is true that Malaysia is one of the most subsidised nations in the world. But think again,where else in the world that you can find so many tolled roads in every corner of the city?Where else you can find foreign students subsidised in universities? Where else you can you find a govt spending billions here and there, and tell you that "we are going bankrupt" because of subsidies?

Last week, we were told that Malaysia is 10th most competitive country in the world. But has anyone told you that 2 days ago, Malaysia has been ranked 102 (out of total 152 countries) in terms of average Internet speed? We are 18 times slower than South Korea ! ( Thailand at 63rd, Philippines 90th, China 76th, Spore 31st, Taiwan 36th). Do you really still want your subsidies to be cut?

Finally, Mahathir concedes he screwed the merit system

Finally, Mahathir concedes he screwed the merit system Former Prime Minister Mahathir Mohammad in a statement (FMT Sept 4, 2010) finally admitted that he and the Umno government intentionally discriminated against innocent non Bumiputra students by denying their educational rights as enshrined in the Constitution. He said: "If we use the merit system , half of the university students (Bumiputeras) don't qualify..." What one can gather from his statement is that the education system over the past 53 years has failed to produce Bumiputera students to meet the set requirement by Umno's own higher educational qualification merits. Despite the billions spent to improve the educational achievements among Bumiputeras, citizens of this country are now been told by this longest serving Malaysian Prime Minister that Bumiputera students in Malaysia can only survive upon discrimination against their fellow non Bumi students. What a shame! The former Prime Minister also revealed the truth on why local public universities are constantly dropping in international standard ratings. He admitted that half of the undergraduates did not qualify for entry into universities but were nevertheless granted places merely on race considerations. I wonder how he justifies such brutal educational injustices. The moment a government tolerates such discrimination, it is actually planning to fail the country and its citizens over the years to come. By implementing this racist based policies, thousands of fully qualified non Bumiputera students are cruelly denied entry into matriculation courses , local public universities intakes as well the PSD scholarships. To summarise Mahathir's statement, he as the former prime minister and those in power ruling this country today clearly do not implement meritocracy in local university intakes, half of our university students are actually non qualifiers for higher education. Fully qualified non Bumiputera students are oppressed and suppressed by the implementation of racially biased educational discrimination. The Umno-led Barisan Nasional government over the past 40 years have conveniently violated article 8 and 12 of Federal Constitution. Article 8 by clause (1) provides that all persons are equal before the law and entitled to its equal protection. Clause 2 states: “Except as expressly authorised by this Constitution, there shall be no discrimination against citizens on the ground only of religion, race, descent, gender or place of birth in any law or in the appointment to any office or employment under a public authority or in the administration of any law relating to the acquisition, holding or disposition of property or the establishing or carrying on of any trade, business, profession, vocation or employment.”

In respect of education, Article 12 provides that there shall be no discrimination against any citizen on the grounds only of religion, race, descent or place of birth (i) in the administration of any educational institution maintained by a public authority, and, in particular, the admission of pupils or students or the payment of fees and (ii) in providing out of the funds of a public authority financial aid for the maintenance or education of pupils or students in any educational institution (whether or not maintained by a public authority and whether within or outside Malaysia).

In respect of religion, Article 12 provides that (i) every religious group has the right to establish and maintain institutions for the education of children in its own religion, and (ii) no person shall be required to receive instruction in or take part in any ceremony or act of worship of a religion other than his own and that for this purpose the religion of a person under the age of eighteen years shall be decided by his parent or guardian.

Presumably Penang's CM Lim Guan Eng's Merdeka message was NEVER published by the mainstream media. He had put the BN govt to shame with tangible resul

Let Penang be a beacon of hope for Merdeka — Lim Guan Eng

AUG 31 — As we celebrate our 53 Merdeka, the country appears more divided than ever by racial, religious and even personal hatred. Fomenting racial and religious intolerance and hatred is now the rule rather than the exception. The biggest challenge is whether Malaysians can rise above the language of violence used by extremists and fulfil our destiny of Merdeka 53 years ago of a shared society belonging to all and promising prosperity to everyone. Penang is under constant siege and attack by extremists and political foes from BN and Umno who use lies to create tension and division.

