Hubris in Desperation

In his utter desperation of ousting Prime Minister Dato’ Sri Mohd. Najib Tun Razak primarily via demonisation of the latter, Tun Dr. Mahathir resorted to lame lies to instigate the public.

It is very irresponsible to proclaim the Malaysian Government is in financial trouble and such utterance is Dr Mahathir’s poor attempt to hoodwink the simpletons.

It is to lie with the objective of erosion of confidence, by local and global business communities.

The fact is that Malaysian Government financial health is rated at A- by leading global ratings houses.

Malaysian economy is very active and productive. The healthy current account demonstrates the production and export is much higher than imports.

The exports have been recorded as 227th consecutive months of surplus over imports.

The RM1.7trillion market capitalisation of the Malaysian stock market is evidence of regional and global confidence of the nation being ‘Business as Usual’ and going concern.

If taken in comparison, the Malaysian Government is in far worse position of debt when Dr Mahathir was in charge thirty years ago.

Debt ratio against GDP was 104% (compared to 53% today) and out of that amount of debt, 64% was in foreign currency. It means servicing the debt in the future include the risk of higher exchange rate.

Then the foreign reserve stood only at USD8bil compare to over USD97bil today. Even if the production side of the Malaysian economy is completely crippled, the foreign reserve would able to sustain eight and half months of imports.

It is interesting to note that Dr Mahathir only proclaimed “PM Najib led the country into so much debt that it is insolvent”.

The fact is that, the Fourth Prime Minister simply threw a reckless lie for that. He did not even try to offer evidence to support his claim. Even if he did, he would not be able to.

The Federal Government is solvent. Every month on the dot, all 1.6mil civil servants get their pay. So does the pensioners.

Year on year, Federal Government never by operational failure unable to release the RM70odd bil in emoluments, to so many Malaysians whose livelihood dependent on the government system.

The Federal Government as the single largest paymaster provided a sound eco-system for a huge stream of local entrepreneurs to development and expand the business. Many businesses thrived for generations because of the reliability of the Federal Government to spur domestic economy with consistent and reliable expenditure.

A good example is KFC restaurant. The sound domestic economy provided the conducive market for the franchisor to open over 500 restaurants all over Malaysia.

Systematically, had the Federal Government is insolvent and unable to service the emoluments of 1.6mil civil servants and the 8-9mil other Malaysians as part of the direct eco-system, then JCorp would not able to maintain all 500 restaurants operating.

It is morally wrong for the Statesman to use his position to try and manipulate the rakyat confidence, especially for a personal vendetta to demonise Prime Minister Najib in the strategy of toppling the latter.

Published in: on November 16, 2016 at 12:00  Comments (7)  

The Maha-Keling job of all time

The biggest hypocrisy is to turn against an action which changed the nation and  position of 3 September 1998, then Prime Minister and UMNO President rallied the nation behind him in the support of ouster of his own deputy Anwar Ibrahim, who he determined to be sexually deviant.

Tun Dr Mahathir wearing 'Free Anwar' badge

Tun Dr Mahathir wearing ‘Free Anwar’ badge

Yesterday, at Pakatan Harapan convention, he appeared wearing ‘Free Anwar’ badge.

Anwar Ibrahim has exhaustively undergone the complete process of the judiciary for the Federal Court to uphold the conviction to incarcerate him for sodomising his political aide Mohd. Saiful Bukhary Azlan in June 2008.

Even the pardons board rejected the request for a Royal Pardon.

Anwar cannot in anyway over turn the conviction and for Tun Dr. Mahathir to support the call to ‘Free Anwar’, not only is highly irresponsible but also a blatant disregard and insult the Malaysian rule of law.

Published in: on November 13, 2016 at 16:00  Leave a Comment  

Lesson from Trumphiancy: Charity begins at home

Despite short of overwhelming popular votes in recently concluded presidential elections to vote the 45th president of the most prolific democracy and champion of the ‘New World Order’, Middle America boldly told the political establishment off that they wanted attention and their requirements be served up above other interests and agenda of for the rest of the world, including position and values of the minorities within ‘Home of the Free’ and ‘Land of the Brave’.

The Straits Times story:

US elections: Malaysian PM Najib says Donald Trump appealed to Americans who want less foreign interference

 Malaysian Prime Minister Najib Razak has congratulated US President-elect Donald Trump on his election win.

 

PUBLISHEDNOV 9, 2016, 4:24 PM SGT

KUALA LUMPUR (REUTERS) – Malaysian Prime Minister Najib Razak congratulated United States President-elect Donald Trump on Wednesday (Nov 9), saying the Republican victor had appealed to Americans who wanted to see the United States less embroiled in intervention abroad.
“His appeal to Americans who have been left behind – those who want to see their government more focused on their interests and welfare, and less embroiled in foreign interventions that proved to be against US interests – have won Mr Trump the White House,” Datuk Seri Najib said in a statement.
Mr Najib said he looked forward to continuing a partnership with the United States under Mr Trump’s presidency.

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This is true because US foreign policy the past eight years of Obama administration, spent too much on international issues which include the change of several regimes mainly in the North African and West Asian region, more commonly known as ‘Arab Spring’.

United States supported resistance and separatists in countries like Syria, Kurdish, Yemen, Ukraine.

The Obama administration earlier intended to reduce and withdraw armed troops in Afghanistan but instead committed more resources. So was the promise to shut Guantanamo Bay and resolve the hundreds of multinational detainees being jailed without trial.

Right almost ending his first term, President Obama launched a special forces military incursion attack from Afghanistan and assassinated the world most wanted terrorist Osama Ben Laden.

When Hillary Clinton was the Secretary of State and she was in Malaysia fir official visit, she made a point about allowing then Opposition Leader Anwar Ibrahim some room to discourse, despite the latter was then still in a serious criminal case which still in trial.

