In this blog post, we are going to look or flashback as far back as late 2012, that is pre-GE13 (13th General Election was held in March 2013), on the socio-economic political issues raised then.
Why? Because you will find that many of the worrying issues are still relevant today. In fact, many of the concerns raised have actually deteriorated significantly.
What prompted this blog posting is an article by blogger OutSyed The Box that was published by the Malaysian-banned online news portal Malaysia Chronicle.
In a nutshell, the article is about Malaysia’s Stock Market plunging from No.4 in Asia to 16 out of 20 ie is to say from Top 4 to Bottom 4!
No News Is Bad News will not dwell into the issue as it has been aptly explained by OutSyed The Box and we reproduce here for your feedback:
“JUNK SHARES: THANKS TO NAJIB & 1MDB, M’SIAN MARKET PLUNGES FROM NO. 4 IN ASIA TO 16 OUT OF 20
Politics | August 29, 2016 by | 0 Comments
This is from Free Malaysia Today. My comments in blue (bold).
Malaysia drops from 4 to 16, and Hoo knows why
Malaysia’s capital market ranking drops to 16 out of 20
M’sia’s capital market used to rank in top four in East Asia in mid-90s
Now, it is 16th out of 20 Asian countries
Indonesia overtaking us in July 2016
(I told you so. This happened after the mamak was put in charge. This is proof of incompetence. The country has been going down since the mamak appeared on the scene.)
Indonesia now darling of investors
Malaysia taiko among poorer countries Vietnam, Cambodia and Myanmar.
in 90s M’sia’s capital market fourth after Japan, Taiwan and Hong Kong.
(Malaysia has gone from top four to bottom four. Indonesia has passed us. Next Vietnam, Cambodia and Myanmar may get past us. Papua New Guinea has beat our football team. Maybe Papua will pass our capital markets too. Can you hear the Dumbnos? They are saying, ‘So what?’, ‘Who cares?‘)
Hong Kong’s daily capital market volume is RM30b
Indonesia RM2 to RM3b daily
Shanghai RM40 to RM50b daily.
M’sia’s daily volume is RM1 to RM2b
expansion of Indon capital market policies due to Jokowi since 2014
Jokowi’s tax amnesty to bring billions of dollars, no questions asked
2nd measure to reduce corporate tax from 25% to 17%
attracted foreign companies to invest
This created jobs for people
Jokowi’s third step to attract USD1 trillion investment from Japanese
these three measures, Indon capital market will grow 20% by end 2016
a lot of cash in Indon market at the moment
M’sia’s corporate tax remains at 25%
( In Russia both corporate and personal income tax was set at 15%. Indonesia’s corporate tax is 17%. This alone will pull significant investment to Indonesia instead of Malaysia. The Japanese are investing in Indonesia, most likely at our expense.We should reduce our corporate and personal income taxes progressively. Since the gomen has already imposed the GST, they should reduce other taxes. Instead we still have 25% corporate taxes, income taxes and now GST. And the gomen is still going broke.)
need to have easier flow for ringgit trade, just like rupiah
M’sia currency restrictions on ringgit
flow of currency restricted
a lot of red tape for foreigners
crucial to allow easier flow of ringgit
size of capital market directly proportional to size of economy.
US world’s largest economy, has largest and deepest capital market.
capital markets move money to organisations which need it to be productive
critical for a smooth functioning modern economy.
(This is very true. The stock market captures the productivity of the people in a country. People who are productive generate surplus wealth which can then be invested in the efforts of other productive people to create more wealth. It is a virtuous cycle.
The Malaysian capital market has gone from No. 4 in Asia to number 16 – out of 20. Our economic growth has also been shrinking. From 7% down to 6%, to 5% and now down to 4%. Granted the world economy goes through cycles but a sustained down trend like this is reflective of incompetent policy makers and incompetent gomen administrators. The mamak is at the top of all this incompetence.
Also, since they consolidated the banking industry, wiped out the finance companies, wiped out the credit and leasing companies, ‘merged’ more than 50 local banks to the less than 10 so called “mega banks’ or “anchor banks” (a load of crap) it has wiped out easy access to credit (aka capital). Which has given birth to the rise of the Ah Long industry, which will never go away now. Without easy access to capital, the long term economic growth has been hampered.
There has been gross incompetence in managing our economy for some time now, but it has accelerated over the past 13 years.
The management of our economy (and the country) has destroyed wealth creation opportunities steadily over time. That is why now we are at no. 16 out of 20 – at the same level as Myanmar, Cambodia and Vietnam. Thailand has long ago gone passed us. Indonesia has gone passed us too. This is incredible stupidity. Sadly, not many will even understand this.)
– http://syedsoutsidethebox.blogspot.my/"
In October 2012, it was claimed that individual Malaysians are worth only 5 sen (five cents) to the Umno-led Barisan Nasional (BN).
Haji Sobey referred to BN’s two BR1M cash handouts amounting to RM1,000 to each qualified Malaysian. You divide this amount by 55 years that BN has ruled Malaysia and you get RM18.18 a year.