Amongst the lies still used is that the Penang state government has banned the Maulidur Rasul procession, banned Pasar Ramadan, replaced the YDP Agong’s name in Friday sermons with the Chief Minister’s name, only evict Malay villagers and traders. Up till today, the state government has not evicted a single Malay or non-Malay household and when enforcement action is taken against traders, only 30 per cent is Malay. Even when eviction is done by private landowners, the state government has also intervened to negotiate a settlement.

It is because our opponents are bankrupt of ideas that they resort to race and religion. Race and religious hatred is the final weapon of the extremists who can not win any debate based on facts and logic or find any weaknesses in PR’s performance.

Their desperation can be shown when the Penang PR government can not be faulted for being corrupt, abuse of power or wasting public funds. None of PR leaders have become rich or own luxury homes. We lived in a moderate lifestyle and travel by economy air wherever we can.

PR has reduced corruption with our CAT governance of Competency, Accountability and Transparency by turning around a projected deficit of RM35 million in 2008 to a record surplus of RM88 million. This was repeated again in 2009 by turning around a projected deficit of RM40 million to a surplus of RM77 million. For the first time in history, Transparency International praised Penang’s CAT governance for fighting corruption.

That is why the state government can afford its senior citizens appreciation programme of annual payout of RM100 to all over 60 years and RM1,000 one-off to beneficiaries of senior citizens which costs nearly RM20 million. That is why the state government can give RM100 water rebate in 2008 to all poor and middle-income households costing nearly RM 20 million. That is why the state government can give money annually to partially-assisted schools of RM 11.3 million. That is why the state government can double the allocation for Islamic affairs to RM 24.3 million in 2010 as compared to RM 13.5 million under BN in 2008.

All these successes in implementing a people-centric government have made our political opponents desperate. They become more desperate when Penang became the first state to ban sports betting (judi bola) after the Federal government issued the licence. Due to Penang’s lead, the Federal government had no choice but to cancel the judi bola licence. Certainly many BN and UMNO leaders must be angered by the cancellation of the judi bola licence because of loss of revenue of hundreds of millions of ringgit.

Penang will forge ahead in establishing the first people’s government in Malaysia that listens to the people, do the people’s work and give hope to the people. We will also remain steadfast in barring sports betting in the state as this is the common aspirations of 1.5 million Penangites regardless of race.

Let Penang be a beacon of hope for Merdeka, democracy, integrity, public morality and a people’s government as well as a symbol of national unity where Penangites live together in harmony and mutual respect.

* Penang 2010 National Day Message By Penang Chief Minister Lim Guan Eng In Komtar, George Town On 31 August 2010.

* This is the personal opinion of the writer or newspaper. The Malaysian Insider does not endorse the view unless specified.

Surviving the coming hard time

It turns out that the government you voted in will not hold your hand to see you through hard times. Instead, it will make sure to add to your suffering because that is the easiest way it can avoid going bankrupt.

Barisan Nasional has apparently decided that the time has come to remove or cut subsidies — the kind of subsidies that poor people depend on, not the kind enjoyed by big corporations and monopolistic suppliers of utilities and infrastructural support.

So what is the use of a government that will eagerly shake your hand during election time but will not hesitate to pull the rug from under your feet when it needs to save itself?

Few believe that the removal of subsidies on essential food items and fuels can save the Malaysian government from possible bankruptcy. If it does go bankrupt, it will be because it has failed to cleanse a corrupt system.

It is better for Malaysians to be rich and to control a bankrupt government than to be poor and controlled by a corrupt government. Many countries have rich citizens with bankrupt governments.

You do not need an economist to tell you that RM100 in Malaysia today does not buy as much as it did last year.

In what we may call the Malaysian Misery Index, we can see that food prices have been spiralling upwards for years. For example, fresh tenggiri, which was RM13.23 a kilo in 1997, now costs RM40 a kilo. A roasted duck cost RM13.47 in 1997, but is now at least RM38. And Malaysians have become used to the doubling in price of some food items during festive seasons.