During President Barack H Obama’s official visit to Malaysia, part of his itinerary is to have an audience with Opposition Leaders and civil liberty activists. That should not be viewed as anythimg but dipping America’s Super Power hand into domestic affairs, especially when the case brought forth was criminal and anti-Constutional in nature.

Closer to home front, Prime Minister Dato’ Sri Mohd. Najib Tun Razak opined that the outgoing administration was not too comprehensive in their outlook for the majority of Americans, thus after eight years of Democrat control via Obama administration, they had enough.

The Straits Times story:

US elections: Malaysia’s Najib says Trump appeals to those left behind

Malaysian Prime Minister Najib Razak said that Donald Trump won the White House because of his “appeal to Americans who have been left behind”.PHOTO: EPA
PUBLISHEDNOV 9, 2016, 8:46 PM SGT

Trinna LeongMalaysia Correspondent
Malaysian Prime Minister Najib Razak has lauded Mr Donald Trump’s victory today, saying what happened showed that “politicians should never take voters for granted”.

“His appeal to Americans who have been left behind – those who want to see their government more focused on their interests and welfare, and less embroiled in foreign interventions that proved to be against US interests – have won Mr Trump the White House”, Datuk Seri Najib said in a statement.

His comments on focusing on the interest and welfare of those “left behind” echoed what he said at the unveiling of Malaysia’s 2017 Budget when he handed out a slew of cash, grants and aid to what he called the country’s B40 group – the bottom 40 per cent of Malaysians.

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Let the mighty United States have a reflection on themselves first upon the change of guard coming up 20 January 2017. The Brit gad theirs right after World War Two ended and they quickly decided maintaining control and cloud of the British Empire, which simply translate to 1/3 of the planet is something they cannot afford to do any longer.

So what ever resources left available to Trump come January, should be channeled for the social and economic development strategy and agenda of the Middle America first.

Published in: on November 11, 2016 at 00:15  Leave a Comment  

Tuanku: Beware of new ‘virus’

Published in: on November 5, 2016 at 22:05  Comments (1)  

Tuanku: Beware of new ‘virus’

Published in: on November 5, 2016 at 22:02  Leave a Comment  

Didn’t Muhyiddin understand the oath he took for secrecy?

In his eagerness to take his politics against Prime Minister Dato’ Sri Mohd. Najib Tun Razak, sacked Deputy Prime Prime Minister and UMNO Deputy President Tan Sri Muhyiddin Mohd. Yassin blurted matters in the Cabinet pertaining to 1MDB when he was a member and risk committing offences for seditious and official secrets.

His first speech as an Opposition is filled with spins and manipulation.

For example, 1MDB did rectify the their borrowings were at RM51billion and not at RM42billion. Another thing is that 1MDB managed to resolve all borrowings before 31 December 2015 as per ‘Rationalisation Plan’ which the management led by Arul Kanda Kandasamy presented to the Cabinet on 29 May 2015 and announced later that day.

The out sale of Edra Energy and deal to jointly develop Bandar Malaysia were struck way ahead of the end of the year deadline.

He was clearly out to scare the Malaysian public with selective analysis of the economic data and bits of the Bajet 2017, presented last Friday. His intention was to create deficit in the public faith on Federal Govt ability to sustain the nation.

All members of Cabinet swore an oath ro keep secrecy upon their appointment.

*Updated 2100hrs

The Star story:

Thursday, 27 October 2016 | MYT 4:04 PM

Pandikar: Possible breach of secrecy by two former Cabinet members

 

BY D. KANYAKUMARI

KUALA LUMPUR: Two former Cabinet members have potentially breached their ministerial oath of secrecy by disclosing confidential information in Parliament, says Tan Sri Pandikar Amin Mulia (pic).

The Parliament Speaker said the ministerial oath requires a minister to not disclose any information learnt during their time in the Cabinet.

He was referring to statements made by former deputy prime minister Tan Sri Muhyiddin Yassin and former finance minister Datuk Seri Ahmad Husni Hanadzlah while presenting their Parliamentary speeches on Budget 2017.

“You heard the things they said, you can assess whether those were things they learnt during their time as ministers,” he said.

Pandikar said Parliamentary immunity prevents any action from being taken on anything said during debate, but reminded MPs to be aware of the Official Secrets Act and the Sedition Act.

“It is all there, so even though you know something, you need to be careful as there is (Parliament) Standing Order 36 (12) and we need to keep certain things in confidence,” he said.

He added that it was a matter of ethics to keep Cabinet matters confidential and Parliamentarians could not use their position as a license to say what they please.

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Muhyiddin and Former MOF2 Dato’ Sri Ahmad Husni Hanadzlah should be investigated for their speeches in Parliament this week,

Published in: on October 27, 2016 at 15:30  Comments (8)  

Partners in Crime

The Chief Secretary to the Government Tan Sri Ali Hamsa should be very concern for such an organised crime which is hurting the Federal Government coffer and the rakyat, for such systemic leakage.

The Malay Mail Online:

Finance minister: Govt lost RM540m in subsidised cooking oil to smugglers

Sunday October 23, 2016
09:14 AM GMT+8
KUALA LUMPUR, Oct 23 ― Unscrupulous people have been selling subsidised cooking oil outside the country, causing the government to lose RM540 million a year, Second Finance Minister Datuk Johari Abdul Ghani revealed.

He said the government subsidised up to 85,000 metric tonnes of the control item when the consumption of the nation was only at 40,000 metric tonnes, according to a report today in Mingguan Malaysia the Sunday edition of Malay daily Utusan Malaysia.

“This means there has been an excess 45,000 metric tonnes of cooking oil that goes somewhere,” he was quoted as saying.

For one metric tonne, Johari said the government paid RM1,000.

“Hence, RM45 million multiplied by 12 months is RM540 million, so who is reaping this benefits?” he asked.

According to the report, he said the government continued to dish out subsidies because they came from the people’s money.