You divide RM18.18 by 12 months, you get RM1.51 a month.
You divide RM1.51 by 30 days, you get 5 sen a day!
Mathematically, this is correct, and so it makes sense.
Haji Sobey concludes: “Telah ditipu, adakah akan terus ditipu? Pilihan ditangan anda …” (You have already been taken for a ride, do you want to be continue to be taken for a ride? The choice is in your hand …”
No News Is Bad News now looks at the federal debt issue from this angle: In 2012, after 55 years of BN’s plundering of the nation’s wealth, 26 million Malaysians were saddled with a RM502.4 billion federal debt or 53.7% of the Gross Domestic Product (GDP).
Malaysia drops from 4 to 16, and Hoo knows why
Malaysia’s capital market ranking drops to 16 out of 20
M’sia’s capital market used to rank in top four in East Asia in mid-90s
Now, it is 16th out of 20 Asian countries
Indonesia overtaking us in July 2016
(I told you so. This happened after the mamak was put in charge. This is proof of incompetence. The country has been going down since the mamak appeared on the scene.)
Indonesia now darling of investors
Malaysia taiko among poorer countries Vietnam, Cambodia and Myanmar.
in 90s M’sia’s capital market fourth after Japan, Taiwan and Hong Kong.
(Malaysia has gone from top four to bottom four. Indonesia has passed us. Next Vietnam, Cambodia and Myanmar may get past us. Papua New Guinea has beat our football team. Maybe Papua will pass our capital markets too. Can you hear the Dumbnos? They are saying, ‘So what?’, ‘Who cares?‘)
Hong Kong’s daily capital market volume is RM30b
Indonesia RM2 to RM3b daily
Shanghai RM40 to RM50b daily.
M’sia’s daily volume is RM1 to RM2b
expansion of Indon capital market policies due to Jokowi since 2014
Jokowi’s tax amnesty to bring billions of dollars, no questions asked
2nd measure to reduce corporate tax from 25% to 17%
attracted foreign companies to invest
This created jobs for people
Jokowi’s third step to attract USD1 trillion investment from Japanese
these three measures, Indon capital market will grow 20% by end 2016
a lot of cash in Indon market at the moment
M’sia’s corporate tax remains at 25%
( In Russia both corporate and personal income tax was set at 15%. Indonesia’s corporate tax is 17%. This alone will pull significant investment to Indonesia instead of Malaysia. The Japanese are investing in Indonesia, most likely at our expense.We should reduce our corporate and personal income taxes progressively. Since the gomen has already imposed the GST, they should reduce other taxes. Instead we still have 25% corporate taxes, income taxes and now GST. And the gomen is still going broke.)
need to have easier flow for ringgit trade, just like rupiah
M’sia currency restrictions on ringgit
flow of currency restricted
a lot of red tape for foreigners
crucial to allow easier flow of ringgit
size of capital market directly proportional to size of economy.
US world’s largest economy, has largest and deepest capital market.
capital markets move money to organisations which need it to be productive
critical for a smooth functioning modern economy.
(This is very true. The stock market captures the productivity of the people in a country. People who are productive generate surplus wealth which can then be invested in the efforts of other productive people to create more wealth. It is a virtuous cycle.
The Malaysian capital market has gone from No. 4 in Asia to number 16 – out of 20. Our economic growth has also been shrinking. From 7% down to 6%, to 5% and now down to 4%. Granted the world economy goes through cycles but a sustained down trend like this is reflective of incompetent policy makers and incompetent gomen administrators. The mamak is at the top of all this incompetence.
Also, since they consolidated the banking industry, wiped out the finance companies, wiped out the credit and leasing companies, ‘merged’ more than 50 local banks to the less than 10 so called “mega banks’ or “anchor banks” (a load of crap) it has wiped out easy access to credit (aka capital). Which has given birth to the rise of the Ah Long industry, which will never go away now. Without easy access to capital, the long term economic growth has been hampered.
There has been gross incompetence in managing our economy for some time now, but it has accelerated over the past 13 years.
The management of our economy (and the country) has destroyed wealth creation opportunities steadily over time. That is why now we are at no. 16 out of 20 – at the same level as Myanmar, Cambodia and Vietnam. Thailand has long ago gone passed us. Indonesia has gone passed us too. This is incredible stupidity. Sadly, not many will even understand this.)
– http://syedsoutsidethebox.blogspot.my/"
In October 2012, it was claimed that individual Malaysians are worth only 5 sen (five cents) to the Umno-led Barisan Nasional (BN).
Haji Sobey referred to BN’s two BR1M cash handouts amounting to RM1,000 to each qualified Malaysian. You divide this amount by 55 years that BN has ruled Malaysia and you get RM18.18 a year.
You divide RM18.18 by 12 months, you get RM1.51 a month.
You divide RM1.51 by 30 days, you get 5 sen a day!
Mathematically, this is correct, and so it makes sense.