Most Malaysians do not expect the situation to improve. Food prices will continue to go up and there is little hope that they will come down again.

Two years ago, the BN government announced that it had set up a US$1.25 billion fund to increase food production and that it was targeting 100% self-sufficiency in rice consumption. What has happened to the fund and the target?

Nevertheless, the escalation in food prices is only one of the financial worries of most Malaysians. Other worries include the general cost of living, salary changes and debts.

Double whammy

When the GST (goods and services tax) is fully implemented in 2011, it will be a double whammy for poor and middle-income households, pensioners, the unemployed and single parents.

Some have argued that imposing GST on Malaysian does not make much economic sense when only 6.8% of the population are taxpayers and a large majority earn low incomes. Furthermore, it is acknowledged that most of us are paying hidden taxes in highway tolls and electricity tariffs.

Indeed, the future looks bleak.

Yet, quite a number of us are gullible enough to think that the government will protect consumers. Are we not being stupid? Isn't it better to be wiser and brace for tougher times ahead?

Instead of believing the promises of a government that has a dismal performance record, we should believe the law of inflation, which says, “Whatever goes up will go up some more.”

Ronald Reagan once described inflation as a violent mugger, a threatening armed robber and a deadly hit man. In the Malaysian context, that is an apt description not of inflation, but of the BN government’s behaviour and policies.

Unlike grey hair or extra pounds, inflation, Malaysian-style, does not sneak in gradually. One of the outstanding characteristic of our government is that it can cause inflation to explode overnight, such as when an official makes a snappy and stupid policy decision on pricing.

So how do we fight the inflation of food prices?

Economists generally agree that the average Malaysian household spends about 75% of its income on food. Food price hikes will therefore have an adverse impact upon disposable income and force us to make a lifestyle change.

To fight inflation

Here are some of the things we can do:

· Stop eating at expensive restaurants.

· Boycott traders, hypermarkets and hawker stalls that charge unreasonable prices.

· Shop intelligently for value and do not be too impressed by branding.

· Work out a budget before buying. Look out for special sales.

· Prevent wastage by not buying more than you can eat.

· Tell friends and acquaintances about shops that charge excessively.

· Avoid buying expensive beverages or foodstuff and find alternatives for nutritional value.

· Boycott chained markets and fast-food joints. They are monopolised by a few large companies and can therefore raise prices at whim.

When inflation reached a six-year high at the end of 2005, even the price of the humble bean sprout went up by 10 sen a kilo. Reason: A gunnysack of beans went up from RM75 to RM135.

Today, even death is becoming exorbitant. The cost of cremation is expected to rise soon from RM100 to anything between RM200 and RM300.

Perhaps economist Milton Friedman was right when he said, “If you put the federal government in charge of the Sahara desert, in five years there will be a shortage of sand.”

Malaysians do not take the official Consumer Price Index (CPI) seriously. They know it does not accurately reflect price rises in essential foodstuffs.

Many suspect that the government uses it as an instrument to deceive the public into thinking that things are hunky-dory when they are not. The government develops statistics so that the inflation-weary public would direct its hostility towards businesses, and not blame official mismanagement.

The average household consumption expenditure over the last 20 years has increased by 181.8%. In 1973, it was RM412. By 1993-94, it had gone up to RM1,161. In 1999, it touched RM1,631.

According to Prof Lim Teck Ghee, real household income has been growing, but at the snail-pace rate of 0.9% per year. More than half of the population are in the low-income category.

Today, a family of five spends 50% to 60% of household income on food compared with 20% in 1998 and 15% in 1988.

Not long ago, there was official acknowledgement that 95% of families are finding it hard to cope with the rise in food prices.

In fact, the biggest failure of the Ninth Malaysia Plan is that it did not help Malaysians improve their quality of living. Inflation, whether it is imported or locally generated, raises the cost of living and lowers the quality of living.

When five out of 10 Malaysians are prone to mental problems and other disorders due to the pressures involved in trying to support their families, it is time for the government to wake up.

'Why not change the government?'