Johari reportedly urged the Domestic Trade, Cooperatives and Consumerism Ministry (KPDNKK) to strengthen checks to ensure there were no smuggling activities that benefitted unscrupulous people.

Last week, The Star reported that subsidies for cooking oil will be removed in stages beginning next month, leaving price controls only for 1kg packages.

Johari subsequently refuted of such a move, stressing that the people will continue to benefit from cooking oil subsidy from the government.

He explained that the government only wanted to control the price for export sale.

In announcing the Budget 2017, Prime Minister Datuk Seri Najib Razak said subsidies amounting RM10 billion will be channeled to fuel, cooking gas, toll and public transportation.

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For size, 45,000 tonnes of liquid is the amount of jet aviation kerosene required for a fully laden A380 flight from Kuala Lumpur to London, 204 times.Thats daily flight to and fro London Heathrow, continuously for almost 15 weeks.

If it is cooking oil, then the process of smuggling should be more organised compared to  diesel, since cooking oil is perishable good and properties change due to exposure to weather, heat etc.

A smuggling syndicate of that size suspiciously should involve so many public servants of various capacities and ranks.

Probably badhats amongst law enforcement officers of several agencies, marine department, inspectors of the curious minds pondering easily. These public servants are immediately thought of working hand-in-hand with the smugglers. Also there is highly probably its multi level.

The guess work is endless.

Then again, if raised with KSN Ali, it is obvious outrightly he might instruct MACC to investigate as immediate response.

However, as the Head of Civil Service, it is imperative him to look into the creation and roll out of multi-agency task force to address smuggling issues.

The commodities leaving our nation such as cooking oil, diesel, LNG and inbound such as cigarettes.

It is shameful for the Executive on behalf of the rakyat  to provide so much for the civil servants but they cannot do enough to reciprocate.

KSN Ali also has the duty to protect the perception of  the larger civil service, who are free from corrupt practices. The best manner is to ensure organised crimes like massive smuggling is complete eradicated.

Published in: on October 26, 2016 at 23:48  Comments (1)  

Preserving the Brand

The decision makers of the Malaysia GP namely Ministry of Finance, Sepang International Circuit and Youth and Sports Ministry (KBS) should consider the preservation of the Brand, particularly the world FIA champion unchalleged for several seasons Mercedes AMG Petronas F1 Team which is synonymous with SIC as its home.

NST story:

Khairy: Malaysia should ‘take a break’ from hosting F1 race

BY NST ONLINE – 24 OCTOBER 2016 @ 8:53 PM

Facebook 412 Twitter Share 412

KUALA LUMPUR: Youth and Sports Minister Khairy Jamaluddin today expressed his support for a temporary halt to Malaysia hosting the Formula 1 races.

Addressing the matter via his Twitter handle @Khairykj, the minister said there were many compelling factors to support the idea, including high costs and limited returns. He said that when Malaysia first began hosting the F1 races in 1999, it was the first Asian country outside of Japan to do so.

“Now, there are so many venues. There is no first-mover advantage; it’s no longer a novelty,” he said. Khairy cited reasons such as declining ticket sales and TV viewership figures, as well as foreign visitors now having the option of seeing the races in Singapore, China and the Middle East.

His comments came in the wake of the revelation by Sepang International Circuit (SIC) chief executive officer Datuk Ahmad Razlan Ahmad Razali today, who said SIC is mulling the future of the race in Malaysia. Razlan had said that a special meeting would be held this week with SIC’s major stakeholder, the Finance Ministry, with regards to the future of the sporting event in Malaysia.

He said consistently declining F1 ticket sales and TV viewership figures were among the factors behind the move.

Meanwhile, Khairy engaged Twitter users on the subject, and fielded questions. He said SIC should bid for less costly races, like the Japan GT, in response to a query on what can be done to avoid turning the Sepang circuit into a ‘white elephant.’

On a question as to why the Singapore Grand Prix had in contrast enjoyed success, Khairy said the Singapore leg benefited from its novelty factor. “It’s a night race in the city (which is done) no where else in the world. Even then, (their) ticket sales are down,” he said.

Khairy maintained that Malaysia should continue to host the MotoGP, which has maintained a sellout crowd. The Moto 2 and Moto 3 races, he said, also has the added boost of having Malaysian riders.

The minister said SIC could instead also spend more on development and increase public access to track days. “Local racers such as Jazeman Jaafar, Nabil Jeffri and Akash Nandy are having a tough time getting sponsors.

A fraction of the F1 hosting fee can help them and more,” he said. Jazeman is a driver with HTP Motorsports in the Blancpain GT Series and the Intercontinental GT Challenge. Nabil Jeffri races for Arden Motorsport in GP2.

Read More : http://www.nst.com.my/news/2016/10/183085/khairy-malaysia-should-take-break-hosting-f1-race

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The comment from the concession holder and local operator of Malaysia GP argues that since Mercedes AMG Pertonas has been ‘monopolising’ the entire season of the FIA F1 circuit globally for a few season as overall champions, it has digressed on exciting for fans and TV viewers world wide.

Event in Malaysia, ticket sales have been dwindling down through the years. Also tv viewership.

In Singapore, where the city-state is offering the only night race in the 20 race circuit worldwide, is suffering the same symptoms.

It is unwise to sacrifice commercial takings at the expense pf branding when Petronas is synonymous with the Mercedes AMG Petronas team and SIC is their home turf.

It is like Italian GP at Monza, home of the Scuderia Ferrari F! team where the team is synonymous with Santander and Shell are two title partner sponsors.

Malaysia, through KBS, should find ways to strategically capitalise and optimise on the branding on Mercedes AMG Petronas F1 team and SIC, for the nation.

screen-shot-2016-10-25-at-4-18-09-am

Maybe other global renown brands like Mutiara Crowne Hotel, Danna or even Pelangi, national carrier Malaysia Airlines and globally renown banking group Maybank, to come together and lend the strength of joint-co-branding for generating a new hype of interests amongst the motor sports enthusiasts, high net worth individuals and targeted corporations to commit into the Malaysia GP for the net three years.