Haji Sobey concludes: “Telah ditipu, adakah akan terus ditipu? Pilihan ditangan anda …” (You have already been taken for a ride, do you want to be continue to be taken for a ride? The choice is in your hand …”
No News Is Bad News now looks at the federal debt issue from this angle: In 2012, after 55 years of BN’s plundering of the nation’s wealth, 26 million Malaysians were saddled with a RM502.4 billion federal debt or 53.7% of the Gross Domestic Product (GDP).
That was only 1.3% short of the 55% legislated debt ceiling.
Also, there was RM118 billion in off Budget liabilities or sovereign guarantees for private corporations like the Port Klang Free Zone (PKFZ) and government-linked company loans ending 2011.
However, many economists then believed that Malaysia had already breached the legislated debt ceiling as the then International Trade and Industry Deputy Minister Mukhriz Mahathir appeared to have “accidentally” leaked out some alarming information while speaking to new students in Universiti Utara Malaysia (UUM) on Sept 6, 2012.In trying to paint a rosy picture of the country’s economy, he claimed that the nation was on the right growth track due to “wise” financial management, without reliance on heavy overseas borrowings.
“The government has about RM800 billion in borrowings. Of this figure, foreign borrowing is only 17%. The bulk is from local financial institutions,” TheEdge reported Mukhriz as saying.
Now, was our federal debt as revealed by Budget 2013 at RM502.4 billion or was it RM800 billion?
Till today, neither Mukhriz nor Bank Negara have denied the RM800 billion figure.
No News Is Bad News begs this question: Has Malaysia’s federal debt surpassed RM1 trillion! (Read this for context: http://victorlim2016.blogspot.my/2016/08/has-malaysias-federal-debt-surpassed.html
Mukhriz’s argument was also flawed when he tried to justify good financial management by differentiating between domestic and foreign borrowings.
A debt is a debt. It is still what you owe, nothing more, nothing less.
If the federal debt is at RM1 trillion, and with a population of 30 million today, every Malaysian born is a debtor. In a nutshell, that’s our future and what our generations of children have to shoulder for Malaysia.
Then, for the first time in 55 years and within a year, the BN federal government announced various cash handouts to qualified individuals, in the guise of helping the lower income group of Malaysians.
Those handouts were clearly an attempt to pacify and secure the support of the fast growing restless Malaysians who were struggling to make ends meet daily.
Clearly, the cash-strapped BN government was forced to give out such unprecedented cash handouts because of their fear of losing the rakyat (people)’s mandate to remain in power.
With the global 1Malaysia Development Berhad (1MDB) multi-billion-dollar/ringgit money laundering probe by some 10 countries, what is the future of Malaysians?
Clearly, the Goods and Services Tax (GST) has been implemented to keep the cash-strapped BN federal government administration afloat.
The GST compels Malaysians to pay taxes every second daily for almost every sale and purchase transaction, including your roti canai (bread) and teh tarik (tea).
And, that too means Malaysians are paying multiples of taxes because the flour and tea manufactures and down line businesses are also paying GST!
However, income tax and corporate tax have remained the same.
Generally, the Umno-led BN has not been able to change or reform to win back the support of Malaysians. Instead, many expect the BN to perform worse, if not lose power.
It is only in power because Opposition voters have always been split to give the BN the edge in 11 consecutive GEs.
Only in GE 12 and GE13 in 2008 and 2013 respectively did the Anwar Ibrahim-led Opposition managed to shake BN to the core, with BN losing its traditional two-thirds majority in Parliament.
With Anwar today languishing in Sungai Buloh Prison, it sure looks like the headless and severely disunited Opposition is headed for a mauling by BN in GE14. (Read this for context: http://victorlim2016.blogspot.my/2016/08/1mdb-najib-to-lead-bn-to-win-big-in-ge14.html)
The Umno-controlled Election Commission’s bias handling of the electoral process, gerrymandering of constituencies, have also helped give BN the vital edge.
In 2012, many had asked the question: Is Malaysia heading towards the direction of Greece as a corrupt and bankrupt country? Can we afford another 55 years with the Umno-led BN?
Today, are Malaysians still asking the same question, in a fast deteriorating socio-economic political scene.
With global oil and natural commodities prices severely depressed, and with the ringgit at RM4 to US$1, everything is OK, so claims BN politicians.
At an October 2012 political ceramah (rally) in Johor Baru, then PKR vice-president cum Johor PKR chief Chua Jui Meng said Malays must stop allowing themselves to be politically enslaved by Umno.
“Given Malaysia’s vast and rich natural resources, including oil and gas, and after 55 years of the Umno-led Barisan Nasional (BN) rule, shouldn’t we all be reasonably comfortable financially?
“Why must there be so many Malaysians, especially the Malays, living in poverty in rural and urban societies? Clearly, it is the result of BN-Umno leaders’ misrule, mismanagement and self-serving interests.
"Sebagai pemimpin-pemimpin rakyat, kita patut berhamba rakyat. Tetapi, BN-Umno telah memperbodohkan rakyat dan orang-orang Melayu selama 55 tahun (As leaders, we should slave for the people. But BN-Umno has made a fool of the people and Malays for 55 years)," he said.
Are Chua's words still hold true and realistic today?
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