In 2006, when Najib Tun Razak was Deputy Prime Minister, he asked Malaysians to change their lifestyle in the face of the rising cost of living.

A blogger by the name of Chong wrote in response:“Perhaps, the prime minister should have done some simple calculations himself. People like us basically have no lifestyle, just merely surviving with our earnings. So how are we going to change (our lifestyle)?

“Inflation has gone up 4.5% (and above) and the government is pushing the cost of living higher by increasing electricity tariffs, but our income remains the same.”

Others felt it would be easier to change the government than to change a non-existent lifestyle.

“Instead of listening to Najib asking us to change,” one critic remarked, “why not we change the government at the next general election?”

To me, that makes a lot of sense. Any government that is willing to build air-conditioned toilets around a city at more than RM100,000 each has no business planning a national economy.

When such a government decides to cut subsidies, many of us will wonder whether the so-called “savings” will instead go towards more majestic arches, fanciful lampposts, refurbishments of VIP residences, luxurious government bungalows and fruitless overseas trips by ministers.

Any government that stands accused of having wasted RM320 billion in 20 years — through corruption, wastage and mismanagement — definitely does not deserve to be re-elected.

STANLEY KOH is a Buddhist monk and works for a local think-tank.

Prices of sugar, petrol, LPG, diesel to go up Friday

Subsidy removed for RON 97 petrol

KUALA LUMPUR: From Friday, the subsidies for sugar, petrol, liquefied petroleum gas and diesel will be cut as part of the gradual subsidy rationalisation programme, according to a statement from the Prime Minister’s office on Thursday.

The price of sugar will go up 25sen to RM1.75 per kg; LPG will go up 10sen to RM1.85 per kg; petrol RON95 will be up 5sen to RM1.85 per litre and diesel will be up 5sen to RM1.75 per litre.

RON 97 will no longer be subsidised. It will be subjected to a managed float, where the price will be determined by the automatic pricing mechanism, the statement said.

The details of these changes are now available on the PMO and PEMANDU websites, at: www.pmo.gov.my and www.pemandu.gov.my.

On May 27, Minister in the Prime Minister’s Department Datuk Seri Idris Jala had said that Malaysia would be bankrupt by 2019 if it did not cut subsidies and rein in borrowings.

He had said that Malaysia's debt would rise to 100% of GDP by 2019 from the current 54% if it did not cut subsidies.

Meanwhile, In ALOR SETAR, Prime Minister Datuk Seri Najib Tun Razak said that when implementing the subsidy rationalisation plan, the Government would seek not to burden the people.

He said the rationalisation move was necessary to reduce Government expenditure and strengthen the financial position of the country.

“It will help reduce the fiscal deficit so that world and local markets will have more confidence in the national economy,” he told newsmen after opening the Kuala Kedah Umno division meeting here on Thursday.

He added that the Government was reviewing all types of subsidies.

The full press statement from the Prime Minister’s office is below:

1. To help Malaysia maintain the strong growth it has achieved, the Government has implemented difficult but long-needed economic reforms that will help Malaysia become a developed and high-income nation. In this regard, the Government has begun a planned and fair reform of a subsidy regime that for too long has been ineffective in helping those who need it most and, over time, has become a barrier to Malaysia’s progress.

2. The Government has made bold economic decisions over the past two years. Two stimulus packages were introduced, promoting growth, even as the global financial crisis spread. Important sectors of our economy further liberalised were opened to new investment.

The Government cut spending by RM24 billion, by reducing waste and inefficiency. As a result, the country’s economy has been reinvigorated, with 10.1% growth in the first quarter of 2010, Malaysia’s best performance in a decade. Although there is still instability in the global economy, Malaysia is well positioned for the future – not by chance, but by the choices we have made together.

3. As set out by the Prime Minister when he announced the 10th Malaysia Plan, Malaysia’s national goals cannot be achieved by simply managing through a crisis. Malaysia’s ambition is to be a high-income nation, with opportunity for all.

4. In the New Economic Model, the Prime Minister set out plans for further investment in key strategic sectors, upgrading our infrastructure, creating additional private sector investment opportunities and realizing higher levels of GDP growth.