The ability to continuously hype the attention on Malaysia as a high technology motorsports itinerary would also be beneficial if and when Lotus is ready to introduce their products, easier planned by 2018-2020. This will complement the industry.

Branding is a powerful tool. Minister Khairy Jamaluddin should be able to distinguish the merits of brands that are already riding high on the top without a real challenger, which should be optimise to the fullest all his strategic programs of ‘Fit Malaysia – the high-octane segment and capitalise on it.

After all, for Malaysia GP Tan Sri Mokhzani Mahathir considered of installing lighting facility all over at the GP track for the Malaysia GP could be race at night, it a proper built motorcading circuiting,

Giving it up  now where the figures are dwindling isn’t enthusiastic ways of marking up an mark, on a turf to be repackaged into greater heights, mainly on the consideration of lowered ticket sales.

Published in: on October 25, 2016 at 00:30  Leave a Comment  

Going concern economy

Malaysia is open for business and the facts are scientific evidence that the nation’s economy is healthy and regardless what detractors tried to manipulate and lie about it. Hence, it is going concern.

We would like to share a comment that one of our regulars here in this blog pertaining to Fourth Prime Minister Tun Dr. Mahathir Mohamad of “Failed economy”, shared in the last posting.

PM Najib’s performance in managing the economy in the first seven years of premiership is rather impressive, even taking Dr Mahathir’s first seven years’ performance.
It is a fact that Najib’s transformation policies did bring about steady reduction of annual budget deficit.
Comparatively to Dr Mahathir’s time his first budget saw a 16.3% deficit. six years later was brought down to -7.5%.
When he first started, the Malaysian Govt debt is 54% of GDP. Within six years, it shot up to 103.4% of GDP. 62% of that public debt was in foreign currency.
That simply translate Dr Mahathir borrowed 64% of GDP from foreigners.
Foreign reserves than was only at USD6billion. There was a minus current account. Then again, in Dr Mahathir’s first year as PM, the current account was at -13.4%.
How could the economy today is a “Failed state”?
There are more people working. The BOP in the current account is good. The unemployment rate is a little over 3%. It simply means those who are unemployed is by choice.

Income per capita is all time high.
Even market capitalisation of Bursa Malaysia is RM1.8 trillion. The foreign reserve is a healthy near USD100b.

The Malaysian economy is on-going concern. It’s evidently clear.

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Malaysia was never a ‘Failed Economy’ then despite the ghastly figures. The fact is that, Malaysia is a going concern state.

The global rating agencies in the likes of Fitch, Moody’s and Standard and Poor issue very encouraging rating scores for the Malaysian economy.

It is organic. It is industrious. The people are productive and there  raw materials to work on and goods to produce.

Thus, the industrialisation grew and more and more exports are generated year on year. When economic activity grew, the support system also would naturally grew.

This include banking and other services, like food and beverage and other ancillary services.

Economic activity also promotes more demand for transportation, energy and above all, infrastructure.

Naturally as the population grow, the demand for dwellings increase as well. The trickle effect is endless.

If comparable against present day, the economic vital statistics is even much better. There fundamentals are strong and the economic base is very solid.

Therefore, the confidence on the principle of ‘going concern’ should be higher.

However, there are some rogue personalities who are trying to frighten the majority with the ghost stories about the economy is sick and the nation slow is failing.

To the majority, they are unable to decipher even basic economic data. Along with rising cost of living, they are easily bought over.

The fact, many ordinary people are not putting the measurement ruler to the right pole. They simply simplify everything with a common viewing glass.

With the exception of unaffordable homes in the major metropolitan, everything else should be in the right context of affordability.

A quick example is a car. The same car with equivalent specifications today is actually cheaper than what it was ten years ago. If adjusted to the purchase power parity, then the affordability of a common car is accessible to all.

This is true considering that more and more cars are being sold and even to group of consumers previously, are unable to have access to such goods at their current state.

More and more Malaysians are travelling and taking holidays, regionally and even further abroad.

Published in: on October 21, 2016 at 10:00  Comments (2)  

Sound Fiscal Management

Malaysian Federal Government had been having sound fiscal management since Merdeka, considering that economic growth had been steadily achieved which is reflective in the rakyat socio economic stature and quality of life, without the need to issuing USD17.5 billion in a single tranche of sovereign bond to raise money.

Financial Times story:

First Saudi bond sale raises $17.5bn in emerging market record

Debt issue part of a broader plan to shift economy away from its reliance on oil
Read next:
Saudi Arabia to sell up to $17.5bn in debut issue
YESTERDAY

© Bloomberg

YESTERDAY by: Elaine Moore in London and Simeon Kerr in Dubai
Saudi Arabia has raised $17.5bn for its debut sovereign bond issue, eclipsing Argentina’s bond sale earlier this year to become the largest debt issue by an emerging economy.
Investors put up orders of $67bn, enabling the kingdom to increase the amount borrowed and overtake the $16.5bn raised by Argentina as buyers queued up in search of yield.

“This is clearly a success for the country,” said Richard House, head of emerging markets fixed income at Standard Life Investments.

Saudi Arabia’s entrance into international markets is part of a broader plan to pivot the country’s economy away from its reliance on oil, as prices slump to half the level of two years ago. The sale is expected to herald a pipeline of new deals, including the world’s biggest initial public offering from state oil company Aramco.

“This is very significant moment for the kingdom — until this year it had not held external sovereign debt,” said Monica Malik, chief economist at Abu Dhabi Commercial Bank. “They had to issue, given tight domestic liquidity conditions and stretched local funding sources, and we expect to see further issuance going forward — Saudi will become a fixture on global debt markets.”