However, growth alone will not allow us to meet our goals. As the Government has consistently said over recent months, we must also implement subsidy reforms that will remove distortions in the marketplace and enable us to better target our resources on those most in need, and on investments that will provide lasting benefits for Malaysians.

5. With these priorities in mind, the Cabinet has decided that, effective 16 July 2010, subsidies for fuel, specifically petrol, diesel and liquefied petroleum gas (LPG), as well as sugar, will be reduced as the first step of a gradual subsidy rationalisation programme.

Subsidies for RON 95 and diesel will be reduced by 5 sen per liter. LPG will be reduced by 10 sen per kilogram. RON 97 will no longer be subsidised. It will be subjected to a managed float, where the price will be determined by the automatic pricing mechanism. For sugar, the upward price adjustment will be 25 sen per kilogram. The details of these changes are now available on the PMO and PEMANDU websites, at: www.pmo.gov.my and www.pemandu.gov.my

6. These minimal changes will help Malaysia achieve a position of fiscal responsibility and put us on a path toward reducing our deficit. To meet these objectives, we have chosen to make adjustments to our subsidies. Even after these changes, the Government will still spend an estimated RM 7.82 billion on fuel and sugar subsidies in 2010. The prices of fuel and sugar in Malaysia will still be among the lowest in the region.

7. This subsidy rationalisation will, according to estimates, allow Malaysia to reduce Government expenditure by more than RM 750 million in 2010.

8. The decision to reduce subsidies for fuel and sugar is based on the fact that reducing fuel subsidies will have the greatest impact on government spending and reducing sugar subsidies will allow us to promote healthier lifestyles. The decision is also grounded on three main concerns:

a. First, these subsidies also benefit foreigners and wealthier Malaysians, who can well afford to pay unsubsidised prices. Our focus should be on helping the family sharing a motorcycle or Kancil to get to work and school, but instead our spending on subsidies has provided the same benefits to those driving imported luxury cars.

The sugar subsidy disproportionately benefits industries, not families. Businesses have been using almost twice as much subsidised sugar as Malaysian households.

b. Second, highly subsidised prices often lead to illegal smuggling of these goods. Because subsidies make these products the cheapest in the region, in 2009 alone smugglers were caught heading out of Malaysia with more than 200 metric tonnes of sugar to be sold across borders.

Also, subsidised diesel continues to go to the black market or across our borders, instead of to those we meant to assist. Law enforcement have been doing their best to prevent smuggling, with 109 sugar related arrests last year. This is the tip of the iceberg. As long as there are big price differences, smuggling will continue. And:

c. Third, unless we reduce our consumption of fuel and sugar, we face potentially serious consequences as a nation. We are quickly depleting our domestic fuel resources. It is vital that we rationalise our fuel use – as well as develop new energy technologies - as a matter of economic, energy and national security.

In this regard, we have implemented a number of policies to protect the environment. We must also reduce our sugar consumption. 40 percent of Malaysians are now either overweight or obese.

Incidents of diabetes are rising quickly. Statistics show that the percentage of Malaysians with diabetes now exceeds that in the United States. We must, as a matter of urgency, take every step available to tackle what is clearly a public health issue for our nation. Reducing sugar consumption, among our children in particular, is a step in the right direction.

9. These are among the reasons why the Government has chosen to focus on sugar and fuel subsidies. Subsidies for education and health care will continue. These are areas of importance for our economy and our society where the Government should be investing.

These include, providing support to develop skills, training the knowledge based workforce of the future and improving the well-being of the nation.

10. The Government arrived at this decision following robust consultations with the people. Thousands of Malaysians participated in the policy labs, Open Day and an unprecedented public feedback process.

As with subsidy reform, the budget, the Government Transformation Program and now the National Key Economic Areas, the Government has made a determined effort to engage the public, listen and learn, and then act in the best interest of the nation.

11. These measures are designed to have a minimal impact on individual families, but long-term benefits for the nation. The reduction in expenditure from these reforms will allow us to better use resources for families, communities and business growth.