The multibillion-dollar order book reflected heightened demand for debt issued by emerging markets this year, as interest rates in the developed world remain at historic lows. Argentina, Qatar, Turkey and Mexico have all sold large bond issues and the demand allowed Saudi Arabia to tighten prices. The sale comprised three maturities of five, 10 and 30 years offered at yields of about 2.60 per cent, 3.41 per cent and 4.63 per cent, respectively — slightly below expectations.

“Saudi is an attractive investment, but to be honest nearly every emerging market bond has been a success this year — investors are still desperate for yield,” said Mr House.

According to one investor, Asian buyers were responsible for a significant portion of orders, with investors such as pension funds and insurance companies known to be interested in buying the country’s long-dated bonds.

One investor said the issue was priced at a reasonable level, and would encourage interest in future expected bonds. “Saudi is just one big oil company, right, so there will be managers switching out some of their exposure to get the yield of the Saudi bond,” he said.

The bonds were sold around 40 basis points above debt issued by neighbouring Qatar, which carries a higher credit rating, and around 100 basis point wider than bonds sold by oil companies BP and Shell.

Saudi Arabia would have to embrace a new era of greater transparency as investors pore over its fiscal position and reform programme, he added.

“Bondholders will want to see that Saudi Arabia is continuing its fiscal consolidation — they won’t only want to see debt levels going up,” said Ms Malik.

Saudi Arabia’s economy is forecast to slow this year as oil prices remain low and the country engages in a costly war in Yemen, with the International Monetary Fund forecasting gross domestic product growth of 1.2 per cent this year from 3.5 per cent in 2015.

Related article

IMF cuts Saudi Arabia 2016 growth forecast as oil price stays low
Overall expansion of 1.2% lowest since 2009 as spending cuts hit non-oil sector
The IMF has welcomed the government’s Vision 2030 plan, which seeks to crimp spending, raise new non-oil revenue streams and bolster the private sector.

“This issue is important as Saudi Arabia will be in the market for a number of years, so they need to lay out a predictable plan of where they are going,” said Masood Ahmed, the IMF’s managing director for the Middle East, said in Dubai on Wednesday.

“And they need a credible fiscal consolidation plan — they need to show that they have a plan to bring down their financing needs.

In its pitch to prospective bond investors, Saudi Arabia’s Ministry of Finance acknowledged the damage caused to its economy by falling oil prices, which led the government to resume issuing local currency-denominated bonds last year for the first time in almost a decade.

The kingdom faces a budget deficit of 13 per cent of gross domestic product this year, below last year’s 16 per cent deficit, as spending cuts move from capital projects to public sector wage bill. Next year, the deficit is forecast to fall to 9.5 per cent.

Government debt, now at 5 per cent of GDP, is forecast to reach 20 per cent by 2017 as the state relies on borrowing rather than financial reserves to plug the shortfall.

Although oil prices have recovered from the decade-low of less than $30, they have struggled to sustain a rise above $50 per barrel.

Speaking at the Oil & Money energy conference in London on Wednesday, Saudi Arabia’s energy minister Khalid al Falih said the oil market had come to the end of a downturn, and that the time was now right to tighten supplies and raise prices.

Citi, HSBC and JPMorgan led the sale of debt on Wednesday, with Bank of China, BNP Paribas, Deutsche Bank, Goldman Sachs, Morgan Stanley, Mitsubishi UFJ, and NCB Capital also involved in the issue.

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The expected 1.2% growth of the Saudi economy for the year is attributable for the kingdom heavy reliance on the oil and gas industry and the sluggish global market for almost two years has taken a toll even for Saudi.

The expected budget deficit of 13% of Saudi GDP for the year (compared to 16% for the last year) is rather alarming.

The Malaysian Federal Government 2016 budget deficit is 3.1% of GDP. When Prime Minister Dato’ Sri Mohd. Najib Tun Razak took over the reins of the nation in the midst of the global financial crisis pertaining to subprime financial scandal in the West, the Bajet 2010 Federal Government deficit against GDP is 5..2%.

By comparison, the Malaysian Federal Government external borrowings is RM210 billion. That was accumulated through time, with many socio-economic development programs and projects have been successfully managed to be generated from these borrowings.

Of that, RM199.5 billion is in bond.

This is the Bernama online summary on what to expect from this Friday, when Bajet 2017 is tabled in Dewan Rakyat.

Bajet 2017 Akan Mencergaskan Ekonomi Malaysia

Beberapa tingkat di bangunan Kementerian Kewangan masih bercahaya berikutan pasukan bajet dan warga kerja bertungkus lumus bekerja lebih masa bagi menyiapkan laporan Bajet 2017 yang akan dibentangkan Perdana Menteri selaku Menteri Kewangan, Datuk Seri Najib Tun Razak di Parlimen Jumaat ini

Oleh Christine Lim

KUALA LUMPUR, (Bernama) — Bajet 2017 akan terus mencergaskan ekonomi Malaysia, walaupun dilihat sebagai yang paling mencabar bagi Perdana Menteri Datuk Seri Najib Tun Razak.

Ini sejajar dengan kedudukan ekonomi Malaysia yang terdedah kepada ketidaktentuan ekonomi dunia, dengan pertumbuhan empat peratus pada suku kedua tahun ini, merupakan tahap pengembangan paling perlahan sejak suku ketiga 2009 ketika kemuncak krisis kewangan global.

Najib membayangkan kerajaan perlu kreatif dalam menangani kekangan untuk terus menyokong kebajikan rakyat dan menyediakan seberapa banyak bantuan, dalam Bajet 2017.

Oleh itu, kebimbangan rakyat akan ditangani dengan sewajarnya.

KEWANGAN KERAJAAN

Kerajaan perlu mengurus kewangan secara berhemat, dari segi hutang dan defisit fiskal, ekoran unjuran pembayaran dividen yang lebih rendah oleh Petroliam Nasional Bhd dan kutipan cukai yang lebih rendah tahun depan.

Kerajaan juga komited mengurangkan defisit bajet kepada 3.1 peratus daripada Keluaran Dalam Negara Kasar (KDNK) tahun ini, seperti yang dibentangkan dalam pengubahsuaian bajet oleh Najib pada Januari semasa harga minyak mentah sekitar US$30 setong.

Pada harga minyak sekitar US$51 setong sekarang, ia memberikan kerajaan lebih kapasiti bagi meningkatkan perbelanjaan bajet, namun perlu berhemat memandangkan kedudukan kewangan masih dalam kedudukan sukar disebabkan ekonomi yang perlahan.

MIDF Research dalam laporannya yakin sasaran defisit 3.1 peratus itu boleh dicapai menerusi pelbagai langkah yang dilaksanakan setakat ini bagi menurunkan perbelanjaan dan melaksanakan projek pembangunan berasaskan keutamaan.

Risikonya ialah perdagangan dunia dan ekonomi terus lemah yang menjadi halangan utama kepada ekonomi Malaysia.

PERTUMBUHAN EKONOMI

Berikutan ekonomi dunia yang terus lemah, wujud tekanan dari segi import dan akaun semasa yang akan terus menjejaskan ekonomi dan usaha kerajaan Malaysia untuk meneruskan perbelanjaan pembangunan.

Ekonomi Malaysia dijangkakan tumbuh 4.0-4.5 peratus tahun ini berbanding 5.0 peratus tahun lepas, selari dengan cabaran global, antara lain, angka perdagangan dan ekonomi China yang perlahan, pasaran pekerjaan AS yang lemah, kedudukan ekonomi di zon Euro yang rapuh serta impak pengundian UK untuk meninggalkan blok berkenaan.

Kadar faedah AS yang dijangkakan meningkat juga akan meningkatkan risiko pengalian keluar modal.

HSBC Global Research dalam laporan mengenai ekonomi Asia menyatakan bahawa risiko pengaliran keluar modal juga menjadi semakin ketara disebabkan lebihan akaun semasa semakin menyusut berbanding jangkaaan setakat tahun ini.

Berdasarkan kekangan fiskal, bajet yang dibentangkan pada 21 Okt ini antara lain dijangkakan mengandungi langkah terhad yang sama untuk golongan berpendapatan rendah dan sederhana seperti Bajet 2016.

PERUNTUKAN PERBELANJAAN

Bagaimanapun, persekitaran ekonomi global yang masih rapuh akan memaksa kerajaan meningkatkan peruntukan bagi merangsang permintaan domestik dan perbelanjaan pengguna.

Profesor Ekonomi Fakulti Perniagaan Universiti Sunway, Dr Yeah Kim Leng berkata, kekangan fiskal akan menyaksikan keperluan untuk memberi keutamaan perbelanjaan ke atas bidang teras yang penting yang akan menjamin keselamatan sosial serta menjana pertumbuhan perniagaan dan pekerjaan.

“Dengan had ke atas perbelanjaan, terdapat keperluan untuk menangguhkan projek yang tidak memberi kesan segera ke atas ekonomi,” kata Yeah dalam temu bual dengan Bernama.

Bagi memaksimumkan kesan ke atas perbelanjaan, beliau juga mencadangkan kerajaan melaksanakan projek perkongsian awam-swasta.

Yeah menyokong pelepasan cukai atau pemotongan cukai untuk pertengahan 40 peratus isi rumah atau kumpulan M40 bagi menangani peningkatan kos sara hidup.

Peruntukan untuk perumahan, pendidikan, penjagaan kesihatan dan latihan, katanya, adalah amat penting bagi menyokong isi rumah di bawah 40 peratus atau kumpulan B40 itu.

Kategori M40 terdiri daripada mereka yang berpendapatan antara RM3,860 dan RM8,319 sebulan manakal kategori B40 yang berpendapatan dari RM3,855 dan ke bawah.

Bagaimanapun, jangkaan pertumbuhan ekonomi empat hingga 4.5 peratus tahun ini akan terus memberikan peningkatan sederhana kira-kira tiga hingga empat peratus dalam pendapatan kerajaan, kata Yeah dengan menambah, pendapatan tahun depan akan disokong oleh prospek cerah dalam ekonomi global.

Beliau melihat keperluan untuk menawarkan pelbagai insentif bagi merangsang pertumbuhan ekonomi dan mengekalkan keyakian pelabur, di samping menegaskan yang rancangan mengumpul dana melalui lelongan spektrum telekomunikasi juga akan meningkatkan tabungan negara.

FOKUS TERHADAP PKS

Sementara itu, Ketua Pegawai Operasi Perisian Senarai Gaji Dalam Talian PayrollPanda.my, Toine Vaessen berharap bajet akan datang akan memberi tumpuan kepada membantu perusahaan kecil dan sederhana (PKS), berikutan sumbangannya yang semakin meningkat bagi merangsang ekonomi.

“PKS adalah nadi ekonomi, menggunakan lebih 65 peratus daripada keseluruhan tenaga kerja di Malaysia dan menyumbang 36.3 peratus daripada keseluruhan KDNK,” kata Vaessen kepada Bernama.

Dalam satu kajian yang dijalankan PayrollPanda.my baru-baru ini mengenai keadaan ekonomi Malaysia, beliau berkata, ramai pembuat keputusan PKS merasakan ekonomi digital akan menawarkan banyak peluang untuk PKS.

Oleh itu mereka ingin melihat bajet akan datang memberi tumpuan untuk membantu PKS dengan transformasi digital ini dari segi infrastruktur, pelaburan, latihan, insentif cukai serta pelbagai inisiatif kerajaan yang lain.

Beliau berkata, walaupun ekonomi ketika ini lembap, PKS tetap positif mengenai prospek jangka panjang Malaysia.

“Ini menunjukkan pemilik PKS percaya kita sedang melalui tempoh yang sukar sebelum ekonomi kembali pulih,” katanya.