Measures such as the 1Malaysia clinics, the 1Malaysia mobile clinics, as well as the scholarships for all 9A+ and deserving students, specifically those who have done well, but come from lower income families, are made possible by such reforms.

Similarly, by reducing expenditure on subsidies we will be able to continue strengthening such initiatives as the price standardisation project, which seeks to harmonise prices of essential goods between urban and rural areas in Sabah and Sarawak.

12. The Government has made a difficult, but bold decision. By choosing to implement these modest subsidy reforms, we have taken a crucial step in the right direction towards meeting our commitment to reduce the fiscal deficit, without overburdening the Malaysian people.

These measures are a demonstration of our fiscal responsibility. They will enhance Malaysia’s financial stability, while also protecting the Rakyat.

Prime Minister’s Office

Putrajaya

15 July 2010

courtesy of The Star

Chicken Rice @ Tropicana City Mall

It was around dinner time and we decided to have dinner just opposite Carrefour's entrance at Tropicana City Mall. We ordered a combo set which had a plate of chicken, vegetables and Japanese tofu while my wife ordered a roasted chicken rice.

When our food arrived, I was shocked at the portions that was served on our tables. The pictures on the menu showed a much bigger portion rather than what we were served. I must say, the chef is extremely good with his knife as he managed to slice each piece of chicken roughly 1cm wide.

In total, we paid around RM 25 plus for the crappy portion.

Fried Japanese Tofu

Fried Chicken

Fried Vegetables.. All this for RM 11.90? The portion was so small, I had to order another plate of rice just to fill me up.

As for my wife's chicken rice, the chicken may look big on the picture but in reality, it was chopped up in fine bits that you could actually finish it in 2 mouths full.

So for those of you considering to have a quick meal at this place across Carrefour's entrance, please beware and don't get ripped off by this crappy portioning. It is not value for money at all.

Till my next post.....

Cheers.....

30 going on 31.... (ahem... not forty)

Hmm... it's been a while since I've really had time to sit down and blog about something. I've never really had time these days to actually do it but somehow or rather, it felt like its a good day to do so.

Time passes by very quickly and before you know it, 30 years of our lives has swooshed by us. It felt like it was just yesterday we finished our SPM and moving out to see the real world. Most of my schoolmates furthered their education while others came out to work.

As time passed by, the bonds that we had in school slowly disappeared as we made new friends while studying in college or working. It was then when the modern age technology that has given us the world wide web enabled us to reconnect with our long lost friends. Thanks to the creators of social networking websites like friendster, facebook, multiply and etc we are able to connect to not only your new found friends but to your schoolmates as well. From these site, you will slowly learn that everybody has moved on in their lives and you will see most of your friends are getting married and so on and so forth.

Anyway, one thing that I've learnt in life is, life is never easy for you. No matter how simple the task at hand is, there will always be something or other that will screw up all the plans that you have made leaving you with difficult choices that you have to make. It is always the "I'm damn if I do and I'm damn if I don't" situation and hence, the title of my blog. "Shit Too Happens". Every time you take a few minutes to plan things out, you will definitely receive either a phone call or sms or email saying that something else has cropped up and it will need your urgent attention immediately.

As we are all aging, I finally decided that it is time to settle down even though it was half a year ahead of my actual planned schedule due to certain constraints. (Now don't misinterpret the statement and no my wife is not pregnant.) I finally realized that I've passed the 30 mark and with 25 to 30 years more to my retirement and it is time for me to actually settle down and start a family of my own.

Planning something like this is not easy as we need to look at every aspects in making this work. It would have been easier if I am from a normal family but unfortunately, this is not the case. Having to plan a wedding when both your parents are divorced is definitely not easy as you have to work out a plan to satisfy 3 parties instead of the normal 2 parties that everyone goes through. I never thought things could be so complicated but nevertheless things are being resolved as we speak.

With less then a month to go, things are definitely heating up and the urgency level has raised by 10 times and sometimes I wish things could just run at a faster pace. Preferably at a Intel i7 processor rate.

Well, I'm praying that everything will turn out alright with the plans that we have made and hopefully I will have smooth wedding minus the bickering.

Till my next post....

Cheers......