“Asas untuk ekonomi Malaysia yang kukuh, iaitu kestabilan, kepelbagaian dan ketahanan masih wujud. Pertumbuhan KDNK kini serendahempat peratus dan pembuat keputusan PKS menjangka kita akan kembali mencatat enam peratus dalam beberapa tahun akan datang,” tambahnya.

JANGKAAN BAJET

Bajet 2017 juga dijangka merancakkan lagi momentum perkembangan tahunan bagi mencapai matlamat penggal pertengahan yang ditetapkan Rancangan Malaysia Ke-11 (RMK11).

Ia juga dijangka menyasarkan kumpulan B40 dan M40 dan kerajaan dilihat akan meneruskan usaha membantu kebajikan kumpulan berkenaan menerusi pemberian Bantuan Rakyat 1 Malaysia (BR1M) serta menangani kebimbangan mengenai perumahan mampu milik.

RHB Research dalam nota penyelidikannya, menjangkakan peningkatan peruntukan BR1M akan ditambah bagi merangsang perbelanjaan pengguna.

Firma penyelidikan itu juga percaya kerajaan akan mengumumkan perbelanjaan bajet lebih tinggi bagi 2017 berbanding pada tahun lepas.

Bagi menggalakkan usaha pemilikan rumah, kerajaan berkemungkinan bertindak melonggarkan kaedah penilaian pinjaman, meningkatkan pengeluaran caruman Akaun 2 Kumpulan Wang Simpanan Pekerja (KWSP) serta memperkenalkan lebih banyak skim Perumahan Rakyat 1Malaysia.

KEBIMBANGAN RAKYAT

Antara kebimbangan disuarakan menyentuh aspek gaji lebih rendah serta pengurangan peruntukan bagi pendidikan pada tahun lepas.

Menurut Institut Penyelidikan Khazanah (KRI), gaji rendah serta pengangguran belia sememangnya membimbangkan selain peningkatan mendadak harga makanan berbanding inflasi secara menyeluruh.

Malah, berdasarkan laporan Keadaan Isi rumah II KRI membabitkan pembangunan kesejahteraan isi rumah bagi tempoh antara 2012 dan 2014, pertumbuhan pendapatan isi rumah Malaysia tidak dipacu oleh pertumbuhan gaji dan pendapatan.

Bagi tempoh 2012 hingga 2014, purata pendapatan isi rumah meningkat kepada Kadar Pertumbuhan Tahunan Terkumpul (CAGR) masing-masing sebanyak 10.8 peratus dan 12.4 peratus, namun kadar pertumbuhan nominal gaji dan pendapatan terbukti lebih perlahan pada 3.3 peratus.

Berdasarkan statistik baru-baru ini, median gaji di Malaysia pada 2015 adalah RM1,600 sebulan.

Ia turut membangkitkan aspek kewangan isi rumah yang terus berdepan tekanan dengan nisbah hutang isi rumah daripada KDNK adalah 89.1 peratus pada 2015 yang mana sebahagian besar beban hutang itu membabitkan pembiayaan bagi pembelian rumah.

Laporan KRI itu turut menunjukkan pekerjaan yang berteraskan kemahiran menawarkan gaji lebih tinggi, namun banyak syarikat Malaysia sebaliknya mengakui berdepan kesukaran mendapatkan modal insan yang memiliki kepakaran sedemikian.

BAJET MENJADI PEMACU DALAM AGENDA EKONOMI MALAYSIA

Bank Dunia telah menyatakan keperluan untuk pembaharuan struktur dalam Malaysia ekonomi terutamanya dalam modal insan, liberalisasi dan daya saing selaras dengan aspirasi negara untuk bergerak ke arah sebuah negara berpendapatan tinggi.

Oleh itu, Malaysia tidak boleh berpuas hati dengan kejayaan dan melihat kebimbangan yang dibangkitkan berikutan laporan Forum Ekonomi Dunia 2016-2017 baru-baru ini, yang menunjukkan penurunan ranking daya saing global Malaysia pada kedudukan ke-25 daripada 18 pada tahun lepas.

Masih terdapat keperluan untuk melihat bidang yang memerlukan perhatian lanjut dan penambahbaikan bagi meningkatkan keyakinan dalam kalangan pelabur termasuk kepentingan amalan tadbir urus untuk menghalang sebarang kemungkinan ketirisan dalam kewangan dan bajet kerajaan.

Dalam Bajet 2016, peruntukan berjumlah RM267.2 bilion, dengan RM215.2 bilion adalah untuk perbelanjaan mengurus, RM50 bilion untuk perbelanjaan pembangunan dan baki RM2 bilion untuk simpanan luar jangka.

Sementara itu, bajet yang ubah suai, telah menggariskan 11 langkah penyusunan semula untuk memastikan ekonomi dan kewangan kekal pada trajektori yang tepat.

Mengenai perbelanjaan pembangunan, tumpuan akan diberikan kepada projek-projek dan program dengan kesan pengganda yang tinggi, kandungan import yang rendah dan fokus terhadap kesejahteraan rakyat.

Projek-projek yang akan diberi keutamaan termasuk pembinaan rumah mampu milik, hospital, sekolah, jalan raya dan pengangkutan awam serta keselamatan manakala projek lain dalam kajian akan dijadualkan semula.

Langkah ini dijangka dapat mengurangkan komitmen tunai sehingga RM5 bilion.

RHB Research menganggarkan peruntukan sebanyak RM45 bilion dalam perbelanjaan pembangunan kasar bagi 2017, lebih rendah daripada unjuran RMK11 tetapi masih jauh lebih tinggi daripada anggaran sebanyak RM40 bilion pada 2016.

“Peningkatan dalam perbelanjaan pembangunan kasar berkemungkinan akan memberi manfaat kepada industri pembinaan secara umum dan mengurangkan kesan daripada pelaksanaan cukai barang dan perkhidmatan serta perbelanjaan modal yang lebih perlahan oleh perniagaan berikutan harga minyak yang rendah dan persekitaran ringgit lemah,” kata RHB Research.

Antara projek-projek infrastruktur yang dirancang atau sedang dilaksanakan termasuk projek keretapi laju Kuala Lumpur-Singapura (RM34.8 bilion), Aliran Transit Massa (MRT) Lembah Klang (MRT2) dan Transit Aliran Ringan 3 (LRT3) (masing-masing RM36 bilion dan RM9 bilion), landasan keretapi dari Gemas ke Johor Bharu sepanjang 197 kilometer, lebuh raya Pan Borneo di Sarawak dan rancangan pembinaan ribuan kilometer jalan baru di kawasan luar bandar.

“Bagaimanapun, sesetengah projek infrastruktur ini seperti projek MRT dan LRT, dilaksanakan melalui pembiayaan yang tidak dimasukkan dalam imbangan kira-kira,” jelas RHB Research.

Oleh itu, pada asasnya, Bajet 2017, akan berusaha untuk memenangi hati rakyat semasa keadaan yang tidak menentu berikutan faktor luaran, sebagaimana kata-kata Presiden Amerika Syarikat Abraham Lincoln, “semua manusia berhak mendapat peluang yang sama untuk meraih kekayaan “.

Bajet 2017 tentunya akan mencergaskan lagi negara dan ekonomi.

— BERNAMA

********************

The fact is that despite the economic growth steadily 4-4.5% the past seven years, the Federal Government deficit against GDP has been on the constant angle of reduction.

It simply translate that the Federal Government has been borrowing less to achieve the desired socio economic development programs sustainable to promote steady GDP growth.

This is far from Fourth Prime Minister Tun Dr. Mahathir’s suggestion of the nation is spiralling into a “failing economy”. The first half of 2016, the GDP stands at RM590 billion. The industrial production index is 125 (2010 as 100 base point). The employment index is almost 97% of workforce.

The surplus of the current account for the first half is RM6.9 billion.

When Prime Minister Najib took over the helm of the nation, within one year he introduced the Economic Transformation Plan (ETP). The Federal Government will no longer be over reliant on oil and gas as the single largest revenue contributor.

In hindsight, his fiscal strategy is very much demonstrated today.

*Updated 1800hrs

PRIME MINISTER OUTLINES A ‘COMMITMENT’ BUDGET‎
20th October 2016

Prime Minister Najib Tun Razak today outlined the major themes of the 2017 Budget that he will deliver to Malaysia’s parliament tomorrow.
Noting that some commentators have said this will be a General Election Budget, the Prime Minister instead stated:

*“This is a commitment Budget. Others may put short-term political gain first, but this government will not.* ‎

*“We commit to ensuring that the economic fundamentals of the nation remain resilient and strong – including policy on deficit targets‎, spurred economic activity, and the long-term health of the financial system.* ‎

*“We commit to being prudent and creative in optimising expenditure, to ensure delivery for the people.*‎

*“And we commit to a comprehensive, inclusive Budget that will fulfil our promises to the people.”*‎

Noting that during a year when advanced economies are expected to register growth of only 1.6 percent, Malaysia’s economy is on course to grow between 4 and 4.5 percent, the Prime Minister said: ‎

*“Despite the challenging global environment, the measures we introduced in last year’s Budget have helped ensure that the economy remains resilient and continues to grow. We have a plan, and it is working.*‎

*“We will continue to ensure economic indicators – such as inflation levels, growth rates and debt levels – remain strong and resilient, reflecting the core fundamentals of the economy.* ‎

*“Despite fiscal pressures, inflation has been kept at low levels, and the Malaysian people as a whole are better off today than they were a year ago. Indeed, we are now an upper middle income country.*‎

*“We continue to fulfil our promises to the people in a manner that is fair and inclusive. We are on the right trajectory, with the economy expected to improve still further in 2017 with growth of up to 5 percent.*‎

 ‎

*“At the same time, we recognise that there are challenges. We must put in place policies that address long-term structural changes, and will continue our efforts to improve the Bottom 40 as well as the Middle 40. Our focus is on both the people economy and the public economy. The overall happiness and welfare of the people is key objective.”*‎

 ‎

The Prime Minister said he would make further announcements on infrastructure, development, public transport and health, fiscal incentives for small and medium enterprises, and human capital and skills training. He said:‎

 ‎

*“In line with our commitment to put the people first; we intend to accelerate economic growth, empower human capital, drive education, increase connectivity, strengthen inclusive development and improve public service delivery.”*‎

In order to do so, the Prime Minister said that a major focus of the 2017 Budget will be on raising the disposable income of the rakyat; encouraging upscaling, reskilling and entrepreneurship training; mitigating the rising cost of living; providing more affordable houses, and funds for maintenance; substantial measures on education; and allocations for the provision of quality healthcare services.

The Prime Minister concluded by saying:
*“The safety and security of all Malaysians remains my biggest priority. We will intensify our efforts and allocate more resources to our fight against extremism and crime.”*‎

PRIME MINISTER’S OFFICE

MALAYSIA
*For more information:*
Please see http://www.treasury.gov.my
During the Budget speech:
Live stream on http://www.NajibRazak.comhttp://livestream.najibrazak.com/
Live stream on Najib Razak Facebook – https://www.facebook.com/najibrazak/
Live Tweets on Najib Razak Twitter (Bahasa Malaysia) – https://twitter.com/NajibRazak
Live Tweets on PMO Malaysia (English) – https://twitter.com/PMOMalaysia
After the Budget Speech 
Full text of speech immediately available (Bahasa Malaysia and English) – https://www.najibrazak.com/bm/blog/
Explanatory infographics – https://www.facebook.com/najibrazak/ or Najib Razak Email (subscribe via https://www.najibrazak.com/en/)
ENDS

Published in: on October 19, 2016 at 23:59  Comments (1)